Orosur back in black in FY16

Wednesday, August 17, 2016

Santiago-based Orosur Mining reported net income of US$1.42mn for its fiscal year ended May 31, compared with a net loss of US$6.81mn the previous year, the company said in a statement.

Revenue was down 34.9% to US$42.9mn on lower production and a lower realized gold price.

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Orosur's fiscal year production was 35,773oz of gold, down 33.1% year-on-year, while the average gold price received was US$1,154/oz versus US$1,232/oz a year earlier.

All-in sustaining costs (AISC) in FY16 was US$1,069/oz from US$1,185/oz in FY15, in line with its AISC guidance of US$1,000-1,100/oz, the company said.

Orosur said it expects production for FY17 to be between 35,000 and 40,000oz at operating cash costs of US$800-900/oz.

The company said it is currently evaluating a number of options to advance its Anzá project in Colombia, while refining a geological model and carrying out some exploratory metallurgical and density test work on previously drilled material.

At its Anillo prospect in Chile, its partner Asset Chile funded US$850,000 in exploration, while a deadline for Asset to fund phase II of the exploration has been extended to March 2017.

Orosur CEO Ignacio Salazar said the firm started development of the San Gregorio West underground project in Uruguay with first blast work taking place in May of this year. The government also granted the company a one-year extension on royalty payments.

San Gregorio mine is Orosur's only producing mine and the only operating gold mine in Uruguay.