Fair intrinsic value of ORA at current gold price above 50c According to my calculation, the fair value of ORA should be above 50 cents. For San Andres mine, it has more than one million ounces gold, if the company could get net profit 200 dollars per ounce, the net value of this mine is 170million. According to the files, the cash cost of this mine is 800 dollars per ounce, and currently gold is above 1250 dollars per ounce.
The company also has Sao Francisco mine, Ernesto mine and Aranzazu mine. Zero value? I can't believe it!
The company is not a junior mine. We should consider the intrinsic value carefully, and we know the company will be free of debt by the end of 2016.
Currently, the market value is only around 60 million. If you consider the the plant and facility value , it's around 50 million. So the intrinsic value should be above 80 cents!
I have bought 50000 shares and I will continue to hold it. I want to see 50 cents per share!
Also, I found that some big institutions have bought more than 50 millions shares since last December.
https://investors.morningstar.com/ownership/shareholders-major.html?t=ORA®ion=can&culture=en-US&ownerCountry=USA
What do you think?