Orogen Royalties Inc. (TSXV: OGN, OTCQX: OGNRF) announced impressive financial results for 2024, marking a year of significant growth and expansion. The company reported record total revenue of $6.85 million (C$9.9 million) for the year ended December 31, 2024, a 22% increase from the previous year.
The company’s strong performance was primarily driven by a 34% increase in royalty revenue from the Ermitaño mine, which contributed $5.47 million (C$7.9 million) to the total. Despite a 26% reduction in prospect generation revenue, Orogen’s diversified portfolio and strategic investments helped maintain overall growth.
Preliminary pre-tax net income for 2024 reached $2.98 million (C$4.3 million), more than doubling the $1.31 million reported in 2023. After-tax net income, however, saw a slight decrease to $2.6 million (C$1.9 million), down 13% from the previous year due to various deductions including fair value adjustments of marketable securities and income tax expenses.
Orogen’s financial position remains robust, with working capital of $18.61 million (C$26.9 million) as of December 31, 2024, a significant increase from $12.81million (C$18.5 million) at the end of 2023. The company maintains a debt-free status, positioning it for continued growth and investment opportunities.
The fourth quarter of 2024 was particularly strong, with total revenue of $2.98 million (C$4.3 million), representing a 79% increase year-over-year and a 169% increase from the previous quarter. This impressive performance was fueled by increases across all revenue streams, including a 33% rise in Ermitaño royalty revenue and a substantial 220% jump in prospect generation revenue.
Paddy Nicol, CEO of Orogen, expressed satisfaction with the company’s performance, stating, “We are pleased to deliver a record year in financial performance for 2024. Strong revenue was driven by consistent production at the Ermitaño mine supported by record gold prices that we expect to continue for 2025.”
Looking ahead to 2025, Orogen provided guidance on its key assets. The Ermitaño Mine, on which Orogen holds a 2% NSR royalty, is expected to contribute significantly to the company’s revenue. Based on production guidance from First Majestic Silver Corp., Orogen estimates royalty revenues between $3.93 million and $4.42 million (C$5.7 – $6.4 million) for 2025, assuming gold and silver prices of $2,500 and $29 per ounce, respectively.
The company’s 1% NSR royalty on the Expanded Silicon gold project in Nevada also shows promise. Project owner AngloGold Ashanti NA recently announced an updated Inferred Resource of 12.1 million ounces of gold at the Merlin deposit, representing a 34% increase over the previous resource estimate. Combined with the Silicon deposit, the total resources on Orogen’s royalty area of interest now stand at an impressive 16.32 million ounces of gold.
Orogen continues to diversify its portfolio through strategic partnerships and option agreements. The company forecasts prospect generation revenue of $1.31 million (C$1.9 million) in 2025 from active option agreements on various projects.
As Orogen Royalties enters 2025, it appears positioned for continued growth, leveraging its strong financial performance, expanding royalty portfolio, and strategic partnerships in the precious and base metals sector.
