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Orecap Invest Corp V.OCI

Alternate Symbol(s):  ORFDF

Orecap Invest Corp. is a Canada-based company. The Company’s focus is on special situation investments in the natural resources sector, precious and critical metal assets and businesses. The Company has equity positions in portfolio companies, such as American Eagle Gold, QC Copper and Gold, Mistango, Awale Resources and Cuprum Corp., in addition to owning a broad portfolio of land packages focused on gold, copper and zinc. The Company’s portfolio includes American Eagle Gold, QC Copper and Gold, Mistango River Resources, Awale Resources, and Cuprum Corp. Its American Eagle Gold is focused on advancing its NAK property located in the Babine Copper-Gold Porphyry district in central British Columbia. QC Copper is focused on acquiring and developing copper projects in the Chibougamau region. The Company owns several gold projects: the Mirado project near Kirkland Lake, the Knight project in the Shining Tree District and the McGarry Project near Virginiatown, Ontario.


TSXV:OCI - Post by User

Post by jfan22on Mar 16, 2021 3:38pm
174 Views
Post# 32809618

Why ORX is an easy buy right now

Why ORX is an easy buy right nowBased on most recent audited financials (as of Oct 31st 2020), ORX has $7.7M in current assets, mostly cash, and $1.8M current liabilities. That means they have excess short term assets of $5.9M.

As per their last corporate presentation they own:
- 19% MIS (current MC near $17.8M) = $3.4M attributable to ORX
- 4.8% QCCU (current MC near $23.8M) = $1.1M Attributable to ORX
- 26% American Eagle gold (~10M shares)

Assuming ORX retains half of it's shares and they are valued at IPO price of $0.20, this means ORX will retain $1M attributable to ORX.

All this suggests ORX, valuing it's properties, prospectiveness and business at $0, has a value of $10.4M today. With 222.51M shares outstanding, this implies a value of $0.047/share as a hard downward limit.

If you do think ORX's business is valuable, buying in the $0.075-0.1/share range is a no brainer. We've never had so much cash and the equity positions have never been this valuable.
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