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The information contained herein is accurate to the best of the author’s knowledge, but the material and interpretations contained herein should be independently verified by any party using this information as part of any research, editorial, or decision making process. Any views expressed here represent the author’s opinion only, and as such readers should do their own research and come to their own conclusions if they are using the opinions contained herein as part of any larger due diligence process. The author may have long or short positions in the companies mentioned and may be buying or selling in the market depending on which way the wind is blowing at any given moment. Opinions are subject to change without notice. Prospective resources, predictions, comparisons, financial projections, and extrapolated metrics are, by their nature, subjective and interpretation dependent. The topics covered are highly speculative and involve a high degree of uncertainty and risk. Speculative companies can and do go to zero. By using this site, you agree that the author(s) and Hydra Capital is/are not responsible for any damages incurred by the use of the presented materials. Anyone reading these blog posts should know that they are the author’s thoughts and opinions, which are not to be confused with or construed as research reports.
(Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post. I am long ORO.V)
Something a little different this time. I’ve been spending a lot of time on golds lately and have attached a summary on a company called New OroPeru (ORO.V, last at $0.95) below that can be downloaded in PDF format. The company released a corporate update today that really reinforces my views of this story. The company also produced a corporate presentation, which is the first I’ve ever seen from them (and I’ve been following this for six or seven years). I’ve written this summary while gathering up information that was scattered across more than twenty years of project history, so I think that my understanding of the story is fairly unique to the market. This company has been completely off the radar for years.
Why should this illiquid relic from the past be dusted off and examined now? That’s what I get into in the note below. In short, ORO’s Tres Cruces project is more than three million ounces, trading at US$4/ounce of gold in the ground, 10 kilometres from a Barrick operation in Peru that is out of oxide ore; and Barrick has an option agreement on this asset (which includes an oxide gold cap) which expires at the end of this year. If that sounds interesting then read on…
