Orion Minerals (ORN) is an Australian exploration company listed on the JSE (September 2017) and on the Australian Stock Exchange in Sydney. The company is seeking funding for its copper and zinc mine in Prieska. The Prieska mine was previously operated by Anglovaal, which ceased operations in 1990 after 20 years, having extracted more than 1 million tons of zinc and 430,000 tons of copper concentrate. A significant challenge for the mine is flooding, which requires substantial investment in pumping out nearly 9 million cubic meters of water from the existing structure before production can begin, expected in 2024. Orion aims to exploit this resource with a mechanized approach and minimal labor.
Vedanta Resources, which operates the Gamsberg mine adjacent to Orion's resource, is considering building a smelter that could serve all mines in the area, including resources from Namibia. Mining exploration, especially for Orion, is one of the riskiest investments on the JSE. The company is engaged in a highly volatile penny stock venture.
On 8th September 2022, Orion announced it had secured R34,5m from the Industrial Development Corporation (IDC) for a 43,75% stake in its new Okiep copper mining company. On 21st October 2022, the company agreed on 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. The headline loss per share was 31c compared with 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, the company reported, "Updated PCZM +105 Mineral Resource reported, 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, and increases the total PCZM Mineral Resource to 31Mt grading 1.2% Cu and 3.6% Zn." At 30th September 2023, the company had $15,74m in cash.
Regarding the Okiep copper project acquisition on 17th April 2024, the CEO said, "We are extremely pleased that we have finally received confirmation that the majority of the outstanding conditions have been fulfilled for the acquisition of the Okiep mineral rights first announced on 2 February 2021." On the same day, Orion requested a halt on trading in its shares because of a "material announcement on exploration results at Okiep copper mine." On 22nd April 2024, the company 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 be very cautious with this loss-making penny stock and maintain a strict stop-loss level. On 24th June 2024, Orion reported strong assay results: "at Okiep Copper Project, Flat Mine East – High-Grade Potential Confirmed 9.27m at 3.01% Cu and 15m at 4.80% Cu within 78m averaging 1.57% Cu." On 25th June 2024, the company requested an immediate stop to trading in its shares pending an announcement.
Vedanta Resources, which operates the Gamsberg mine adjacent to Orion's resource, is considering building a smelter that could serve all mines in the area, including resources from Namibia. Mining exploration, especially for Orion, is one of the riskiest investments on the JSE. The company is engaged in a highly volatile penny stock venture.
On 8th September 2022, Orion announced it had secured R34,5m from the Industrial Development Corporation (IDC) for a 43,75% stake in its new Okiep copper mining company. On 21st October 2022, the company agreed on 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. The headline loss per share was 31c compared with 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, the company reported, "Updated PCZM +105 Mineral Resource reported, 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, and increases the total PCZM Mineral Resource to 31Mt grading 1.2% Cu and 3.6% Zn." At 30th September 2023, the company had $15,74m in cash.
Regarding the Okiep copper project acquisition on 17th April 2024, the CEO said, "We are extremely pleased that we have finally received confirmation that the majority of the outstanding conditions have been fulfilled for the acquisition of the Okiep mineral rights first announced on 2 February 2021." On the same day, Orion requested a halt on trading in its shares because of a "material announcement on exploration results at Okiep copper mine." On 22nd April 2024, the company 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 be very cautious with this loss-making penny stock and maintain a strict stop-loss level. On 24th June 2024, Orion reported strong assay results: "at Okiep Copper Project, Flat Mine East – High-Grade Potential Confirmed 9.27m at 3.01% Cu and 15m at 4.80% Cu within 78m averaging 1.57% Cu." On 25th June 2024, the company requested an immediate stop to trading in its shares pending an announcement.
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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.