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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- 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.
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