# ORR - OreCorp Limited



## System (3 August 2011)

Silver Stone Resources Limited (SSZ) has a 100% interest in the Cheriton's East Project.  The Cheriton's East Project covers a total area of 58.3km² and overlies the southern strike extension of the Redwing gold mineralisation. The Cheriton's Project is located 48km south-east of Marvel Loch in the Eastern Goldfields of Western Australia.

The Project area is situated in the Southern Cross Province in the south-west corner of the Archaean Yilgarn Craton. It lies within the north-northwest trending Southern Cross Greenstone Belt which extends along strike for 300km from Mt Jackson in the north, to Hatters Hill in the south.  

The Project is considered to have the potential to host major low to medium grade gold mineralisation, subject to deeper drilling. There is also potential for the identification of sulphide nickel mineralisation towards the western side of the lease. 

In addition to its 100% interest in the Cheriton's East Project, the Company intends to pursue new projects in the resources sector, both in Australia and overseas, by way of acquisition or investment.


http://www.silverstoneresources.com.au


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## springhill (17 August 2012)

*Re: SSZ - Silver Stone Resources*

MC - $4m
SP - 16.5c
Shares - 25m
Options - 8m
Cash - $3.5m

Pure speculator with SSZ at the moment, no other reason to keep an eye on it than the sampling results due this quarter.

*JUNE QUARTER ACTIVITIES*
During the quarter the Company undertook MMI geochemical sampling program of the project. The program involved over 1,000 soil samples being taken and the assay results are anticipated to be available this quarter.

In addition the Company completed a loyalty option entitlement issue pursuant to which 7,907,500 listed options exercisable at $0.20 on or before 7 May 2015 were issued raising approximately $75,000.

The Company also continues to actively seek new natural resources investment opportunities in order to grow the size and diversity of the Company’s portfolio. The Company has reviewed several projects during the quarter in this respect.


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## System (12 March 2013)

On March 12, 2013, Silver Stone Resources Limited (SSZ) changed its name to OreCorp Limited (ORR).


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## piggybank (10 August 2016)

System said:


> On March 12, 2013, Silver Stone Resources Limited (SSZ) changed its name to OreCorp Limited (ORR).




And today it closed at 67c (up 34%) on volume of 1.3 million, as a result of the company's presentation today that can be found by clicking on the link.

http://www.stocknessmonster.com/news-item?S=ORR&E=ASX&N=786078


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## greggles (20 July 2018)

Don't know much about OreCorp but I noticed it's on the move today so I thought I'd take a look.

In summary, the company have mineral exploration projects in Tanzania and Mauritania and as at 31 March 2018 had a strong cash position of $16.2 million. The Nyanzaga Gold Project in Tanzania is more advanced and has a Mineral Resource Estimate of 3.07Moz @ 4.03g/t gold. Average production is expected to be 213koz gold per annum over the initial 12 year mine life.

This morning the company announced that its Tanzanian subsidiary, OreCorp Tanzania Limited, has now completed its earn-in obligations in respect of the Nyanzaga Gold Project in Tanzania, in accordance with the Earn-in Agreement entered into by the company and Acacia Mining plc on 22 September 2015. OreCorp has exercised its option to acquire an additional 26% interest in the project in consideration for the payment of US$3 million to Acacia. This will increase OreCorp's interest in the project from 25% to  51%.

OreCorp has also signed a binding conditional heads of agreement with Acacia to allow OreCorp to move to 100% ownership of Nyanzaga by making a further payment of US$7 million. Acacia will retain a net smelter return royalty capped at US$15 million.

Today's news has pushed up the ORR share price 52.94% to 26c. One to watch perhaps for those interested in African gold explorers/miners. The major worry with Africa generally is political instability and sovereign risk. I'm not sure if this is currently an issue in Tanzania.


