ODV, ORS, RIO, EDV
Ouch. Osisko Development aka ODV has announced another huge financing, totalling at least $US195. Unlike the last one, this financing is very dilutive, as it is composed entirely of equity, with each unit including a half warrant.
I have pretty well given up hope of the warrants I own making any progress, given that they have less than 2 years to run and have a strike price of over $C14, compared to the current share price of around $C3. If I had known I would have sold them yesterday before this PP squashed the already meagre price.
ca.finance.yahoo.com
Explorer Orestone Resources aka ORS released an update on its two current exploration programmes.
At Francisca in southern Argentina, where they are exploring an Au/Ag porphyry for oxide ore, ORS is carrying out mapping and sampling to prepare for an upcoming drill campaign.
At the Captain Au/Cu porphyry prospect in Central BC, they have licensed several dozen new drill locations in preparation for a drill programme expected in Q1 2026. Interestingly, this programme is designed to focus on the T2 prospect, less well defined than the T1 target that has been the main focus until now.
If they can define a minable deposit at Francisca or a second large porphyry at Captain, it should give the stock a boost.
Message 35210473
Yesterday we learned that Rio2 aka RIO had received another $50M advance from its gold prepay agreement with WPM, paving the way to first production at its Fenix gold mine under construction in Chile. Today we get an update on how construction has been going.
As you would expect from this experienced team with a strong track record, construction is proceeding well on all fronts, on time and a little under budget, Haul roads and leach pads are being completed, meaning the stacking of ore on the leach pads will commence within weeks, preparatory to the first gold pour.
I will also be interested in the new Resource Estimate we can expect in a few months for the areas projected to supply the first three years of ore.
You can follow links to plenty of pretty pictures of the activity.
Message 35210491
West African gold miner Endeavour Mining aka EDV released their Q2 results. At first I was confused because they kept on referring to H1 2025 compared to H1 2024, then I saw the financial numbers, which were not good in Q2 due to a large cash tax payment in Q2. To be fair, the H1 2025 numbers were generally still an improvement from H1 2024.
Above and beyond the financial numbers, Q2 gold production of 305k oz was significantly down from Q1 2025, albeit also up considerably from Q2 2024. As a result of lower production and the tax payments, cash cost increased from $929/oz Au in Q1 to $1220/oz Au in Q2. (And Q2 2024 cash costs were somewhat lower at $1148/oz..)
Still, EDV generated large amounts of profit and cash flow in Q2, with the numbers being similar to Q2 2024 but lower than Q1 2025. As a result their cash stash declined to $634M at the end of Q2 partly as the result of paying out $140M in dividends and $28M in share buybacks.
As near as I can tell, the primary reason for the production decrease in Q2 was lower grade processed at several of their mines, which was anticipated to happen due to mine sequencing. Production was always slated to be higher in H2. Let us hope that anticipation is fulfilled.
Message 35210563 |
