Production stable, exploration ramp up over H2

Following a successful completion to mining at Arenal Deeps, Orosur has now transitioned most of its production to SGW UG. With ore mining now ramping up at SGW, we expect Orosur to meet its guidance mid-range at 37.5koz for FY17 at cash costs of between US$800/oz and US$900/oz. We also take a first-pass indicative value on its Anzá project, which we consider could grow materially and change the investment case for Orosur. Even on the basis of its announced exploration ‘target’ Anza could potentially add a third to OMI’s market capitalisation.