Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Orosur still on the prowl

By Robert Tyerman

22 July 2014 08:19

More:

Fresh from clinching the all-paper takeover of fellow South American gold play, Toronto Venture Exchange-listed Waymar Resources, AIM-quoted Orosur Mining (OMI) is still looking to expand further by acquiring ‘short-term production assets’. So says Ignacio Salazar, chief executive officer of Orosur, which produced an above-forecast 60,271/oz of gold in the year to May from its San Gregorio mine in Uruguay. The company hopes that Waymar’s exploration targets, notably Anza in Colombia, will provide promising additions to its own exploration and development projects at Anillo and Pantanillo in Chile.

Already a member? Sign in

• All premium articles

• Tom Winnifrith’s Bearcast

• Access to all the entire nearly 13 year archive

• ShareProphets Daily Newsletter

Cancel any time

This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

Comments

bunkermad

23 July 2014, 12:38

I still don’t understand why you analysts and journalists keep undervaluing this company and treating it with cold indifference. May I point out that Orosur was trading at 40p only 2 years ago (NOT four), with a brief stint at 40p also in the spring of last year (before the major slide due to a profit warning and the concurrent fall in gold price). Four years ago this was trading at 25p shortly before a massive rise to 70/90p where it stayed for about a year between 2010/11.

Saying it has “scope for a further bounce” from here is a pitiful understatement at best. Orosur is widely considered one of the most undervalued companies, certainly among miners. The management has performed an impressive turnaround in just over a year, with improvements both in extraction and cash cost (which are among the lowest in the whole industry), yet you lot keep considering it insignificant.

This share should be trading AT LEAST 40p in the near future, and in the long term will go way above that. I expect a dividend to be paid to shareholders this year, and there are very few gold miners that can do that at present. So give this company the credit that it’s due please.