RE:RE:RE:RE:RE:Whats up with Orvana? bobzuruncle,
The monthly swing high on ORV was made in December, 2010 at $3.90 Canadian dollars on volume of 5.386 million shares. Since that high has not been retested, Orvana's stock price will return to that level to retest the high, if the stock is not taken out through an M&A action. So that is the first point! The carrot is REAL for anyone who follows technical analysis.
Second, let's take a look at the fundamentals that accompanied Orvana's 2010 high at $3.90 CAD. The company had a market cap of $456 million Canadian dollars.
Annual gold production was at 28,341 ounces from Las Tojas, and contrast that with 28,661 ounces of gold produced last quarter at El Valle and Don Mario.
2010 gold head grades averaged 1.73 g/t, and recovery was 82.2%. Last quarter, average gold grade was 2.72 g/t, and recovery was at 92 %--10 percent higher than in 2010.
The realized gold price in 2010 was $1141.24, and the current gold price is sitting at $1230+.
And so there is a huge disconnect between the fundamentals on Orvana which are quite bullish with gold production being up by a factor of 4 relative to fundamentals at the 2010 high, and yet Orvana is trading at 15.5 cents Canadian which gives it a market cap of $21 million CAD-- 21x less than the 2010 high with 4x the gold production.
I cannot help but thinking that the imbalance between Orvana's stock price and fundamental performance gets resolved by Orvana's stock price moving much higher.