RE:RE:RE:RE:RE:RE:RE:Hedging -= shot themselves in the footfirecracker74,
In your post, you stated the following:
"With weak production, high costs and hedging they are not seeing tjhe financial improvements others are seeing. A modest improvement in quarter 3 is the best they can hope for and quarter 4 will have huge hedging losses. 9,000 ounces of gold produced in quarter 4 will be sold at around $1,550 costing them about $3.6M in lost revenue. So I see huge potential here, but I still a very poor track record on producing results. I am comparing ORV to GPR. GPR needs to show lower costs also, but production is exploding upward. It seems like more of a sure thing, bur ORV could have bigger potential gains if they could ever get their act together."
Weak production? Really? Man, you cannot be serious. In the middle of a pandemic lockdown, Orvana milled 163,717 mtpq or 1819 tpd up from 148,339 mtpq or 1647 tpd, so you are calling a 10 percent increase in daily average production weak production?? Seriously?
It is obvious that you do not understand the flow sheet or the economics of this mine. For your information Orovalle has been in continuous production since it achieved commercial production in mid 2011.
Peak annual gold production was in 2013 at 65,992 ounces, and in 2019, Orovalle came within 1662 ounces of this peak gold production. So Orovalle is a consistent steady gold producer with a secret weapon, mainly a process plant that has the ability to rapidly increase gold production simply by changing the blend of high gold grade oxide ore with low grade skarn ore.
As a result, I expect Orvana to report a small profit of a penny per share for fiscal Q3. For fiscal Q4, assuming Orvana goes to 60 percent oxide throughput gold production increases to about 20,000 ounces per quarter, and rising silver and copper prices provide enough additional by product revenue to increase profit to 15 cents per share for fiscal Q4.
In fiscal Q1 2021, I expect Orvana's quarterly profit to increase to 25 cents per share.
At Great Panther, I expect the quarterly profit ramp to be more gradual. 5 cents per share for Q2 2020. 15 cents per share for Q3 2020, and 27 cents per share for Q4 2020 without Coricancha. If Coricancha goes into production, add 5 cents per share in profit.
The comparison of Orvana to Great Panther is not entirely fair, because you are comparing an open pit mine in a non Covid lockdown country-Brazil with an underground miner in a Covid lockdown jurisdiction. But there is a similar dynamic at play within the mining plan. GPR goes from 15 percent oxide ore mix to 61 percent oxide ore in Q3 lowering milling cost significantly while the ore grade increases from 1.3 to 1.94 g/t by Q1 2021. So we could see 55,000 ounces of gold coming from Tucano in Q4, if the mine continues to perform above plan. There is no doubt that Great Panther shares will do very well in the next several quarters.
ganndolph