Orosur Mining Share Discussion Threads

[edgein] 11/5/2016 22:53

abc125,

Its on page 15 of the recent presentation, its resources or exploration upside mentioned after the trench that discovered 3.7g/t.

Good to see the Canadians hold today's gains at 23c.

Regards,
Ed.

[hazl] 11/5/2016 17:06

Just a reminder




'The broker's target goes to 26p from 22p and it repeats a 'buy'.

The miner, which operates Uruguay's only producing gold mine, succeeded in getting all-in sustaining costs (AISC) of production below US$1,000 an ounce in the quarter, and the plan is to keep it below that for the remainder of the financial year, which runs to end May.

It also bounced back into the black with a profit before tax of US$3.1mln in the three months to February 29, having made a loss of US$1.9mln in the corresponding period the year before.'

[abc125] 11/5/2016 16:57

Edgein, re the potential 500k oz reserve at Don Tito you mentioned, do you have a reference? (M&I or P&P)

I have the M&I at 752k oz and the P&P at 159k oz as per the FY results published 20th August 2015.

[abc125] 11/5/2016 16:12

I recall bigt bought around the 40-50p mark in 2010/11 and subsequently got disillusioned as the price crashed. Understandable. Small caps are illiquid and one can get stuck in a crashing share but you cannot let emotion influence investment decisions.

If one looks at the price chart and nothing else we see that Omi made a secular low on the 9th of December 2015 at 4.625p. Over the next 5 months the price appreciated by 180% punctuated by higher highs and higher lows.

That is bullish. No two ways about it.

[welshwiz] 11/5/2016 15:59

Big t
you said in January that if the POG doesnt dramatically rise in the next 2-3 months then OMi would be dead.
The Pog has risen dramatically and your stance is still the same?

[edgein] 11/5/2016 15:59

Sharnish,

Every company has hangers on that bought at the wrong time, it won't stop those buying at the right time making money, it never does. Those researching OMI will be able to read the latest quarterly and presentation and make their minds up where the company is heading now that gold is currently $1275+.

BigT

Lots and lots of the same targets that the company has been producing from for years with years more reserves left, plus the exploration that's replacing those reserves produced. They think that Don Tito alone may contain 500k Oz enough for 10 years and that's just one target. the targets for existing production and future exploration are numerous. If they get Colombia on the go its a different ball game, perhaps you'll see 70p again, especially if Au heads on for $1500/oz

Regards,
Ed.

[hazl] 11/5/2016 15:55

GOLD IS UP 10.30 points now.

[hazl] 11/5/2016 15:51

Yes there are disenchanted posters everywhere in the gold sector.......just met one in OVG!
You cannot blame any management for a sector downturn.
It happened recently in the Pharma sector you have to make hay when the sn is shining.
Now it's golds turn!
IMO

[sharnish] 11/5/2016 15:47

Just to remind any newcomers here. For years now BigT has been grumpy about OMI, maybe it's because he lost a packet when it was under different circumstances.

[bigtbigt] 11/5/2016 15:46

Hazl - Just look at the massive loss people suffered on this stock previously over several years. This recent rise in no way makes up for that

To try to grab these short term, even if healthy %, run ups in share price is gambling not investing.

I've done very well thank you by being more selective and astute.

[hazl] 11/5/2016 15:44

Nearly every gold miner is up today....I think you could

have picked easier game!

IMO

[hazl] 11/5/2016 15:42

I think somebody above might be disappointed on missing out on a bit of a gold-run!
Well done OMI.

I think its only just begun really.

IMO

[bigtbigt] 11/5/2016 15:41

Please note: all-in-cost of production and amount of production (the two things you're flagging up as positives), both depend critically upon ease of access and grade of minable reserves

They previously had Arenal deeps, which were easy to get to and high grade. But that source is now basically exhausted, and so there is no way they can ramp up to 50k/yr at the costs they claim.

Watch and see

[edgein] 11/5/2016 15:20

Look at the share price, its not just my excitement, the company is rerating due to successful cost cutting and a decent margin on current gold sales. They were quite wise to cut back on their production when margins fell below $100/oz. Now that they're getting around $300/oz and have paid off their debt they're in a very healthy position to move forward and much lower risk to the likes of AAZ, AUE and AVM. Should they start to produce 50-60,000oz like they did before they cut back on production then they really are a no brainer. Especially with the increase in gold prices as folks seek a safe commodity in uncertain economic times. Gold always does well in times like this, that's why its flown up since the start of the year. You'll also find that this company returned to profit in the last Quarter, since then the gold price has risen further. Clearly managers aren't taking all the profits, they'll be reporting them in subsequent quarters.

Regards,
Ed.

[bigtbigt] 11/5/2016 15:06

It seems the one common theme in all your excitement for this company is that "they've cut back and survived the hard times, and now that PoG is going up this company's share price will rocket"

Perhaps have a look here, and ask yourselves honestly where you think this chart will now head, given that we're in a deflationary slump swimming in debt.
hxxp://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

PLUS - TPTB have 1001 ways to suppress PoG, which they undeniably want to do.

At best OMI will manage to limp along for a few years, with a flat SP, and the managers taking all the profits into their own pockets and pensions - just as it has been for the last 10 year or more

[edgein] 11/5/2016 14:18

The company is making good progress at the moment with bringing down costs to $978 in the last Q. That's around $300/oz clear and they're expecting to hit or exceed 30-35000oz for the year. That's very very healthy free cash flow for the year ahead for a £12m company (not to mention their M&I gold). Lots going on in the short term, development of the SGD mine to start this Q. Pre-stripping of Veta rey ongoing, expecting 8,000oz from that over 6 months, results from Don tito exploration and also drilling to conclude the possible extension of Arenal this Q also. Looks like an over sold miner that's actively adding/replacing its production, that broker target of 26p is still a market cap of just over £25m. Interesting that they cut production to 30-35,000oz from 50,000-60,000oz to preserve their reserves during the very low prices for gold in 2015 when they had much higher costs. Now that costs have fallen by around $200/oz and gold prices have risen by around $300/oz things are looking good for this year.

Regards,
Ed.

[che7win] 11/5/2016 13:53

Bought some.

[hazl] 11/5/2016 13:43

Yes wallywoo tend to agree,I've seen many a disgruntled poster complaining about different gold stocks when it has been attributable mostly to the climate at the time.
I imagine it has been very hard for most gold stock management from 2011; but 2016 heralds in a new era!


IMO

[abc125] 11/5/2016 13:34

When I referred to a break-out I was referring to the shorter term charts. Omi has exceeded its 2015 high. Let's see if we can close the week at these levels.

Break-outs have to occur on the shorter term charts first before the long term charts come into play. If one waits for a 3 or 5 year high to be exceeded, one would have to pay a higher price.

[wallywoo] 11/5/2016 12:59

really Bigt! You cannot blame mgt for the last 4 years or so when the gold mining industry has seriously been in the doldrums. In that time many small / medium miners have gone bust or had deeply discounted rights issues. OMI has done none of those things and has paid off all debt and now the industry is picking up so are we. Production could easily be raised back to 50K ounces and I think will be soon.

Technically we are in a new range now 12 -17p, but if that breaks we are off to the races. All of which I believe will happen.

[hazl] 11/5/2016 11:03

THANKS edgein

[abc125] 11/5/2016 10:40

The chart above is a thing of beauty. Looks like a clear break out. I've always wondered why punters buy falling shares instead of rising ones.