Cantor Fitzgerald have today increased their target price to 44p (from 32p):
"Broker slaps big price upgrade on Orosur Mining
11:25 24 Jan 2017
A new price target from Cantor Fitzgerald points to potential upside of over 150% at Uruguay-based gold miner Orosur Mining International PLC (LON:OMI TSE:OMI).
Orosur runs San Gregorio, the country?s only gold mine and is making significant progress towards defining new deposits and reserves close to its existing operations argues the house broker.
?We note a new determination on the part of the company in replacing reserve at its operations in Uruguay where exploration is underway on extensions to the new SGW underground workings and at nearby open pit targets.?
In addition, it has recently made a commitment to drilling its Anzá project in Colombia which should lead to a maiden resource estimate.
At San Gregorio, Cantor said it has been impressed by the smooth transition from the underground workings at Arenal to SGW (west).
The miner has reiterated its production and cost guidance for 2017 at 35-40,000oz and US$800-900/oz respectively, but Cantor is going for 36,600oz, leaving the company with 19,800 oz to produce in the second half or 18% more than in the first six months.
?As the new SGW mine stabilises during the period and open pit production is maintained, we believe this target should be comfortable.? The broker’s estimate for cash costs has also been trimmed by 3.5% to US$816/oz.
?Based on our revised estimates and current peer group multiples our US dollar valuation for OMI rises by 13% to US$54m (C$0.73/share) but at current exchange rates the sterling target price rises by 36% to 44p.? Buy is the investment view.
Shares in London rose 1.5% to 16.75p. The miner is also listed in Canada."