Fundamental Insights About the Oriole Resources PLC

Oriole Resources Plc (ORR) is a mineral exploration company. The company’s business activities include exploration and development of gold and base metal deposits. The group’s projects are -Dalafin, Bibemi, and Wapouze. Wapouze and Bibemi are gold exploration projects, which shelters Neoproterozoic Pan-African greenstone belts in north-eastern Cameroon. The company has operations in the UK, Turkey, Switzerland, Senegal and Liberia.

Financial Highlights (FY2018, £’000)

(Source: Annual Report, Company Website)

The company’s operating loss decreased from £7.5 million in 2017 to a loss of £2.5 million in 2018. Total loss for the year stood at £4.66 million as compared with the financial year 2017 of £5.40 million. The company recently announced the successful application for research and developments credits, relating to 2016, on the exploration activities which brought £0.04 million cash back in February 2019. Total assets reduced by £4.2 million to £11.6 million as compared with the financial year 2017 of £15.8 million. Total equity attributable to owners of the company reduced by £3.5 million to £11.3 million against the £14.9 million in FY17.

Share Price Performance

Daily Chart as at May-23-19, before the market closed (Source: Thomson Reuters)

On May 23, 2019, at the time of writing (before the market closed, at 9:00 AM GMT), ORR shares were trading at GBX 0.315, same against the previous day closing price. Stock's 52 weeks High and Low is GBX 0.79/GBX 0.28. Stock's average traded volume for 5 days was 4,729,929.00; 30 days – 4,745,051.53 and 90 days – 4,111,874.28. The average traded volume for 5 days was down by 0.32 per cent as compared to 30 days average traded volume. The outstanding market capitalisation was around £2.22 million.

Key Risks

Exploration Industry Risks, Political risks, Financial and liquidity risks, Foreign exchange risks, and Liquidity risk.

Conclusion

In 2019, the company needs to build on the foundations. The company continues to monitor its investments in other companies and support further exploration as appropriate. The appointment of a new Board of Directors and a rebrand to Oriole Resources PLC will help to expand the group’s capabilities with a focused investment strategy. Whilst funding has been difficult for the industry for many years, the group have a good base of investment and royalty assets. Looking forward, the conclusion of the VAT situation will reduce advisor costs by approximately £0.17 million. The group includes the new projects in Cameroon, where they are earning up to a 90 per cent interest in the Bibemi and Wapouzé projects, and 85 per cent - owned Dalafin project in Senegal. The company achieved an efficient cost base model that allows to utilise the available funds on delivering shareholder value by maximising exploration efforts.

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