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## Dona Ferentes (26 December 2020)




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## The Triangle (2 November 2021)

Been a few years of not a lot happening.  But ORR has 100% of their african project now and is cashed up very very nicely (just shy of $70 million).  With additional drilling happening I could see them adding ounces with zero dilution risk for a while.  Given the good grades (these days it seems above 2g/t is classified as high grade) me thinks this will get very interesting in a few months  when they finally get around to that annoying little DFS. Better value:risk in my opinion than PDI or TIE right now.  CHZ also has some potential with high grades but tonnes are small.  

ORR also have some land around the goldfields near saracens old grounds.  Don't know that they have done anything there - but surely they could spin it out for $10 million.  Or do a bit of drilling and pump up some small pits and then spin it out for $20.   There is a lot of IPO junk in the junior space - may as well get on the bandwagon.


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## The Triangle (9 December 2021)

A 2 day trading halt to announce that their Special Mining Licence was granted?   The announcement looks like it's been written to praise the Tanzanian government...  So maybe this was purely a community relations tactic.  Can't complain as ORR is up 14% today on what I thought was a guaranteed event, but is a de-risking step for larger investors.   Still waiting on upgraded resource & updated feasibility with higher gold price to boost this up in the new few months = similar to what happened with TIE

_"Following approval of the SML by the Tanzanian Cabinet of Ministers (Cabinet) in June 2021, OreCorp has been working with the Government of Tanzania (GoT) to finalise the Framework and Shareholders Agreements and the Memorandum and Articles of Association for a new joint venture company in connection with the grant of the SML. The Company has now been invited to attend a contract signing ceremony on 13 December 2021, at which Her Excellency Samia Suluhu Hassan, the President of the United Republic of Tanzania (Her Excellency) is expected to be the guest of honour."  _

... &

_"The Company would like to thank Her Excellency and the Cabinet, Honourable Minister for Minerals, Honourable Deputy Minister for Minerals, the Chairman and members of the Mining Commission, Permanent Secretary for Minerals, Regional Commissioner for Mwanza, District Commissioner of Sengerema and all other Government departments and officials in Tanzania who have helped and supported this process"_


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## Sean K (9 December 2021)

The Triangle said:


> A 2 day trading halt to announce that their Special Mining Licence was granted?   The announcement looks like it's been written to praise the Tanzanian government...  So maybe this was purely a community relations tactic.  Can't complain as ORR is up 14% today on what I thought was a guaranteed event, but is a de-risking step for larger investors.   Still waiting on upgraded resource & updated feasibility with higher gold price to boost this up in the new few months = similar to what happened with TIE




Chart looks excellent, nice break up on vol.


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## The Triangle (9 December 2021)

Sean K said:


> Chart looks excellent, nice break up on vol.
> 
> View attachment 134005



Should be interesting to see how things progress now, finished the day on a high.  ORR haven't really been vocal at a lot of the small conferences and they (up to today) have been very thinly traded.  Surprising this is off most peoples radar. 10 total posts here... Not like its an IPO


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## Sean K (9 December 2021)

The Triangle said:


> Should be interesting to see how things progress now, finished the day on a high.  ORR haven't really been vocal at a lot of the small conferences and they (up to today) have been very thinly traded.  Surprising this is off most peoples radar.




Just scanned through their last presentation and I can see why they're harping on about the government allowing the licence, there's obviously been some negative sentiment regarding mining/politics recently. 

I agree with your comparison to TIE, this looks to be in the same frame, but with other assets in better jurisdictions. I like it. Looks undervalued at the moment.


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## Sean K (10 December 2021)

Decided to add this to the stable this am, on break up, but moreso that it's flying under the radar a bit, as mentioned by @The Triangle

Probably been held back by Tanzania politics which look to have abated, but there's always potential for more trouble - TIA.

Based on the basic numbers looks like it's a bit undervalued at this stage of the Lassonde Curve. Still moving towards the first peak.

Management have an excellent track record as well having led EQN to a $7b MC.


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## Sean K (18 December 2021)

Been an OK break up from that resistance based on the news noted by The Triangle above. Probably one of the only goldies to be down yesty, which is a bit confounding. That old resistance level should be decent support going forward.


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## Sean K (19 December 2021)

I've only taken a very minor bight on this but the more I look at it. the more I like. This is much more than Nyanzaga. 

