RE: RE: RE: RE: EarningsRock for the next acquistion I don't think ORV will issue equity because Glencore will still want to keep its 51% interest unless they are willing to pony up some the cash themselves . This will likely limit what they can afford.
In addition, the pool of one mine operations that are halfway decent for any metal is small.
I think the only near term producing asset they can currently afford using strictly cash would be Zaruma and from speaking with ORV they didn't particularly like the low grades on the property and gold upside even though they could probably acquire it and finish it for 13 million and realize 10-12 million in cash flow per annum for more than a decade and this excludes the copper from the Brindena, Tigre, El Salto and Sapo open pits.
In addition, the Cerro Verde pit which was once owned by bankrupt Constellation Copper is also only 11 km away from Luz de Cobre has close to a 1 billion lbs of low grade .4% copper oxide in situ could potentially be an additional feedstock.
Looking at last quarter's earnings statement the company did well with a lower grade feedstock at only 1000 TPD thanks to a very low cost labor workforce. Personally, I think it is crazy to pass this inexpensive opportunity up on a project using cheap Mexican labor at 6 times the tonnage but that is my opinion.