Oakbay Resources and Energy is an investment holding company with a 74% interest in uranium and gold mining and exploration company Shiva Uranium, which is based in the Hartbeesfontein region of the North West. This key asset boasts the largest uranium body in South Africa and intends to be Africa’s first dedicated uranium mine. The mine has an indicated and inferred uranium resource in excess of 190 million pounds, and the state-of-the-art processing plant is capable of producing 2.8 million tonnes annually. Gold deposits are mined as a by-product, while Oakbay Resources also offers contracting to the mining industry in order to diversify its portfolio and provide funding for uranium resource development and production of uranium for sale to local and export clients. In 2015, the group further diversified when it decided to buy the Brakfontein coal colliery in Mpumalanga, operating under the newly-formed division Shiva Coal.

Oakbay’s history stems back to 2009, when the group was incorporated under the name Clidet 1018. Oakbay shares have been listed under the General Mining sector of the Johannesburg Stock Exchange (JSE) since 2014. The group recorded revenue of R273 million in the 2016 financial year.

The group’s uranium operations are currently in a low intensity development phase, with feasibility studies still underway and uranium production only forecast to begin after 2018.

Oakbay has had to deal with adverse capital raising conditions, loss of confidence in mining stocks and a shaky outlook for long term Oakbay share price growth. The group was also severely challenged by intense media scrutiny surrounding its majority shareholder, which resulted in Oakbay losing a number of professional service providers and Oakbay share price stagnating.

Despite these obstacles, the company recorded a 66% increase in revenue for the 2016 financial year, and net profit before tax was up by 104% to R1.5 million, along with sharply increased dividends. This was primarily due to positive earnings from coal contract mining activities, which offset a profit decline from gold operations. The earnings performance of the Brakfontein coal project is expected to be reflected in the group’s future financial data.

The purchase price of uranium is expected to more than double by 2019, and Oakbay is positioning itself to take advantage of increases in demand.

With significant indicated resources and a world-class treatment plant, the Shiva Uranium mine is a valuable asset with potential to be a low net cost and near-term uranium operation. After promising results from initial studies and feasibility studies underway, the group appears well positioned for growth. The coal mining side of the business is also looking fairly secure, whilst gold mining has played its role in keeping Oakbay’s balance sheet healthy. Oakbay share price has hovered at around R20 since the beginning of 2016, and many investment analysts say that it is a tightly held, illiquid stock which is difficult to buy. 90% of the stock is held by just three shareholders, and the R20 price tag is much more than what investors are prepared to buy the share for.

Materials

Metals & Mining

Base Metals

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Oakbay Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Oakbay Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in Oakbay Group.
4. Click the “ INVEST NOW” button
5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

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