Archer’s thoughts on Oroco Resource TSX.v -OCO Q-ORRCF
http://www.orocoresourcecorp.com/
I absolutely love people sharing their Oroco stories, it is happening more often than ever. This is a compilation of tweets from Archer https://twitter.com/Archer76250300
“The problem is, people are being hated when they are real, and being loved when they are fake”
-Bob Marley
Ah $OCO, you rascal. Sentiment is at an all-time low and I want to share some thoughts.
I got involved in 2020 when it was about 30 cents. Back then, it was still just a story, a dream. It was a small team, a mine (just recently won in a long, complicated legal battle) and some limited historical drill results. All things considered; it was a risky play.
Over the next year or so, things progressed quite impressively, if one paid attention. The company raised some money and started delivering drills to the property. We got a 3D IP. I learned a ton about the mining industry.
The hype was tangible, and word got out thanks to the work of long-time holders like
@ClassicValueInv and @calichebahada . The stock price exploded to 3.60. Sentiment was nuts. I caught the $OCO fever and told my friends and family about the stock, which I rarely do.
You know, if the stock price increased in a gradual and stepwise fashion from 0.40 to 1.25 where it is now, I don’t think people would be nearly as upset with the company. When $OCO tagged its 52W high, not one hole had been drilled. Not ONE.
The stock price got a little ahead of itself and we got into a frenzy. It was never going to go straight up. $OCO wasn’t ready for those prices, plain and simple.
However, as the stock price was falling, management was moving… like a team with skin in the game. They built an impressive camp and infrastructure, confirmed a substantial portion of the historical drill results, and continued to drill the property for 24hrs a day.
You can see this progress by checking out
@ClassicValueInv‘s video series of his visits to the property, which spanned about a year.
Here is what I am going to argue in the remainder of this thread: This management team is not perfect, but know what they’re doing.
In today’s volatile market, investors have access to instantaneous information, obtained predominantly from platforms that profit off our emotions. Unfortunately, strong emotions rarely benefit an investor, and brokerages love it because it means more moves and more commissions.
Our addiction to constant information leads us to expect it from the industries and companies we own. If a company is radio silent for too long, investors are programmed to suspect that something is wrong, especially when it comes to the microcap space.
Articles pop up projecting a declining price of copper, the market tanks, China locks down, other opportunities look better, etc etc. emotions build, and we slam the sell button. We are programmed to respond to our fear.
Maybe management could have done a better job recognizing this. After responding to some investor activism, the company now releases weekly updates, no matter how ultimately pointless this may be to the outcome.
Then there was the option issue. The market didn’t like this, but to my eye, it looks more like an honest mistake than a dishonest play. You can read a bit about it here.
If these are the worst mistakes this management team makes, so be it. Name me one management team that’s been 100% perfect and I’ll eat my words, but I keep asking myself… what does everyone expect?
With regards to assays… do you think this happens overnight? This is a huge property. There are other mines in Mexico who want lab results. Do you think a team who holds over 25% of equity in this company is purposely holding up releasing assay results, trying to screw us?
Do you think the company should spend time and money managing its shareholders emotions? I would hope that they’re far too busy to worry about that…
I’ll tell you though, if I picked up the phone right now and called Adam Smith, he would take my call. What’s more is he treats each shareholder like a member of the team. He doesn’t try and bullshit me, he doesn’t try and sell me, he just tells me what’s going on.
Junior miners are notorious for lies and deceit, yet everything this company said they would do, they have done. It has taken a little longer than expected, granted, but doesn’t everything in mining? $FIL.TO had to drill over 40 holes before they got something good.
I recently spoke to a lawyer who works in the mining space. I told him a bit about Oroco and what was going on. The first question he asked me; “what about infrastructure?” I find it interesting that this is rarely talked about.
People tend only to care about grade, but if you find 10% copper in the middle of Alaska, 500 miles from a road/water/electricity… it’s not as great as it sounds. Quite simply, junior miners in accessible or favorable jurisdictions are rarer than you think.
When I told the guy about where Santo Thomas was situated, and how it has easy access to power, a nearby town, and road + rail access to a port only 100 miles away, he was pleasantly surprised. Apparently, few juniors can say the same.
When I told him that Oroco has been building its reputation in the community for years; installing computer labs, sponsoring soccer teams, and using a local workforce to drill the mine, he got serious.
In what appears to be among the most profound labour shortages ever, in a time where many mines face severe conflicts with indigenous local communities, $OCO has developed a sterling reputation in the area. This is huge for selling to a major.
Look, I’m not trying to sell anyone on this stock. All I’m saying is major looking at a property like Santo Thomas is going to like it, and that’s really all that matters. Feel free to drill some holes in the $OCO thesis, so to speak.
@OrocoCorp: keep up the solid work!
