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Ortac Resources is a Christmas cracker, reckons Seymour Pierce

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Shares in gold explorer Ortac Resources (LON:OTC) could make a good stocking filler, reckons City broker Seymour Pierce.

"In its interim results published this week, Ortac confirmed that it remains on track to complete the pre-feasibility study on its Sturec gold project in Slovakia next quarter; that it has more than sufficient funds to complete a subsequent bankable study; the property’s mining licence is in good standing and that the company remains fully engaged with the local community regarding project development," points out analyst Asa Bridle.

Bridle says he therefore does not understand the stock's downward movement and that a "strong investment opportunity existed".

This week, the firm unveiled interim results, reporting a loss of £0.79mln and a cash position of £6.7mln as of September 30.

Applying the broker's new gold price forecast to Sturec's 86,000 ounces per annum gold equivalent production posited in the scoping study lift's Seymour's net present value for the firm to 5.3 pence per share.

"The company’s current cash position takes the overall valuation to 5.5p, 13 times today’s price," adds the analyst.

The broker rates the shares a buy targeting a price of 5.5p.

Ortac shares are trading up 2.35% to 0.44 pence.

 

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