RE:RE:I view this as a turnaround situation
Hi Rock and others,
Ive owned this stock for some time (and at a higher price) and recently bought more. The price seems low - OMI has just a $17.2M Mcap.
I was impressed by the last quarter with $761/oz cash costs, $3.5M profit and increased 2014 guidance of 55-60koz (@$800-$875/oz).
By comparison Brigus Gold (TSX:BRD), which I was just looking at, expects to produce in 2014 95-105koz @$650-$750/oz (acutal was $705 for 2013) but has a $248.8M Mcap and $315.6M EV. Operating cash flow is expected at $61M (so potentially, as Rock points out, Orosur *could* have ~1/2 the cash flow of Brigus).
Ok, granted Brigus was just taken over and is a much different gold mining company but the value disconnect is interesting.
It looks like a big seller is dumping at ~$0.22 -guess they have just had it with resource/gold stocks?
Cheers, Matthew