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Thanks. So a risky punt at 0.2 and below for just a few £. Punting money only. The cash lost here is astounding but lots of others like this but perhaps this is about the worse. Atlantic Coal / Carbon would be one example I have. Delisted, had lots of decent offers at an excellent price, all refused, the directors paid themselves very well.....and now gone into administration. Why we have financial watchdogs...
A few like this today.
The mms are taking the P and lots of new traders are getting taken to the cleaners.
also this one.
12-Jun-20 08:02:57 0.397 603,528 Buy* 0.30 0.40 2,396 O
12-Jun-20 09:51:08 0.16 603,528 Sell* 0.15 0.25 965.64
People loosing 70 percent of the money in a hour!
cash of $2.7m, disposal of celadon for $4.2m Gobi Coal and Moly World the main investments left, which should attract similar values as Celadon. That gives around $15-20m. Ords get 20% so say $3.5m or £3m. Then its whether there is any value for the other assets and if there is any merit in litigation for the clear unlawful use of shareholders cash by the previous board which must be over $20m. Finally post the disposals there is a cash shell with huge tax losses. Interesting that this is classed as an investment company......similar to PIRI.....I think. One of the evergreen types.
Incredible. Reminds me of polo but there because the CEO is taking an incredible salary compared to the mkt cap.
Are these worth buying at say 0.2? Is there anything left to pay out or has it been paid following the september rns?
12-Jun-20 10:42:41 0.1816 1,436,781 Sell* 0.15 0.30 2,609
12-Jun-20 08:30:45 0.348 1,436,781 Buy* 0.25 0.35 5,000
There are 57m preference shares.
There are 359m ordinary shares.
Re visit your figures.
GL.
The Company seems to have made net investments of about $70 million, most of which seems to have been subsequently written off and had expenditures of about $57 million. Of that $57 million, about $16 million went to pay employees and, beginning in 2015, OAL after the Company in 2014 adopted a fund rather than operating company structure. About $11.5 million went to pay "professionals," presumably primarily lawyers. About $4.6 million went to pay directors. About $3.6 million was paid in fees in connection with the 2011 capital raise. The auditors received about $1.6 million. The remaining $19 million is hard to put your finger on because it is buried within accounting categories that are not self-explanatory.
The Origo story is a dismal one with lots of blame to go around beginning with the Board, who are ultimately responsible for what happens inside a public company, the manager/advisor for obvious reasons, the previous Nomad and the previous auditors. In light of the facts set forth above, we will solicit the views of our shareholders on how they wish to proceed and provide further details in due course.
Very truly yours,
John D. Chapman
Chairman
I've seen some dodgy companies but how about this....from results to Dec 2018....
Origo's Catastrophic Destruction of Shareholder Value
Origo represents a catastrophic destruction of shareholder value. Of the approximately $276 million that the Company raised, only about $6.3 million remains on the Company balance sheet mostly in the form of cash and a few investments noted above. No real capital was ever returned to shareholders. The Company never paid a dividend and besides peculiar share repurchases in 2012 and a few years later totalling a little more than $700,000, never returned capital through a buy back. The remainder was dissipated in, as best as we can tell, shockingly bad investments, fees paid to OAL and others, fees paid to former board members, fees paid to the former Nomad, fees paid to lawyers, fees paid to previous auditors and so on.
Several of us trying to unravel the Origo story have noticed that so much of what the Company did benefited a privileged few to the detriment of the Company's shareholders. So, a former director's daughter ended up with a board seat and also a consulting contract. The father of an OAL principal ended up in some business relationship with the Company. An early investor in the Company, a large London based "hedge fund," paid the Company for "research." The Company then rebated much of this payment to an employee of the hedge fund who also happened to be the then Executive Chairman's wife. Non-transparent subsidiary companies were formed where insiders and family members seem to have had financial interests. Origo made investments in a company, and later its former CEO went to work for an affiliate of that company. Lawyers, even by London standards, did shockingly well. The previous Nomad, the lawyers and the former auditors were well paid for work that had little or no benefit to shareholders. OAL was rewarded with interest accruing at 8% in order to pay the fees that the Company was unable to pay because OAL had failed to sell assets sufficient to pay its fees. And so on.
