Orvana Minerals Corp T.ORV

RE:RE:RE:Comparison of Emerita Resources with Orvana Minerals Part I

[ganndolph1]

Nergy,

• You are absolutely correct.  The metallurgical test results from the OSP project deserved a separate news release with some background on what it means for the OSP schedule..  Could it be moved up in time?
• My understanding is that the Taguas PEA update is due by the end of the calendar year.
• At Orovalle, we had disaster strike on August 18 with news of a pit wall failure to the open pit which forced a 20 day plant shutdown with the result that gold and copper production for fiscal Q4 was about 25 percent below normal.
• Orovalle was fortunate to have 6972 ounces of unsold gold at the end of Q3 and 0.6 million pounds of copper. Q4 ,metal sales included 2879 ounces of gold from inventory along with 157,000 pounds of copper.  So that leaves the current inventory at 4093 ounces of gold and 443,000 pounds of copper.
• During the plant shutdown, underground mining continued at 2000 tpd, with the result that cash on hand at Orovalle dropped by almost five million USD from Q3 to Q4, and that prompted Juan Gavidia to run to his bankers in Spain and get a loan  for $15 million. 
• With the production interruption another result was the creation of a stockpile of 41,566 metric tons of ore grading at about 5 grams/ton which will be milled in the upcoming quarters. So Ore in stockpiles increased to $2.964 million USD and ore in progress increased to $1.504 million USD.
• Finally, the good news for shareholders is that there is no stock dilution, because Orvana is able to obtain financing from local banks. So the brokere hate this stock, because they cannot make any commissions from selling shares of Orvana stock.  

ganndolph

Nergy wrote: I also like Ganndolphs posts a lot. To me it's pretty obvious why we're lagging a lot, Juan and the gang are not getting the word out. For example the metallurgical test work at EMIPA and a forward timeline deserves a separate PR, not hidden in the M&D. The Taguas PEA should have been released by November but will probably not be released before year end just after management has been rewarded with RSU, for their excellent operational performance but miserable communication skills. I couldn't even find the unsold Au Cu inventory in the latest MD&A but if memory serves me right it should be around 4Moz Au and 400k Cu. The 4Q results were not very impressive due to 4 weeks downtime and lower grades, but I'm looking forward to the Taguas PEA (No.1 reason to hold this share although recent exploration success at Orovalle has been impressive) and Q1 financials....

checkmate28 wrote:
Ganndolph I've been traveling and just read your post.Thouroughly enjoyed your post and appreciate your efforts to help understand this comparison. Looking forward to further information. For the life of me I cannot understand how they trade at such a valuation gap. Assuming you feel the same Do you have any thoughts as to why ORV trades at such a discount to fair value? And what it takes to get more interest in the company?