KEY POINTS
- A new PEA values Omai Gold Mines’ Guyana project at $4 billion, more than double its $1.42 billion cost.
- The project could mine 6.3 million ounces over 18 years, with a 24 percent IRR and 4.1-year payback.
- Analysts see Omai as an emerging takeover target, though rival Oko West shows stronger returns.
A new economic study has valued Omai Gold Mines’ namesake project in Guyana at $4 billion, ranking it among South America’s largest and most valuable undeveloped gold projects.
According to the preliminary economic assessment, the after-tax net present value reaches $4 billion at a 5 percent discount and a $3,600 gold price, more than double the $1.42 billion in initial capital costs. Moreover, Omai said the study points to a 24 percent internal rate of return and a 4.1-year payback.
A large, long-life gold project
The plan would mine 6.3 million ounces of gold over an 18-year life, and Omai said its scale and record as a past producer give it a clear path to redevelopment. Furthermore, the site already offers highway access, a cleared footprint, an on-site airstrip, a tailings facility and proven metallurgy.
Still, the market reacted cautiously. Despite the strong economics, Omai shares slipped 1 percent to $2.96 in Toronto on Wednesday, leaving a market value of about $2 billion. However, National Bank of Canada analyst Rabi Nizami said the project validates a globally relevant scale, and he cast Omai as an emerging takeover target for larger producers.
How Omai stacks up in Guyana
Guyana has become a sought-after gold jurisdiction, drawing investment with a stable mining regime, better infrastructure and fresh discoveries alongside Suriname and Brazil. Consequently, Omai’s project, about 165 kilometres south of Georgetown, sits at the heart of that boom, having yielded more than 3.7 million ounces between 1993 and 2005.
In addition, the study invites comparison with G Mining Ventures’ nearby Oko West project. Omai would produce roughly 1.9 million more ounces over a longer life, yet Oko West shows a 9 percent higher value, a stronger return and a shorter 1.6-year payback. Therefore, Omai still trails on speed, even as drilling with five rigs at its Wenot pit points to further growth.
