Orea Mining Corp (OREAF)

[geodan]

SeekingAlphaArticle Orea Mining: What Is A Billionaire Backed Company With $2.2 Billion Of High Grade Gold Worth? $23 Million? (OTCMKTS:OREAF) | Seeking Alpha
https://seekingalpha.com/instablog/535947-darp-research/5654929-orea-mining-what-is-billionaire-backed-company-2_2-billion-of-high-grade-gold-worth-23

Summary
Orea Mining's Chairman is Robert Giustra, their partner on MONTAGNE D’OR JV - French Guiana, is NordGold controlled by Russian Billionaire Alexei Mordashov.
The mine to be built is very high grade for a big pit, Reserves of 2.75 million ounces gold (54.11 Mt @ 1.58 g/t gold). Orea owns 45%.
A new wrinkle, 10-22-2021. Nordgold files Lawsuit Valuing its 55.01% of Montagne d'Or Gold Project at US$4.6 Billion against France.
Curiously Nordgold has set themselves up to pay Orea a lot more ($3.76 billion) if they buy them.
Orea market cap is $23 million. Is this the mostly interesting sub $25 million company in world? Gets my vote.

Conclusion:

Orea Mining has a great deposit. They have won in court so far to build the mine. Gold prices are 50% higher now than when it was deemed a profitable operation to build. It is backed and controlled by one of the most successful mining billionaires in the world. The stock is unknown and valued at just $23 million when this was written at .13 per share.

They say "Open pit mine (LOM: 12 Years) with annual production of 237,000 oz gold in the first 10 years of mine life at an average grade of 1.73 g/t gold." 45% of that is 106,000 oz a year for Orea. There is far more gold there than just the reserves, millions more oz of resources.
The mine does need to be funded, but with an mega billionaire controlling it, that should not be a problem, but the terms are an unknown at this point. Orea has option to keep their 45% if they cover costs for their share. Have heard they want to be bought out by Nordgold, hence must of been happy campers when Nordgold valued them at $3.76 billion.

You may ask how can Orea stock be so cheap? First the big money is with Nordgold, so far. Nordgold is private, they delisted and Mordashov owns 98%, so he has no motive to increase Ora's stock price, just the opposite. Since he wants to buy them out the lower OREAF stock is the better, never underestimate the influence of someone with $25 billion dollars.

What about Orea? They do not have a lot of influence and are obviously not good at stock promotion and exert tiny effort in it. I never even heard of Orea till a few months ago and just small amount about Columbus (old name). The kicker on this is if Nordgold does not offer them enough, Robert Giustra can likely get the money to fund his side with a brother who has made billions and other connections, especially if gold starts reacting rationally to the combo of inflation and real interest rates. With "Mine AISC: US$779 per ounce gold (US$749 for the first 10 years)" this property will be incredibly valuable at $2200 gold.

The behavior of the billionaire and the deposit would rationally point to Orea stock doing a 10+ bagger from here. At a 10 bagger it would still be just $230 million market cap for a 106,000 oz producer. But Norgold has a history of buying out partners before production starts. They have amazingly said in court documents that Orea's share of the mine is worth $3.76 billion. Stay tuned.