RE:Dead moneyBeluga2020 wrote: I am about to liquidate my entire position. This has been dead money and an opportunity cost for awhile as I see other stock picks on my watch list fly. Can't see any market interest in ORV in the short to medium term unless price of gold skyrockets. Someone other than Gandoplh convince me otherwise. Give me a good reason to smile like Juan
Beluga2020,
It has been a while since I saw posts with the topic of "Orvana as DEAD MONEY".
So let me compare the current trading action of Orvana with another stock that was written off as DEAD MONEY during the entire year of 2019 when the ask price was one penny Canadian on the TSX and the bid price was a half penny Canadian on the TSX. That dead money situation lasted the entire year of 2019, and you could have purchased as many shares as you wanted at ONE PENNY CANADIAN.
So what happened to this stock since then? Well in April 2020, the price started trading between a penny Canadian and 2 cents Canadian. Then it went to 3 cents Canadian, and advanced to 6 cents Canadian in March 2021.
The "dead money" stock that I am referring to is TVI Pacific or TVI.V on the TSX (TVIPF in the USA).
The news that caused the stock advance was TVI's advancing its Balabag Gold and Silver project into production. The Balabag Gold and Silver project is sized similar to Orvana's OSP project in Bolivia and will have a 3 to 4 year mine life equivalent to the Don Mario OSP. Gold and silver grades are similar, and the plant has a 2,000 tpd milling capacity similar to Don Mario, but the big difference between the two projects is that there is no copper at Balabag.
The capital cost of putting Balabag into production was $28 million USD, which is comparable to the estimated $25 million USD cost of upgrading the Don Mario plant to process its 2 million tonnes of oxide ore stockpiles.
TVI.V stock traded 1,059,520 shares on the TSX today and closed at 5 cents Canadian. The current TVI market cap is $32.8 million Canadian dollars. Orvana traded 7,600 shares today and closed the day at 29 cents Canadian. At that price, Orvana's market cap is $39.6 million Canadian dollars.
At $0.05 cents US TVIPF has the same market cap as ORVMF at its current price of $0.24 USD.
Balabag's process plant is currently undergoing pre-production tests, and is scheduled for its first gold pour within the next three months. In contrast, Orvana already has a producing high grade long life gold mine and the Don Mario Oxide Stockpile Project (OSP) is scheduled for production starting in 2022.
TVI Pacific doesn't look like dead money anymore, and IMHO neither will ORV in 3 months time.