gretel
22 Jan 2015
Re: Looking good for this H2 Indeed - and a third factor now helping OMI is the devaluation of the UGY Peso against the US$ - now 24.3 against 21.3 a year ago.
shugg1e
20 Jan 2015
Re: Looking good for this H2 Cash cost greatly reduced due to 50% fall in oil price
gretel
20 Jan 2015
Looking good for this H2 Gold up again and now approaching $1,295.New article on OMI on Minesite:[link] Extracts: "“In the second half of the year there will be less capex”, he says. “And we are confident that in the second half we are going to generate more cash flow.”That’s because the company has now mined through a lower grade sequence of rock at Arenal, and will now revert to mining from large transverse stopes. The overall plan is to produce between 50,000 and 55,000 ounces of gold for the full year, at cash costs of between US$850 and US$950 per ounce. The recent uptick in the gold price will no doubt be welcome, and should take the company back into profits, assuming even only a modest improvement on the all-in sustaining cost of US$1,258 reported in the most recent quarter. In the meantime, Orosur will continue to pay down its debt, which fell to US$3.2 million at the end of the last quarter, down from US$4.9 million at the end of May. The plan is to get it paid off by the end of the year, although there is an additional undrawn US$3 million facility in place if any wriggle room is needed. And finally, over in Chile, Orosur has reworked its deal with Codelco on the Anillo property, allowing it potentially until 2022 to complete its obligations under the farm-in agreement. Negotiations with potential funding partners for further exploration work there are continuing. All told, Ignacio is satisfied with progress to date. “It’s mission accomplished for the first half”, he says. Now, we’ll have to see what the rest of the financial year brings."
TwoSporrans
15 Jan 2015
Results to 30th Nov 13 Actually was encouraged by these, the $1.2-mn loss notwithstanding.Debt down to ~$3-mn; cash still ample at $6.8mn.The company is well positioned to survive another lean year or 2 with production steady-ongoing.The exploration results are very encouraging as they show Arenal Deeps can be extended into high grade seams and the life of the mine extended significantly.This is absolutely key to Orosur's long term survival/prosperity.Deflationary times seem to be giving the POG a much needed leg up.The breakout above $1260/oz today is the most encouraging news for months.When the critical support level of $1180/oz was decisively breached last November, I expected the POG would wend its way down towards a significantly lower equilibrium.Today, the spot price has crossed up over the 200 day ma; this is a seriously bullish rally now.Better still, the progressive decline in Oil prices must be feeding though nicely into considerably lower fuel bills for Orosur.Combine this with the improved extraction grades in both Arenal and the open pits forecast for Q3+Q4 and it may well be that Orosur is quite profitable, even with a POG as low as $1200/oz.Not sure I've the guts to buy more, even for a short/medium trade but I'm certainly not selling.TS
forwardloop
15 Jan 2015
Cantor - 32p tgt Cantor Fitzgerald maintained its "buy" stance and 32p target price on gold producer Orosur Mining (OMI) despite reduced output and increased costs caused by declining ore grades at its Arenal Deeps mine. The company dropped to a net loss of $1.2 million (0.79 million pounds) for the most recent quarter after earning a profit of $3.5 million in the equivalent period of last year. Cantor believes the stock is trading at a substantial discount to peers and that life of mine improvements and current development projects indicate longer term value. The shares ended the day flat at 10.75p.
forwardloop
20 Dec 2014
info Cantor Fitzgerald reiterated its “Buy” rating on Orosur Mining (OMI) after the firm produced 12.9 koz of gold over the 3 months ended 30th November, bringing total production for the first half of the company's financial year to 26.6koz. The broker is confident that that full year guidance can be met and that Orosur's stock remains underpriced relative to its peers, given the current production and financial metrics. The shares ended the day flat at 10.63p.
forwardloop
20 Nov 2014
Re: House Broker Pipes Up Cantor Fitzgerald retained its "buy" rating and 32p target price on Orosur Mining (OMI) after the firm signed a non-binding deal to option out up to 40% of its interest in the Anillo project in Chile in exchange for $3.5 million (2.2 million pounds) in investment. The broker views this as a positive development as it lets the firm keep a significant interest in the project whilst dramatically reducing Orosur's financial commitments. The shares rose by 0.375p to 12.125p.
