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Changes to shareholder register as a company matures – Ora Banda Mining Ltd (OBM)

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Question asked 22/03/2025

Changes to shareholder register as a company matures – Ora Banda Mining Ltd (OBM)

Hi Team, Thanks for all the information you provide. I have held Ora Banda Mining (OBM) for some time, and I am curious about the transition a company like this goes through when making the transition from a gold junior to a credible mid-tier miner. They continue to have good results with plenty of greenfield opportunities nearby, plus have recently been added to the Asx 300 and various Gold ETF’S, at the same time their main shareholder has sold down two tranches of shares to institutions, most recently from 31% to 25%. What should an ideal top 20 shareholder structure look like as a mining company matures? What benefits come from this evolution, and what should we watch for as the share registry changes? I appreciate your thoughts on this and any other insights on the stock in general. Regards Adam

Answer

Hi Adam,

Firstly congratulations, not many gold miners deliver in such impressive fashion as OBM:

For the half-year ending December 31, 2024 revenue increased by 93% to $186 million, NPAT rose by 371% to $50.84 million with free cash up to almost $58mn.
The stock has subsequently surged more than ten-fold in just 18 months, taking its market cap. to a meaningful ~$2bn.

We believe looking too closely at the internals of a share registry can cloud the picture for investors where basics like earnings growth, debt levels and operational execution will override in the long run.

However, broadly speaking we like to see the board/founders having “skin the game”, and a healthy mix of both fund managers and retail investors delivering liquidity to the stock. In the case of OBM, as Hawkes Point slowly sells down, locking in huge gains, the share registry looks likely to move in a more healthy, less concentrated direction, which improves liquidity (Free float) in the stock. This is important for index inclusion which drives further flows. We also like it when larger holdings sell down, and the market absorbs the stock easily, it shows an underlying appetite for the stock.

We cannot fault OBM’s asset base & execution, and think this is a company with a bright future.

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Ora Banda Mining Ltd (OBM)

LAST UPDATED 21/03/2025 19:17

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