Unlike other stocks in today’s report, chemical and explosives business ORI has ground out, as opposed to exploded, to new 52-week highs. The company recently raised $400mn at $15.84 to partially fund the acquisition of Cyanco, a US-based leader in the manufacture and distribution of sodium cyanide primarily serving the gold mining industries in the US, Canada, Mexico, Latin America and Africa. ORI is already a substantial producer of sodium cyanide, with the acquisition set to double its production with clear synergies across the business.
- We can see ORI testing $18 this FY, but it’s not exciting at this stage of the cycle.
MM is cautiously bullish on ORI, around $17
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