Stocktube video
14/05/2014

Orosur Mining CEO: Waymar acquisition fits growth strategy

View full size
Additional Information
Market: AIM / TSX-V
Sector: General Mining - Gold
EPIC: OMI
Latest Price: 11.75p  (-1.09% Descending)
52-week High: 17.25p
52-week Low: 9.75p
Market Cap: 11.35M
1 year chart
Deal OMI Tax Free*
*subject to change and depends on individual circumstances.
1 day chart
Advertisement
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Orosur Mining
www.orosur.ca
Deal Orosur Mining Tax Free* Losses can exceed
your initial deposit
*subject to change and depends on individual circumstances.

Orosur Mining Inc. is a gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in Uruguay (San Gregorio), and...

Read more
Pdf

Orosur Mining cheap as chips suggests broker

November 26 2012, 12:01pm The broker has launched coverage on Uruguay and Chile-focused Orosur with an 85p price target.

Orosur Mining (LON:OMI, TSX:OMI) is one of the cheapest gold miners listed in London, suggests Seymour Pierce, but will need to deliver on its objectives before it is re-rated.

The broker has launched coverage on Uruguay and Chile-focused Orosur with an 85p price target.

Key to this valuation is the development underway at San Gregorio, Uruguay’s only producing gold mine.

This includes the ramp-up of the Arenal Deeps portion of the project, which is slated for completion during the third quarter of fiscal 2012/2103.

This will open up higher grade and lower cost production and will significantly reduce capital expenditure. Existing output is coming from the lower grade room and pillar stopes.

Orosur also said it will advance existing projects at Anillo, Pantanillo and Talca in Chile to what it described as the commercial assessment stage.

Seymour Pierce said the current year should bring a period of consolidation. Production in 2012/13E is forecast at 63,000-68,000 ounces (oz) at an operating cash cost of approximately US$975/oz.

A revised mine plan will now see accelerated development during the January to May period of 2013, squeezing short term cash but lowering capital requirements in the following three years.

Through to end of May 2016, production from San Gregorio will range between 60,000-70,000 ounces a year at an average cost of US$810/oz.

Assuming the gold price remains firm, the company believe this should allow the payment of dividends equating to at least one-third of free cash flow

At the same time the company will conduct exploration and development work at San Gregorio targeted at maintaining a minimum three year life of mine at all times.

While there is no guarantee of success on this front, the San Gregorio mine has had a three to five year tangible life of mine for the last 15 years.

Seymour Pierce compared Orosur Mining’s intrinsic value to its peer group of 21 London listed gold producers using three standard financial metrics and three mining metrics.

Applying this six metrics approach produced a value ranging from 85p/share to 472p/share, but rather than use the mean value of 269p it has taken what it says is a more appropriate bottom of the range number as Orosur still has to deliver on its objectives especially after delays and cost over-runs at Arenal Deeps and the new tailings dam.

“We believe Orosur Mining represents one of the lowest priced gold producers currently listed in London and hence is an exciting investment opportunity,” the broker concluded.


No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.