Anyone else looked at this or have any reason why it looks so unloved?


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## Sean K (29 December 2021)

This is gone by the book since the breakout. Tested support, then bouncy bouncy* up. Chart and fundamentals not unlike TIE but this has a higher quality resource. Not sure of exploration potential, but it's going to be a very solid mine now they've sorted out some of the country risk.








*TM @finicky


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## Sean K (7 January 2022)

ORR consolidating nicely above 80c. MC still just $330m, not much more than TIE, but I rate it more highly. Probably been held back by perceived country risk. All else being equal I'd expect this to make another move up after this consolidation, just as TIE has. 

I anticipate they'll de-merge the Australian assets this year. Hopefully there's some free shares attached to that for holders. Perhaps they'll do that after the Hobbes MRE.


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## The Triangle (17 January 2022)

Orr have finally announced they are on IPO bandwagon for the Western Australia assets.  Which if done properly I think I said months ago might be a good idea - but who I ask wins in this transaction? 

_*It is intended that the board of Solstice will replicate the OreCorp Board*. Alastair Morrison, a current nonexecutive director of OreCorp, will be the Executive Director within Solstice. Craig Williams will chair Solstice and Matthew Yates, CEO & Managing Director of OreCorp, will take on a non-executive director role.

More_ jobs for directors so they can focus on the Africa assets?! - ✔️
Fees paid to Euroz/Argonaut (which could have been used for an RC drill programme in WA) - ✔️

Very scant on the details, but ORR is proposing to make a distribution to shareholders following the IPO - which is completely asinine considering ORR are about to raise a lot of capital to build a very big mine - so why give away money right now?   If they had confidence in their WA assets they would have just held them and drilled, or spun them off and retained ownership and cash to drill.    I suspect there is extremely low interest in the IPO and they are making the distribution in hopes that investors will then just give the money back for the capital raising.  ORR does not appear to have done anything with the assets.  Wouldn't take much to hire a geo and do a $2,000,000 drilling program to boost the interest first...

This is not primarily about unlocking shareholder value (well unless they get 50 million, then I'll eat my words) this is about resources purple circle looking after the resources purple circle.  

Anyways, I won't be putting a penny in to the new IPO.


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## Sean K (4 February 2022)

Some ok infill results at Kilimani which sound to be in line with the inferred MRE. Upgraded MRE to be included in the DFS ore reserve which should de-risk the project further. Would be nice if the extension drilling revealed some additional ounces too.


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## Sean K (9 February 2022)

Updated presentation out. 

I've got a feeling there's a pile of country risk discount still applied to this, even with the SML. 

3Moz @ 4g/t is a brilliant resource, and growing. At 71c, MC around $280m with $50m in the bank - EV around $230m. PFS has them mining over 200Koz pa for initial 12 years. Demerger of WA to allow them focus on Tanzania seems a good idea and there's some free shares for holders in the IPO.

Although TIE is well on the way to gold pour by the end of the year with debt finance in place, this is a much better looking deposit and could end up the same size. TIE MC about $450m, which I think is still undervalued with updated MRE to come. 

Different sides of the continent, but same type of country risks applied. 

For grade and scale, it's out there.


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## Dona Ferentes (14 March 2022)

Notice of Meeting seeking OreCorp shareholder approval to demerge Solstice Minerals lodged with ASX  
 Eligible OreCorp shareholders to receive *1 Solstice Minerals* share under the Demerger for approximately every *9.94 OreCorp *shares held on the record date (subject to the number of OreCorp shares on issue on the record date) 
Solstice Minerals *IPO Prospectus lodged *with ASIC, seeking to raise up to $12,000,000 through a Pro Rata Priority Offer of up to 60,000,000 Shares at an issue price of $0.20 per Share (with a minimum subscription of 25,000,000 shares at $0.20 to raise $5,000,000) 
Any shortfall from the Pro Rata Priority Offer to form a Shortfall Offer available to eligible OreCorp shareholders and new investors 
One free attaching listed Solstice Minerals option for every four Solstice Minerals shares subscribed for under the Pro Rata Priority and Shortfall Offers 
OreCorp will hold shareholder meeting 07 April


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## Sean K (6 April 2022)

This is good darts and de-risks the project further I think. Confirms that Tanzania are back in the game and open for business.


