Orosur Mining Share Discussion Threads

[rivaldo] 17/10/2016 14:16

Cantor has a 32p target price and says OMI beat its cost guidance by 18%:

http ://www.proactiveinvestors.co.uk/companies/news/167495/orosur-mining-impresses-as-profits-rebound

"Orosur maintained guidance for the current year at 35,000 to 40,000 oz of gold at operating cash costs of between US$800 - US$900/oz.

Cantor Fitzgerald said Orosur beat cost guidance by 18% and with the new underground mine at San Gregorio West and its ongoing exploration programme in and around its existing operations in Uruguay it is well- placed.

'Buy' is its recommendation with a target price of 32p."

[wallywoo] 17/10/2016 14:01

For me, despite great results I am quite pleased the share price performance has been muted. It adds more pressure for OMI to think about a dividend. I think they have everything else in place now (good cash generation, cost under control, good exploration prospects, no debt), they just need to prove they can reward shareholders too and this will start to motor IMO.

At the end of the day the share price is derived by the present value of all future dividends.

[qs99] 17/10/2016 13:47

ok, the results were pretty good, the historics can be viewed by some as pretty poor, they need to deliver on new production and exploration in the next 3-4 months to show the new management are on top of things, and if they can do that from their own resources while POG is relatively high, then great and IMO the share price will respond accordingly...

[tom111] 17/10/2016 13:40

really or being realistic lol

[iantrader2] 17/10/2016 13:39

Augustus

I would say that you are wise to be sceptical not correct.

However you are actually cynical.

The company does have a long history of losses primarily caused by costs being to high given the price of gold. Add to this heavy investment, primarily when gold was going up before falling. Net result - capital loss for shareholders.

Compare that to the last 18 months or so. Overheads (staff costs) hugely reduced, investment made out of cash-flow, and production costs also hugely lower. Given the situation 18 months ago the company appears to have chosen the best strategy and appears to be executing it well.

Finally, adding to my optimism is that fact that the management is largely new.

[svenice7] 17/10/2016 12:55

This one is a winner. Too many impatient muppets about. This is a long term buy.

[augustusgloop] 17/10/2016 12:32

Simon,

I used to like OMI - but then I realised that the business plan was:

'spend to open a pit, spend to go underground, spend to develop underground - repeat'

Not an awful business plan - except for the fact that it doesn't make any profit.

If you add up the total amount spent on all of this and the total amount received in gold sales ---- it produces a LOSS.

Now you can (for a while) say that this is acceptable because they are building new mines.
But is that true -- the majority of the pits that they opened are now empty and closed.

Areenal deeps is clearly not producing the profits they expected.


Would you actually say that the assets as they stand now, are more valuable than they were 6 years ago?

They used to be able to produce 60k ounces a year -- claiming that they were doing it profitably.

The POG has not changed much - and now they can only produce 40k ounces.
All that money to go underground --- if their statements of AISC were even close - they would surely be milking this investment and producing more gold.

They go through periods of building where cash falls and periods of exploiting this investment where cash rises --- we have had long enough now to see that the average of these over a long period is a cash reduction and a decline in the gold in the remaining assets.

All in all - not an investable proposition until the POG rises to above the true AISC (probably about $1,350).
Even then - you have to rely on them giving the 'windfall' to you rather than keeping it for themselves (when the POG was $1900 - not a penny was returned).

[qs99] 17/10/2016 12:24

and to balance it up>>>."Construction of the San Gregorio West underground mine is on budget and on track to commence production towards the end of Q2 FY17, with over 328m of horizontal development completed to the end of Q1 FY17.
Uruguay: Exploration  Exploration drilling in and around the San Gregorio UG area has yielded positive results, which are expected to significantly enhance mine economics and increase reserves and resources in the short and medium term"


so one would like to think that the opportunity is there to generate more in the short -medium term....indeed they say "These results indicate the strong potential to significantly improve the economics of the entire SG UG Project. Any SGC UG reserves will benefit from the extensive development and mining activities occurring at present and planned in the future at the SGW UG mine in construction."

so let's see....

[qs99] 17/10/2016 12:18

Let's hope OMIs' Investor Relations team with management can get the production and exploration story out there....let's see where it goes from here, but need some bigger players to buy in size to support it me thinks...

