RE: What changed25 Mar 2024 10:44
It seems the main change is that Orosur actually may be able to have Agnico Eagle coming back as a partner as the project could be to handed back in its entirety. Also we could receive information which was not disclosed before as Monte Aguila did not agree. Drilling and good results is what will make a sinificant difference to the share price and it could re-start before the end of Q2 2024. I am happy to hold and add more.
Taken from Turner Pope's research
Regaining complete control of such a significant asset presents exciting opportunities
Orosur appears to be about to land the deal it has been seeking. The Group was always clear that it was prepared to
pay for this, but only in the form of a share of the positive cashflow generated from the mine once it has been built
and producing. Used to working on extended schedules, the proposed consideration appears to reflect Newmont
and Agnico’s confidence that Anzá is a prospective world class asset and that it will eventually give them more
than their money back, even if (under the terms of the original JV at least) they are not prepared to share its risk of
development (which for a pre-resource asset requiring continuing exploration success, permitting and mine
construction etc., clearly remains high).
Clearly, even if Orosur had been able to independently invest in the Project sufficient to regain 51% of the JV, no
other party would consider entering the fray while Newmont and Agnico retain a seat at the table. This would be
in no party’s interest, so it is perhaps understandable that they are now willing to hand it back in its entirety. More
excitingly for Orosur, this now opens a number of viable options through which the Project may be developed,
including to: (i) Go it alone; (ii) Sell it outright; or (iii) Bring in a new partner. All of these, of course, must ultimately
hinge on the wider market appetite.
Importantly for investors, being freed of the strict disclosure constraints/editorial oversight imposed by Newmont
and Agnico, once it has got its ‘feet back on Colombian ground’ Orosur is likely to be far more transparent and
communicative regarding its own development plans. This could include more detail about the extensive work
already undertaken by MMA, their extensive results and a view regarding overall prospectivity. Given its scale and
global position, Newmont considers it important to retain, to the extent it can, ‘a finger in the pie’ of all and any
potential world-class gold prospects.
Even if it will now not be directly involved in the Project’s future development, Newmont nevertheless still retains
an indirect participation through its c.14.21% ordinary shareholding in Orosur (which originally came from its
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