Orosur Mining Inc. H1 2017 Results: $3.7M Profit, $7.0M Cash From Operations and New San Gregorio UG Mine Put into Production

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Orosur Mining Inc (OMI)

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Operational & Financial Summary¹
Operational & Financial Summary¹		Q2 17	Q2 16	Diff	YTD 17	YTD 16	Diff
Operating Results
Gold produced	Ounces	6,852	8,172	(1,320)	16,802	20,643	(3,841)
Operating cash cost³	US$/oz	914	858	56	783	916	(133)
AISC	US$/oz	1,345	1,095	250	1,135	1,138	(3)
Average price received	US$/oz	1,252	1,100	152	1,290	1,127	163
Financial Results (unaudited)
Net profit/(loss) after tax	US$ ‘000	942	(870)	1,812	3,701	(2,596)	6,297
Cash flow from operations²	US$ ‘000	2,234	924	1,310	7,029	1,097	5,932

Cash & Debt Summary (unaudited)		Nov. 30, 2016	Aug 31, 2016	Diff	Nov. 30, 2016	May 31, 2016	Diff
Cash balance	US$ ‘000	5,376	4,982	394	5,376	4,320	1,056
Total debt	US$ ‘000	225	289	(64)	225	352	(127)
Cash net of debt	US$ ‘000	5,151	4,693	458	5,151	3,968	1,183

	As at November 30, 2016 ($)	As at May 31, 2016 ($)
Assets

Cash	5,376	4,320
Accounts receivable and other assets	1,923	1,770
Inventories	11,759	12,069
Total current assets	19,058	18,159

Accounts receivable and other assets	550	550
Property, plant and equipment and development costs	12,902	10,106
Exploration and evaluation costs	18,230	17,250
Deferred income tax assets	2,534	2,534
Restricted cash	226	221
Total non-current assets	34,442	30,661

Total assets	53,500	48,820

Liabilities and Shareholders’ Equity

Trade payables and other accrued liabilities	11,667	10,586
Current portion of long-term debt	204	253
Environmental rehabilitation provision	360	360
Total current liabilities	12,231	11,199

Long-term debt	21	99
Environmental rehabilitation provision	5,220	5,327
Total non-current liabilities	5,241	5,426

Total liabilities	17,472	16,625

Capital stock	60,959	60,751
Contributed surplus	5,906	5,925
Deficit	(29,796)	(33,497)
Currency translation reserve	(1,041)	(984)
Total shareholders’ equity	36,028	32,195

Total liabilities and shareholders’ equity	53,500	48,820

	Three months ended November 30,		Six months ended November 30,
	2016 ($)	2015 ($)	2016 ($)	2015 ($)
Sales	10,765	10,190	23,423	24,655
Cost of sales	(9,567)	(10,150)	(18,810)	(25,165)
Gross profit/(loss)	1,198	40	4,613	(510)

Corporate and administrative expenses	(704)	(554)	(1,143)	(1,178)
Stock based compensation	(60)	(5)	(88)	(12)
Restructuring costs	164	(580)	288	(1,694)
Exploration expenses and exploration written off	(2)	7	(11)	(11)
Obsolescence provision	(12)	-	(100)	-
Other income	507	191	857	745
Net finance cost	(45)	(76)	(90)	(137)
Derivative profit/(loss)	8	-	(412)	-
Net foreign exchange gain/(loss)	(87)	104	(188)	182
	(231)	(913)	(887)	(2,105)

Profit/(loss) before income tax	967	(873)	3,726	(2,615)

Recovery (provision) for income taxes	(25)	3	(25)	19
Net profit/(loss) for the period	942	(870)	3,701	(2,596)

Other comprehensive profit/(loss)
Cumulative translation adjustment	(20)	(94)	(57)	(807)

Total comprehensive profit/(loss) for the period	922	(964)	3,644	(3,403)
Profit/(loss) per common share:
Basic	0.01	(0.01)	0.04	(0.03)
Diluted	0.01	(0.01)	0.04	(0.03)

	Six months ended November 30,
	2016 ($)	2015 ($)
Net inflow/(outflow) of cash related to the following activities Cash flow from operating activities
Net profit/(loss) for the period	3,701	(2,596)
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation	2,829	3,628
Exploration and evaluation expenses written off	11	11
Obsolescence provision	100	-
Fair value of derivatives	186	-
Accretion of asset retirement obligation	38	39
Stock based compensation	88	12
Loss (gain) on sale of property, plant and equipment	(14)	(15)
Other	90	20
Subtotal	7,029	1,099
Changes in working capital
Accounts receivable and other assets	(249)	507
Inventories	211	2,002
Trade payables and other accrued liabilities	1,094	(2,240)
Net cash generated from operating activities	8,085	1,368

Cash flow from financing activities
Loan payments	(127)	(711)
Proceeds on sale of common shares of Anillo SPA	-	(710)
Net cash used in financing activities	(127)	(1)

Cash flow from investing activities
Purchase of property, plant and equipment and development costs	(5,617)	(1,758)
Environmental tasks	(145)	(175)
Proceeds from the sale of property, plant and equipment	18	33
Exploration and evaluation expenditure assets	(1,158)	(1,621)
Net cash used in investing activities	(6,902)	(3,521)

Increase (decrease) in cash	1,056	(2,154)

Cash at the beginning of period	4,320	4,787

Cash at the end of period	5,376	2,633

	Six months ended November 30,
	2016 ($)	2015 ($)
Capital stock
Balance at beginning of period	60,751	60,544
Exercise of stock options	174	-
Grant of shares	34	-
Balance at end of period	60,959	60,544

Broker Warrants
Balance at beginning of period	-	62
Balance at end of period	-	62
Contributed surplus
Balance at beginning of period	5,925	5,824
Stock based compensation recognized	83	12
Exercise of stock options	(102)	-
Balance at end of period	5,906	5,836
Deficit
Balance at beginning of period	(33,497)	(32,287)
Net profit/(loss) for the period	3,701	(2,596)
Balance at end of period	(29,796)	(34,883)

Currency translation reserve	(1,041)	(1,064)

Shareholders’ equity at end of period	36,028	30,495