There are many ways to slice and dice the Origo numbers, and, unfortunately, we do not now control all of the information necessary to forensically dissect the Company. The former board has not been forthcoming in providing information and a lot of the Company records we have received are a mess. Our administrator's accountants have thus used Origo's published accounts and by working backward have tried to recreate the Company's flow of funds. There are, unfortunately, still some large gaps in our knowledge.
Nonetheless, we think it is possible to roughly show where the money went. On 1 January 2011, Origo had cash in the bank of $33.4 million. During 2011 the Company raised $92.5 million. In 2016, the Company also borrowed $2.5 million in order to meet its expenses since by that time it had burned though most of its cash. So roughly where did that money go?
The Company seems to have made net inve
USD4.2m = £3.33m
From the last RNS holding, it states 57m shares in issue
£3.33m / 57m = 5.84p per share
If you say 20% will be handed over to share holders then 20% of this is: 1.16p
Current share price is 0.3p
12 June 2020
Origo Partners Plc ("the Company")
Update re Celadon Transaction
The Company has been informed by the controlling shareholder of Celadon Mining Ltd. ("Celadon") that Celadon has entered into an agreement with a third party to sell Celadon's assets for approximately RMB 330 million net to Celadon or approximately $47 million ("the net sale proceeds") with closing scheduled for the earlier of (i) the lifting of certain restrictions on travel in connection with the global pandemic or (ii) 31 December 2020. The controlling shareholder then expects to return the net sale proceeds to Celadon's shareholders through a share buyback. If this occurs the Company would receive approximately USD 4.2 million. The Company invested approximately USD 13.1 million in Celadon in 2011. In the Company's last published accounts dated 30 June 2019, the Celadon investment was carried at a "fair value" of $1.129 million. The Company has not been involved in the negotiations for the sale of the Celadon assets and has no direct insight into whether closing will occur as planned. Further announcements will be made in due course.
Only 20% of capital to be returned to ordinary shareholders?
GL.
So the current cash balance once this completes is over £5m, with further assets to sell. WOW
News out of the blue and a decent sale value for Celadon all considered. Great news!
From twatter
#OPP just sold Celadon coal asset for $4.2. This cost $13m back in 2011. They also have Gobi Coal (cost $15m) and Moly World (cost $10m) to sell. Similar type deals and that could be another $10m in disposals. Add that to cash of around $2.5m. at £400k market cap this is cheap!
7 May 2020
Origo Partners Plc ("the Company")
Update re Liquidation Plans
Further to the Company's announcement of 24 December 2019, the Company notes that because of the global pandemic it has been unable to conclude its strategy of disposing of the Company's remaining assets and placing the Company in liquidation. The Company expects that when the current situation changes so as to enable the Company to conclude this strategy, the Company will so inform the market. Further announcements will be made in due course.
Can you please tell me why this will multi bag? Just seen this on twitter and thinking of dipping my toes in?
This is multi- bagger from here.Rock bottom.Tiny market cap.Not many shares available .Over sold.Take over and under bid rumours.Can 500% minimum from here.Imo.Dyor
Way under value stock.Can be multi bagger from here.Imo Dyor
well I cant find even 1 thing about celadon on google. is it even a real mine?
When do you think we will hear news on the November liquidity event? Hopefully its taken place according to plan.
3) Moly World (Mandal project JORC complaint 256k tonnes of molybdenum) – 20% interest
http://www.asiaminer.com/news/latest-news/6172-positive-study-for-mandal-moly-project.html#.XcF0i252vIU
At the time of the study moly prices collapsed from $25k per tonne in 2014 to $15k per tonne in 2017. Prices have since rebounded to $26k per tonne. Therefore the project economics are probably about right today as they were in 2014 at $80m NPV with a modest $44m capex. In August 2017 Moly World was granted a 30 year mining licence.
Another thing to contemplate is the misuse of fund by the previous board. Noting this statement from OPP
“The Company has continued its efforts to recover the Company's books and records. Several of the Company's former directors have been cooperative in this regard but the two founders have not. This is a matter that continues to be dealt with by the Company's lawyers.”
Looking back over reports would suggest that aside from the interesting investment decisions, fees of over $16m have been paid which are connected parties. This of course sounds fishy, so would it be a surprise to see some form of legal action coming? The fact that OPP has not been wound up and liquidated privately could mean so, and if so that’s a large sum.
