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Oriole Resources (LSE:ORR), an exploration company focused on West and Central Africa, reported a notable turnaround in its financial performance for the first half of the year. The company announced a pre-tax profit of £1.15 million, a significant improvement from the loss of £0.86 million recorded in the same period of 2023.
This positive financial shift was attributed largely to a successful agreement with Lanstead and payments received from BCM International. Administrative expenses increased to £0.67 million due to expanded exploration efforts in Cameroon, where Oriole allocated £1.13 million to various projects, including the fifth phase of drilling at the Bibemi site and soil sampling at Mbe.
Oriole's cash balance improved markedly, reaching £0.84 million as of June 30, compared to £0.11 million at the end of 2023. This improvement reflects the company’s growing financial stability amid its exploration activities.
In January, Oriole entered into two earn-in agreements with BCM International for the Bibemi and Mbe projects. Under these agreements, BCM acquired a 10% stake in each project and has the potential to increase its interest to 50% by funding $4 million in exploration per project. Additionally, Oriole secured success-based payments linked to milestones related to JORC-classified resources, which could lead to further revenue as the projects progress.
At Bibemi, the company’s gold resource estimate rose to 375,000 ounces, with additional drilling planned to further expand the resource. An application for an exploitation licence in Cameroon has been submitted, a key step toward developing an open-pit gold mine. The Central Licence Package in Cameroon has also shown promising results, with trenching and soil sampling indicating significant gold grades at Mbe.
Oriole received a two-year extension for its five Eastern-CLP licences and saw progress in Senegal where its partner, Managem Group, completed its earn-in at the Senala gold project, acquiring a 59% interest after investing $5.8 million. Oriole retains a 35% beneficial ownership and views continued value in the project, which has been renewed for an additional three years.
The company also realized $0.3 million from the sale of its interest in two Turkish mining projects and continues efforts to monetize remaining legacy assets.
Chair Eileen Carr noted that the successful BCM agreements positively impacted the share price and increased proceeds from Lanstead. Despite initial market concerns about the financing, it has proven advantageous in a challenging financing environment for junior mining companies. As of 1117 BST, Oriole Resources shares had risen by 4.19% to 0.32p.
