logo-loader
viewArc Minerals Limited

Ortac Resources highlights ‘strong position’ as it sees recovering natural resources sector

“We believe that our diversified portfolio of projects is well placed to benefit from current and future market trends,” chairman Anthony Balme said.

Ortac explorers in Eritrea
Ortac explorers in Eritrea

Ortac Resources Ltd (LON:OTC) chairman Anthony Balme has told investors he is excited by the company strong position, as the natural resources sector is showing “notable signs of a recovery”.

The AIM-quoted mining group is set to benefit from an uplift in commodities prices, he added.

READ: Ortac restarts gold mining in Slovakia

“We continue to adopt a low-cost structure and we believe that our diversified portfolio of projects, is well placed to benefit from current and future market trends,” Balme said in Ortac’s financial results statement for the full year.

“Our ambition remains to develop and realise value from our investments, which will hopefully enable us to reward all of Ortac's stakeholders that have supported the Company since its inception."

Loss slightly lower year-on-year

Ortac reported a loss of £835,000 (slightly less than the prior year) for the twelve months ended March 31. It equates to a loss of 1.2p per share.  The company did, however, highlight that it had reduced administration costs by some 23% during the period.

It raised some £752,000 of new capital, via an issue of shares and its share structure was consolidated during the year also.

In terms of operational highlights, Ortac noted it has increased its stake in Casa Mining (to around 45%) which is advancing the 1mln ounce Akyanga gold deposit and it inked a non-binding deal with a potential partner to take forward the Šturec mining project in Slovakia.

Šturec has some 873,000 ounces in reserves and underground mining activities begun during the period, following a re-issue of a mining permit.

Elsewhere, the company highlighted that 18,5% owned Andiamo Exploration expanded the size of its prospective Haykota exploration license area, in Eritrea, and it recently completed a drill programme targeting a VMS style deposit.

Also during the period, Zamsort loan notes held by the company were converted into equity in the investee company.

Pleasing to see resurgence in commodity prices

Rounding off his outlook, Balme added: “It has been pleasing to see a resurgence in commodity prices, with gold prices averaging approximately $1,250 per oz and copper north of $6,000 per tonne.

“We are optimistic regarding our investments in Africa, as heightened demand for metals (that are vital to the manufacturing process of electric vehicles) such as copper and cobalt continue to push up the price of these commodities.

“I firmly believe that the group's exposure to a number of different commodities across a wide range of geographies leaves us well placed to benefit from an upturn in market conditions, whilst shielding the business from execution risk in the event one of the company's investments runs into difficulties.”

In a note to clients, Shore Capital analyst Yuen Low said: “FY2017 financial results entirely academic, having been comprehensively overtaken by post-period events.”

In late afternoon trading, Ortac shares were 3.9%, or 0.12p lower at 3.12p.

 -- Adds broker comment, share price --

Quick facts: Arc Minerals Limited

Price: 2.65 GBX

AIM:ARCM
Market: AIM
Market Cap: £19.56 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Things coming together nicely in Greenland, says Bluejay Mining's CEO

Rod McIllree, Bluejay Mining PLC’s (LON:JAY) chief executive, tells Proactive that all three of its projects in Greenland are shaping up nicely with plenty of interest from mining giants. Dundas is the flagship and here a bulk sample of mineral sands has been shipped to a Rio Tinto facility...

2 days, 17 hours ago

3 min read