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## The Triangle (18 May 2022)

Slowly been picking up ORR this past two weeks.   I admit I am starting to get a little concerned about gold.  I am now out of almost all other commodities in the micro/small cap space.  ORR on a daily basis can drop down 7-10% without any issue and then recover flat.  Volumes are very low usually around $100k per day so getting in or out with any significant volume either takes time or dramatically shifts the SP.  Last week one morning the SP was down 19% and finished the day up. 

Less than 1 year ago ORR raised 56 million at 80 cents when the gold price was in the high 1700s.  Since that time they've cleared away most of the government/permitting issues and continued work on a feasibility and still have $40 mill in the bank.  MC now under 200 million for what was 5 years ago looking like one of the better deposits in Africa looing to be put into production.   Pre-Feasibility was done on $1250/oz gold price.

I'm sure there are things I don't understand at all about this company or this deposit - but having done a Scoping and PFS study these guys have been very careful about not giving out much information on NPV numbers.  I can flush out a 9 digit NPV calc using my thoughts on todays costs and prices.  12 years @ 210+koz a year is not too bad and we know they've added a few ounces since 2017.


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## Sean K (18 May 2022)

The Triangle said:


> Slowly been picking up ORR this past two weeks.   I admit I am starting to get a little concerned about gold.  I am now out of almost all other commodities in the micro/small cap space.  ORR on a daily basis can drop down 7-10% without any issue and then recover flat.  Volumes are very low usually around $100k per day so getting in or out with any significant volume either takes time or dramatically shifts the SP.  Last week one morning the SP was down 19% and finished the day up.
> 
> Less than 1 year ago ORR raised 56 million at 80 cents when the gold price was in the high 1700s.  Since that time they've cleared away most of the government/permitting issues and continued work on a feasibility and still have $40 mill in the bank.  MC now under 200 million for what was 5 years ago looking like one of the better deposits in Africa looing to be put into production.   Pre-Feasibility was done on $1250/oz gold price.
> 
> I'm sure there are things I don't understand at all about this company or this deposit - but having done a Scoping and PFS study these guys have been very careful about not giving out much information on NPV numbers.  I can flush out a 9 digit NPV calc using my thoughts on todays costs and prices.  12 years @ 210+koz a year is not too bad and we know they've added a few ounces since 2017.




I've been adding in the low 50s. Seems to have been bought up on weakness indicated by the long tails on the candles the past 2 weeks. Looks oversold considering the future production profile. A lot of scared people out there at the moment.


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## Sean K (1 July 2022)

Well, this little pup has been smashed during this flight from explorers/developers. MC down around $150m or so. Halved. Like a lot of others I guess.

I missed the announcement in May that the DFS was been delayed due to nothing really clearly articulated. That can't be the only reason, unless the delay is for a bigger problem internally, or politics.

Pre-May plan followed by the updated one.


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## Sean K (19 August 2022)

I'm not sure if this is good news. An "announcement regarding the DFS" does not mean the DFS is going to be released. Perhaps more delays or something more sinister. Slightly concerned.


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## Sean K (20 August 2022)

I guess it will be released Monday. I'll be dialling in to this.


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## The Triangle (20 August 2022)

Sean K said:


> I'm not sure if this is good news. An "announcement regarding the DFS" does not mean the DFS is going to be released. Perhaps more delays or something more sinister. Slightly concerned.
> 
> View attachment 145646







It's pretty much the exact same announcement wording that TIE used last year.  

Will be interesting to see the cost forecast - ORR would probably be the most recent/biggest operation to put out a feasibility in our recent inflation diseased world.  From memory they used $1250 USD gold prices back in 2017 and came up with a capex of just under $300M USD and AISC of just under $900 USD.  

