Orosur Mining Share Discussion Threads

[ileeman] 14/4/2016 11:55

"Thus not much has changed with the POG"

How do you expect people to take you seriously when you say stuff like that lol

[ileeman] 14/4/2016 11:54

@august

"Is the gold price responsible?
2010 Q3 average price received = $1,110
2016 Q3 average price received = $1,143"

You are completely missing out that gold hit a major bear market late 2011. You try to make out you know what you are talking about but yet dont understand this simple fact about gold.

[augustusgloop] 14/4/2016 11:49

hazl,

define high growth

Q3 2010 production = 12,742
Q3 2011 production = 16,573
Q3 2012 production = 13,668
Q3 2013 production = 18,401
Q3 2014 production = 13,218
Q3 2015 production = 13,760
Q3 2016 production = 07,274

production over that period has fallen by 43%.
How is that high growth????????

They ploughed every penny back in to barely sustain production for 6 years.
Now even that's not possible - production has collapsed.

Is the gold price responsible?
2010 Q3 average price received = $1,110
2016 Q3 average price received = $1,143

Thus not much has changed with the POG - but they have cut production by 43%.
The difference is the cost of production - in 2010 they had near surface gold at good grade - but they have emptied those cheap pits and are now onto the more expensive ones.

These are running dry now -- so the next are even more expensive and then the deep mine is even more expensive than them.

[rhuvaal2] 14/4/2016 11:35

I prefer to chat and LISTEN to the Chairman and ceo (NO Elban-Augustus they are NOT corrupt, unlike the previous guy who returned to Australia)

edit: a much tighter ship these days

[ileeman] 14/4/2016 11:29

I averaged up a bit this morning just because of the great RNS today and chart looks set for a breakaway from major resistance, will look to add more to my holding.


free stock charts from uk.advfn.com

[augustusgloop] 14/4/2016 11:27

iLeeman

do some research.
Look at their performance over the last 7 years.
Where has all the supposed profit gone?

And my comments have not even mentioned the £10m placing that they wasted.

Everybody has done well out of the sale of $500 million of your gold -- except shareholders.

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

I'll put it simply so that even a clown like you can understand.

They now have 400,000 ounces less gold than they did 7 years ago
They have less money.

They promised a large profit on the basis of forecasts of gold at $900 per ounce.
The POG was much higher than in their forecasts ---- where has all the excess profit gone?

------

This is not a business building for the future.
It mines a prospect (pit) and then moves to the next one.
Soon all the viable pits will be empty.

When all the gold is sold then you will have closing costs.

There is not a hope in hell of shareholders receiving a return here.

Even when the POG was at $1,900 - it was champagne and yachts time for everyone else, shareholders got NOTHING!

[hazl] 14/4/2016 11:26

LIVING in the past is what I call it.
Its easy enough if you read the 'macro' to call a top and predict a share slide.
That was back in 2011 or so.
Now the lows appear to be over.That is the time to produce more.
I expect the idea 'of sitting on their assets doing nothing'.....though I might agree with you there..... would have angered share-holders,so they were in a no-win situation.
Shorting does bring out the worst in people I have found.
Claim anything to rob shareholders of their shares with the fear element.

IMO

[ileeman] 14/4/2016 11:06

delusional comes to mind

[augustusgloop] 14/4/2016 11:03

wallywoo,

is their equipment better now than it was 6 years ago = no.

Do they have more or less prospects now than they had 6 years ago = less

Do they have more cash than they had 6 years ago = no.

So, after mining 400,000 ounces of your gold and paying nothing to you, they are now in a position where their assets are worth less than they were 6 years ago.

Wouldn't they have been better just sitting on the assets and doing nothing?

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

Unless the gold price rises substantially, why should the situation be any different after they mine the next 400,000 ounces?

After that there is no worthwhile gold left to mine - except very deep and at much higher cost.

No investment case here.

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

hazl,

you forgot to point out that of the companies that I attacked -- every one lost at least 80% in value. 3 went bust. 4 sacked the CEO. 2 were 'bought out' at an 85%+ loss to where I said sell.

[ileeman] 14/4/2016 11:01

-1% proves him right............lol

Not un-common for traders to sell on news, come back and say that in a few trading days.

[bigtbigt] 14/4/2016 10:57

Augustus is one of only a few here not wearing rose tinted spectacles!

The share price proves him right!! ...PERIOD

[richgit] 14/4/2016 10:57

Elban,
Has so many usernames He forgets who He is sometimes.

He does of course assume the results traders will be gone in a flash and that can
be good for a quick spreadbet short

No doubt He will be correct.


Will it be a good time to add when those Traders have gone.?


I will put some more away in the percentages game,and hopefully one day
the only stock around will be what shorter term traders hand over.

I haven`t a clue how the Summer months will be for Gold,as whilst the Robots
run the World,We know Humans could never sort out any short circuits of those
fibers connecting - Robot Hell.

[ileeman] 14/4/2016 10:52

Bit of a pullback on the large gap up, not out of the ordinary.