In the last report OPP also go on to state that after the remaining assets are auctioned off
“the Board expects to call a shareholder meeting to determine the future direction of the Company.”
It would seem as though OPP will then become a shell which may offer something for the future also, not the least attribute a shell value to the current offering.
It is also worth noting the pref/ords split. This is essentially pegged at 80/20 upto $15m then 44/56 split.
So what could be the upside for ords (which are what you are buying here)?
Market cap at 0.2p = £750k.
Cash $2.7m
Celadon $9.8m
Gobi $5m
Moly $1m (a simple guess as no information available)
Total $18.5m
$2.1m has already been redistributed of the $15m. Therefore $12.9m remains at the 20% split with $5.6m split at 44% to ords.
That’s gives a nice $5m value to ords, along with a cash shell value going forward.
If OPP manage to bring the previous board to book and manage to obtain any of the $16m+ fraudulent fees then fantastic.
At 0.2p the OPP ord shares are valued at approx $1m. You could argue that the cash and cash shell value covers the current share price with a lot of upside available.
Following the $2.1m capital redistribution in October 2019, the company have cash of $2.7m.
The focus is now on disposing of the unquoted assets. As stated in the recent interim report a liquidity event is scheduled for November 2019 for the Celadon investment with the remaining assets to be auctioned by the end of the year. Realistically the Gobi Coal and Moly World assets are the significant assets to be auctioned. So the question is what could these be worth?
Celadon and Gobi are private companies with large coal projects in Mongolia. There is a scope for optimism given that Aspire Mining on the TSX are capitalised at c$40m (c$55m approx fully diluted) with the Ovoot mining project. Total resources of 281m tonnes and total reserves of 255m tonnes, C1 costs $81 tonne and $758m NPV, capex $275m (including $165m for roads).
https://aspiremininglimited.com/akm/wp-content/uploads/2019/03/190315-AKM-Investor-Presentation-vFinal.pdf
1) Celadon (8.9% interest) – Celadon is a China focused coking coal mining and development company. Through its Chinese subsidiaries Celadon owns three coal mines and a substantial exploration area in Heilongjiang Province and Chang Tan West which has total reserves and resources of approximately 1.05 billion tonnes in Inner Mongolia Province, northwest China. The last report states a liquidity event in November 2019 at a substantial premium to the carrying value. Celadon advised the previous board regarding a liquidity event a few years ago in which the advice was that +/-20% of the carrying value at the time which was $9.8m.
2) Gobi Coal (10.8% interest) – has two projects Zeegt and Shinejist with total resources of 318m tonnes and total reserves of 95m tonnes. At usd$1.7 per tonne, Gobi have previously stated a value of usd$400-500m, however comments have been that the most recent NAV available is usd$50m, although from when I am not sure. It’s worth noting that the Shinejist project is already exposed, stripped and ready for mining. There are also reports that Gobi acquired a large Uranium licence in Mongolia in 2017 and had planned an IPO to the value of usd$750m.
https://www.marketwatch.com/press-release/gobi-coal-energy-acquires-advanced-uranium-project-and-plans-public-listing-2017-02-28
Whilst this sounds a bit fanciful large deals for Mongolian coal mines do happen, there is news of the state owned Mongolian mines IPO’ing for $1bn for up to 30%.
https://www.bloomberg.com/news/articles/2019-11-01/mongolian-coal-giant-is-said-to-select-banks-for-1-billion-ipo
Nick, got my divi payment today. Worked out at 0.09p worth which was a very nice sum considering my avg here was just over. Can’t believe the price is so high. It’s like they’ve given me free money!
"As noted in the 2018 annual report, Celadon Mining, an investment the Company made in 2011, has predicted a liquidity event for this November."
The statement that the nomad noted (and allowed to be RNS'd in the first place).
They wouldn't do that if they didn't think there was a reasonable chance of it happening?
Reply from Arden:
The board will make notification to the market as and when it hears something from them. I note that the statement referred to a November event.
Kind regards
Tom Price
Given they’re a nomad they would put the last line in if it wasn’t on
I’m with IG, thought the payment date was 31st