Welcome to our dedicated page for Orogen Royalties news (Ticker: OGNRF), a resource for investors and traders seeking the latest updates and insights on Orogen Royalties stock.
About Orogen Royalties Inc. (OTCQX: OGNRF, TSXV: OGN)
Orogen Royalties Inc. is a Vancouver-based royalty and mineral exploration company focused on the organic creation and acquisition of royalties on precious and base metal discoveries in North America. The company employs a unique business model that combines royalty acquisitions with prospect generation, enabling it to generate long-term revenue streams while minimizing upfront costs and financial risk. Orogen's portfolio includes high-quality royalties on producing and advanced-stage assets, as well as a pipeline of exploration-stage projects.
Core Business Model
Orogen's primary revenue streams are derived from royalty payments on operating mines and advanced development projects. The company holds a 2% net smelter return (NSR) royalty on the Ermitaño gold-silver mine in Sonora, Mexico, operated by First Majestic Silver Corp., and a 1% NSR royalty on the Expanded Silicon gold project in Nevada, USA, being advanced by AngloGold Ashanti. Additionally, Orogen generates income through the sale and optioning of mineral projects developed under its prospect generation strategy.
Key Assets and Operations
- Ermitaño Gold-Silver Mine: Located in Sonora, Mexico, this producing mine is a cornerstone asset for Orogen, generating consistent royalty revenue. The mine has demonstrated strong production metrics, with high gold and silver recoveries and ongoing exploration success, including the discovery of the Navidad vein system.
- Expanded Silicon Project: Situated in Nevada, USA, this advanced-stage gold project includes the Merlin and Silicon deposits, with total inferred and indicated resources exceeding 16 million ounces of gold. AngloGold Ashanti continues to advance the project with significant drilling and prefeasibility studies.
- Prospect Generation Portfolio: Orogen's exploration efforts have resulted in a diverse portfolio of royalties and projects, including the TCS VHMS project in British Columbia and the Si2 gold project in Nevada. These assets are often optioned to partners, creating additional royalty opportunities.
Competitive Position
Orogen operates within the competitive royalty and streaming sector, distinguishing itself through its low-cost, organic royalty creation model. This approach allows the company to build a robust portfolio without incurring significant debt or shareholder dilution. By focusing on early-stage exploration and leveraging partnerships with operators, Orogen mitigates risks while maintaining exposure to high-potential discoveries.
Industry Context
The mining and royalty industry is characterized by cyclical commodity prices, operational dependencies on mine operators, and the need for strategic asset diversification. Orogen's focus on precious metals aligns with strong demand for gold and silver as safe-haven assets and industrial inputs. The company's geographic focus on North America provides access to politically stable jurisdictions with established mining infrastructure.
Strategic Focus
Orogen aims to expand its royalty portfolio through both acquisitions and organic creation. The company's financial discipline, as evidenced by its debt-free balance sheet and strong working capital, positions it to capitalize on counter-cyclical growth opportunities. Ongoing exploration and development by operators at key assets like Ermitaño and Expanded Silicon are expected to enhance the value of Orogen's royalty interests over time.
Conclusion
Orogen Royalties Inc. is a well-positioned player in the royalty and exploration sector, offering investors exposure to precious metal assets with reduced financial risk. Its innovative business model, high-quality asset portfolio, and strategic focus on North American jurisdictions underscore its potential as a significant value creator in the mining industry.
Orogen Royalties Inc. has successfully closed a transaction to acquire 3% net smelter royalties on three mineral licenses in the Lake Victoria Gold Fields, Kenya for US$120,000. In exchange, Orogen transferred its interest in the Sarape Gold project to Advance Lithium Corp. and will retain a 1.5% royalty on Sarape. The acquired royalties cover 19.75 square kilometers near significant gold resources, with potential for future drilling targets. Orogen remains well-financed and focused on royalty creations in North America.
Orogen Royalties Inc. has signed an agreement with Advance Lithium Corp. to acquire a 3% net smelter royalty on three mineral licenses in the Lake Victoria Gold Fields, Kenya, for US$120,000. In return, Orogen transfers its interest in the Sarape Gold project while retaining a 1.5% royalty. The licenses cover approximately 19.75 square kilometers and are strategically located near significant deposits. This move aligns with Orogen's strategy of royalty creation and acquisition, enhancing its portfolio in the precious metals sector.
