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0.3¢ orinoco gold limited

I wrote "cash cost should be around $500-$600 per ounce" and...

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georgecostanza

1,340 Posts.

39

18/03/18

18:59

Post #: 31841080
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Originally posted by eshmun ↑

"This video is also worth watching while waiting for things to progress.

- in discussions with major shareholder AngloGold regarding exploration on the 50 tenements outside of Cascaval
- cash cost should be around $500-$600 per ounce
- potential for a substantial silver deposit"

Those are cash cost estimates not AISC cost estimates

Let's see what Jeremy Gray said in fuller context.

Quotes JG

"production starts next week ....could be anywhere between a thousand upwards of ounces per month um really we just start with a low number to begin with... my cash cost should be somewhere between A$500 and $600 per ounce"

"I'm hoping that we can generate a substantial cash balance but there's always opportunities to expand the mine there's also drilling that we would like to do and there's also a lot of potential growth there that all takes capital as well"

"Look the potential is there ...it's ah...we are not by any means completely out of the woods"

"and I come from the industry where its all about big CapEx, it's all about raising lot's of money it's all about consultants and every single consultant that went down to site last year, no one said the problem was with the mill, and they all said we needed to spend $30 million, $50 million, $100 million on the mine maybe one day we will, the problem was with the mill"

My impression is that if every single consultant that has visited the mine says you've got to spend tens of millions on the mine then that's where the actual problem lies....ie you need to improve the capacity of the mine. The milling issue IMO is a separate problem that is being solved. The mine capacity issue is the limiting issue for how well this company can do out of the mine in the medium to long term.

I also think investors have to bare in mind the following to statements from the fireside chat.

"Joe and I had both invested significant time and money during this time, however we faced the real prospect of losing the project until a recent turnaround in events."

"To provide a bit more context on this, prior to becoming Managing Director of OGX in December, my day job was as a partner of Cartesian Royalty Holdings (CRH) who lent Orinoco its money to build Cascavel."

Cartesian needed to be repaid and the best hope was to keep the company alive which they only did with Anglo's support. It would have looked very ugly without Anglo.

I get the impression that the company is generating money from option conversion at the moment and that's what has been keeping it afloat in the short term.

JG expected to have $4 million in the kitty by the end of March (or is that Feb...what is the date of this video?).

It will be interesting to see how much actual money has been generated from the mine compared to that coming in from option conversion in the quarterly report. That should tell us the real cost performance of the mine over this restart period. The June quarter will then be the real test of the mine. Hopefully we get clarity on the Anglo JV by then so investors like my self can decide where they stand with respect to fair value. Esh

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I wrote "cash cost should be around $500-$600 per ounce" and linked the video.
You replied "Those are cash cost estimates not AISC cost estimates"
WTF??

"The June quarter will then be the real test of the mine. Hopefully we get clarity on the Anglo JV by then so investors like my self can decide where they stand with respect to fair value."

Right now this is a high risk high reward speccie. You obviously do not have the risk appetite for it. Why dont you sell on market in the morning and come back in 6 months when you can decide where you stand with respect to fair value. Of course by then the SP may be alot higher than 12.5c. It could also be a lot less, but that is the risk people who hold at the moment should be willing to take without banging their fists on the table.

When I bought into OGX around 6c these threads had the perfect mix of informative for and against posts due to the skepticism of long term holders. Now it seems anyone who posts with a positive sentiment or any sign of excitement due to the momentum management have created can expect to be trolled or called a liar or the like.
I wont be posting again, not that I have much to add, but look forward to what I believe will be share price catalysts over the next few weeks and months. TA points to a continuation of the uptrend and the new management team have clearly been kicking goals so far.

Ill remind you of the last two posts you made before you sold shares at 12c. Your clearly a smart man with bags of experience but you just dont have the risk appetite for this company at this stage and it seems to me you have a personal grudge against some of the long termers who have disagreed with you.

Best of luck to everyone involved.

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