gretel
18 Oct 2016
"Stunning" results from OMI Great to see Canada up to the equivalent of almost 19p last night.Simon Cawkwell has commented further on OMI...[link] Orosur (OMI) has come up with stunning figures this morning.Cash is at long last rolling in. Of course it can be spent fruitlessly. But it is not fatuous to suppose that net of tax profit in the year ending 31st August 2017 will be north of USD10m and that cash will match it. It is time for OMI to indicate that it will pay material dividends. The CEO is calling in at Drayton Gardens this afternoon. I will give him an ear-bashing."
Mrbusiness
18 Oct 2016
Re: $4.7-mn Cash net of Debt Again spot on, thank you. But your conclusion earlier yesterday is 'build/retain' a holding'. Is this based on POG staying around 1250, or rising? I.e. At current POG can Orosur fund its development and will it make money, and what is your view if POG falls back a bit/ oil price and costs rise? Thanks
TwoSporrans
18 Oct 2016
Re: Sweet Spot Results "they do not have the funds to keep going in sub$1000 gold. ". Mr.BThe problem is more fundamental than a scarcity of funds; it's a lack of quality reserves.If Orosur has to depend 100% on open pit production [with operational costs $1,100/oz at best] the POG will need to average at least $1,300/oz just to keep going at break-even with sufficient reserve replacement to be sustainable.That's why the recent exploration results were so important. They show there is substantially more accessible gold in Arenal+San-Gregorio pits and vicinity. Of course extending these, let alone developing another new underground mine will require a lot more capital. Still, given operational costs of $700-$900-oz, even a few years life might lower the viability threshold below $1,100/oz if not $1,000.TSPantanilo was supposed to be viable at $1,200/oz gold......but that's been let go.Maybe Anza will come up trumps.But will it then just get part developed and sold off?Getting it into production is going to be very expensive [new mill etc] and risky for a small miner, even though Orosur has experience of this.
Mrbusiness
17 Oct 2016
Re: Cantor : Buy with 32p target Yes, I think the shares have been continuously drifting below the analysts expectation since the target of 85p in early 2013, OMI has I think been a continuous buy recommendation with the expected price mostly way above the share price, as now, but sadly the share price, unlike expectation, is way down over the period, though recovered a bit so far this year....
Mrbusiness
17 Oct 2016
Re: Sweet Spot Results A wise post, thanks. Omi has always been very geared to the price of gold (see the fall to end 2015), however hard they try to cut costs and extend mine life. It is still hard to tell if the rise in POG since January was a retracement in a long gold bear or a turning point, and the fall since July a retracement in a new bull? This is worrying for the price of likes of OMI as however they cut costs and more expensive production they do not have the funds to keep going in sub$1000 gold.
gretel
17 Oct 2016
Cantor : Buy with 32p target Cantor has a 32p target price and says OMI beat its cost guidance by 18%:http ://www.proactiveinvestors.co.uk/companies/news/167495/orosur-mining-impresses-as-profits-rebound"Orosur maintained guidance for the current year at 35,000 to 40,000 oz of gold at operating cash costs of between US$800 - US$900/oz.Cantor Fitzgerald said Orosur beat cost guidance by 18% and with the new underground mine at San Gregorio West and its ongoing exploration programme in and around its existing operations in Uruguay it is well- placed.'Buy' is its recommendation with a target price of 32p."
shugg1e
17 Oct 2016
Re: Sweet Spot Results Sell the news and gold looks like going back under $1200 short term i can see weakness here for the next 6- 8 weeks until US rates get hiked or not at the December meet.Target around 13-14p so not a great deal of downside.
gretel
17 Oct 2016
Re: Sweet Spot Results Agreed, excellent update. Production at the top end of estimates - and $4.8m cash generation in this quarter alone against a £17m m/cap.Net cash of $4.7m in the bank too.SGW is on track for initial production by the end of Q2, though with higher unit costs in Q2 OMI should at least benefit from the high gold prices at the start of the quarter.All looking good.
TwoSporrans
17 Oct 2016
$4.7-mn Cash net of Debt Worthy of a separate post.Backs up Salazar's stratagem of funding exploration and development from operational cashflow.See last post from Gretel.No fear of dilution then.
