RE:RE:Very thin AsksLarry, couldn't agree more. I've been in this stock for a long time, as I've seen the hidden values that could be turned into great cash flows in the future, I haven’t sold and just been waiting. Unfortunately for me, the wait has been long so I could have generated good returns elsewhere in the meantime, but I’ve seen the progress that has been there quarter to quarter, year by year even though it has been slower than hoped for. The OSP has dragged out for long, but I also believe there are some strategies behind this, with probably the main was the legal battle with the Bolivian government relating to the temporary closing of the mine due to Covid and the release of the workers. While the high court ruled in Orvana’s favor, the state refused to drop the case and continued to mess with the company trying to squeeze out some cash from them. Orvana didn’t bend and now all is settled and they came out on top and can focus on getting the OSP in production.
With the 80% financing secured and on great terms, which hasn’t been easy given the difficult funding situation for PM mining companies for the last years, we are now set and ready to go. With the cash now generated from El Valle, they will be able to finance the rest of the capital needed on their own and by the end of next year we can start production. Revenues and profit will be just outstanding vs market cap. This can then finance the development of Taguas that has real big potential and we could be looking at a totally different company in just a few years.
I believe El Valle has further exploration potential and I would expect them to be able to prolong mining for many years, in the same way as they have managed for the 5 last years, always adding new resources. So there is also hidden value there.
To summarize, there is tremendous value to be tapped into in the coming 1 – 2 years. I would put at least 1 $/share only for the OSP (there is also the tailings stock pile that can be extracted in the next step, at very low cost as the production facility and operations will be in place, it’s just continue processing which adds further value). El Valle should also support at least 1 $/share in value at current gold prices based on current resources further upside potential with exploration ongoing. And then there is Taguas, that previously may not have contributed that much to value, but now with today’s gold prices and the very pro-mining government in Argentina, this should add a min 0.5 $/share value as of today and increasing as the company proceeds with further exploration and feasibility studies going forward.
A share price of 2 – 2.5 $/share could easily be motivated already today, with further great potential as the company moves OSP and Taguas forward. And this is what I believe some early movers on the investor side is starting to realize. It only takes one or two bigger investors that starts buying and the share price will explode. This is how it works, companies like Orvana can be forgotten for a long time and then when share prices starts moving it generates attention and new investors starts to pour in creating the momentum that can be explosive when the value is there. Also, the PM market is gaining attention now as companies starts to be very profitable and increased M&A activity and I think we are on the cusp of a real new bull market for the PM stocks as more and more investors finds this forgotten sector (everything else is so overvalued, while PM stocks are at historical lows), and with that we could easily be looking at a 10 bagger from where we are today.