Orosur Mining Share Discussion Threads

[richgit] 15/5/2015 19:11

rivaldo.

I would assume the risk/reward that the Gold will be in the ground for OMI
a lot longer than the US can keep spinning the web of infinitive fiction,and delay QE4.

Twice in a couple of weeks the Central Planners have had to shore up a derivative meltdown, and when $multi-Trillions get hit-someone is losing an immense amount of money.

At some point the IMF wont be simply inviting China to become a member of the reserve currency club- they will be begging them.

IMHO

[rivaldo] 15/5/2015 16:13

Nice 100,000 buy just reported late from earlier, presumably prompting the rise today.

[bushtuckaman] 15/5/2015 15:30

Yawn! From 2013

"undergroundminor 10 Sep'13 - 16:18 - 11773 of 13869
The issue is still the life of the mine. Arenal Deeps runs out in the middle of next year. It will take 6 to 9 months at a minimum to get a new ore body into production. So they need to find 100,000 ounces or more in the next 3 months."



Credibility zero!

[undergroundminor] 15/5/2015 14:19

The point that Salazar never talks about is grade.
They are mining the high grade Arenal Deeps material at the moment and not generating much free cash as they do that. That high grade will run out soon, and then they are into the low grade material.
The grade at San Gregorio Deeps is too low to make any money. Plus they have to fund and then amortise the cost of either an open pit, or else a new underground mine.
Grade is the simple issue.
It may be that past history will continue, and that they keep finding further gold at San Gregorio. But historically (other than Arenal Deeps) it has always been low grade; and low grade doesn't make any money.
Another way of looking at it is to look at pictures of the big hole in the ground at Arenal and at the big tunnel underground. All that ore extracted. BUT WHERE HAS THE MONEY GONE?

[augustusgloop] 15/5/2015 11:37

I bet that they don't buy any themselves though.

If the II analysts really thought that OMI was underpriced by 300% - they would be falling over themselves to buy in.

The share price wouldn't stay at this level for long.


The institutions aren't interested -- so draw your own conclusions.

[rivaldo] 15/5/2015 10:52

Good to see gold hanging around the $1,220 mark.

Cantor Fitzgerald reiterate their Buy and 32p price target for OMI:

[richgit] 14/5/2015 08:53

The guessing game here, like so many, is when several million underwater shareholders decide its time to grab the undervalue.

There are about 20,000 shares, handed over by the 2 day traders available, which will hardly excite anyone.

It`s a risk/reward decision about a Gold producer with exploration that is
virtually debt free and valued for virtually-nothing.

Management and their Geologists seem to believe there is potentially decades
of Gold around them,and all they need to do is have sufficient to convince the
Market when China eventually fully controls the Gold Market as per the plan
set in stone.



Management just need to listen to the Chinese,and not the Gangster Banks
where just totting up their fines for fraud highlights the worth of their
opinions.

As I look at say AMA which will probably be valued beyond £1Billion if their
plans come good,then it looks a good idea to me to grab some of the breathtaking
bargains- before the so many underwater shareholders - all arrive by coach with
buckets of cash.


Everyone to their own in a spread of risk/reward.

[cerrito] 13/5/2015 22:56

Given the currency weakness against the $ in Brazil, Paraguay and Argentina I have been expecting in commentaries on OMI to have a comment on the weakness of the Uruguayan Peso against the $.
In fact the Uruguayan Peso has been stronger against the US$ than other South American countries just devaluing over the last 12 months from 23 to 26.5- a bit faster than inflation at 8% ie OMI have had a modest currency benefit.

[thecynical1] 13/5/2015 20:58

rivaldo.....thanks for a post that actually relates to OMI! Did some of the other posters ( who shall remain nameless......let's just say......they like to waffle on about conspiracy theories! ) on here not get enough attention as children or are they retired headmasters who liked the sound of their own voices?

[rivaldo] 13/5/2015 13:27

OMI could make the choice to go with open pit mining, which it seems could produce up to 170,000 oz, depending on finance etc.

There's a good new summary here which is worth copying in full:

Http ://www.proactiveinvestors.co.uk/companies/news/80237/orosur-mining-chief-knocking-the-gold-miner-into-shape-80237.html

"BIG PICTURE: Orosur Mining chief knocking the gold miner into shape
By Alastair Ford
May 12 2015, 11:01am

We said the second half of the year was going to be better,” says Orosur Mining (LON:OMI) chief executive Ignacio Salazar. And, with third quarter results already in, it looks like he’s going to be proved right.

