OREA - Investor support and improving sectorEURO Ressources reports earnings for the third quarter and nine months ended September 30,2020 Nov., 6, 2020 ...Royalty assets As at September 30, 2020, the Company’s impairment review indicated that the facts and circumstances did not represent an indication of potential impairment. In May 2019, The French Government declared the Montagne D’Or project not yet compatible with environmental requirements. The statements by the French Government regarding the Compagnie Minire Montagne d’Or (the joint venture) in May 2019, to which the Paul Isnard royalty is attached, 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. Nevertheless, work continues on both the design of the project and the environmental framework around it. According to the press release issued by Orea Mining Corp. on October 8, 2020, the joint venture aims to complete final studies and mining and environmental permit applications before the end of the year. In light of the above, the Company maintains the same assumption as in the impairment test performed as at December 31, 2019. The Company continues to assume that the various authorizations and permits would be granted under conditions that will allow the joint venture to go forward with this project, although the timing is somewhat uncertain. No impairment charges were recorded in the statement of earnings for the third quarter ended September 30, 2020.... Looks like ER (basically Iamgold) is sitting tight on its shares of OREA (approx. 9.7%). They appear to believe like OREA that the ESIA, etc., plus permit apps will be into the French by the end of 2020, and the authorizations will be eventually granted.
Up front I am in the process of increasing my shareholding in OREA. Obviously, no permit for Montagne d’Or would, even with an improving Maripa picture be very painful for OREA. However, I am of the opinion that much of what I have discussed in other posts points to an eventual permit being granted.
I think the recent news re., record amounts being made by the major/mid-tier companies; NG and Shandong all over CR and the Chinese drive to acquire gold acquisitions globally, point to an increasingly interesting M&A world in the gold sector. Plus, we the recent news out about Iamgold’s own improving cash balance, focus on reducing high AISC and yet their struggles just to maintain their gold output.
Again, OREA has presently 1.2 mill oz of P&P and potentially further oz., from the yet to be released NG infill results for the excluded 2-mill oz still in the Montagne d’Or resource. They almost surely will be a buyout target from NG alone who may very well have competiton from the likes of IAG other majors or even the Chinese (or a joint sale with NG), or OREA will go through to mine build themselves possbily with royalty investment (though rare for a small explorer).
I live with the old adage that the reward (and pain – my addition) is in the waiting. However, never invest more than you can afford to lose (though that never seems to cull the pain if it happens). DYODD.
GLTA-
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