ORV.TO Matt, Good call. I agree with your 2 line Bull thesis. I added today to an already nice position.
The 2017 AISC Guidance is blown out, due to the intensive Capital going into both projects in Spain and Bolivia. Their fiscal 2017 year ends in Sept17' More realistic guidance should be out soon.
Its at this point the following positive catalysts should be in play:
1)El Valle Spain mine rehab project will be complete with a 60% increase in production from today's rate ringing in 50KOzAu here alone
2)The $8m loan from the bank will be fully paid.
3)They should get another $5M from the sale of the Copperwood project. $2.5 guaranteed
4)Don Mario Bolivia CIL project will be commissioned adding 25% to recoveries over the float circuit, therefore allowing more production at lower costs and new areas to be profitable. Also their mining from higher grade zone now.
5) Stockpile Measured mineral resources of 2.2 M tonnes Containing: 129k oz Au, 96 M lbs copper Au 1.84 gpt / Cu 1.89% / Ag 49.30 gpt will be blended through the CIL. This is going to be highly profitable addition.
6) After Q217 (April) the cash balance should be increasing after taking the current hits for all these improvements.
The reason they are spending so much money, is that they paid down a $62m loan during the downturn in metal prices. That pressure short changed the upkeep and development and put them on life support.
Typically, I dont like these jurisdictions as DrAir said. Heres why I like this one. This turn around is deep, making the company look sick and hopeless with sentiment being at the low...
The hard work is nearly done, making the turn around nearly complete. The limited Management left, plus the former USA people added to the board know what they are doing. In FY2018 starting Oct17' should show 100k+ oz gold production, plus copper for 120k+AuEq run rate at much lower costs, therefore, producing large Cash Flow relative to the $30M market cap. DrAir Hang on to your shares. The market will buy Bolivia when it gets this message.
Checkmate28
