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Orvana Minerals Corp T.ORV

Alternate Symbol(s):  ORVMF

Orvana Minerals Corp. is a multi-mine gold-copper-silver company. It is involved in the evaluation, development and mining of precious and base metal deposits. Its assets consist of the producing El Valle and Carles gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, and the Taguas property located in Argentina. The El Valle and Carles mines and the El Valle processing plant are a producer of copper concentrate and dore. El Valle is located in Asturias, Northern Spain. The Don Mario Operation is in San Jose de Chiquitos, Southeastern Bolivia. The Don Mario Operation consists of a set of assets that includes Las Tojas orebody, and the previously mined out lower mineralized zone, upper mineralized zone and Cerro Felix mines. The Taguas Property consists of 15 mining concessions over an area of 3,273.87 hectares, held and managed by its subsidiary Orvana Argentina S.A. Taguas is located in the province of San Juan, on the eastern flank of the Andes.


TSX:ORV - Post by User

Comment by ganndolph1on Jul 15, 2021 1:53am
264 Views
Post# 33547778

RE:RE:RE:from last news release

RE:RE:RE:from last news releaseyellowgulch,

The only takeover defense that a small company like Orvana Minerals would have is to adopt a shareholder rights plan that would give current shareholders a defense mechanism against a hostile takeover.

However, in the grand scheme of things, if Orvana's Board were to get an offer of say $10 USD per share for Orvana, I think that hypotherical deal would get done in an instant.

What makes Orvana such an excellent investment is its exposure to risky political jurisdictions--Bolivia and Argentina which affords the stock some natural protection from a hostile takeover.  The OSP project at Don Mario in Bolivia is only a 3 year mine life extension, so that project is unlikely to attract any takeover interest.

Taguas is a different story.  Being the same size as Fortuna Silver's Lindero Mine, and having a copper gold porphry deposit that is better than Lindero because of the silver content and higher silver recovery, I still think that it would take the addition of a SART plant and an OROVALLE light plant to put that resource into production, which means another $100 million USD.  So while Taguas may have a multi decade mine life, I don't see any acquirer willing to pony up $100 million USD to build it!

So that leaves Orovalle in Spain which has been in continuous production siince 1998, and where the existing process plant can simultaneously process oxide and sulfide ore and achieve a 91-95% gold recovery, and the copper and silver by products take gold production from  13,879 ounces to 18,471 ounces gold equivalent. Orvana's management has been wisely flying under the radar releasing bonanza exploration results quietly as part of the quarterly production reports.  No need to attract unwanted hostile takeover interest.

How about growth in production?

McEwen Mining achieved a 33 percent growth quarter on quarter.  However, they printed 10 percent more shares relative to a year ago, so that reduces their quarterly growth rate to 120 %.

Orvana had 130 percent quarter on quarter growth in production and printed ZERO new shares. The fact that Orvana Minerals has not printed shares in over 10 years makes this a stand out stock.

Second best after Orvana is Caledonia Mining which had a 27 percent increase in quarter on quarter gold production as their central shaft project is finally done.

What makes Orvana interesting as an investment at this point in time is that Orvana has the flexibility to report whatever profit it wants to.  The bearish case is that they sell none of the metal in inventory in which case revenue would be $30 million USD and profit 4.6 cents per share or if they sold 6000 ounces of gold and 1 million pounds of copper in inventory, revenue would be $44 million USD and profit 17.6 cents per share. 
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