Orosur Mining (OMI)

Business description

Orosur Mining owns (100%) and operates its San Gregorio gold mine in Uruguay. It explores for gold close to San Gregorio and in Chile at the Anillo gold property. It owns 100% of the highly prospective, high-grade Anzá gold property in Colombia.

Stock data

Market cap.£7.9m
Last close6.75p
High / Low (52 weeks)18.2p / 6.8p
Stock market listingCN, LN
Forecast net debt (US$m)1.8
Forecast gearing ratio (%)4
TeamResources - Mining

Price performance

Relative *(28.2)(39.7)(53.8)

* % Relative to local index

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Company news

Y/E May Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2016A 42.9 9.1 3.2 (1.2) N/A 1.4
2017A 44.2 9.4 2.1 2.6 3.6 0.8
2018E 37.7 12.2 7.9 5.8 1.6 1.4
2019E 44.5 14.0 10.1 8.1 1.2 1.0

Last updated on 20/02/2018

Investment summary

Orosur’s H118 results indicate San Gregorio (SG) continues to perform well, albeit with a small deferral of 2koz of gold production to narrow FY18 guidance from 30-34koz to c 30koz. Orosur’s focus remains on the most profitable mining possible rather than extracting its reserves ad hoc. SG’s geological data are being thoroughly examined such that additional production opportunities are identified. The process has already yielded SG UG West (a current mainstay of production), with SG Central located adjacent and being developed to provide production during H218. Veta A is another old pit reopening as an underground mine project. We consider that Orosur should be able to return to profitability by end FY18, with upside clearly linked to the very positive initial drill results coming from its increasingly important Colombian asset base.

Last updated on 02/03/2018

Industry outlook

H118 gold production was 15,677oz, a y-o-y decrease of c 7%. Operating cash costs for H118 were US$886/oz, a y-o-y increase of 13%, with all-in sustaining costs up 25% y-o-y from US$1,422/oz to US$1,135/oz. The average price received year-to-date for each gold ounce sold was US$1,277/oz. All told, Orosur ended H118 slightly in the red, reporting a net loss of US$0.542m.

Last updated on 02/03/2018

Key management

Ignacio Salazar , CEO
Ryan Cohen , IR

Company address

Cerro Colorado 5240
Torre del Parque I, Of. 602
Las Condes
+ 598 2 601 6354
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