Orosur Mining Share Discussion Threads

[boadicea] 19/1/2017 07:32

Interesting RNS this morning includes some of the highest gold grades I can recall.
The average is also ok but I suspect that the high variability might pose operational problems.

[temmujin] 19/1/2017 07:25

nice rns..onwards and upwards

[bigtbigt] 18/1/2017 13:21

Seems OMI gives out rose colored spectacles to its investors
Thanks for not wearing any Augustus

[overdale123] 18/1/2017 12:32

Guess I'm gonna have to get the steam going on the laptop. Can't seem to filter wasters on the iPad who are betting and sweating on a big fall in the share price

[augustusgloop] 18/1/2017 12:14

wallywoo:

"generating 3-4 M per qtr in cash"

Have you even read the last RNS?

It states clearly the change in cash:
Cash increase in last 3 months = $394,000
Total increase in cash in last 6 months = $1,056,000

So about 1 tenth of what you are claiming.

[wallywoo] 18/1/2017 12:02

No OMI made it quite plain Arenal Deeps had been running for approx 3 years and reserves were becoming depleted

but I would of said there was probably 200 - 300K ounces in Don Tito, and of course SG Deeps


Money in the bank (end of Nov $5.4M) generating 3-4 M per qtr in cash

[augustusgloop] 18/1/2017 11:55

Rhuvaal, wallywoo,

If I had said 6 months ago that there is only between 100k ounces and 400k ounces of economically viable gold left in the OMI mines --- you would have rebutted immediately with:

'Can you not read, you thick git, there is at least 500,000 ounces in Arenal Deeps!'

But now they have closed Arenal Deeps -- where is their economically viable gold?????

You may say that some of it is in San Gregorio -- but isn't that just wishful thinking?
Is there any evidence at all that it will be better than Arenal?

All the evidence was supposed to support Arenal being the 'premium' asset - right up until they announced its closure (with no explanation of how they could have been so wrong).

[wallywoo] 18/1/2017 11:45

17,408m of core drilling undertaken (53 holes) since first optioning the Project

Environmental permit in place to mine underground and open-pit.

Camp already set up, OMI currently taking it over


Already spent $6M + on exploration / Development (spent $500K last qtr)

IMO 3-6 months away from a decision to start a small underground mine

[augustusgloop] 18/1/2017 11:39

Of course I don't mention Columbia - it is pure speculation.
They are years of proving any viability of any asset there.

Even if they are viable - OMI would have to set up all the infrastructure, buy all new equipment, establish a workforce and management team from scratch - and buy all the mining equipment. then there's getting the permits and the cost of all the initial development work.

Probable total cost of starting a new mine there = anywhere between £30 million and £50 million - money that OMI simply do not have.

[wallywoo] 18/1/2017 11:11

None of his posts even mention Columbia, which is by far the best exploration asset (high gold content, large area. 100% owned with current mining permit). share price is 200%+ higher than the lows

But could not be bothered to reply, let him have his rant

[rhuvaal2] 18/1/2017 09:14

Some people have a desperate agenda, don't hold and don't even short the stock... so why bother with such effort? Fowler left years ago and the company now has some astute investors on its share register = but not augustusgloopy: he is a genuine muck-stirrer and a high class one at that.

[augustusgloop] 18/1/2017 00:31

richgit,

"There is plenty of Gold at OMI waiting for the right price,and
plenty to see it through at current levels- until the days of the right price."

-----------------

No there isn't

There was perhaps 1.1 million economically viable ounces when they started in the assets that they owned and bought.

They have removed about 700,000 (can't be bothered checking it fully over the last 14 years).

So perhaps they have 400,000 ounces left - which they are presently selling at a rate of about 30k per year at zero profit.

But that 400k oz figure may be very optimistic - if San Gregorio turns out like Arenal.
Perhaps they have only 100,000 ounces left that are economically viable.

They didn't make any money out of the best pits - so why should we think that their remaining choices will be better?

Can they survive until the next gold bull run - and even if hey do, how much gold will be left.

Is Anillo viable?
Even if it is, can they generate the $ tens of millions needed to bring it into production?

We hear plenty about zombie banks.
Orusur is a zombie miner.
They sell enough gold to stay in business - but not enough to replenish their rapidly depleting asset.

Somewhere between 70% and 90% of their economically viable gold has already been mined.

[richgit] 17/1/2017 22:27

So many praying JP Morgan doesn`t pull a double cross which could aid Gold
stair step to $1300.



There is plenty of Gold at OMI waiting for the right price,and
plenty to see it through at current levels- until the days of the right price.


For a Company with virtually 0 debt,it would a needless recklessness to squander
such assets.



With the easy glory of hindsight we may ask why Previous Management didn`t
hedge heavily at circa $1900 Gold, but then some had their Investors screaming (with hindsight at $1600) "why the hell did you hedge at $600 ?~in fact why the hell did you sell any Gold at £600,$ 800,$1000.? and waste our assets " !!

It`s a tough game and when the days of $1900 return,(at some point)
some may be screaming, months later- "why the hell did you hedge at $1900 "

[qs99] 17/1/2017 12:53

so £$ rate helps with the lower GP, but now GP is on the up and £$ is even lower IMO so double whammy benefit!

gla

[rivaldo] 17/1/2017 12:51

Comment from house broker Cantor, with a 32p target:

http ://www.proactiveinvestors.co.uk/companies/news/124810/orosur-mining-makes-light-work-of-underground-switch-124810.html

Extract:

"House broker Cantor said Orosur made significant progress towards defining new deposits and reserves close to its existing operations over the half year.

