viewArc Minerals Limited

Ortac Resources represents strong buying opportunity, says Seymour Pierce



Ortac Resources (LON:OTC) is trading at a discount and represents a 'strong buying' opportunity, says City broker Seymour Pierce.

The firm released its interims to September 30, in which it confirmed it remained on track to complete the pre-feasibility study on its Sturec gold project in Slovakia during the first quarter of 2013 - a year which, it said, promised to be highly active for the firm.

"With work ongoing in Slovakia, the company recorded a loss of £0.79mln leaving £6.7mln of cash in the treasury," noted Seymour Pierce analyst Asa Bridle, who rates the shares a 'buy' targeting a price of 4 pence.

"This will allow the company to complete its assessment work at Sturec (through to completion of a Bankable Feasibility Study), carry on the evaluation of its exploration projects in eastern Slovakia and continue to assess additional properties that it could potentially add to its portfolio.

The analyst added: "The stock is trading on just US$3 per ounce gold equivalent in the ground against its peers on over US$40 per ounce. We believe this discount is far too great and represents a strong buying opportunity."

Broker Ambrian also today said the firm looked to be "significantly undervalued" by the market.

"We think that some progress or clarification on permitting could result in a significant uplift in the company’s share price," it added.

A recently completed positive scoping study examined a 2 million tonne per annum operation to produce 86,000 ounces of gold equivalent on average over an 11-year mine life.


Quick facts: Arc Minerals Limited

Price: 4.11 GBX

Market: AIM
Market Cap: £40.3 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Arc Minerals Limited named herein, including the promotion by the Company of Arc Minerals Limited in any Content on the Site, the Company...


Glencore mine shutdown could prompt a near-term price hike in Cobalt

Mining Capital's Alastair Ford says the closure of Glencore’s Mutanda mine in the DRC comes in response to the collapse in the cobalt price over the last year or so. ''The price went very high in 2017 and then came back down and now it's at the $15/lb level which is where it started its rise...

on 16/8/19

2 min read