I think we can expect that the cutoff grade will have been dropped with the increase in gold price, the mine life extended, production rate increased, but course capex costs up and cost per ounce up.     Cost per ounce might be down if they managed to increase production significantly (I doubt that)


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## Sean K (22 August 2022)

Capex looks steep compared to what TIE have just done. Different deposits with a lot of the high grade underground here. Seems like a low IRR due to capex, even though producing 200k in first year. Mining costs of $110m in pre-production explain a big chunk of that. Maybe pre-strip and the underground component. Now the trouble with finance...

Still looks cheap in their comparison with some peers on an EV/Reserve basis, although most of those are in production so I'm not sure if it's a fair comparison.


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## The Triangle (22 August 2022)

Weak hands folding early on the market....

Big Capex tells me these are realistic costs.  Aisc still below $1000 USD.    Not an amazing result but still acceptable.   Takeover still a possibility.


Tie has a day of reckoning coming.   I do not believe they are immune to cost increases which are impacting every other company.


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## Sean K (22 August 2022)

The Triangle said:


> Weak hands folding early on the market....
> 
> Big Capex tells me these are realistic costs.  Aisc still below $1000 USD.    Not an amazing result but still acceptable.   Takeover still a possibility.
> 
> ...




The PFS had a $287m Capex, so that might have spooked people. AISC was $838 so a bit higher as well. 

Surprised by the extent of the drop though. Volumes been pretty low with a big gap between the buy and sell sides. I didn't think it was that bad.

I'd be surprised if they take it to mining. Maybe they're already in contact with their old mates at Barrick. 

Agree on TIE, I can't believe they've done it so efficiently and effectively, on time and cost. I'm prepared for some bad news...


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## The Triangle (22 August 2022)

It sticks out to me the massive cost increases in the mining & contractor/construction areas.    Effectively the prices have tripled.   I have a feeling the 'contractors' and 'vendors' who gave them budget pricing probably jacked up the estimates to account for inflation and covid.    If ORR are looking for debt rather than equity funding then this is probably perfectly fine.   

I don't think this project is big enough/long enough for Barrick to be interested.   B2Gold might be a suitor.  They have random projects everywhere, have low debt, and high cash and a big enough market cap to absorb ORR.   Could very easily make a script (and probably should) offer for $300 million and walk away with the remaining cash on hand that ORR has. 







2017​2022​ChangeProcess Plant75.9​89.2​18%Reagents and services16.4​23.8​45%Infrastructure General56.7​71.5​26%Mining35.7​110​208%Contractor & Construction13.9​42.4​205%Management Costs17.6​31.2​77%Owner Project Costs34.3​62​81%Working Capital4.1​3.9​-5%Taxes0​3.7​N/AContingency32.7​36.1​10%


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## Sean K (24 November 2022)

Looks like the debt will be a combination of things. Been in the toilet for a while with MC at $150m. Perhaps extending the LOM is intended to get some interest from a larger miner to take it over.


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## Sean K (24 November 2022)

I think ORR is in the trough of the orphan period on the Lassonde Curve at the blue star at the moment. Getting finance sorted and getting into development should see value increase, if it's not taken over before hand.


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## Sean K (27 November 2022)

The Triangle said:


> I don't think this project is big enough/long enough for Barrick to be interested.   B2Gold might be a suitor.  They have random projects everywhere, have low debt, and high cash and a big enough market cap to absorb ORR.   Could very easily make a script (and probably should) offer for $300 million and walk away with the remaining cash on hand that ORR has.




I've been looking into Barrick's operations in Africa and they probably could be a suitor for this project. They start losing ounces in 2026 from their Tongon mine which will need to be replaced. About 200k oz. Their Tanzanian mines are doing 300 and 200k oz. Bulyanhulu is only about 50km away. They could easily tack this on and create a Barrick gold province producing 750k oz pa. They had some issues with social license due to a legacy TSF issue but are back in the good books after pumping in cash. Though, perhaps it's not ideal to put too many eggs in an African basket...

Interesting heading here though: "deliver growth through partnership".


