ORN 11.1% 2.0¢ orion minerals ltd

What is the future potential value of ORION?

  1. 122 Posts.
    lightbulb Created with Sketch. 24
    My answer is patience!

    IMO putting all the current frustration aside regarding ORN`s lagging sp - share dilution - potential portion of project level sale, we are sitting with a market cap of +- 50-60 Mil AU$.

    This analogy is focused only on Prieska and excludes any potential value from Fraser range or any new deposits.

    Current value of existing infrastructure , ie bulkhead, and underground mine is speculated to hold a value (savings) of +- AU$ 50 Mil, if starting from scratch.

    BFS indicates a 10 year mine life (foundation phase)

    Funding package required = AU$ 378 Mil, payback period of 3 years from first production. This gives us an expectation at current metal prices over the 10 year life of mine, a resource value incl` all costs should be around AU$1.26 Billion (foundation phase)

    With required funding (immediate 2020) coming by way of debt/options or sale of ownership, our nav (albeit debt leveraged) +- AU$ 400 Mil of 1:1 should see the market cap 4 times what it is now (within current parameters). That equates to a sp of roughly 8 cents.

    2025 arrives and now payback is completed and we have AU$ 400 Mil value of mine infrastructure and we are sitting with a mineral resource (foundation phase) less 3 years of production, equal to +- AUD$840 Mil
    NAV is then AU$1.2 Billion, 1:1 on market cap and within current parameters sp is sitting at 46 cents within 5 years!

    NB: This basic speculation does not take into account Fraser range and new deposits from current drilling!

    Tbh I see the sp a lot higher than AU$1 in 5 years...

    GLTAH May we have the patience to see this through...
 
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