Orogen Royalties Inc. announced its Q1-2022 financial results, marking a profitable quarter with revenues of $940,068. This includes $738,842 from the Ermitaño royalty and $182,459 from prospect generation. The company recognized a net income of $426,081 or $0.002 per share, a significant improvement from last year’s loss of $759,706. Total attributable gold equivalent ounces sold amounted to 315. Orogen's cash position remains strong, with working capital of $10,986,322.
Orogen Royalties Inc. has signed an option agreement with Riverside Resources Inc. for the Llano de Nogal copper-gold project in Sonora, Mexico. Riverside can earn a 100% interest by making cash payments of US$2.48 million and spending US$5 million on exploration over six years. Orogen will retain a 1% production royalty. Initial exploration plans are budgeted at US$1 million. The project is strategically located near major copper deposits, enhancing its potential for discovery.
Orogen Royalties Inc. has announced the election of Mr. Justin Quigley as chairman of the board. Quigley, who joined the board in August 2021, has played a crucial role in supporting the company's corporate strategy. Orogen is positioned as a cash-flowing royalty company with active royalty assets including the producing Ermitaño deposit and the Silicon gold project. Quigley brings substantial experience in mergers and acquisitions and legal expertise in mineral exploration, aiming to enhance governance and sustainable business practices at Orogen.
Orogen Royalties Inc. announced that AngloGold Ashanti reported a maiden 3.37 million ounce inferred gold resource at the Central-Silicon zone of the Silicon gold project in Nevada. Orogen holds a 1% net smelter return royalty on the project. Key highlights include plans for 300,000 ounces annual production and ongoing drilling at Central-Silicon and Merlin zones. AngloGold aims to establish a low-cost, long-life production base in Nevada, with prefeasibility studies planned for 2022 and 2023.
Orogen Royalties Inc. (OGNRF) announced it has received its first quarterly royalty payment of approximately US$480,000 from production at the Ermitaño deposit in Mexico. This revenue resulted from the sale of 13,479 ounces of gold and 66,338 ounces of silver and represents a 60% increase over previous estimates. Additionally, ongoing exploration has revealed a new discovery, Ermitaño-Luna, which may further enhance Orogen's royalty position. Expected total royalty revenue for 2022 is US$1.85 million.
Orogen Royalties Inc. has signed an agreement to sell its Onjo copper-gold project in British Columbia to Pacific Ridge Exploration Ltd. for $50,000 cash, 750,000 common shares, and a 2.0% net smelter return royalty. The project, located near Centerra Gold's Mount Milligan Mine, shows potential due to historical drilling that indicated a 500 by 500 metre zone of copper-gold mineralization. This sale aligns with Orogen's strategy to expand its royalty portfolio.
Orogen Royalties Inc. has appointed Brian Massey as President and CEO of Ball Creek SpinCo, a company to be formed from the spinout of the Ball Creek copper-gold project in British Columbia's Golden Triangle. Massey brings over 15 years of mining industry experience, including key roles at BHP and Rio Tinto. The spinout, designed to enhance shareholder value, will involve distributing SpinCo shares to existing Orogen shareholders. Completion of this transaction is anticipated by mid-2022, subject to regulatory approvals.
Orogen Royalties Inc. (TSXV:OGN)(OTCQX:OGNRF) provided an annual update on its prospect generation activities in North America. Key highlights include partner-funded exploration totaling $3.2 million with drilling campaigns of 6,350 metres, and income of $1.9 million from various partnerships. The company's disciplined management strategy resulted in cash and share payments, enhancing its royalty interests. Future exploration will include seven partner-funded drilling programs in 2022, increasing opportunities for new discoveries.
FAQ
What is the current stock price of Orogen Royalties (OGNRF)?
What is the market cap of Orogen Royalties (OGNRF)?
What is Orogen Royalties Inc.'s primary business model?
What are Orogen's key royalty assets?
How does Orogen generate revenue?
What makes Orogen's business model unique?
What industries does Orogen operate in?
What is the significance of the Ermitaño Mine to Orogen?
Who operates the Expanded Silicon project?
What geographic regions does Orogen focus on?
How does Orogen mitigate risks in its operations?
What is Orogen's financial position?
