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Orvana Minerals Corp T.ORV

Alternate Symbol(s):  ORVMF

Orvana Minerals Corp. is a multi-mine gold-copper-silver company. It is involved in the evaluation, development and mining of precious and base metal deposits. Its assets consist of the producing El Valle and Carles gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, and the Taguas property located in Argentina. The El Valle and Carles mines and the El Valle processing plant are a producer of copper concentrate and dore. El Valle is located in Asturias, Northern Spain. The Don Mario Operation is in San Jose de Chiquitos, Southeastern Bolivia. The Don Mario Operation consists of a set of assets that includes Las Tojas orebody, and the previously mined out lower mineralized zone, upper mineralized zone and Cerro Felix mines. The Taguas Property consists of 15 mining concessions over an area of 3,273.87 hectares, held and managed by its subsidiary Orvana Argentina S.A. Taguas is located in the province of San Juan, on the eastern flank of the Andes.


TSX:ORV - Post by User

Bullboard Posts
Comment by ganndolphon Dec 15, 2016 6:57am
114 Views
Post# 25602778

RE:RE:$1400 AISC?

RE:RE:$1400 AISC?maurizon,

Is $1400 AISC per ounce of gold a problem when top line revenue per ounce of gold sold is $1635 USD per ounce?  The revenue model of Orvana is highly non linear because copper provides about 1/3 of the revenue, and since Orvana Minerals produces copper concentrates in addition to gold dore, the sales costs come out ahead of revenue, and then are added back in in the accounting calculation.

So what I look at is the operating margin less depreciation which for El Valle was negative $388 USD per ounce and at Don Mario was $116 USD per ounce of gold sold.  For calendar Q4, I expect both EVBC and Don Mario to be cash flow positive with depreciation included.

So I would hold on to those ORV shares if you still have them.  IMHO, this stock will be priced at above Teranga Gold within 6 months.

Bullboard Posts