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56.5¢ orecorp limited

I like your calculations plus bear in mind that SVM is cash rich...

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astavrou1

1,679 Posts.

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21/12/23

13:17

Post #: 71569292
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Originally posted by binwood: ↑

Osino taken out overnight. The list of targets for PRU is getting shorter and shorter IMO. I think once SVM scheme is squashed they come in with a 70-80c bid.

Osino deal got done at around A$315m. Their project has an NPV at $1750 gold of US$480m and at $1,950 gold of US$656m. They do have a second discovery and another 1Moz not in their core project that offers some good exploration potential.

Comparatively ORR NPV is US$608 and ~$850m at those same respective gold prices. Also I don't think the full exploration potential of Nyanzaga has been realised.

500m SOI means 70-80c would be A$350-400m which doesn't seem unreasonable based on peer transactions, scarcity of development projects above 200koz and PRU particular situation of trying to keep a pipeline that allows them to maintain 500koz+ production.

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I like your calculations plus bear in mind that SVM is cash rich and also very keen to diversify from China. Don't rule out a counter offer near $1, imho

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ORR Price at posting: 51.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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