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0.3¢ orinoco gold limited

Ann: ORINOCO RAISES $12.1 MILLION IN SUCCESSFUL SHARE PLACEMENT, page-106

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U3962521

761 Posts.

64

25/03/18

14:07

Post #: 32007919
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Originally posted by U3962521 ↑

Paid off in 3 years then it's all ours, ours I tell you..... not sure whether to chuckle or run SJB, sounding like a man smitten by gold fever.

You have done lots of research but what I am conscious of is your forever positive spin on everything anyone says, there is never a concession. I don't have a bone to pick in this right, there seems to be clearly two sides devided on ogx, going back to the failed mine commissioning and old vs new management.

It's great to hear views from both sides. I don't fully buy into what you say sjb nor eshmun.

- I recognise share price has turned a corner since start of year and I really hope for my own and other holders sake it keeps rising.
- does anyone know if IT the new manager, who used to work at Cartesian when they lent the 8 million has any shares/ ownership still in Cartesian? Has anyone researched this? Is there any conflicts of interest where JG may have aligned the 2000 and 5000 oz a month oz targets because he will be doubly paid? Ie if the mine gets to 5000 oz by end of year then we are looking at giving Cartesian the max amount of oz at 26000 oz over 3 years. If JG has shares in Cartesian even if privately owned he stands to gain with the higher oz the mines produced. In addition to the 5000 oz bonus he gets. I am not implying or accusing here, just asking if anyone knows the answer?

- does anyone know why troy resources sold their tenements? If the area is so loaded with gold and has one of the richest grades and lowest aisc why would anyone sell it?

- if Anglo have 70 percent buy in, they stand the most to gain by finding new gold deposits. Why wouldn't they push forward with exploration given they get 70 percent of anything that comes out of the ground? There must be negotiations happening between them and ogx that are tipping the favour back into ogx side... Anglo could get to work now while the share price was low then offer a low take over. So I think the JV is being negotiated with better terms for OGX.

The current price is 12.5 cents so if we see sp drop to the new CR price then expect about 11.5-12 cents as you need to average the 12 c shares bought with the 11c options, but also the further dilution in terms of future profit sharing if dividends were paid for each share.

I don't care how much gold these guys have. If they can't get it out of the ground profitably the share price won't go up. Lower oz mined will dictate a higher aisc. Higher grade a lower aisc. Brazil has lower wages than australia, we have a favourable exchange rate both against usd and against Brazil currency. We could expect in ramp up aisc will be a lot higher, and once production ramps up to say 5000 oz a month or more it will drop below 1000 aud/oz. Can't fight economies of scale. There is a minimum production cost to take into account just to keep the lights on.

BLK has turned a corner and generated 6000oz last month at a aisc of 900 oz.
But their share price is still in the 8 c range and market cap of 101 million.

SAR have a market cap of 1.3 billion but FY18 target of 300koz most recent aisc of 1150 oz for 265 k oz last year.... so i think saying Ogx is heading towards a 1 billion market cap... Jesus, if that ain't upramping what is? I think ogx would be need to be generating 10,000 oz a month before anyone even contemplate a 1 billion cap. So am sorry to say this SJB, I know this won't win me any votes in the popularity context, but 1 billion market cap here we come is a pipe dream for now.

The idea of ogx being 1 dollar absolutely excites me. I do the math and work out how much that would mean I would have. I get the same feelings of excitement of thinking what if I won powerball ( but would need to buy a ticket first)

What I think will work against ogx is no JORC resource in the millions of oz of gold. From what i have read, the mineralization and chunkiness of gold in the area of tenement doesn't line up to a typical JORC measured resource. That will mean ogx will need to be able to demonstrate consistent month in month out outputs of 10,000 koz a month at a aisc below 1000 before I would even think of a 1 billion mkt cap. And realistically I would want to see a grade of 15 g/tonne or above at those low quantities of 10 koz a month.

Has anyone done the researxh on other asx gold miners and what their sp was worth when they were producing 5 k oz a month?
BLK is one I can think of who sp nose dived at about that quantity because aisc was above 2000 aud oz at those quantities and due to poor grades

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Guys sorry for some typos on figures... my Samsung S7 has the WORST keyboard and autocorrect. But you get my gist of the message

OGX Price at posting: 12.5¢ Sentiment: Buy Disclosure: Held
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