Orogen Royalties (OGN) AI Stock Analysis

• Market Cap: C$118.72M
• Dividend Yield: N/A
• Average Volume (3M): 82.78K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.36
• Revenue Growth: 22.53%
• EPS Growth: N/A
• Country: CA
• Employees: 10
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 59,359,932
• 10 Day Avg. Volume: 81,266
• 30 Day Avg. Volume: 82,783
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$2.00
• Price Target Upside: 2.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: C$2.00 ▲(2.56% Upside)

Orogen Royalties' strong financial performance and bullish technical indicators are the primary drivers of its stock score. The company's high profitability and low leverage position it well financially, while the stock's current momentum suggests positive market sentiment. However, the overbought RSI and moderate valuation indicate potential risks that investors should consider.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and capitalize on its royalty agreements, enhancing long-term financial stability.

Margin Sustainability

High and improving profit margins reflect efficient operations and strong pricing power, supporting sustainable profitability over time.

Low Leverage

Minimal leverage enhances financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow could limit the company's ability to fund new projects or return capital to shareholders, potentially impacting future growth.

Fluctuating Revenue Growth Rates

Inconsistent revenue growth may indicate challenges in maintaining steady project development and execution, posing a risk to long-term growth stability.

Decline in Stockholders' Equity

A declining equity base may signal potential financial strain or reduced investor confidence, which could affect the company's ability to raise capital.

Orogen Royalties Business Overview & Revenue Model

Company Description

Orogen Royalties Inc. operates as a mineral exploration company in Canada, the United States, and Mexico. The company operates through two segments, Mineral Royalties and Mineral Exploration Project Generation. It has a portfolio of gold, copper, silver, and precious and base metal royalty projects. The company holds interest in the La Verdad epithermal gold-silver project in Durango, Mexico. It has an option to acquire the Lemon Lake property; the Ecru project; the Manhattan Gap; the South Gilbert; the Kalium Canyon project; and the Ghost Ranch project. The company was formerly known as Evrim Resources Corp. and changed its name to Orogen Royalties Inc. in August 2020. Orogen Royalties Inc. was incorporated in 2005 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Orogen Royalties makes money by creating and acquiring royalties on precious metal projects. The company's revenue model is centered around receiving a percentage of the revenue or profit generated from the sale of minerals extracted from its royalty projects. Key revenue streams include royalties from existing mineral deposits and potential future royalties from exploration projects that are advanced in partnership with other mining companies. Orogen also enters into strategic partnerships and joint ventures with larger mining firms, which can provide upfront payments or milestone-based payments as projects progress. Additionally, the company may occasionally sell exploration projects to other companies, generating income through such transactions.

Orogen Royalties Financial Statement Overview

Summary

Orogen Royalties shows strong revenue growth and profitability with efficient operations. The balance sheet is robust with low debt and high equity, though historical cash flow volatility requires attention.

Income Statement

Orogen Royalties demonstrates strong revenue growth with a notable increase from prior years, reflecting a robust upward trajectory. The gross profit margin is exceptionally high, indicating efficient cost management and a profitable core business. The net profit margin has improved significantly, enhancing overall profitability. The EBIT and EBITDA margins are solid, showcasing efficient operations. However, the initial negative net income in earlier years poses a potential risk factor.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, indicating financial stability and low leverage. The debt-to-equity ratio is minimal, suggesting conservative debt management. Return on Equity is commendable, reflecting effective utilization of shareholder funds. The balance sheet shows a healthy cash position, further contributing to financial robustness.

Cash Flow

Orogen Royalties displays a positive trend in operating cash flow, aligning well with net income growth. Free cash flow has rebounded from negative figures, indicating improved cash management. However, fluctuations in free cash flow in past years present a cautionary note. The strong operating cash flow to net income ratio underscores efficient cash generation from core activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.15M	9.35M	7.83M	3.78M	2.08M	240.20K
Gross Profit	10.07M	9.27M	7.74M	3.65M	1.89M	72.15K
EBITDA	5.28M	4.40M	3.14M	841.03K	-1.19M	-3.68M
Net Income	3.13M	2.59M	3.04M	840.18K	-2.83M	-87.57M
Balance Sheet
Total Assets	34.86M	69.76M	62.59M	53.11M	51.67M	11.93M
Cash, Cash Equivalents and Short-Term Investments	26.34M	24.23M	16.93M	11.37M	9.12M	10.84M
Total Debt	218.63K	256.67K	191.23K	235.03K	229.30K	333.13K
Total Liabilities	1.66M	1.65M	1.01M	833.21K	974.57K	1.05M
Stockholders Equity	33.20M	68.11M	61.58M	52.28M	50.69M	10.88M
Cash Flow
Free Cash Flow	2.61M	3.05M	-498.60K	671.42K	-3.56M	-3.87M
Operating Cash Flow	3.18M	3.05M	1.36M	687.12K	-3.53M	-3.79M
Investing Cash Flow	-3.61M	1.02M	-3.80M	-349.41K	2.05M	-1.16M
Financing Cash Flow	-22.18K	2.92M	5.29M	251.49K	718.10K	4.97M

Orogen Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OGN, the sentiment is Positive. The current price of 1.95 is above the 20-day moving average (MA) of 1.78, above the 50-day MA of 1.65, and above the 200-day MA of 1.14, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 74.07 is Negative, neither overbought nor oversold. The STOCH value of 92.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OGN.

