Orosur Mining

CN: OMI

£9.1m market cap

6.05p last close

Orosur Mining owns (100%) the San Gregorio gold mine in Uruguay (on care and maintenance) and controls the highly prospective, high-grade Anzá gold property in Colombia, which is now subject to an exploration and option agreement with Newmont Mining.

Investment summary

Orosur (OMI) has secured US$2m (at a 229% pre-deal premium to its share price) via a private placement with Newmont Mining (NEM) in relation to its Anzá project in Colombia. This alleviates OMI’s near-term corporate cash requirements and provides it with a funded route for Anzá through to production. Considering the beleaguered state of OMI before this with production at its Uruguay assets on care and maintenance, this initial financing from one of the world’s pre-eminent gold miners offers a realistic development route to realising Anzá ’s potential value.

Y/E May
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 44.2 9.4 2.1 2.6 3.0 0.6
2018A 37.1 6.7 (2.4) (26.4) N/A 1.1
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Share price graph
Balance sheet
Forecast net debt (US$m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 6.1 (28.0) (48.5)
Relative* 5.3 (26.3) (41.6)
52-week high/low 11.2p/1.6p
*% relative to local index
Key management
Ignacio Salazar CEO
Ryan Cohen IR