..got IR to bounce some specific questions to management. I got mostly high level responses but they are:
- AISC should come down in next couple quarters with FQ4 (Jul-Sept) being first full quarter with lower cost impact of full transition to owner-operator mining from using contractors.
- Plan is to run at current run-rates for at least 5 years with 6-7 year LOM at Bonias - main underground mine in Spain. They have about 300k P&P Au-Eq ounces within 900k Au-Eq ounces so I think is reasonable.
- Drop in copper production only in 2016 & 2017 per 43-101 mine plan is function of grade but getting most of value anyways out of gold.
- They said a Boinas mine life extension beyond 6 years would take "significant cash infusion" but there are potentially lower-cost mine life extensions with surrounding targets and of course neighboring Carles mine which is on care and maintenance.
- They will have new investor materials in about 6 weeks that more clearly demonstrate and communicated the underground resource and mine life which is greatly needed. I emphasized the need for this.
Conclusion: Valuation of ~$USD 12M EV is ridiculously low based on fundamentals and I am calling for a double from here if/when gold takes a run to even just $1300 in the next 6 months. Little to no downside here and need to buy now as Orvana is very illiquid and will quickly get bid up on sector rally. I have about $25k of my own money in Orvana now but am maxed out for a single investment that is still a bit speculative. Stupid cheap though.
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