Oroco Resource Corp V.OCO

Alternate Symbol(s): ORRCF

Metals & Mining Gold

Oroco Resource Corp. is a Canadian mineral exploration company. The Company is engaged in the acquisition and exploration of mineral properties in Mexico. It holds a net 85.5% interest in those central concessions that comprise 1,173 hectares (ha) (the Core Concessions) of The Santo Tomas Project, located in northwestern Mexico. It also holds an 80% interest in an additional 7,861 ha of mineral concessions surrounding and adjacent to the Core Concessions (for a total Project area of 9,034 hectares, or 22,324 acres). The Project hosts a large, outcropping porphyry copper deposit comprised of fracture-hosted and disseminated copper and molybdenum sulphides with significant gold and silver credits. Its Xochipala Property is comprised of the Celia Gene (100 ha) and the contiguous Celia Generosa (93 ha) concessions. Its Salvador Property is a 100-hectare mining concession, which lies around 25 kilometers (kms) to the west of the Xochipala Property and 30 kms west of Chilpancingo, Guerrero.

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Oroco Resource Corp > Very quiet

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Comment by Ponch73on Jan 13, 2021 1:16am

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Post# 32282805

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Very quiet

That's not how an NPV works. An NPV assumes a projected rate of return via the rate that you discount future cash flows (the discount rate). At a 10% discount rate, the NPV will be higher than it would be at a 20% discount rate since you will be discounting future cash flows less severely. In the former scenario, at a 100% NPV, the financial upside would be a 10% internal rate of return. In the latter, it would be a 20% internal rate of return.

So, a company in its right mind could potentially pay 100% of NPV for a uniquely-attractive asset with lots of competing buyer interest if the implied internal rate of return was deemed high enough.

All of the talk of a discount to NPV on this board is just another way of saying that prospective bidders for mining assets have customarily wanted much higher internal rate of return, presumably because of the myriad risks involved.

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