Orion Minerals (ORN) is an Australian exploration company listed on the JSE since September 2017 and on the Australian Stock Exchange in Sydney. The company is currently seeking funding for its copper and zinc mine in Prieska, South Africa. The Prieska mine was previously operated by Anglovaal, but ceased operations in 1990 after 20 years, during which it extracted more than 1 million tons of zinc and 430,000 tons of copper concentrate. A significant challenge for the mine is flooding, and Orion aims to exploit this resource using a mechanized approach with minimal labor.
Vedanta Resources, which operates the nearby Gamsberg mine, is considering building a smelter that could service all mines in the area, including resources from Namibia. Before construction can begin on the Prieska mine, nearly 9 million cubic meters of water must be pumped out from the existing structure. Production is expected to commence in 2024. Mining exploration is one of the riskiest investments on the JSE, making this a volatile penny stock engaged in a particularly high-risk venture.
On 8th September 2022, the company announced securing R34.5m from the Industrial Development Corporation (IDC) for a 43.75% stake in its new Okiep copper mining company. Additionally, on 21st October 2022, Orion agreed to a R250m line of credit with the IDC.
In its results for the six months to 30th June 2023, Orion reported a loss of A$15.2m, unchanged from the previous period, with a headline loss per share of 31c compared to a 33c loss in the previous period. The company stated, "The IDC to become a strategic funding partner at project level in both the Okiep Copper Project and Prieska Copper Zinc Mine, with pre-development funding agreements reached, providing a total of ZAR 284.58M for Orion’s two flagship projects."
In a report on the three months to 30th September 2023, Orion updated the PCZM +105 Mineral Resource, increasing the resource to 2.3Mt at 1.7% Cu and 1.6% Zn, including an Indicated Resource of 1.9Mt at 1.82% Cu and 1.70% Zn, bringing the total PCZM Mineral Resource to 31Mt grading 1.2% Cu and 3.6% Zn. As of 30th September 2023, the company had $15.74m in cash.
On 17th April 2024, the CEO confirmed the fulfillment of most outstanding conditions for the acquisition of the Okiep mineral rights, initially announced on 2nd February 2021. The same day, the company requested a halt on the trading of its shares due to a "material announcement on exploration results at Okiep copper mine." On 22nd April 2024, Orion announced a "Spectacular High-Grade Copper Intercept at Okiep Copper Project, Flat Mines Area 49m at 4.89% Cu including 10.23m at 12.47% Cu," causing the share price to jump from 19c to 24c.
Investors should exercise caution with this loss-making penny stock and maintain a strict stop-loss level. On 24th June 2024, the company reported strong assay results at the Okiep Copper Project, Flat Mine East, confirming high-grade potential with intercepts of 9.27m at 3.01% Cu and 15m at 4.80% Cu within 78m averaging 1.57% Cu.
Vedanta Resources, which operates the nearby Gamsberg mine, is considering building a smelter that could service all mines in the area, including resources from Namibia. Before construction can begin on the Prieska mine, nearly 9 million cubic meters of water must be pumped out from the existing structure. Production is expected to commence in 2024. Mining exploration is one of the riskiest investments on the JSE, making this a volatile penny stock engaged in a particularly high-risk venture.
On 8th September 2022, the company announced securing R34.5m from the Industrial Development Corporation (IDC) for a 43.75% stake in its new Okiep copper mining company. Additionally, on 21st October 2022, Orion agreed to a R250m line of credit with the IDC.
In its results for the six months to 30th June 2023, Orion reported a loss of A$15.2m, unchanged from the previous period, with a headline loss per share of 31c compared to a 33c loss in the previous period. The company stated, "The IDC to become a strategic funding partner at project level in both the Okiep Copper Project and Prieska Copper Zinc Mine, with pre-development funding agreements reached, providing a total of ZAR 284.58M for Orion’s two flagship projects."
In a report on the three months to 30th September 2023, Orion updated the PCZM +105 Mineral Resource, increasing the resource to 2.3Mt at 1.7% Cu and 1.6% Zn, including an Indicated Resource of 1.9Mt at 1.82% Cu and 1.70% Zn, bringing the total PCZM Mineral Resource to 31Mt grading 1.2% Cu and 3.6% Zn. As of 30th September 2023, the company had $15.74m in cash.
On 17th April 2024, the CEO confirmed the fulfillment of most outstanding conditions for the acquisition of the Okiep mineral rights, initially announced on 2nd February 2021. The same day, the company requested a halt on the trading of its shares due to a "material announcement on exploration results at Okiep copper mine." On 22nd April 2024, Orion announced a "Spectacular High-Grade Copper Intercept at Okiep Copper Project, Flat Mines Area 49m at 4.89% Cu including 10.23m at 12.47% Cu," causing the share price to jump from 19c to 24c.
Investors should exercise caution with this loss-making penny stock and maintain a strict stop-loss level. On 24th June 2024, the company reported strong assay results at the Okiep Copper Project, Flat Mine East, confirming high-grade potential with intercepts of 9.27m at 3.01% Cu and 15m at 4.80% Cu within 78m averaging 1.57% Cu.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.