OBM is a $3.2bn gold-focused Australian miner with established operations and growth through exploration and underground development at Davyhurst, in the Eastern Goldfields of Western Australia. The company generated $404mn in revenue in FY25 which is expected to ramp up to $960mn by FY27, as the company transitions to high-grade underground production at the Davyhurst Project and evolving cost structure as it ramps up Sand King and Riverina Underground output. OBM’s recent encouraging drilling results from its Davyhurst project strengthened the case for Waihi to become its 3rd underground mine.
- We are moving to a more cautious stance towards Gold in the short term, and as such, we wouldn’t be chasing strength in OBM after a very strong run – trimming would be our preferred approach, leaving room to buy pullbacks that will inevitably eventuate.
MM is now neutral towards OBM ~$1.70
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