Oroplata Resources Inc (OTCMKTS:ORRP)

Want a Lithium Play? Oroplata Resources Inc (OTCMKTS:ORRP)

Oroplata Resources Inc (OTCMKTS:ORRP)

The share price of Oroplata Resources Inc (OTCMKTS:ORRP) gained over 8% on Friday to end the session at $0.17 on heavy volume. ORRP has had a rough year. Its 52-week high was $2.04 but a slide began in August of 2016 and by April of 2017, ORRP shares were selling below $0.10.

Oroplata Resources Inc (OTCMKTS:ORRP) has a single subsidiary – Lithortech Resources, Inc.

Lithortech aims to mine lithium and become the low cost provider to the growing lithium battery industry. Lithium batteries are in particular demand from the green energy and technology sectors from companies such as Tesla, Faraday, Panasonic, and LG. West Nevada is the Mecca for Lithium mining and Lithortech has one of the largest Lithium mining tracts in Nevada at over 20,000 acres.

In November, Oroplata Resources Inc (OTCMKTS:ORRP) announced that a surface sediment-sampling program designed to test for Lithium returned significant geochemical results. To date, Oroplata has received results from 30 of the 32 soil samples and results are pending from rock and brine samples. All soil locations reported Lithium and 46% of the samples returned grades higher than 100 parts per million (ppm) Lithium, with grades up to 188 ppm from the sediment, confirming that lithium is present. Of the sites tested for direct comparison against the previous USGS sample results, the dry near surface sediment samples matched best with the USGS samples. The newer samples confirmed ‘ore grade’ results for Lithium and Boron, however results were typically 17% less than USGS samples.

Oroplata Resources Inc (OTCMKTS:ORRP) financials reflect their position as a young company seeking to enter a large market. In 2015 they had an operating loss of $37,000 and in 2016 that figure exploded to an operating loss of over $28.2 million. Assets for Oroplata Resources Inc (OTCMKTS:ORRP) were posted at $90,000 for 2016 but liabilities totaled $609,000 of which about half were listed as long-term debt.

Those numbers may seem catastrophic, but most experts agree that the ratios are in line with what is normally seen from a young mining firm that has not yet begun operations.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.