Value Microcaps Junior Miners

[checkmate28]

OMI Orosur Mining Solid company trading at near 1X cash flow when you back out the recent CAPEX for the new mine.

Have produced 1.4Moz since 1997
500K M&I Now
3 properties in South America
1.5Mtpd CIL Replacement value $100 - $150M
Producing about 2100tpd Capacity 4545tpd
Built and operated 20 mines since 1997 most self financed
H1 2017 AISC $1135 CF & 7.0m Cash $5.4m
Q3 YTD Cash costs $807 AISC $1184 CF $8.7m Cash $2.4M
Cash is down due to the CAPEX for the new mine that is basically completed

The company has No debt.

Been mining successfully in Uruguay at San Gregorio for 25 years. They operate and control the San Cristobel belt which is not a claim but an entire district that is very underexplored. - 120km in length. The potential to find more resources to feed the San Gregario mine is large, not to mention they are now mining in an area whereby they can dramatically increase the reserves as under the San Gregario Pitt is where most of the indicated and inferred resources exist and lets hope a good portion thereof can be converted from indicated to proven.


Just successfully built out an entire mine in 6 mths from the companys cash position and CF. Then cash flowed positive with $807 operating cash costs in Q317 their 1st quarter of operation. Should be even better next quarter. New mine running good, about 2gpt 60% Underground 40% pit

The wildcard is going to be the recently acquired Waymar Resources Ltd exploration project they acquired in Colombia 2014. Their starting to get busy their. Planning 15m - 30m drill program this year. Finalizing a geological model to make the plan forward and already has strong gold drill results. Just south of Continental Golds Buritica Project and another half dozen Heavy weight Gold Projects See pg 19 in the presentation. The project includes 2 fully permitted operating gypsum mines that the company will expand on as they drill out for gold. Ive spoken with the CEO and VP Corp development on the phone and at PDAC. They think their project is stronger than Red Eagles nearby project plus all infrastructure roads, elec is already there from the gypsum operation.

Q317 Results
http://www.stockhouse.com/news/press-releases/2017/04/03/orosur-mining-inc-q3-2017-results-operations-update-ytd-4-1m-profit-8-7m-cash

http://www.orosur.ca/files/2017-04-01-April-2017-Corporate-Presentation-FINAL.pdf

http://www.proactiveinvestors.co.uk/companies/stocktube/6735/orosur-mining-chief-pleased-with-incredibly-busy-first-half-6735.html


http://www.proactiveinvestors.co.uk/companies/news/172106/broker-slaps-big-price-upgrade-on-orosur-mining-172106.html

http://www.proactiveinvestors.co.uk/companies/news/175865/gold-production-up-as-orosur-switches-underground

My thesis is:
1) The risk is on the low side, as they can choose to pile Cash from San Gregorio as they expand.
2)There is substantial upside should they be successful in Columbia. CEO told me he thinks Anza is going to be a company maker.
3) I'll add that while Uruguay in not a hot jurisdiction, Colombia is very sexy. Good drill results along with CF from San Gregorio will move this sentiment more positive very fast along with making the shares, more liquid and more expensive.

Very illiquid now. Painful to get a position. I asked CEO why market cap share price is so low. Their answer was, share holders are upset as they have not promoted at all. Moving forward, they are going to change that esp as ANZA moves forward.

My style here. Find solid value with large upside. Move in early and wait, adding as they move forward successfully. Often Im in to early, requiring painful patience so be warned. I had no reason to rush putting this together for you guys as were still out front and Im extremely busy. Hope you find, its at least a very interesting story.

Checkmate28