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## The Triangle (5 December 2022)

Sean K said:


> I've been looking into Barrick's operations in Africa and they probably could be a suitor for this project. They start losing ounces in 2026 from their Tongon mine which will need to be replaced. About 200k oz. Their Tanzanian mines are doing 300 and 200k oz. Bulyanhulu is only about 50km away. They could easily tack this on and create a Barrick gold province producing 750k oz pa. They had some issues with social license due to a legacy TSF issue but are back in the good books after pumping in cash. Though, perhaps it's not ideal to put too many eggs in an African basket...
> 
> Interesting heading here though: "deliver growth through partnership".
> 
> View attachment 149801



Maybe, but Barrick had this project not too long ago.  I have not kept up to date with the company, but my feeling is that they want very simple shallow bolt on open pit mines, or company acquisitions.   taking Nyanzaga/ORR would still require them to finance everything, take all the risk, and do all the project execution.  Surely they would rather pay a premium in 2-3 years time after all the hard work has been done?

But I also think ORR is about the cheapest it's going to get with regards to market cap so won't be surprised (well it's why I'm invested) to see it taken over.

ORR hit 65 cents today!  But has already fallen back to mid 57.5 on low volume.


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## Sean K (5 December 2022)

The Triangle said:


> ORR hit 65 cents today!  But has already fallen back to mid 57.5 on low volume.




Yeah, hardly any volume. Was very strange. Maybe the sell side disappeared and someone bid at market not seeing the gaps.


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## The Triangle (5 December 2022)

Sean K said:


> Yeah, hardly any volume. Was very strange. Maybe the sell side disappeared and someone bid at market not seeing the gaps.



Probably, ORR has some wild intraday trading historically.  Several months ago, there was something similar where it was sitting low 40s and spiked up to mid 50s on a few hundred thousand at best.  When it was trading higher it used to routinely swing +-7-8% and finish the day flat with low volume.


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## tech/a (5 December 2022)

Thought Id throw in a few comments.
Strictly from a technical Volume range perspective.

Price cannot rise when met with Supply.
Demand absorbed supply on low volume compared to Friday.

There isn't a rush (At the moment) to liquidate at this level
Not unusual to see inside days or reversals off highs on extreme range days.

Going forward inside days with less range would be preferable.
Consolidation around 50c is also good.
New highs are longer-term best news.
A pullback in supply will be the catalyst for higher prices.

Just thought Id post this up to follow along.


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## Sean K (5 December 2022)

Might have to put this down to an anomaly I think, unless there were some desperate FOMOs. The couple of trades at 65c look pretty dumb. Or, has someone done that to offload positions after the expected pile in.


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## Sean K (9 December 2022)

Well, I'm putting down 5 Dec to fat fingers and a lack of liquidity on the price spike to 65c and drop off. Interesting that it's held up around the 50c mark after going sideways in the 30s for some time. 

MC at $200m, which still seems undervalued for their ounces at grade, even though there's a lot UG that will take some capex to get to. 

Project financing seems like not a problem with quite a few banks lining up and other options to get it off the ground. 

Pre-tax NPV almost $1b, post-tax $600m, warrants a higher MC, IMO. Just 50% of the post-tax NPV is a 50% price gain. Hopefully a take over offer is at a much larger premium to that.


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## mullokintyre (21 December 2022)

ORR down 10% today when all my other goldies running in the other direction.
Must be  a cap raising coming up.
Mick


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## Sean K (21 December 2022)

mullokintyre said:


> ORR down 10% today when all my other goldies running in the other direction.
> Must be  a cap raising coming up.
> Mick




Bit odd. Very low volume. $12k traded. Looks like it was just one punter who wanted to get out without looking at the depth which pushed it down on nothing. Next buyer will push it back up a few %.


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## Sean K (1 January 2023)

I think management will put a For Sale sign on ORR this year and it will be taken out by an experienced African gold producer who needs to add 200k ounces pa over 10+ years and has the cash flow to fit the capex. Mandatory ramp done.


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## mullokintyre (4 January 2023)

ORR crunched 10% again today. Not a huge volume, but a bit bigger than recent days.
Somebody wants that price down.
Mick


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