08/18/2026
One of the principal factors suppressing valuations across the Mexican mining sector, particularly for open-pit and surface mining projects, has been the perception that federal permitting had effectively stalled. That narrative is becoming increasingly outdated. Over the past year, the Mexican government has demonstrated a clear shift toward advancing strategic mining projects, recently reporting that approximately 84% of the mining permit backlog inherited from the previous administration has now been resolved.
Of particular relevance to Oroco's Santo Tomás project is the recent issuance of permits for two significant projects: Grupo México's El Pilar copper project and Teck and Agnico Eagle's San Nicolás copper-zinc project.
As permitting confidence continues to improve, the substantial valuation discount currently applied to Mexico mining projects may prove increasingly difficult to justify, particularly in Oroco's case given the support for Santo Tomás demonstrated by its designation as a Strategic Project under Plan México.
Three weeks ago we sent out our Q2 2026 investor newsletter, and one theme kept surfacing as we pulled the drill data, the PEA metrics, and the community updates together: Mexico's regulatory environment for mining is experiencing a positive shift, as evidenced by Agnico Eagle's Second Quarter 2026 Results, wherein it references SEMARNAT (the senior Mexican environmental authority) approval of the project's MIA (Manifestación de Impacto Ambiental). We are therefore pleased to provide this letter as an update focused on that theme, with Santo Tomás' progress at the centre of it.
Full Shareholder Letter is linked in comments
$OCO $ORRCF $OR6