LONDON (ShareCast) - (Sharecast News) - Exploration company Oriole Resources updated on its wholly-owned Turkey subsidiary Stratex Madencilik, on Wednesday, which it said had continued to trade profitably during 2020 and had started to realise value across its portfolio.
The AIM-traded firm said year-to-date cash flows of about £0.16m from its Turkish consultancy work had exceeded its general and administrative costs in Turkey during the same period.

Asset realisation was continuing, with the recent $0.3m (£0.23m) sale of the Karaağac net smelter return royalty to the local partner, Anadolu Export.

Discussions to recover an outstanding $0.43m success-based payment at Karaağac had begun, the board added.

An initial instalment of $30,000 had been received from another local partner, Bati Toroslar, for the Hasançelebi and Doğala royalty sale agreement as announced on 30 July and 10 August.

Oriole said it was "well-placed" to attract new buyers for the remaining royalties, including the EIA-stage Muratdere copper-gold porphyry project, and to benefit from the recent rises in gold and copper prices respectively.

Positive cash flows had also enabled the settlement of historic employment liabilities, the board confirmed.

"We are extremely pleased to see our Turkish entity continuing to be financially self-sufficient, enabling the repayment of significant inherited employment liabilities whilst still generating net cash inflows," said chief executive officer Tim Livesey.

"Meanwhile, the significant efforts to realise value from the Turkish royalty portfolio has been met with modest success so far, following the recent withdrawal of a portfolio deal with a quoted royalty company after the right of first refusal was exercised by some of our Turkish partners."

Livesey said the receipt of the initial instalment from Bati Toroslar for its right of first refusal meant Oriole had now raised $80,000 in immediate funds from the sale of two early stage projects, with $0.47m to follow on satisfaction of the contingent consideration.

"We also note the recent rise in the copper price, and its significance in relation to our 1.2% post-tax net smelter return royalty at the Muratdere copper-molybdenum-gold deposit, as per our announcement dated 29 October 2019."

At 1301 BST, shares in Oriole Resources were up 3.95% at 0.4p.

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