http://www.ortacresources.com/


The Companys strategy is to utilise Ortacs highly experienced board and management team, together with its solid foothold in the Central European region, to consolidate additional exploration and development opportunities in the precious metal sector.
Having already acquired the necessary capital, the Company plans to update the resource, complete a scoping study and preliminary environmental and social impact assessments, and bring into production its initial asset, the Kremnica Gold Project in Slovakia.
The Company has identified several regional consolidation opportunities at various stages of development which are currently being evaluated to significantly increase Ortacs resource inventory and maximise shareholder value. Third party companies with advanced staged projects in the region which can be fast-tracked to achieve near term production are also being actively sought and evaluated.

Seymour Pierce puts a price of 2.7p, there's been some other brokers who've put higher t/p's at up to 3.9p, and that was for Jorc resource's of 1.1mil oz.. If/when they upgrade to nearer 2mil oz then you're looking at a s/p of 4p+, so yes i'd say they looked undervalued!!..

I would not be surprised to see investment in further fields along the guide lines of the company statement this year.Spreading the net so to speak.

Looking strong this afternoon, some bid buys coming in.Getting in ahead of the expected news next week, though s/p only heading where they should've been before the market malaise kicked in!!!..

Watching & Waiting....I'd take 2.7p let alone 3.9p! bought in some while ago @1.56p...so just to get back to break even would be good!

Amen to that. It would be nice to be in the green again on these, although there is some way to go for me.

I bought @ 1.80p and more recently @ 0.89p so looking around 1.38p for breakeven.
2517

it was bb

nice rns today as per tradition mostly sells so far!!!

gl 2517

crikey a sea of red!!

profit takers cleared - sea of blue now - going back uo :-)))

yep otc strikes again - good promising rns - bavk in the red and one would expect sub 1p not far away hey ho

2 views:

http://www.iii.co.uk/articles/22854/ortac-slumps-despite-positive-%C5%A1turec-results

Ortac slumps despite robust Šturec findings
By Sarah Modlock | Tue, 10/01/2012 - 11:31

Slovakian-focused explorer and developer Ortac Resources (OTC) saw its shares tumble on Tuesday, despite unveiling positive findings from the scoping study on its 100%-owned Šturec gold and silver deposit.

Highlights included a pre-tax net present value of $180 million (£116 million) at the base case Scenario-1 of a 1.5 million tonne per annum open-pit operation.

This was double the size of the old estimate of $90.6 million put forward by analysts at Optiva Securities. The broker said that the difference mostly related to scoping study consultant SRK's confidence in the project supporting a larger mining operation that can produce 867,000 ounces of gold equivalent over an 11-year mine life, versus Optiva's projection of 565,000 ounces.

In addition, the broker noted that gold spot prices are some 20% higher than 12 months ago, which allows for a higher gold price of $1,200 per ounce being used in the base case model.

Ortac's chief executive Vassilios Carellas said that the successful completion of the study confirms that the company has a robust and profitable project with excellent leverage to the gold price. "We now look forward to working together with the local communities, authorities and Kremnica Gold s.r.o to evaluate the optimum path toward monetising this asset and how best this project can complement and benefit the local and regional development," he added.

Analyst Jason Robertson at Optiva said of the results: "Overall we are pleased with the findings that demonstrate that the project is both robust and profitable."

He used the study outcomes to rework his number on Ortac and said that if the resource at Šturec can be improved to what the management believe may approach two million ounces of gold equivalent or a JORC resource established in eastern Slovakia, then further value can be added.

"The year ahead is likely to be very active as potential drilling results and resource upgrades are revealed, and project milestones at Šturec pursued. With the share price languishing at around 1p, considerably less than our 3.3p price target, we therefore recommend Ortac Resources as a 'buy'."

&...

http://minesite.com/media/pub/var/release_downloadable_file/35101.pdf

The Joint Ore Reserves Committee compliant Scoping study into their 100% Šturec gold and silver project at Kremnica in Slovakia is very detailed, but at our preferred gold and silver pricing assumptions is ultimately slightly disappointing.

They have modeled four scenarios, ranging from a 0.75 million tonnes per annum (Mtpa) open pit through to a 2 Mtpa one, using a lower cut off grade, and a 1.8 Mtpa underground operation. The base case was a 1.5 Mtpa open pit using a 0.75 g/t gold cut off.

Scenario 3, a 2Mtpa operation, using a cut off grade of 0.44 grammes per tonne (g/t) gold, is preferred, and is set to have a mine life of 11 years, with average annual production of almost 86,000 gold equivalent ounces. With capital costs ranging from US$83-181m, Scenario 3 itself would cost $155m with $13m of sustaining capital. At a gold price of $1,200 per ounce (/oz) and a silver price of $22/oz, post tax Internal Rates of Return (IRR) range from 14% to 24%, with Scenario 3 offering this disappointing top return.

Assuming an 8% discount rate, the post Tax Net Present Value for this scenario amounted to $153m. This falls to $109m if a $1,053/oz gold equivalent price is used. Taking into account refining charges and presumably metallurgical recovery, their base gold and silver price of $1,200/oz and $22/oz respectively adds up to a gold equivalent price of $1,188/oz. We would have preferred to have seen economic numbers estimated at $1,000/oz gold and $15/oz silver, and they will obviously be sub 20% IRR.

More work needs to be done to show economic viability, a combination of larger resources leading to an even larger open pit, with lower capital and operating costs is obviously required. After the recent run, they are capitalised at £22.3m, which appears up with events.



Interesting point about the economics being overvalued at a base gold and silver price of $1,200/oz and $22/oz respectively.

"We would have preferred to have seen economic numbers estimated at $1,000/oz gold and $15/oz silver"

perhaps $1000/oz gold would have been more appropriate for the base which would mean the NPV would fall to below $100m. Despite the figures and somewhat downbeat analysis, OTC aim to increase their JORC compliant resource which will add value to the company's SP.

gla

http://www.proactiveinvestors.co.uk/companies/news/37632/ortac-resources-says-sturec-scoping-study-confirms-a-robust-and-profitable-gold-silver-project-37632.html

wonder if there will be any bounce here today - otc picked a bad day to release yesterday with gkp so rampant and some others.......

How frustrating it all is. I was busy,when with great delight I watched it climbing then not 30 minutes later I checked and it was in the red!!!!! Her indoors can cancel the Queen Mary cruise and book the Isle of Wight ferry, same colour funnel anyway!!!

lol bb at least the funnel is the same colour then - i am sure she wont notice the difference???!! :-))) at least its not a dingy with you rowing in a force 10!!! lol

confession - sold some yesterday near the high as l2 werent looking like it should on the news and shoved it into gkp - only way there is up despite its location couldnt wait any longer for otc news with the level i had tied up here - but still sizable interest - gl

more likely to be Sea France I think.,.

I had just resolved to sell off half my holdings at a small profit and reducing my exposure when the crunch came. From what I see. in a nutshell. There is still a viable venture but with smaller profit margins. Agreed??

lol bb

otc - yep i do see otc as viable - we only have the results of 1 license so far so difficult to say how far otc can go but definitely worth much more than current sp

my only slight concern with otc though is : the qty of shares and the grade of gold - i am also in cnr and others that have much higher gold grades and this is starting to become apparent in the sp i think - keep an eye on sres which like otc has a habit of reversing the sp on an rns - gl