[overdale123] 17/10/2016 12:10

I hardly ever post, but this company's share price should be pushing 50p, minimum, if you look at what else is out there.

[breaktwister] 17/10/2016 12:06

Tom, resources are discussed in the update last week. I dont have the fugures at hand but there is much more than 70,000 (2 years)

[someuwin] 17/10/2016 11:55

Cantor Fitzgerald - BUY - Target 32p

[simon cawkwell] 17/10/2016 11:46

augustusgloop,

You are correct to be sceptical. But in view of all the changes in management and, now, the stellar results would you not think that a little realignment of your thinking is in order?

Simon Cawkwell

[tom111] 17/10/2016 11:36

i wasn't aware they only had two years of current assets on tap can someone give an update on gold assets at the moment thks

[gaaston] 17/10/2016 11:18

Right on cue, Augustus-gloopy comes on with his lengthy diatribe = he's been doing it for years and years. He's not good enough to be a paid de-ramper.

edit: some selling is to be expected today, but we're now firmly set-up for this particular (winter) hardening of pog. Years ago there was incompetence within the Board but now we have a smart chairman and ceo: I have exchanged with both

[richgit] 17/10/2016 10:05

The eventual backfilling of total despair and capitulation never imagined !?.

The Central Planners and Manipulators created/engineered a sitation on a par with the crashing of the Dot-Com era,yet the Dot-Com era crashed for good reason,whilst the smashing of Gold -was not for any good reason,as the future will tell.

90p(-50%)- 45p-Gold will simply recover and so will the stock price.

45 (-50%)- 22.5p- This is madness-Gold will recover and so will the stock price

22.5p(-50%-)11.25p-This is insanity China and the East are taking all the Gold
This surely cannot continue !!?


11.25(-50%) -5.63p- !!? Beyond all belief- Total Capitulation/immense loss and despair!!!


The above isn`t just OMI and similarities can be found everywhere Gold -related.

The question being- How many are hugely underwater on their investment/s and will
they now accumulate to reduce their averages..... or is it merely a question of when !!?

It is simply the War of Paper Gold, that will not/cannot deliver,against Physical
that cannot be printed until that too cannot deliver,and then mayhem as many panic
to replace rehypothecated Gold,owed Gold- and cannot !!!


The above will have to be delayed as long as possible for China to get all the Gold
they want,which isn`t about the price,(as they have paid up to $1900) it is about the price that wakes up the masses to buy Physical that will make it difficult to
grab Mega -tonnes of Physical....... at any price !!!

How long can they continue the Manipulations,after circa 5 years of total Fraud- whether for reasons Mr Rickards belives- or other.

Tick tock.

[highly geared] 17/10/2016 09:45

Weak POG is the main issue IMO as they manage to keep finding the gold. But, they should use the cash to get a focussed exploration / drilling programme done at Anza to get a new resource defined. This will then provide a two pronged approach and greater security for longer term investors.
POG looks weak short term with the cartel well in control and $1200 looking more likely than $ 1300.

[wallywoo] 17/10/2016 09:37

I guess if you were being a cynic and completely pessimistic you would say that OMI although having great cashflow and potential earnings this year, they only have Proven reserves of 78,035 ounces : therefore likely to run out in less than 2 years.

However, it is highly probable given the exploration update last week that figure will rise considerably over the coming months.

[billthebank] 17/10/2016 09:34

What is not to like here A great investment IMHO and we will slowly but surely see this share move inexorably upwards. Jubilee Platinum next!!!!???

[tom111] 17/10/2016 09:30

Yes think I know the reason why.Note the average gold selling price was over $1300 for the quarter,look at the price now.I have sold and wait for the gold price to show upward movement gla

[qs99] 17/10/2016 09:00

well a very muted response imo!

[boadicea] 17/10/2016 08:38

The basic advfn error is in the shares in issue which has not been updated.

[qs99] 17/10/2016 08:21

yup, thanks wallywoo,I merely quoted what I saw on ADVFN which was wrong, did the calc check from Barclays....shame ADVFN are not on their game! GLA loving the update this am...