Highlights

  • Gold production of 60,271 oz ahead of upgraded guidance (55,000 – 60,000 oz).
  • Cash operating costs reduced by 28% to US$792/oz (2013:US$1)(2013:093/oz) beating upgraded guidance.
  • All-In-Sustaining costs reduced by 34% to US$1,049/oz (2013:US$1)(2013:601/oz).
  • Average gold price received of US$1,298/oz (US$1,605 in 2013).
  • Net Profit after tax of US$5.1 M (2013:loss of US$14.8M).
  • Cash Flow from operations increased by 13% to US$23.9M (2013:US$21.2M).
  • Net cash increased by US$9.2M with a cash balance of US$10.8M and total debt of US$4.9M as at May 31, 2014 (Net cash of US$5.9M).
  • San Gregorio Mine life extended after addition of 75,000 oz to reserves at key projects.
  • The San Gregorio-Arenal trend in Uruguay has been delineated over an approximate 200m wide corridor and along an extension of approximately 10 km with six initial targets defined to date.
  • Exploration models have been advanced in Chile at minimal cost with the results at Quebrada Pantanillo consistently supporting the existence of a high sulphidation epithermal system and a structural interpretation study at Anillo which has defined six domains and several new targets.
  • Acquisition of Waymar Resources Ltd. closed on July 9, 2014, adding the high grade Anzá gold exploration project in Colombia to Orosur’s exploration portfolio.

Ignacio Salazar, CEO of Orosur, said:

"Orosur is pleased to have achieved strong 2014 operating and financial results, delivering ahead of guidance given for production and cash costs. We have been able to generate operating cash flow of some US$24 million, 13% more than we generated in 2013 despite a significantly lower gold price environment.

"Whilst implementing numerous programmes to improve operations during a year of significant change for Orosur, we successfully executed the exploration and development work necessary to extend San Gregorio’s mine-life and grow our reserve base. Guided by disciplined capital investment evaluations, progress has been made at delineating the Arenal-San Gregorio mineralised corridor in Uruguay and in defining additional targets at our Chilean explorations assets.

"After financing all our growth programs internally, Orosur still improved its net cash position by US$9 million during the year.Beyond our current assets, the recent acquisition of Waymar Resources has added an attractive high grade exploration asset with significant upside in Colombia in the Anzá project. We are delighted to deliver progress across these areas and our intention remains to work efficiently and diligently for the benefit of our shareholders.We look forward to the year to come."