Orogen Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGN	75 Outperform	C$118.72M	25.91	6.34%	―	22.53%	―
ELE	72 Outperform	C$577.54M	84.35	2.53%	―	131.19%	―
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
PRB	47 Neutral	C$589.56M	―	-67.43%	―	―	40.37%
SROYF	―	$164.79M	370.65	0.25%	2.42%	―	―
FDR	46 Neutral	C$447.67M	―	-9.95%	―	―	46.54%
MFG	36 Underperform	C$198.90M	―	-37.04%	―	―	58.22%

Orogen Royalties Corporate Events

Orogen Royalties Sells Los Coyotes Project to Fresnillo

Orogen Royalties has sold its Los Coyotes silver-gold project in Sonora, Mexico, to Fresnillo plc, a leading silver producer. The agreement includes an initial payment of US$118,000 and a further US$1 million upon commercial production, with Orogen retaining a 1% net smelter return royalty. This transaction allows Orogen to benefit from Fresnillo’s expertise in exploring the precious metal potential at Los Coyotes without further capital investment, maintaining an upside through its retained royalty.

Orogen Royalties Re-Lists on TSX Venture Exchange, Strengthens Strategic Position

Orogen Royalties Inc. has announced its re-listing on the TSX Venture Exchange following a strategic arrangement with Triple Flag Precious Metals Corp., which included a $10 million private placement. This move reinforces Orogen’s commitment to its business strategy of generating and acquiring royalties, supported by a strong shareholder base and a debt-free financial position. The company’s flagship Ermitaño gold-silver mine in Mexico continues to be a consistent producer, and ongoing exploration efforts have identified additional resources in the area. With a robust portfolio of royalties and projects, Orogen anticipates significant partner-funded exploration activities in 2025, highlighting its strong industry positioning and potential for shareholder value creation.

Orogen Royalties Completes Acquisition Plan with Triple Flag

Orogen Royalties Inc. has completed a plan of arrangement with Triple Flag Precious Metals Corp., resulting in Triple Flag acquiring all outstanding common shares of Orogen for approximately $421 million. This transaction includes a mix of cash, Triple Flag shares, and shares of Orogen SpinCo, which will hold most of Orogen’s assets except for a key royalty on the Arthur Gold project. The new Orogen Royalties Inc. will continue its royalty business with a focus on gold and copper assets and will benefit from a strategic investment by Triple Flag. The company anticipates significant partner-funded exploration work in 2025 and has entered a generative exploration alliance with Triple Flag in the western United States.

Orogen Shareholders Approve Strategic Arrangement with Triple Flag

Orogen Royalties Inc. announced that its shareholders have overwhelmingly approved a plan of arrangement with Triple Flag Precious Metals at their Annual General and Special Meeting. The arrangement involves shareholders receiving cash or shares in Triple Flag and SpinCo, with the transaction valued at approximately $421 million. This strategic move is expected to enhance Orogen’s market positioning by delisting from the TSX Venture Exchange and initiating a generative exploration alliance with Triple Flag in the western United States, which will focus on identifying new exploration opportunities.

Orogen Royalties Receives Proxy Advisory Support for Triple Flag Arrangement

Orogen Royalties Inc. has announced that leading independent proxy advisory firms, including Institutional Shareholder Services Inc., recommend shareholders vote in favor of an arrangement resolution with Triple Flag Precious Metals Corp. This resolution, to be decided at the upcoming Annual General and Special Meeting, involves Triple Flag acquiring all outstanding shares of Orogen for approximately $421 million. The transaction includes cash, Triple Flag shares, and shares of a new company, Orogen Spinco. This strategic move is expected to provide immediate value and potential upside for shareholders, while also establishing a generative exploration alliance in the western United States.

Orogen Royalties Announces Shareholder Meeting and Proposed Arrangement

Orogen Royalties Inc. has announced the availability of its management information circular and notice for the upcoming annual general and special meeting of shareholders. The meeting will address a proposed arrangement with Triple Flag Precious Metals Corp., offering significant benefits such as immediate liquidity and enhanced exposure to royalty assets. The board recommends shareholders vote in favor of the arrangement, which promises to unlock significant value and provide excellent value for the Expanded Silicon Project.

Orogen Royalties Reports Strong Q1-2025 Results and Expands Mineralization at Navidad

Orogen Royalties Inc. reported a profitable first quarter in 2025, driven by strong royalty revenue from its Ermitaño mine and increased mineralization at the Navidad discovery. The company’s net income rose significantly, supported by a 500% increase in net income from operations compared to the previous year. The expansion of the Navidad discovery, facilitated by First Majestic Silver Corp., has enhanced the mineralized area, potentially extending the mine life and cash flow from the Ermitaño royalty, which Orogen will retain post-transaction with Triple Flag Precious Metals.