Orogen Sees Income up Again on Royalty Growth

Source: Adrian Day 09/10/2024

Global Analyst Adrian Day shares a few updates from stocks on his list.

Orogen Royalties Inc. (OGN:TSX.V) reported a net income for the second quarter of over $1 million, up dramatically from the year-ago period, led by record revenue from the Ermitaño mine owned by First Majestic. Royalty revenue of $1.9 million was up 29% from the previous quarter and 62% from the year-ago quarter, driven primarily by higher gold prices but also by increased production and higher grades.

At the same time, G&A expenses were down 10% over the year-ago quarter, a reflection of less activity in property transactions. The stock is up sharply over the past month and more on the back of increased awareness of Anglo’s Expanded Silicon Deposit on which Orogen holds a 1% royalty. The end game is clearly approaching, though we are still waiting for the decision on Altius’ arbitration case on its Silicon royalty. This decision will set the sales process in motion.

We think the ultimate value will be higher, and Orogen can be bought here.

Vista Continues To Drill, Pending Property Transaction

Vista Gold Corp. (VGZ:NYSE.MKT; VGZ:TSX) released results from Phase 1 of its current drill program at Mt Todd in Australia and announced the start of Phase 2, which it expects to be completed by year-end.

After that, the company said it would “plan to update” its resource estimate.

Though the drilling has been positive, this schedule suggests no movement on a corporate transaction, and indeed, there is no urgency on that front. I hope to gain greater insight when I meet with the company later this month.

We are holding for now.

Insider Buys Kingsmen Shares

Kingsmen Creatives Ltd. (KMEN:SI) deputy chairman and one of its founders, Simon Ong, bought 2 million shares at 25.6 cents, increasing his overall interest to 24%.

It is common, particularly with Canadian companies, for insiders to proudly proclaim their share ownership, but all too often, those shares come from grants or low-priced options.

It is encouraging to see an officer buy in the market. If the stock price is good enough for the deputy chairman, it’s good enough for us!

Buy.

TOP BUYS this week, in addition to the above, include Gladstone Investment Corp. (GAIN: NASDAQ), Midland Exploration Inc. (MD:TSX.V), Lara Exploration Ltd. (LRA:TSX.V), and Fox River Resources Corp. (FOX:CNSX).

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Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Orogen Royalties Inc., Midland Exploration Inc., Lara Exploration Ltd., and Fox Riv Res Corp.
2. Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.
3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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( Companies Mentioned: KMEN:SI, OGN:TSX.V, VGZ:NYSE.MKT; VGZ:TSX, )

Source: https://www.streetwisereports.com/article/2024/09/10/orogen-sees-income-up-again-on-royalty-growth.html