IMO this stock is still looking very cheap and I predict it will rise 10 - 20p over the next few weeks as todays interim results sink in.
The reason I say this is as follows:
Last year RBC Capital Markets calculated a share value of 92p - 114p based on NPV and NAV of OXS current projects using the following assumptions:
Gold price of $400 -425 / ounce
Silver price of $6.50 / ounce
and specifically for the Amantaytua project to produce over 100,000oz in FY 2004 at a head grade of 6 g/t.
In fact the results announced today show they have exceeded these targets producing 148,000oz at grade 6.2 and the gold price is currently $430/oz and silver is $7.10/oz.
Now that OXS has proven its ability to successfully operate the Amantaytau mine profitably we can look forward to the Jeeroy project coming on line by the end of the year. I predict that as soon as the company announces that the Jeeroy licence is reinstated (which looks like it could happen anytime now) that the price will start moving up towards the 80 - 85p level fairly quickly.
The reason I say this is as follows:
Last year RBC Capital Markets calculated a share value of 92p - 114p based on NPV and NAV of OXS current projects using the following assumptions:
Gold price of $400 -425 / ounce
Silver price of $6.50 / ounce
and specifically for the Amantaytua project to produce over 100,000oz in FY 2004 at a head grade of 6 g/t.
In fact the results announced today show they have exceeded these targets producing 148,000oz at grade 6.2 and the gold price is currently $430/oz and silver is $7.10/oz.
Now that OXS has proven its ability to successfully operate the Amantaytau mine profitably we can look forward to the Jeeroy project coming on line by the end of the year. I predict that as soon as the company announces that the Jeeroy licence is reinstated (which looks like it could happen anytime now) that the price will start moving up towards the 80 - 85p level fairly quickly.
