FISCAL Q4 RESULTS EXPECTED22 Jun 2016 13:44
Assuming production continues at the same rate as Q3 we can allocate production of 7274oz for the quarter
Assuming all in sustaining costs are as Q3 aroundo US $975
Assuming average gold price for the quarter of US $1250
This gives net profit for Q4 of US$2 Million
This will add to the cash brought forward from Q3 of $2 million along with:
"US$2.5 million settlement agreement reached with the Government of Uruguay on February 29, 2016 pertaining to tax disputes. These funds are expected to be received by the Company during April 2016."
That gives a total cash position of US $6.5 million.
I will assume Cap ex of $1 million during this period to further development of reserves and accessibility at San Gregorio and paying off of remaining debt $0.4 million.
This gives overall cash position of US5million at end of Q4.
Given the above workings we can assume a net profit of US $2million minimum per quarter or £5.5 million over the next fiscal year. Current market cap of £11 million gives a P/E of 2. Assuming a moderate P/E of 5 the company should be valued between £20 and £30 million.
This is without further improvemeets in production or increases to reserves from development of mines in Uruguay and Chile....
I'm expecting some form of update from the Company imminently on the following:
"Concurrently, the Company is advancing known target zones in Don Tito using NSAMT (Natural Source Audio-frequency Magnetotelluric Imaging) geophysics methods. The NSAMT program has been ongoing during March and April with results expected during Q4 FY16."
"At Arenal Deeps, the Company is testing a down-plunge extension/ repetition of the Arenal mineralized structure. A 1,100m drilling campaign commenced in December 2015 and is expected to conclude during Q4 FY16."
The investhe case in OMI is significant and I'd welcome any thoughts on the above workings....
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