During the three months to February 28, Orosur produced just over 13,700 ounces of gold from its operations in Uruguay, at an all-in sustaining cost of US$1,132 per ounce. That’s 500 more ounces than the company produced in the corresponding period in 2014 and with more than US$50 per ounce shaved off costs.

“Our cost cutting and optimisation programmes continue month by month,” says Salazar. “We do it to minimize the cost from the economic point of view but also to smooth performance between the quarters. The fourth quarter is going to be even better.”

That strong resolve is testament to the way Salazar has now stamped his personality firmly on a company that some felt had lost its way before he took over at the top just over two years ago. Under his tenure losses have been pared, the focus restored to production, and investor confidence re-built.

But having said all that, Salazar is by no means complacent, especially as the gold price has been drifting down, squeezing margins even as costs are trimmed out.

“What we are trying to do in this environment, with the gold price hanging around at US$1,200, is to firm up as much as we can the fundamentals of our business,” he says.

“The plan is to get the performance going consistently, to firm up our reserves and our projects, and to get our four year mine life out to five and six.”

Long years of visibility are unusual in South American epithermal mines such as San Gregorio.

But pushing out the mine life does give comfort to investors who do like at least to have some numbers to crunch.

So in the last fiscal year Orosur added over 75,000 ounces of gold to the mine life and plans to bump that total up this year.

But what’s more important is to keep the cash flow going.

In the third quarter, mining operations generated US$3mln in cash for the company as the realised price per ounce of gold rang in at US$1,220 per ounce.

That was down slightly on the price realised in the corresponding quarter in fiscal 2014, and this time round it’s likely to be down again.

But the negative effects of the weaker gold price will be counteracted by Salazar’s cost cutting measures, by a reduction in capital spend now that a new tailings dam is in place, and by efforts to improve output.

These are already showing through as Orosur is now mining a greater portion of its ore from the more productive Arenal Deeps underground operation, and within that operation itself is now mining through stopes containing higher grades.

So far so good. But there’s more. A new open pit at Laurales has now come on stream, providing a steady flow of oxide material into the plant, where previously it had been gathered hodge-podge from various near-exhausted pits across the wider San Gregorio project.

That consistent Laureles output will dovetail nicely with the higher grade production from Arenal Deeps and has allowed Orosur to state categorically that the fourth quarter of fiscal 2014 will be the best quarter of the year. The company is confident of meeting the 50,000 ounce full year target that it previously laid out, all at cash costs of between US$850 and US$950 per ounce.

Precisely what happens after that remains to be seen. “We’re in the middle of the budget for 2016,” says Salazar. “A lot depends on the sequence of the pit and the Arenal stopes. We’ll try to keep it smooth quarter on quarter.

“We’ve been very focussed on cash during this period. And next year we’re going to be even more demanding in keeping costs under control.”

What seems also to have fallen of the radar screens of most investors is that the company is now virtually debt free. The cash has been flowing and two separate long-term debts have been gradually paid down.

In a volatile gold price environment that’s some comfort, and gives Salazar a bit of room for manoeuvre.

If the low gold price really does start to put the bite on the company he can defer some of those sustaining costs until better times.

But in the meantime, plans to increase resources to maintain production continue apace.

The latest area under investigation is that part of the property directly under the old San Gregorio open pit, which already boasts 100,000 ounces of gold.

It’ll be up to Salazar shortly to decide whether to go underground there or to mine it via an open pit. Expect news on that very soon."

[ironstorm] 13/5/2015 09:52

Yes one wonders what the cost of this will be and whether it will just be depleting the coffers that are expected to be built up.

I understand Richgit's point but the timescale might see me dead and buried first. I would have expected some uptick in the price of Gold with the Great Bond sell-off but seems nothing shifts it.

I for one don't want to see this poodling along burning cash and giving zip to us S/holders.

[cerrito] 13/5/2015 09:37

Rather agree with you IronStorm..Ignacio mentions 30/35k and seems to be a lot of huffing and puffing to produce 7/8 months amount of gold
Welcome illumination from others

[richgit] 13/5/2015 09:13

As long as OMI are producing in the coming years of the great re-set,then
this sub £10Million Market Cap can multiply beyond current imagination.

It wont matter if the central Planner Fraudsters turn 100 tonnes of Physical into 20,000 Tonnes of fictional Paper Gold by upping the leverage to 200-1 in Paper Gold, as this is one currency they simply cannot print and push down
the wires.

World Gold production is facing its decline, and more producers are being approached directly, so the monthly Gold coming to actual Market to be manipulated is reducing month by month.

The rest is coming from where ???? yet it is being trucked in like some secret military operation into China`s Gold vaults + India + Russia + ?????

