Orosur Mining Share Discussion Threads

[abc125] 13/5/2016 12:04

Shallow price retracements are indicative of a strong primary uptrend. They tend to be the best investments. Lets see what happens over the next 10 days. If the price stays above 11p i will be adding.

[hazl] 13/5/2016 11:50

I think that it seems to depend on many things.
I expected both this and one I was in early on, to retrace much more than this.
The quick bursts up that we have seen,since January must have indicated it was severely undersold, I imagine.
Again articles suggesting a pullback in gold haven't materialised yet.
I am beginning to think they don't know either.
Its horses for courses but I am glad I am back in,now.
I could have sold for a decent profit even yesterday but chose not to for future likely gains.
Good luck folks!

IMO

[gymratt] 13/5/2016 11:48

Hope you're right, abc..could do with a 'top-up'! :@)

[abc125] 13/5/2016 11:29

I have been looking at the OMI price chart and it is clear it broke out in April after having consolidated for over a year between 5-8p.

I’m looking for retracement levels for possible buy points after this recent run up.

Using intraday mid price data from IG Index, the first break out occurred on the 29.03.16 at 6.625p. Over the next 11 trading days the price peaked at 10.376p for a gain of 56.5%.

Retracements are common after such a strong advance. Over the next 8 trading days the price fell from 10.376p to 8.875p on the 28.04.16; a decline of 1.5p or 14.5%.

The current advance from 8.875p to 13.5p yesterday gave holders a gain of 52% over 9 trading days. So a similar retracement of 15% or 2p should take us down to around 11.5p (mid) over the next 10 days before the next leg up.

[wallywoo] 13/5/2016 10:00

nothing goes up in a straight line, just a tree shake IMO. Volume low too

[hazl] 13/5/2016 09:56

Ah! Nearly bargain territory now again by the looks of it.

IMO

[hazl] 13/5/2016 08:20

Well gold is all over the place just now.........up again today despite stronger dollar,by the looks of it.

IMO

[edgein] 12/5/2016 15:55

abc125,

Yeah that's a possibility.

Regards,
Ed.

[abc125] 12/5/2016 15:53

I think he said they are operationally geared for a gold price range of $950-$1300. I took that to mean they won't up production unless gold is stable above $1300.

[edgein] 12/5/2016 15:45

abc,

Yes the interview on the website is very good. However I didn't hear $1300 mentioned. He said the average price was around $1100 for Q3 (Jan-March 16) during which they recorded a profit of $3.1m. And noted that gold was $1200 at the time of the proactive interview for this quarter. He also mentioned that operationally they could easily increase production back to 50,000oz but didn't want to keep switching strategy with every short term movement in the gold price. With staff reductions of 40% and corporate reductions of 50% then margins will influence their decision on whether to up production again. A break of $1300 in July to September Q may do it. Certainly the profitability will encourage them to look at development of the high grade Colombian mine which was discussed in the interview which is also encouraging.

Regards,
Ed.

[bigtbigt] 12/5/2016 15:44

So somehow you know better than I do about who I know in or with insights into the company, and what I currently know about the company? Amazing !! You must work for the NSA, ...or for OMI ...or the IT dept of my company??

But I do agree with one point you make "Folks, do be careful after reading [BigT's] posts." Forewarned is forearmed, and you bury your head in the sand at your own risk Mr gambler

[hazl] 12/5/2016 15:41

OVG has had its share of disenchanted investors as well but value in these stocks is becoming apparent at last.


IMO

[sharnish] 12/5/2016 15:25

Quite a long time ago, BigT knew most things about this stock including the previous mismanagement of the company and the weird goings on at the time. Folks, do be careful after reading his posts. I am a passive investor yet don't like to see skewed remarks which were applicable to history, but not now. Our ceo and chairman are honourable crisp executives and I have been in touch with both.

[hazl] 12/5/2016 15:16

Well GOLD in POSITIVE territory now

[abc125] 12/5/2016 14:56

I watched the CEO's interveiw which they have on their website and he said they won't change production levels unless gold is above $1300 for a sustained period of time. Sensible for the time being in case gold heads back down later this year.

[hazl] 12/5/2016 14:33

gold futures gone positive.....8-)

imo

[edgein] 12/5/2016 14:26

Wallywoo,

Then you compare that back to this time last year look at the change in the value of the Peso since then. As with the gold price a lot can happen over the next 6 months.

Regards,
Ed.

[taperkick] 12/5/2016 14:18

Would it affect wage costs though? With so many staff laid off who's going to be asking for a 10% pay rise?

[wallywoo] 12/5/2016 14:16

edgein - the peso / dollar graph is included in the header. It has remained fairly static this year, though is worth nearly double on a 2 year view. You also have to take into account that Uruguay has inflation of 9% odd which will effect wage costs.

[edgein] 12/5/2016 14:09

"abc125
12 May'16 - 13:13 - 14666 of 14673 1 0

The Uruguayan peso has devalued 20% against the U.S. Dollar plus oil has halved in price so this will help lower operating costs."

That's interesting as it could have another material impact on the cash cost per ounce. As we know AISC dropped below $1000 in the first Q of this year and is expected to remain low with cash costs of around $800/oz. If a $300/oz margin wasn't enough to encourage them to reinstate their production back to 50-60,000oz (2010-2015 levels) then improving margins might do the trick, that is if gold doesn't continue its 2016 trend.



Regards,
Ed.

[abc125] 12/5/2016 13:54

If we do get a big deflationary wave in Q4 where everything crashes apart from bonds, governments will respond with gigantic QE and that would set us up for a massive multi year up leg in gold and miners.

[hazl] 12/5/2016 13:44

GOLD MAY react better to that data imo

[abc125] 12/5/2016 13:39

I am somewhat bearish on gold. I would have liked to see a capitulation sell off below $1000. But I suppose everyone was waiting for that. The market is not going to make it easy for us. The rally from the December lows took me by surprise but you have to accept it is what it is.

Could the lows be retested? Sure. But if it does happen it will be a quick 3 month plunge like 2008. And I believe debt free junior miners like Omi will be less affected having already gone through its own 90%+ capitulation.

[hazl] 12/5/2016 13:36

Ian.......interesting... I have heard that gold will be ok if the interest rates are rising in a slower, more measured way.
There are lots of intellectual arguments about it,not least the fact that sadly we are in a war cycle and currencies are included in that so I guess,we can attribute any argument you like!
Perhaps I also felt instinctively that it would rise.
Maybe it was the charts!
Anyway.here we both are,sitting on this share's bb discussing the issue!

I am actually surrounded by work,different to shares that I ought to be getting on with today,unfortunately but interesting times.
GL
IMO