TwoSporrans
17 Oct 2016
Sweet Spot Results So Arenal has delivered its best, just when the POG was running above $1,300/oz.Sub $700/oz operating costs and 10k-oz gold for the quarter suggest the grades were very good.Wasn’t expecting this as Arenal is almost at the end of it’s current run of production.The plant switches to the new San Gregorio underground mine in November.Maybe a little of the gold was extracted as the SG ramp and access tunnels were developed.These results, along with the recent exploration ones auger well for extensions to Arenal in the future. Indeed the whole area between and around Arenal and San Gregorio looks an inviting prospect.The extra revenues must have come in handy as San Gregorio development completes.On top of the transition interruptions, guess there will be a leaner period going into Xmas as the SG production ramps up; hence Salazar has not changed output forecasts or costs:“The Company's forecast production guidance for FY17 remains between 35,000 to 40,000 oz of gold at operating cash costs of between US$800 - US$900/oz. As in the past, variations in production and unit costs are expected to occur, quarter on quarter, as the mine plan draws ore from multiple sources at varying grades, stages of development and stripping factors. The Company expects to have higher unit costs in Q2 as underground staff and equipment are transferred from the Arenal UG operation in its final months of production to the SGW UG development which is expected to commence production by the end of November 2016. “That’s OK, steady as she goes looking forward.Expect the share price would have popped a few pence over 20p were it not for the concerns over the POG and its tenuous hold just above $1,250/oz and just below the rising 200 day ma. Picture muddied a bit to extent this largely reflects a stronger $ of late, which is of course good for PM miners.Still buy on the dips methinks + sell some on the up-spikes. The volatility easily trumps the spread. But build/retain a core holding.
gretel
13 Oct 2016
New interview with CEO New video interview with the CEO - he's done a terrific job here: http ://www.proactiveinvestors.co.uk/companies/stocktube/6179/orosur-to-fund-operations-at-san-gregorio-using-its-own-cash-6179.html "Orosur to fund operations at San Gregorio using its own cash 08:45 13 Oct 2016 Orosur Mining Inc. (LON:OMI, CVE:OMI) chief executive Ignacio Salazar says that the company plans use its own cash to fund the development of mining operations at its San Gregorio gold mine in Uruguay.“The strategy for the company has been that the Uruguayan operations run on the basis of the cash generated in [the country] by our own operations,” Salazar tells Proactive.“The plan that we are following and the portfolio of projects that we plan to work on…will be funded by our own cash from operations in Uruguay.”Salazar also explains that the improved gold price means that projects that were previously dropped because they weren’t economically viable, may rear their heads again. He says: “With the gold price increasing and our unit cost decreasing, some of the pits that we left aside in the last year have become economic again, so that is another source of additional ore and additional projects.”Salazar adds that Orosur is making “very solid, very sound steps forward” at its Anzá high grade gold project in Colombia."
gretel
12 Oct 2016
Evil Kneivil buys more OMI today [link] Orosur (OMI) has this morning come up with a most encouraging review of its future resources. It has been a problem for many years that punters do not know when the ore body runs out. Well, today it has got appreciably longer to go. I paid 16.25p."
gretel
12 Oct 2016
Terrific RNS today Looks great to me 
))[link] CEO sums it all up:"“We are pleased to be able to report such a positive exploration and development update across our portfolio of gold assets in Uruguay and Colombia. Thanks to our operational performance, positive operating cash flow and the further strengthening of the gold price this year, the Company resumed more active and aggressive exploration work earlier in the year."
gretel
02 Sep 2016
Evil Knievil buys 100k more OMI Yesterday Evil Knievil noted he'd bought another 100,000 OMI at 16.5p:[link] of housekeeping I bought 100,000 Orosur (LON:OMI) at 16.5p"
TwoSporrans
25 Aug 2016
How much Cheaper? The POG seems to be rolling over; Orosur's share price following.That director's sale [Marcet] on the 23rd probably spurred a bit more selling by PIs; almost £190k is a fair whack.Having said, he's hung on to ~60% of his pre-sale holding.At least the share price has recovered a bit from its 15.6 [bid] low earlier this morning.Some 'bargain hunting' buyers in play.Not joining in yet as seems a fair chance that the POG could go below it's key support level of $1305-1310/oz depending on the Jackson Hole etc pronouncements.If it does that, where will it bottom?There's a lot of support formed around $1210-1220/oz; 3 dip bottoms during March-May this year. And now the 200day ma has climbed to $1220 and will head up further for as long as it acts as an effective support level for the spot price.Of course, the POG may well recover from a low well above $1220; just looks a good juncture to buy substantially here if it does fall that far.I can't see an end to this POG bull phase while:a. ECB+BOJ+BOE QE programmes continue on indefinite basis along with currency devaluation spiral.b. Debt-deflation remains the basic economic situation for developed economies.That does not mean the POG will necessarily set new highs much above the $1370/oz it has already attained during this bull phase.Then again, I'm expecting the OMI price to go a fair way above 20p, just on another 6 months with the POG averaging above $1,300/oz as either the net cash should build to over $10-mn over that period and/or the Columbian Anza prospect gets seriously explored and then developed for at least a small scale mine with high grade deposits.TS