The day some sovereign asks for 50 tonnes of paid for Physical at the false
price set by Paper, and that Gold isn't there- then the panic starts.

This is all in the face of many desperately trying to repatriate their Gold
as all Central Banks know that to sit around the Gold Table-they will no doubt
have to be Gold audited.

There is no truly willing "seller" of tonnages of Physical Gold on the Planet, so if if the US is emptying Fort Knox in desperation, then it is all the more damning for the West.



China will control the Gold and the Gold Market and then re-set comes at a pace



If the Fraudsters take Gold below $1100 then they will have to be ready to
supply mega tonnes of Physical at that price as China has a conveyor belt of $Dollars at the ready and time running out if they are going to declare their
Gold holdings in 2015.

I could only imagine that would be the day the Gangster Bullion Banks arrange their default and the next situation would be Paper Gold closed at $1000 and Physical trading at $1500 and then ............?

I doubt they are going there,considering the repercussions,yet many would love to default at $1000,and many would love to swap every last $Dollar at $1000.


There is nothing to say now,as We watch and wait for reality to come to the fore
in the same way as the day Goldmans faced their nightmare,along with others, and Bear Sterns lived it.

We will eventually find out what JP Morgan is doing with those Multi-Millions
of ounces of Silver they have tucked away,and I certainly want some more before
We find out.!!!


IMHO

[ironstorm] 13/5/2015 09:02

I have read the RNS but what actually is the increase???

Does it allow OMI to continue as is? Or is this the golden age about to come? I am none the wiser.

[kiwimonk] 10/5/2015 07:58

The thinh about 'joe bloggs' and figures for gold consumption is there is no believing the figures. For all you and I know, Joe bloggs is accumulating massively, not to mention the Billionaires who are sinking huge amounts into Physical.
It doesn't matter that Countries are buying Billions of $ of Gold Pys.

None of that will change the P O G.

It's a rigged game and China et al are probably sitting on a shed load of Shiny Gold Plated Tungsten anyhow!

[richgit] 10/5/2015 01:13

We are now seemingly in a final timeframe whereby China will swap a percentage of all their remaining $Dollars possible, for Physical Gold .

Ironically at any price, yet they will be more than happy to get every ounce available in that time frame-whether $1100 or $2000.

It is certainly in their interests that Joe Bloggs is not competing as disinformation and misinformation is reaching its peak to keep Joe Bloggs away from Physical Gold ,yet others that need or want Gold, are at their heels.

Assuming that OMI is in rude health the day the Gold dam bursts, it isn't going to be easy to grab a Million share holding at such a price in a Company now valued at less than some diggers.

Of course start up exploration stocks have been valued at £100 million in better
times,so an exploration stock already producing at profit should be somewhat far higher valued.

Goldman faced their Lehman moment-yet saved by Moron`s Gold auction

Bear Stern basically bust as they faced the Goldman moment,so they were
dumped on JP Morgan ,including the Silver short position that bust them.


JP Morgan almost losing control of their bowels as they faced the nightmare
of the $21 per Silver Ounce that took down Bear Stern, reaching $50

I wonder who will be the next ?

[richgit] 29/4/2015 09:08

In reality I doubt the US GDP growth could be beyond 1%,so it will be interesting to see how they state the numbers.

Seemingly-China has a few months left to grab all the Gold they want before
presenting their Gold holdings to the IMF.

The last thing the Cartel want is for all the Millions of Joe Bloggs to start buying in fear of Negative interest rates or Bailins and compete with the East,
as no doubt they wont have the Gold as production starts its decline into what some consider will be a 1000 tonne deficit.

The only thing that will keep Joe Bloggs happy and not looking at Gold as an escape from negative interest rates and bailins- is forcing stocks even higher- and House prices, until they introduce the 50 year mortgage to maintain
any mirage of affordability.

We will then have sub-prime stock market Margins,Sub prime Car loans,and sub prime Housing to make the last one look miniscule.

However- they will push this further down the road, as the stock plunge team was
very active last night, so Soros et al still cannot get their shorts to work
in the rigged game.

It gives some of us the window of opportunity never witnessed at such extremes in History ,to grab Physical Silver & Gold and some shares in Cos: that will be producing the currency so many will be flocking to in the years to come.

If anyone wants some cash to hide under the bed,they should start thinking about it now.



IMHO and concluded from the thoughts of several Billionaires.

[jsbach123] 20/4/2015 17:42

When this share price was more than 60p (I sold, taking a loss) I wrote that 'some shares are dogs'; that remains my opinion.