Contributed by Daniel McConvey of Rossport Investments
We view Osino Resources Corp. (“Osino”) as an undervalued gold developer currently almost ignored by North American investors. While Osino is not a liquid stock and there are risks (see below), we think there is a lot of upside. It is a big position for us. In the next three months, Osino plans to publish the Definitive Feasibility Study (“Definitive Feasibility”) on its plus two-million-ounce fully permitted Twin Hills gold Project in Namibia. Without serious M&A interest, which is our base case assumption, we see possible medium term share price stagnation as Osino raises debt and equity financing and starts to build the project. However, if management executes well, we believe Osino’s stock could more than double over the next three years as Twin Hills likely comes into production and more exploration is conducted. Conversely, if there is serious M&A interest following the release of the Definitive Feasibility, there may be plus 50% upside to Osino’s current Cdn $1.04 share price before year end.
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