Opinions
Benj Gallander
Orvana Minerals
ORV-T
HOLD
Jun 08, 2017
Stock price when the opinion was issued
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They have been having some difficulties in Spain. Just made an announcement and it looks like their reserve life is increasing. They are also in Bolivia. Likes management and is happy to hold this. Partially down because of the price of gold, but also they have had bad news. Have about $3 million in debt and about $20 million in cash on the balance sheet.
One of the gold companies he bought that has not done well. Paid $0.28 for this. Was recently at their AGM when the CEO said she was going to move on. CFO has taken over the reins on an interim basis. Looking to raise about $6 million for their project in Spain, which is actually producing gold. Bolivia holdings are still going at a reasonable pace with very, very low all-in sustaining costs. Not having a CEO leaves a big question mark. He is happy to hold, and he’ll just wait. Thinks it has a fair bit of upside. Has $17 million in the bank with only about $1.5 million of debt.
(A Top Pick June 19/15. Down 31.03%.) When they reported their recent quarterly results, they got a “going concern” attached to it. That often means bankruptcy is not too far away, however their debt is only a few million dollars. They have to do some reclamation in Spain which will cost them $6 million, plus in Bolivia they wanted to get the mine moving forward. Just got a loan of $7.9 million for their Bolivia holdings. Production is primarily gold and copper. He doesn’t know who the CEO will be going forward. A good speculative buy.
He is underwater. They have gold and copper mines in Spain and Bolivia. Their major backer seemed to be giving up on them. It seems they are now doubling down on it. They are sticking with it. They are doing projects to expand the resource. Their all in costs are way too high. He is happy to hold it. It would be a buy but not for the short term.
Bought this at around $.30 a share. About 2 years ago, he was buying into a lot of gold companies. The company hasn't done well, but have really improved operations. Has 2 major mines, one in Bolivia and one in Spain. They've done a lot of CLR work to improve what they are getting out of the ground. The output is better. Their moving in the right direction. He is happy to Hold this. One bad thing is that management changes too often.
He bought and then watched it cascade down. He has been thinking of buying more recently. He is happy to hold it. The gold price has helped, but they have re-tooled and now mines are producing more gold. He thinks they have a tremendous amount of upside.