Hi Nordesmic, I bought into OGC after the Romarco deal was...

Hi Nordesmic,

I bought into OGC after the Romarco deal was announced and the subsequent fall in SP.

I don't think that the OGC management are fools so there must be some angle to the deal that we're not exposed to / factoring in.

From an investor's perspective the valuation of Romarco (at the time) was very similar to Pretivm's Brucejack development and the Pretivm project is a quantum above Romarco in terms of valuation / potential exploration upside.

It can't be that no other options were on offer either - for example OGC could have acquired EVR / EDV for less than Romarco and immediately secured +500k oz of production (growing to +700k oz) and paid less (admittedly higher AISC). Note the recent EVR / La Mancha deal - so EVR were receptive to deals.

Anyway ... price action in OGC today (on no news) just shows how the sector is behaving of late. I guess some have run hard (NST, EVN, SBM, etc) and now investors are rotating to laggards (OGC +11% today as I write).

It all smells like the bottom is in for the ASX miners and we will hopefully now be rewarded for our patience (I think the collective Denver presentations opened the North American's eyes to how profitable some Aussie goldies now are).

Cheers
John