Raising Personal Target PriceGiven all the events that transpired in the past month or so, I believe that an OCF multiple of 5 would better represent Orosur. Management continues to drill and show positive results. Vaca Muerta may become another viable satellite mine. Arenal Deeps may even start seeing gold poured in late calendar 2011, but that's just speculation on my part. Gold should sustain $1300/oz and the company has recently been mining higher grades so cash costs ought to come down from $825/oz as more of that gets fed. There is also a good amount of inventory stockpiles the company could use for further feeding to up production numbers, but I think they might be content to blending grades for 55koz annually. The fully diluted share count is only 64.8M.
My target price for calendar 2011:
($1300 - 800) x 55,000 = $27,500,000 OCF
($27.5M x 5) / 64.8M = $2.12 target price