logo-loader

Gold production up as Orosur switches underground

Published: 15:52 03 Apr 2017 BST

picture of gold pour
Underground production is now rising strongly

Orosur Mining Inc (CVE:OMI LON:OMI) has seen full a full quarter of production at the new San Gregorio West underground site in Uruguay.

Around 60% of the 7,800oz produced in the three months to February came from the SGW operation.

A lower gold price clipped after tax profits to US$363,000 (US$3.07mln) but house broker Cantor noted that cashflow rose in the quarter.

So far this year Orosur has generated US$8.7mln in spare cash while profits year-to-date have risen to US$4.1mln (US$480,000).

The junior expects production of between 35-40koz of gold for the full year at cash costs of between US$800-900/oz, which implies a sharp pick-up in output in the fourth quarter said Cantor.

The broker’s target price remains 44p compared to 14.2p, up 1.6%, today.

--updates for broker comment, share price--

Chesnara reports strong 2023 results with improved cash generation and...

Chesnara PLC (LSE:CSN) chief executive Steve Murray discusses the company's full-year results for 2023 with Proactive's Stephen Gunnion, describing them as strong and particularly highlighting £53 million in commercial cash generation and a dividend coverage of around 150%. The company has...

1 hour, 9 minutes ago