Oromin Explorations Ltd OLEPF

Teranga lowers production.....

[tony1969]

guidance.  Stock is getting hit this morning.  I guess they can use some OLE ounces.

[tony1969]

TGZ also mentioned that their cost per ounce will rise to $650 to $700 per ounce in 2013 compared to their previous guidance of $600 to 650.  They knocked the hedge contact balance all the way down to 38,000 ounces.  They are way ahead of schedule there.  They should have that completed by the end of this quarter. This would be just in time to free up some cash flow and 

[tony1969]

This Jan alone they (TGZ) knocked down the hedge contract by 21,000 ounces. They ended Dec 2012 with over 58,000 ounces left. They are obviously in a hurry to get this done before mid year as it will immediately and drastically improve their finances.

[tony1969]

Another way to look at the TGZ situation this morning is that it suddenly may become an even more attractive take over target itself having now lost about 15% of its market cap in the past couple of weeks. They may actually be cleaning up their hedge in order to speed up a merger or buyout. 

[arlene2]

Tony----I do believe that Tgz wants  ,  but needs  ,  not only the ounces Ole has but also the higher grades of ore that Ole has...........Tgz produced approx 70,000 ounces in Q-4 2012 (ore grade 2.04 g/t in Q-4) and only forecasts approx 200,000 ounces for all 2013........ The avg grade of ore Tgz processed in 2012 was 1.98 g/t ..........Ole,s higher grades

[dmuy]

I think it's obvious that OLE's oz's would be accretive to TGZ especially looking at how they are quickly advancing the smallish Gora deposit to truck to the mill. Also, they mention they need higher gold prices to convert much of the MFE and LFZ resources to reserves. Interesting tidbits mentioned in the NR: "In addition, the company continues to review the merits of various debt

[tony1969]

Good stuff dmuy.  It is all a matter of agreeing on a mutually beneficial price or terms.  These two obviously belong together.  THEY SHARE A DEPOSIT!!  Their synergies are more than evident and as you mentioned OLE's ounces will be immediately accretive to TGZ. Thanks again.

[arlene2]

dmuy-----Thx for your informative post.....I believe Tgz is quickly advancing the SMALLISH Gora deposit to truck it to the mill because Gora is , I think , the highest grade ore Tgz has thus far identified at 4 g/t....Tgz needs higher grade gold ore to help control/lower costs....