RE:Started adding again/ 3 month performancefdjens1 wrote: Bought all my original shares between .17 and .265 (haven't sold a single one). Looks like the third quarter report is going to show increased production and revenues and lower costs. Continued confirmation of the right track. and gold grades of around 2.5g/t.
This is the lowest outstanding share (136 mil) producer out there with now over $120 million per year revenue. GLTA
fdjens1,
On your following statement: "This is the lowest outstanding share (136 mil) producer out there with now over $120 million per year revenue." There is one stock which has the potential to outperform ORVMF, and that is Aura Minerals (ARMZF). Aura Minerals has a stock float which is 4 times smaller than ORVMF at 33.6 million shares, and unlike Orvana which produces gold dore and copper concentrate at both mines, Aura Minerals has a low cost gold heap leach mine in Honduras, a second gold project in Brazil, the EPP project which consists of an open pit operation and a high grade underground gold mine feeding a MRP which produces gold dore. Both Aura Minerals and Orvana are executing very well on their production plans. The difference between the two stocks is that while Orvana is a 3 mine 2 MRP operation, Aura Minerals has 3 all gold mines, one of which is at end of life, and 2 additional mines Aranzazu which is on care and maintenance and which becomes economic at $3 USD copper, and the Serotte copper gold development project in Brazil. So ARMZF could become a 4 mine 4 MRP operation at some point in the future.
The following spreadsheet shows my production model for ARMZF for Q2 2017 versus ORVMF.
I figure that ORVMF could have revenue as high as $42.3 million USD if both MRPs are operating at 2000 tpd. However, assuming that ARMZF remains on schedule with the mine plan for the EPP project, EPP will be contributing 11,790 ounces of gold production and $3.4 million USD in profit for Q2 2017. Total revenue for ARMZF should be about $10 million USD higher than ORVMF, and ARMZF EPS could be as high as 29 cents per share.
Aura Minerals today is like Orvana Minerals 3 months ago. For long stretches of time in the past six months, I was the only buyer of ORVMF shares, and nobody was interested in going long ORVMF. Likewise, I have been the buyer of 80 percent of the shares traded in ARMZF this month. The following graphic should explain why!
