Interesting musings on this boardI was dissapointd when the preliminary Q2 numbers were revealed and took that opportunity to lighten the load so to speak. I have been buying again over the past few weeks, especially when the share price drops below 0.24.
But I totally understand the frustration of some of the posters as in why the f did the share price drop from .40 to .20 when even at 0.40 the price was ridiculously undervalued. I was reading about Torex gold this weekend with 322,000 oz annual gold produciton and a market cap of C$1.48 billion. Thier AISC are similar to that of Orvana.
Thier market cap per 100,000 oz of production is $460 million... Orvana's is about $32 million, and if you beleive we will do 110k oz this anum then it's $29 mil. That's literally one order of magnitude cheaper - Bottom line is the company's IR and marketing is abysmal, so much so and it is so cheap that few analays will even look at a company with such a low valuation. Greenfield explorers in BC's Golden Triangle with no resources have valuaitons that are at multiples of ours.
Looking at this another way, if the price of gold increases by $300 from $1200 to $1500, then both cash flow and earnings for a 100k oz annual producer would increase by US$30 mil or about $40 mil canadian, Place a super conservative 3 x multiplier and you have a $120 million increase in the value of our company - yet our friggin cap is only about $30 mil.
This is why there are so many frustrated shareholders... Cleary Fabulosa does not give a rats butt about minority shareholders. On top of this, our share price has dropped by about 50% from recent highs which is very alarming and points to some problems that have not yet been made public... The market is telling us something, that's for sure.
Just ramblings from a frustrated bagholder...