Oroco Resources: Shareholders should be pissed

In a corporate structure, the shareholders are owners of the company. The board of directors are ones that work on behalf of shareholders. The management team is the one that runs the daily operations of the company.

In a junior mining company all that structure goes down the toilet. Oroco is nothing special, the shareholders are considered after the fact.

Oroco hired Torrey Hills over 3 years ago. The company has been paying a material amount as fees to Torrey Hills. I’m not sure what the purpose is of paying Torrey Hills. Torrey Hills has been doing YouTube videos to supposedly spread the Oroco and Santo Tomas story. Those YouTube videos are almost lost in the billions made and uploaded to YouTube; the views these Torrey Hills videos get are 400 at best. Oroco pays Torrey Hills $5,000 per month for their services. There seems to be one video per month that Torrey Hill has been doing for the last 3 months but it has been lot less frequent once you go beyond 3 months past.

So for $5,000 per month the company is getting less than a YouTube video per month. A video that gets about 400 views. I would argue more than half of those views are likely existing shareholders looking for updates on the company. So for the monthly fee the company is likely getting less than 200 views.

For that kind of money the company can get an incredible amount of exposure if only management was willing to look at other options.

After having paid $200,000 in fees to Torrey Hills, I doubt the shareholders have gotten much in value for what the company has paid. The shareholders as owners of the company should be frustrated to see management just spend shareholders money on projects that don’t add any value.

Unfortunately with this management team, I doubt anything will change (expect another PP so funds can be spent on Torrey Hills and other so-called “IR” projects).

4 responses to “Oroco Resources: Shareholders should be pissed”

  1. You seem to be getting more and more impatient with Oroco’s management. Do you still think they can deliver and by when?
    I’m a bit afraid they will end up selling Santo Tomás and when the ink isn’t even dry splurge it on some other project!

    • I’m not that optimistic about the management team. I think they have dropped the ball any times. Although the asset is really good. As long as management isn’t a complete fraud someone will come and acquire asset for lot more than what is currently trades at.

      The risk is management drags its feet and by the time it gets to selling the asset the market is really bad. I think they are unlikely to hit the new CEO’s target of getting a PEA out in early 2023. It seems really hard to do that with just 3 drill rigs. Even adding one more doesn’t really change much. We are in August already and they will need to do a capital raise also soon. So they will miss their timeline. Hopefully it doesn’t get delayed into like an extra year.

  2. Definitely frustrated. Earlier this year, I was a seller in the 1 to 1.15 range for a real estate transaction. I was upset to sell but thank god I did. Still holding a very large portion of my portfolio in Oroco but starting to wonder if I should diversify into other copper plays. Love the copper thesis but losing faith in Oroco.

    • If I had additional capital, I would put it into Emerita instead of Oroco. Emerita has a much better management team and an asset that is going to be much easier to sell. Plus a management team knows what it needs to do and is executing on plan.

      Personally I’ve been slowly allocating out of Oroco into other plays.

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