Orinoco Gold (OGX)

SilverSanchez

SilverSanchez

Active Member
Gold Mine: Cascavel Mine in Brazil (70% owner)

No resource data because the gold was high grade but nuggety so its hard to get a consistent resource estimate.
They decided to save money and develop the mine via private funding.

I believe this team has something worth investing in (I bought @17c) its a higher risk.

As of last report

$3.3m cash (quarterly outflow estimate is $6m so they are depending on debt to make budget)
$10.9m Debt facility
276m shares on issue

options
68.2m shares @ 11c (Nov this year expires)
119.2m option total (inc. above) (25-30c 2017-2018 expire)

So fully diluted 400m shares



So, higher risk producer, potential for inconstant quarterly returns (depends how the mine is managed)
Potential for good investment returns (I think) is worth the risk in the short term. DYOR
I just offer it here for consideration
 
When I bought these guys @17c

I knew of three main risks

1. No resource data deters institutional investment
2. Having so many PhD directors says more theoretical thinkers than practical real world thinkers on the board
3. No in-house mine development raises the risk

Looks like I should have listened to my own voice :)
*waves goodbye to $4k* see ya

These situations are historically the end of a company in my experience - example - CCU in the silver space a while ago
I suppose its good they stopped mining and stood down staff early to seek for help - but kinda shows an incompetent management all the same.

A stop-loss would have helped :)
 
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