Good progress is being made at open pit targets (Mina Peru and extensions to Veta Rey).

Exploration permits have also been granted for Los Naranjos and Nueva Australia, two open pit targets near the processing plant as well as three more new targets near the Sobre Saliente pit.

"We believe this should result in both short and long term increases to the company’s reserve base."

Away from Uruguay, the company is finalising the geological model for the Anza project in Colombia.

While the gold price has been lower since the end of November, the weakness of the pound against the US dollar should mean this has little impact on target price.

“OMI is delivering on its operational and exploration programmes and we reiterate our buy recommendation and TP of 32p ahead of finalising new estimates.”

Shares rose 10% to 16.9p."

And a video interview with the CEO:

http ://www.proactiveinvestors.co.uk/companies/stocktube/6735/orosur-mining-chief-pleased-with-incredibly-busy-first-half-6735.html

"Orosur Mining chief pleased with 'incredibly busy' first half
12:05 16 Jan 2017

Uruguay-based Orosur Mining Inc‘s (LON:OMI CVE:OMI) told investors the switch to underground production at its San Gregorio mine has gone smoothly.

Ignacio Salazar, Orosur’s chief executive, tells Proactive: ''I'm happy with progress, it's been a busy [period] and it's in the last six months that we've put in most of the effort on developing San Gregorio''.

''It's not every quarter that you open a new mine ... and for us it's the core of our production''.

For the half year, net profits came in at US$3.7mln from a US$2.6mln deficit the last time."

[2sporrans] 17/1/2017 11:38

You forgot Pantanillo Augustusgloop.
Surely the greatest waste of $-millions was there; even more than the $13-mn cash burnt over Talca [not Talaca]. I never kept a tally but expect over $20-mn, over several years, went down the Pantanillo hole.
Although this was the main Chilean 'legacy' of the Fowler years, it continued to absorb exploration monies under the watch of Salazar, before it was quietly let go of for nought a year or so back.

A refresh from 2012:

"The financial results indicated a five-year mine life, with Net Present Value of US$32 million (before tax) and IRR of 17per cent. The gold price assumption for the PEA was constant at US$ 1,200/oz. No other metals were considered payable."

hxxp://www.businesswire.com/news/home/20120111006476/en/Orosur-Mining-Announces-Results-Preliminary-Economic-Assessment

The Orosur take was that Pantanillo would be profitable at $1,200/oz; clearly this was deluded!!

Yet, although you bring balance to this board, I consider you are way too one-sided in your wholly negative appraisal of Orosur.
Salazar has turned the company around from a profligate, hobby-geologist's toy into a pretty efficient enterprise with realistic strategies.
Arguably the board could be culled back and the share options too but at least there has not been any serious share dilution here and the company has stuck to it's self financing promises....thus far.

I agree the resource situation is a bit threadbare; there's no guaranteed pipeline here; that's why its so cheap.
Also, my impression is that most who post here are either optimists as to the all critical matter of where the POG is heading over the next 3 years; or worse, they have not grasped that OMI is a high cost producer and will very likely remain so.

[richgit] 17/1/2017 09:29

tapertick

How long have you Got ?

I am investing in Gold stocks with the hope of holding for years yet.

Many of the Majors are facing a 10-20 year vacuum of "new resources"

That suggests there will be plenty of time, and at some point euphoria for the next multibagger type Brancotes to appear/be recognised, as World Gold production
declines,and more producing Countries grab more of their own production for their
Central Banks.




Whether the Waymar assets will be amongst those- We wait to see.

I have all the copies of Waymar`s drill results and announcements which we can discuss,yet we await assessment as to whether the currently known pieces of the Jig-saw fit together.

Hopefully they will- and of course Waymar had very substantial acreage,which is now
all OMI`s.

[taperkick] 17/1/2017 08:50

Anillo 7 years+ and counting of scratching around, so how long Waymar?

[richgit] 17/1/2017 08:02

A nice steady ship.

Management doing all the right things.

I certainly look forward to the Waymar drilling assessments and whether those
very high grade Gold drills can lead to more,as those significant Weymar assets "could" offer the dreams.

Those assets were arguably once valued around what OMI is today valued in total,so a lot to be played for,yet rather than speculate let`s wait to see what Management say.

[augustusgloop] 16/1/2017 21:53

To show are bad the situation is:

Q2 production was 6,852 oz

That is less than half what they averaged over several years before Salazar took over.

Gold production is dropping because there are no decent pits left to mine and the main prospect proved to be a dud and the holy grail saviour Arenal Deeps is closing after producing about 1/10th (if that) of what was indicated.

[augustusgloop] 16/1/2017 21:32

Where's the potential?

This was the pecking order:
1) Arenal Deeps -- closing in a few months.
2) Talaca -- dumped because it was uneconomic
3) Anillo -- any news there?
4) San Gregorio -- wasn't even on the radar until the 'better' prospects proved to be duds.
5) other pits -- OMI are well down the list of profitable pits now.


Look at how much cash they have -- this is from 14 years of producing gold - never a dividend.

Now all the good stuff is gone - just the dregs left.
the cheapest to attain 700,000 oz ?? sold.

What is the commercial case for buying here?