Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on OROSUR MINING INC. We currently have 17 research reports from 5 professional analysts.
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OROSUR MINING INC
OROSUR MINING INC
Production prowess provides profits
05 Dec 16
Q117 results have provided a solid start to FY17 and bode well for the company achieving its end year guidance of 40koz Au produced at cash costs of between US$800/oz and US$900/oz. Q117 cash costs were 13% below the lower bound of this guidance. Alongside its ongoing strong operational performance, exploration results for San Gregorio highlight the resource potential close to existing infrastructure, which should prove favourable for a much needed upgrade to San Gregorio’s reserve base. This note covers Q117 results (which were in line with our forecasts) and focuses on exploration results and how we consider they de-risk our valuation and extend the valuation time frame, from FY20 to FY22.
FY16 provides confidence to boost production
18 Aug 16
In a gold market providing little support over FY16, Orosur successfully returned its operations to gross profitability by undertaking a comprehensive strategic review of costs, as well as adeptly handling a number of ore streams delivered to its processing plant. With operational confidence continually building, demonstrated by a second underground mine project in development (San Gregorio West), and aided by a higher gold price, Orosur has increased production guidance for FY17. The new guidance of 35-40koz Au (FY16: 30-35koz) at cash operating costs of US$800-900/oz represents an improvement over FY16 guidance of 14% on production and 6% on costs.
16 Aug 16
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A return to profit and delivering on guidance
15 Apr 16
Orosur’s Q316 results demonstrate a return to profitability at San Gregorio in line with realistic guidance provided by the company at the start of FY16. Gold production is ahead of budget (27.9koz ytd), making the upper bound of its 30-35koz FY16 guidance look eminently achievable. All-in sustaining costs are, as guided, now below US$1,000/oz (Q316: US$978/oz) and projected to be around this level through to year-end. Cost savings extend to development capex, with San Gregorio Deeps (SGD) due to be mined using Arenal Deeps mining equipment when production ceases at this operation in Q416; associated with this revised plan is that no external funding is required to develop SGD. Orosur has all but repaid its outstanding debts and only has a small (US$0.4m) balance remaining.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.