Author: Atrium Research August 20, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
- OMG released its updated and expanded PEA outlining average gold production of 351.5Kozpa over an 18-year LOM.
- Upsized processing capacity of 25Ktpd results in an initial capex of ~$1.4B, with an additional $292M in growth capex for Gilt underground
- Cash costs and AISC remain competitive at $1,501/oz and $1,608/oz, resulting in an impressive NPV5% of $4.0B at $3,600/oz gold.
- This increases to an NPV5% and IRR to $5.5B and 30% at $4,200/oz Au.
Yesterday morning, Omai Gold Mines (OMG:TSXV, OMGGF:OTC) released results from an updated and expanded PEA on its Omai Gold Project in Guyana. The study is based on April’s updated MRE (read here), outlining ~18% and ~25% increases in Indicated and Inferred resources to ~2.5Moz and ~5.5Moz vs. the prior August 2025 MRE, which had already been expanded by ~88% since the 2024 PEA. The updated study also includes the Gilt UG deposit, which was not the case in the prior 2024 Wenot PEA. While results are impressive and outline a large-scale, long-life operation, OMG has not stopped drilling and plans to move ahead with a further update to the resource by year-end and is progressing toward a feasibility study in 2027. We are maintaining our BUY rating and increasing our target price to C$4.25/share (previously C$4.00/share) on Omai Gold Mines.
Production profile expanded to average 351.5Kozpa over 18 years, with peak-year gold production of 435.7Koz (total production of ~6.3Moz). This is based on a 25Ktpd CIL plant, which is significantly larger than the 9Ktpd outlined in the 2024 PEA, and was above our 16Ktpd estimate, yielding +16% higher average production vs. our forecast of 302Kozpa (+148% vs. 142Kozpa in 2024 PEA) and +9% higher total production over the LOM. The Wenot open pit will contribute majority of production and operate over the entire 18 years, and its strip ratio of 5.9:1 has come down from 7.8:1 in the 2024 study, as OMG continues to define more ounces in the pit through the drill bit. Production is forecast at >200Kozpa in year 1 and ~250Kozpa in year 2 as lower grade stockpiles are processed to achieve the plant’s 25Ktpd capacity before Gilt comes online with higher-grade feed. Gilt UG will begin contributing to production in Year 3 and ramp up to 4Ktpd. Recoveries from the plant remain strong at ~93%.
Costs. The updated PEA outlines initial capex of ~$1.4B, which was modestly above our $1.1B forecast, and justified by the larger-than-forecast plant size ($375M in 2024 PEA). Growth capital of $292M for Gilt compares to our $100M estimate, and sustaining capital is estimated at $636M. Site costs of $49.58/t were modestly above our forecast reflecting pressure on fuel costs and higher costs associated with UG mining at Gilt, resulting in LOM cash costs and AISC of $1,501/oz and $1,608/oz, which compares to our $1,153/oz and $1,260/oz forecast ($916/oz and $1,009/oz in 2024 PEA which didn’t reflect UG mining). Nevertheless, unit costs remain competitive amongst peers.
Economics. The expanded PEA delivers ~$8.1B in cumulative cash flow, and an NPV5% and IRR of $4.0B and 24% at $3,600/oz Au, which increases to $5.5B and 30% at $4,200/oz with ~$10.7B in cumulative cash. In updating our model, which continues to reflect our LT gold price of $4,000/oz and first production in 2030, our NPV5% for the Omai Project declines modestly from $5,677M to $5,211M.
Additional MRE update by year-end. To date, ~77 holes have been drilled at Wenot since the MRE update in April that are not reflected in this study. Drilling is ongoing with five rigs active, and OMG plans to move right to an updated MRE this year. Drilling at Wenot is targeting upgrading and expanding its ~4.0Moz Inferred resource base, with step-outs ongoing at the Camp Zone, and Wenot’s east/west extensions. The updated MRE is anticipated to guide a 2027 feasibility study.
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