VANCOUVER, BC - Orogen Royalties Inc. ('Orogen' or the 'Company') is pleased to report operating and financial results for the third quarter ended September 30, 2022 ('Q3-2022'), and updates on corporate and operational activities.
Paddy Nicol, CEO of Orogen, commented: 'Our third quarter results support our mission of achieving a financially disciplined and sustainable operation that generates compelling exploration projects and grows our royalty portfolio. During the period, the royalty revenue from our 2% NSR royalty on the Ermitano mine increased by 39% compared to the previous two quarters. We also recognized net income from our prospect generation business with gains from project sales and active option agreements. Year to date, nine deals have been completed including eight new royalties added to our portfolio. With sustainable overhead costs, we generated positive cashflows from operations over the last three quarters. These results highlight the financial stability achieved and this allows the Company to continue to grow and execute on opportunities in this challenging market.'
Q3 2022 Highlights
All amounts are in Canadian dollars unless otherwise stated.
Net gain from operations was $123,461 or $0.001 per share compared to a net loss of $972,294 or $0.005 per share in 2021.
Revenue of $1,158,928 earned from the Ermitano royalty with 478 attributable gold equivalent ounces ('GEOs') sold at average price of US$1,728 per ounce, representing a 39% increase in GEOs sold compared to average of the previous two quarters.
Net income of $202,956 from prospect generation activities due to gain of $453,385 where proceeds received from project sales, recoveries and anniversary payments received on active option agreements were greater than the projects' carrying costs. The Company also recognized an impairment of $262,145 for projects that have been dropped during the period.
General and administrative expenses were $802,149 for Q3-2022 compared to $638,986 during the same period in 2021 and the increase was mainly due to higher shared-based compensation expenses from stock options vested, general overhead and legal expenses.
Loss of $467,918 was recognized on fair value adjustments of marketable securities due to capital markets volatility.
Cash flow from operating activities of $188,510.
Cash from operating activities, excluding changes in non-cash working capital of $149,336.
Working capital of $10,743,487 including $3,313,963 in cash and cash equivalents and $5,230,027 in short term investments and no long-term debt.
For complete details of the Company's financial results, please refer to the Condensed Interim Consolidated Financial Statements and Management Discussions and Analysis for the nine-month period ended September 30, 2022. The Company's filings are available on SEDAR at www.sedar.com and on Orogen's website at www.orogenroyalties.com. Please also see non-IFRS Measures at the end of this news release.
About Orogen Royalties Inc.
Orogen Royalties is focused on organic royalty creation and royalty acquisitions on precious and base metal discoveries in western North America. The Company's royalty portfolio includes the Ermitano gold and silver Mine in Sonora, Mexico (2.0% NSR royalty) operated by First Majestic Silver Corp. and the Silicon gold project (1.0% NSR royalty) in Nevada, U.S., being advanced by AngloGold Ashanti. The Company is well financed with several projects actively being developed by joint venture partners.
Contact:
Paddy Nicol
President & CEO
T: 604-248-8648
Marco LoCascio
Vice President
Corporate Development
T: 604-248-8648
WEB: www.orogenroyalties.com
Orogen Royalties Inc.
1015 - 789 West Pender Street
Vancouver, BC
Canada V6C 1H2
E: info@orogenroyalties.com
Forward Looking Information
This news release includes certain statements that may be deemed 'forward looking statements'. All statements in this presentation, other than statements of historical facts, that address events or developments that Orogen Royalties Inc. (the 'Company') expect to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur.
Although the Company believe the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Furthermore, the extent to which COVID-19 may impact the Company's business will depend on future developments such as the geographic spread of the disease, the duration of the outbreak, travel restrictions, physical distancing, business closures or business disruptions, and the effectiveness of actions taken in Canada and other countries to contain and treat the disease. Although it is not possible to reliably estimate the length or severity of these developments and their financial impact as of the date of approval of these condensed interim consolidated financial statements, continuation of the prevailing conditions could have a significant adverse impact on the Company's financial position and results of operations for future periods.
Forward-looking information in this news release includes disclosures regarding NSR royalty payments to be paid to the Company by First Majestic Silver Corp. ('First Majestic'), the owners and operator of the Ermitano mine located in Mexico and that the forecasted revenue which are based on First Majestic 'NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Estimates' having an effective date of June 30, 2021. In addition to the technical report, the disclosure herein also contains and the updated mineral reserve and resource estimates for the Ermitano mine based on the Santa Elena Mineral Reserve, Resource Estimates with an effective date of December 31, 2021 as announced by First Majestic on March 31, 2022 and as disclosed in their December 31, 2021 AIF, and First Majestic's MD&A for the nine-moth period ended September 30, 2022. Forward-looking statements are based on several material assumptions, which management of the Company believe to be reasonable, including, but not limited to, the continuation of mining operations in respect of which the Company will receive NSR royalty payments, that the commodity prices will not experience a material adverse change, mining operations that underlie the royalty will operate in accordance with the disclosed parameters and other assumptions may be set out herein.
Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change
OROGEN ROYALTIES INC. 
