Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Tuesday, 10 September 2013
Orosur shares soar 80% as production and costs beat forecasts
Shares in gold digger Orosur (LON:OMI) (TSE:OMI) were up 80% earlier in the London trading session as the group’s production figures came in well ahead of expectations, while costs dropped significantly.
The AIM-listed group, which runs San Gregorio, Uruguay’s only producing gold mine, said output was 16,851 ounce of the precious metal in the three months to August 1.
This compared with guidance of 13,500 to 14,500 ounces, while cash operating costs were an impressive US$755 an ounce, well ahead of the slated US$950 to US$1,000 an ounce.
While performance was surprised, Orosur says it still expects year-end production to be in line with earlier predictions of 50-55,000 ounces of gold mined at a cash operating cost of US$850 to US$925 an ounce.
It ascribes its success to operational improvements implemented in recent months.
The company also said it had focused on refining its geological modelling and optimizing ore control processes at the Arenal Deeps underground portion of the mine and as well as the open pits.
Chief executive Ignacio Salazar said: “Orosur is delighted to have achieved such a strong set of quarterly operating results.
“It is a pleasure to see robust operating figures realized so swiftly on the back of the focused operational and organisational improvement programmes initiated over the recent months.
“The company continues to strive to achieve further improvements both in the short and long term.”
At 12.30pm in London, the stock was changing hands for 18p for a rise of 65% on the day.