- Orogen Royalties (OGNRF, Financial) reported a 500% increase in net income, reaching $1.8M in Q1-2025.
- Triple Flag Precious Metals plans to acquire Orogen for $421M, or $2.00 per share.
- Significant expansion of high-grade gold and silver mineralization at Ermitaño's Navidad discovery.
Orogen Royalties Inc. (OGNRF) posted a strong financial performance for the first quarter of 2025 with a reported net income of $1.8 million, marking a substantial 500% increase from the previous year. This growth was primarily driven by royalty revenues which amounted to $2.1 million, derived from 497 gold equivalent ounces at the Ermitaño mine. The company also reported an operating cash flow of $1.2 million, maintaining a robust financial position with $28 million in working capital and no debt.
The Ermitaño mine, a key asset for Orogen, processed 270,203 tonnes of ore during the quarter, an increase of 20% year-over-year. The mine reported an average silver head grade of 58 grams per tonne (g/t) and a gold grade of 2.59 g/t, with recoveries of 68% for silver and 95% for gold. Despite a 2% decrease in gold equivalent ounces from the previous year, the revenue was bolstered by higher average gold prices of US$2,860 per ounce.
In a strategic development, Triple Flag Precious Metals has announced an acquisition of Orogen for approximately $421 million, equivalent to $2.00 per share. The acquisition deal includes $171.5 million in cash, $171.5 million in Triple Flag shares, and about $78 million in Orogen Spinco shares, with the transaction pending regulatory approval.
The significant expansion of mineralization at the Ermitaño's Navidad discovery, led by First Majestic, saw the Winter Vein extended by 175 meters and the Navidad Vein by 325 meters. This expansion brings the total strike length to 1.3 kilometers and 450 meters down dip, indicating promising potential for extended mine life and increased cash flow from the Ermitaño royalty.
