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.£14.1m
Last close12.00p
High / Low (52 weeks)18.2p / 11.8p
Stock market listingCN, LN
Forecast net cash (US$m)8.3
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(12.7)(33.8)(2)
Relative *(13.7)(34.9)(9.9)

* % 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 2.4
2017A 44.2 9.4 2.1 2.6 6.1 1.3
2018E 42.9 17.5 10.1 8.3 1.9 1.4
2019E 51.3 18.7 14.9 12.1 1.3 1.3

Last updated on 06/12/2017

Investment summary

Orosur has released a ‘preliminary’ set of drill results from its fully funded Colombian exploration campaign, specifically targeting the high-grade Anza gold project. Highlighted drill results include 5.47g/t Au over 4.63m from 97.1m to 101.73m, and 17.76g/t Au over 5.32m from 144.5m to 149.82m, both with associated minor copper and moderate zinc mineralisation. Of the 19 intercepts released to market, 68% (13 in total) were above 2g/t Au, and 42% (8) were above 4g/t Au – potentially mineable via an underground operation. Of particular note is that only 6% of the total planned drilling has been completed, and the highlighted drill results in the company’s press release reflect only 30% partial sampling from two drill holes. Considering the mineralisation encountered already from limited sampling, the future potential for further high-grade intercepts over potentially mineable widths is evident and we expect further positive drilling results in due course.

Last updated on 13/12/2017

Industry outlook

Our valuation of OMI's shares is £0.29 (C$0.43). We also see a potential first-pass 4.4p/share value for Anzá dependent on a 0.5Moz resource delineated and valued on an EV/oz basis at 31.17/oz Au, which in itself could add c 28% to Orosur’s market capitalisation.

Last updated on 13/12/2017

Key management

Ignacio Salazar , CEO
Ryan Cohen , IR

Company address

Cerro Colorado 5240
Torre del Parque I, Of. 602
Las Condes
Santiago
7560995
Chile
+ 598 2 601 6354
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