Orosur Mining (LON:OMI): Q116 results
Market Cap: £5.7m; Current Price: 5.9p
Aiming to reduce AISC below US$1,000/oz Au for the rest of FY16
- Gold production was down 8% to 12,471oz Au in Q116 compared to Q115.
- Cash costs were up 1% to US$954/oz Au in Q116 compared to Q115.
- Average realised gold price was down 12% to US$1,147/oz Au in Q116 compared to Q115.
- Total debt reduced by 27% to US$1.1m in Q116 compared to Q415.
- Total cash at the end of Q115 Totalled US$4.6m. The Company also has a US$3m undrawn credit facility from Banco Santander.
NORTHLAND CAPITAL PARTNERS VIEW: A difficult first quarter for Orosur Mining with the Company focusing on reducing costs to improve the profitability of its San Gregorio Gold Mine. With a cash cost of US$954/oz Au and a realised average gold price of US$1,147/oz Au, it leaves the Company with a small margin (193/oz Au) that is further reduced taking into account sustaining capital. Orosur is aiming to get its all-in sustaining costs per ounce below US$1,000 for the remainder of the financial year, this should allow the Company to whether the low gold price.