In short: "This is a premium priced company and I would suspect that it deserves the premium. I'm a very large shareholder of Orogen." Behind the ~$200M cap vs ~$80–100M NAV: a substantial cash hoard, the Ermitaño royalty (operated by First Majestic, with proven upside and a new discovery being prosecuted), the Walker Lane asset "sold to Anglo" for "a dramatic return to shareholders," and carried interests in 13–14 partner-funded generated projects. Only risk he flags: whether management's ambition "has been sated by their extraordinary returns to date."
Orogen is a prospect generator with royalties. It does early exploration itself, then hands projects to bigger companies who pay all the drilling costs — Orogen keeps a free carried interest and, if a mine is ever built, a royalty (a small slice of every ounce produced, forever, with no share of the costs). It currently has 13 or 14 projects being drilled on someone else's dime.
The model already paid out once spectacularly: Orogen generated a Nevada discovery in the Walker Lane belt whose royalty was sold for what Rick calls "a dramatic return to shareholders" — big enough that "everything that's left over in Orogen was icing on the cake." What's left is not small: a big cash pile, a royalty on the producing Ermitaño mine operated by First Majestic (with proven expansion and a fresh discovery being drilled), and the drill-program lottery tickets.
The questioner's worry was the ~$200M price tag against ~$80–100M of measurable net asset value. Rick's answer is that this is "a premium priced company and I would suspect that it deserves the premium" — you are paying for the machine that produces royalties, not just the ones it has. He is a very large shareholder. The single risk he names is human: after such a large win, has management's hunger been "sated"?
15:46This is a premium priced company and I would suspect that it deserves the premium. I'm a very large shareholder of Orogen. Okay. Aaron wants to know: Rick, Agnico's quarter 2 filings show they sold 261 million of their junior equity portfolio in the quarter, more than three times what they bought.
Nothing matches this filter.
Verbatim excerpts from the public transcripts (auto-pulled at each mention's timestamp, lightly cleaned). Timestamps link into the video; "source page" opens that commentator's full analysis at this row. Click a mention's header line to expand it (one open at a time). For personal study — not investment advice.