This news today should be the start of the re-rate for OMI they are now a profitable company with large margins.

Gold can drop a huge amount and they will still be profitable and basically no debt anymore which is a biggy.

[hazl] 14/4/2016 10:46

He has gone round several different companies with negative points,trying to tread on any rise I've noticed.
Thing is are they valid?
No,from where I am sitting.
No firm can afford to pay dividends if they are in the high growth phase or the sector is languishing... or very few.
The company is affected by the underlying commodity.....just look at oil shares for a clear example of that.
Gold price is relevant as iLeeman points out.
Every sector has its day.
One day it will be time to sell.
Usually that is when the sector is at a high.
The chart looks positive to me.
Miners can be risky but this looks better than many to me.

IMO

[rhuvaal2] 14/4/2016 10:43

wallywoo ~ you'll find Augustus hard work and a distorted pain: he's been like that for years

[wallywoo] 14/4/2016 10:33

august - all the cash flow has been re-invested into equipment and prospecting. How else would all the drilling and work get done in Uruguay, Chili and Columbia. You are right, that has not translated into dividends for shareholders, but you should wake up and smell the coffee because:

1) How many mining companies with a £7M market cap pay dividends?
2) Do these companies surge because they pay divi's or because blue sky potential starts to come through.

This is not a FTSE250 company here, it is a tiny miner that manages its cash very well (we don't get paper for cash calls like many similar sized companies).

[ileeman] 14/4/2016 10:12

What do you mean forget the gold price lol

Its all about the gold price.

[augustusgloop] 14/4/2016 10:01

iLeeman

forget the gold price.

Look at the sum of the reported profits since early 2010.

Nothing has been returned to shareholders.
The mine produces less than it did then.
The mine is worth less than it was then.
The cash is less than they had then.

So where has all this profit gone?

Accountancy smoke and mirrors.

They have mined the easy 400k ounces of your gold and sold it.
Where has the money gone?

Average gold price over that period was about $1,300.
The now have to mine the harder to get at, more costly gold, with the POG at $1,250.

Since they didn't return a penny to shareholders when mining the easy 400k oz gold and selling it at a high price, why would you think that you will see any return from them mining the more costly next 300k ounces?

And if they are not going to return any money to shareholders, how can the Company have any value?

Total sale proceeds from gold = $500,000,000
Cash retained = £1,546,000
Dividends paid = 0

OMI is at best a charity.
Your $500,000,000 supported the local work force, it supported the Directors, it supported the local community, it supported the brown envelope stuffed politicians - you saw none of it.

Smell the coffee.

[richgit] 14/4/2016 09:32

WALLYWOO.

Patience just has to be stretched further in these Manipulated Markets.

We have to consider that China wants thousands of Tonnes more Gold,and they too could play in the Manipulations to keep the hordes away from Physical Gold.

The last thing the Central Planners want,as they try to force savers to keep their Money in the too big to fail clutches,is for $Billions to head into
Vaulted Gold for the next 5 or more years and out of their Bailin and cash banning Hands.


Unless of course-they are simply forced to revalue Gold to mind boggling levels
to make us accept a value beyond 0 of what looks like an inevitable Confetti printing with no barriers to come.

Obama talking of writing off 400,000 Student loans
on top of Sub-Prime everything and those Pension liabilities,along with the Feds
owners and their "You will simply all have to bail us out" as the next Lehmans
will include them all.



We should be very fearful of a US that lives on debt with no barriers.

[ileeman] 14/4/2016 09:27

@august

You been living under a rock for the last 5 years?

Gold has collapsed so no suprise their cash and profit has reduced significantly.

Gold starting a new bull market imo

[wallywoo] 14/4/2016 09:20

I think it is more likely they will find a down dip extension of Arenal Deep. Drilling has been done, so we will hear over the next few months. The Uruguay mines are currently on go slow to save money, they can all be ramped up with a gold price increase. I think if gold price is over $1300, then OMI's 2017 forecast will be back to 50,000 ounces.

[augustusgloop] 14/4/2016 09:20

They think that shareholders are stupid.
[They are probably right]

Cash net of debt is continually decreasing.
This is at a time where development is minimal and output has reduced.

They have £1.760m less cash (net of debt) than a year ago --- but sold their gold at higher than the all in sustaining cost.

I think that there must be a problem with the definition of their AISC.

They have reported a big total profit in the last 6 years - but never paid a penny back to shareholders - and only have £1.5m in cash (net of debt).
So, where has all this profit gone.
Its certainly not gone into increasing production.

Smoke and mirrors.

Believe the only thing that they can't scam == the cash position.
down, down, down.

[taperkick] 14/4/2016 09:15

So Arenal Deeps is winding to a close in FY17 and SGD will be starting up. Will 2017 be billed as a low production transition year?

[wallywoo] 14/4/2016 09:11

Could not agree more Richgit. IMO we need gold to move up to $1300+ for the industry to hot up and reduce some of the fear that potential investors in this gold mines have. Certainly seeing signs that will happen. China saying recently that they are looking to invest in gold mines outside of China, for instance.