OREA/Montagne d'Or - Euro Res' viewBelow is the most recent opinion of Euro Res’ (basically Iamgold) with regard to their interest in Montage d’Or via their near 9% OREA shareholding. ES clearly has hopes that the mine will eventually get initiated in one form or another, but as to any time line, they are as clear on this as the rest of us.
Outside of unknown events occurring, I am waiting for the OREA reassessment of basically the old BFS and their new mine production outline. The recent much higher assessment of the Montagne d’Or value by Nordgold (new gold price, mine design, infill drill results/P&P to resource, etc) coupled with a much lower mine production goal (footprint?) may lead to a reassessment of the company value by the market; especially, if they can get just an inkling from Macron that this mine is likely to see the light of day.
As I have suggested previously France agreed to this NG OREA transaction very quickly with no apparent reservations publicly stated. However, they could have thrown a real spoke in the wagon here and put the whole project in the dumpster, but they did not. This can’t (I hope) just have been to get NG to drop their legal case.
Marie-Helene Berard was brought into the OREA management team years ago specifically to help facilitate communication between the company and France. Hopefully she is presently earning her board fees.
EURO Ressources reports earnings for the third quarter and nine months ended September 30, 2022 11/09/2022 | 03:00pm EST
…Royalty assets (Refer to MD&A for more detail) As at
September 30, 2022, the Company’s impairment review indicated that the facts and
circumstances did not represent an indication of potential impairment. The statements by the French Government in 2019 regarding the Compagnie Minire Montagne d’Or (the joint venture) have created some uncertainty around the delivery of the various authorizations and permits not yet obtained and required for developing the project, and can potentially affect the operational and financial capacities of the project. On May 10, 2022, Orea reported that the French Supreme Court has admitted the final appeal of the French Government on the renewal of the Montagne d’Or project mining titles, following the fact that the Administrative Court of Appeal in Bordeaux had rejected the French Government’s appeal in July 2021. On August 31, 2022, Orea reported that it has entered into a legally binding letter agreement with Nordgold to obtain its 55.01% interest in the Montagne d’Or joint-venture, following the sanctions imposed by the United States on Nordgold. On September 13, 2022, Orea confirmed that the French Government responsible for overseeing matters related to Russian sanctions, has approved the proposed transaction with Nordgold. Therefore, the Company continues to assume that the various authorizations and permits would be granted under conditions that will allow the Montagne d’Or project to go forward, although the timing is somewhat uncertain. No impairment charges were recorded in the statement of earnings for the period ended September 30, 2022.