Orogen: End of Another Chapter Draws Near
Contributed Opinion

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Franco-Nevada Corp., Altius Minerals Corp., Orogen Royalties Inc., Pan American Silver Corp., Barrick Mining Corp., Midland Exploration Inc., Lara Exploration Ltd., Fox River Resources Corp., and Fortuna Mining Corp.
2. Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: All. I determined which companies would be included in this article based on my research and understanding of the sector.
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Orogen Royalties Inc. (OGN:TSXV; OGNRF:OTCQX) said that the circular and voting materials for its proposed acquisition by Triple Flag and subsequent spin-out of assets other than the royalty on the Arthur Deposit have been mailed. The Arthur Deposit was formerly named the Expanded Silicon Deposit and before that the Silicon and Merlin Deposits. We recommend voting in favor of the motions, and opting to receive all Triple Flag shares (unless you have an urgent need to cash). Assuming the vote is in favor (as we do not doubt), the shares, cash, and spin-out shares should be in accounts by mid-July. Note: Each OGN share will receive one-quarter of an Orogen spin-out shares, effectively undertaking a 4-for-1 rollback.

Cash or Shares?

Triple Flag has given the option to shareholders to receive cash or shares, with an aggregate of 50% of both shares and cash. There will likely be an overwhelming demand or Triple Flag shares, given the premium at which they now trade and the likelihood that many Orogen shareholders who did not want Triple Flag have already sold their shares. Thus, you will likely receive some combination of cash and Triple Flag shares even if you opt for all shares.

If you have not received your circular and voting materials by the middle of this coming week, then I suggest you contact your broker and ask him to get their corporate re-org department to vote for you (or send you the materials). The deadline for voting in June 25. (Disclosure: my money management firm, which holds on behalf of clients nearly 9% of Orogen shares, signed a voting support agreement with Triple Flag.)

Orogen also reported net income up 500% in the first quarter compared with the year-ago quarter, with royalty revenue up on higher gold prices, despite ounces being slightlylower, and operating cash flow also higher. Hold. You can still buy if you do not already own any.

Hope For Franco's Cobre Panama Mine Stream

Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) received positive news on the eventual restart of Cobre Panama mine and its stream when the government of Panama gave approval to mine owner First Quantum to ship concentrate that has been sitting at the port facilities. The stockpile will generate approximate $310 million, which will offset the nearly $250 million that First Quantum has spent, and the approximately $13 million a month itcontinues to spend, on care and maintenance since the mine was ordered shut at the end of 2023. Hold.

Barrick's Mali dispute continues

Barrick Mining Corp. (ABX:TSX; B:NYSE) has reportedly asked the arbitration tribunal of the World Bank to intervene in the long-running dispute with the government of Mali over the de facto confiscation of its Loulo-Gounkoto mine. A local court again deferred a decision for another week on a bid by the government to take over the mine, which has now been shut since January after employees were jailed and gold awaiting shipment seized by the government. This is the fourth postponement. Hold.

Nestlé Focuses on Health Nutrition

Nestle SA (NESN:VX; NSRGY:OTC) continues the growth of its science-based health nutrition division with the global roll-out of its infant nutrition food under the Nan brand name. It is being rolled out to Latin America and the Middle East with Asia to follow later in the year. The food combines probiotics with ingredients deemed “structurally identical” to those found in breastmilk, with the aim of contributing to “a more favorable gut environment” and stronger immunity in early childhood.

Separately, the company announced the strengthening of its R&D in biotechnology to boost its innovation pipeline, particularly in maternal and infant health, as well as weight management. It is also creating a new centre for “deep-tech”, scheduled to open next year, the first of its kind in the food industry. Hold.

TOP BUYS this week include Altius Minerals Corp. (ALS:TSX); Midland Exploration Inc. (MD:TSX.V), Lara Exploration Ltd. (LRA:TSX.V), and Fox River Resources Corp. (FOX:CSE).

GOLD INVESTORS RETURNING: Last Bulletin, I discussed the signs of a renewal of interest in gold developing among North American investors, specifically the incipient inflows into the GDX, and the recent outperformance of juniors (with the GDXJ outperforming the GDX in the last three weeks, and the exploration stocks beginning to catch up). The last week saw a continuation of these trends, with renewed inflows of $136 million into the GDX (equal to almost half the new flows of the last month), and the GDXJ well outperforming the GDX (5.6% vs 2%).

Now we can add a third sign, with silver outperforming, up 9% in the last week relative to gold’s 1%. The silver stocks also outperformed the gold stocks, a clear sign of retail investor interest. While the GDX and GDXJ both rose per above, silver names like Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ) (up 18%) and Fortuna Mining Corp. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) (up 22%), both on our list, as well as Hecla Mining Co. (HL:NYSE) (22%) and Vizsla Silver Corp. (VZLA:TSX.V; VZLA:NYSE), (17%) well outperformed. Typically, silver stocks, like junior stocks, outperform when retail investors and smaller institutions are in the market.