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OMH posted an announcement: FeSi price hit the roof, now at US$4,125/ton. OMH cost is only US$1,000/ton.
With this price OMH can be making US$200-300m profit from smelter
Yes, I agree OMH is badly sold down, unfortunately.
The fundamental for OMH is still strong given the Fei is now US$1,900-2000!!! This will mean OMH will be making close to GPM of 100%.
This is an all time high for FeSi since the Sarawak factory has been in operation. Even in 2018 when OMH share price hit A$1.70 (RM5.3), FeSi is only trading at high of US$1,700++ (average of US$1,400 for whole of 2018).
We are now waiting for OMH announcement that the Sarawak factory is being put back into production, which could be any time soon.
Hopefully this can drive back more buying interest for those investors who understand the fundamental of this company.
At 75% capacity, OMH produces
(i) 130K ton/pa FeSi (making GPM of US$900/ton i.e. total US$117m),
(ii) 250K ton/pa MnSI (making GPM US$500/ton i.e. total US$125m)
Total GPM of US$242m per year
At 100% capacity, OMH produces
(i) 170K ton/pa FeSi (making GPM of US$900/ton i.e. total US$153m),
(ii) 330K ton/pa MnSI (making GPM US$500/ton i.e. total US$165m)
Total GPM of US$318m per year
Current Market cap is only A$630m (RM2b), it is only PE of 3-5x (PressMetal PE is 80x). A lot to catch up.
UOBKH has research report (initial coverage) out on 1 Jun, BUY with Target Price RM3.27. RHB issued another research report on 21 Jun 2021. Go to www.omholdingsltd to download under Investor Relations/Research Reports. Worth your while to read and you can see why share price should go up more...
OMH has climbed >50% since listing. OMH produces ferroalloy and alloy prices have rocked ~50% (since Dec 20), same as Iron Ore (also up 50% since Dec 20). But OMH share prices has been lagged due to no coverage in ASX.
At PE 20x, OMH potential profit A$100m (RM310m) for FYE 2021/FYE2022, its share price should be A$2.70 (or RM8.50). This is low compared to PMetal (PE 80x), Lynas (PE 60x). At PE 30x, it should be A$4 (or RM12). So, you think OMH share price still can run? Definitely
