Friday, 8 March 2013

UPDATE: Orosur Mining boss heads for the exit

---adds broker comment and share price--
Latin American gold miner Orosur Mining (LON:OMI, TSE:OMI) has revealed that David Fowler will step down as chief executive officer (CEO) of the company at the end of May.
The mutual decision to part ways was made in the best interests of both parties, a statement from Orosur said.
It follows seven years in the top job, before which Fowler was Orosur’s chief financial officer.
The company said the search for his successor is already underway.
Chairman Tony Shearer said: “David has been with Orosur for nine years and we have mutually decided that he needs new challenges and opportunities, and that a fresh approach would be beneficial to the company.
“We are very grateful to David for all he has achieved for Orosur, and we will be working together to achieve a smooth transition.
“The company has completed the ramp at Arenal Deeps and we are looking forward to the production from the higher grade ore,” Shearer continued.
“We have set out a clear strategy as to how this production will be used to optimise returns to shareholders as well as to develop the business going forward.
“Now that the company is in a stronger position David and the board feel it is the right time to make this change.”
The resignation was revealed alongside production results for the third quarter. The company produced 18,401 ounces of gold, meaning 9-month production of 47,822 ounces. This is an improvement on the 13,970 ounces produced in the second quarter.
Orosur, which operates San Gregorio, the only producing gold mine in Uruguay, reiterated its full-year production forecast of between 63,000 and 68,000 ounces.
Broker Cantor Fitzgerald hailed Orosur as one of the cheapest gold producers listed in London, trading well below its peers at current prices. It has a ‘buy’ rating and 85p target price.
Small cap resources specialist Fox-Davies, meanwhile, expects full-year production to be “at the top end if not beat guidance”.
Shares in London added 1.2% to stand at 32.5p each.

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