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Gold price up, results out

lse:omi

#1

Gold up to $1257 now. Cantor reiterate their 44p target price:

"Gold production up as Orosur switches underground
15:52 03 Apr 2017

So far this year Orosur has generated US$8.7mln in spare cash

Orosur Mining Inc (CVE:OMI LON:OMI) has seen full a full quarter of production at the new San Gregorio West underground site in Uruguay.

Around 60% of the 7,800oz produced in the three months to February came from the SGW operation.

A lower gold price clipped after tax profits to US$363,000 (US$3.07mln) but house broker Cantor noted that cashflow rose in the quarter.

So far this year Orosur has generated US$8.7mln in spare cash while profits year-to-date have risen to US$4.1mln (US$480,000).

The junior expects production of between 35-40koz of gold for the full year at cash costs of between US$800-900/oz, which implies a sharp pick-up in output in the fourth quarter said Cantor.

The broker?s target price remains 44p compared to 14.2p, up 1.6%, today."