South America-focused gold junior Orosur Mining (LON:OMI CVE:OMI) has got a bullish upgrade from its house broker as a higher metal price and lower cost base combine.
Orosur runs the San Gregorio mine in Uruguay and with Cantor upping its forecast for gold to US$1,350 per ounce this year, it sees earnings getting a 20% uplift.
The broker sees a small profit of around US$400,000 when the miner reports shortly for the year just ended, but this jumps to US$11.3mln in 2017, with net cash rising to US$18mln a year later.
Cantor’s price target for the shares rises to 32p from 26p compared to a market price of 19.1p, up 16% today.