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Excellent read. Our yard will be full soon. Obviously. Have a great week-end.
Iranians linked to potential 10-ship kamsarmax order in China A potential $322m contract for 82,000-dwt bulkers from a mysterious Middle East private-equity fund could see Iran investing again in new ships Singapore-listed Chinese shipbuilder Yangzijiang Shipbuilding Holdings is reportedly close to receiving a 10-ship kamsarmax bulker order worth $322m from an undisclosed Middle East private-quity fund that could mark Iran’s return to the newbuilding scene. Industry insiders say discussions for the newbuildings are in the final stages. The order is said to involve six 82,000-dwt geared vessels and a further four non-geared bulkers of the same size. Deliveries are scheduled for between the second half of 2016 and first quarter of 2017... http://www.tradewindsnews.com/weekly/340787/Iranians-linked-to-potential-10-ship-kamsarmax-order-in-China
Volume well over double already and 11% up on Google
Should be a good day/week.
We can all dream.
I have more than that at an average 0.86p. They should have waited.Or bought more.
Youngba - thanks from me as well ... Starting to look as if things are moving now then .. :-) GLA
Shouldn't forget in the last placing Mena Global Investments bought £3mill @1p - this is still a low share price IMHO
Very nice.
Thanks.Any snippet of news helps to fill in the gaps. It really is starting to look more promising. The waiting is nearly over. Let the fun begin. GLA.
I was at the presentation too and can fully corroborate what Jam has posted. A couple more snippets - although only minor: Zafar apologised right at the start that Glen couldn't be there: "because he's in advanced discussions". He didn't say whether that was with PrimePoint or a different customer. As I understood it - and I think this tallies with what Jam is saying - AMED's share of any nett cash outgoings related to the JV partnership just gets taken off their initial investment into the JV. SO AMED don't have to put in more cash in the meanwhile. I also calculated at the time from what Zafar was saying that AMED have enough cash-in-hand for two years of operation at the current burn rate. They had won the existing rig contract in competition with nine other yards - which is brilliant news in terms of their potential ability to convert existing discussions into firm orders. They are in discussion with potential clients from Europe, Far East and Asia. Prospective clients are 'crawling all over' their existing build - ie on site inspections of the WIP and, given the very positive response from the existing client WRT quality and the fact that they are on schedule etc can again only be good news. Yes - can confirm that Zafar indicated 10% profit on existing order but they would be looking at 20% on future orders now they are establishing their bona fides. Zafar did quickly run over the capacity of the new yard once it is completed - details are probably on the website but I haven't rechecked lately - but I didn't have time to write it all down. Anyway it was massive in terms of the number of semi-subs, jack-ups etc etc that could all be built at the same time. This is where the point Jam made WRT materials costs becomes hugely relevant: Zafar specifically said that the steel suppliers (clearly the most significant raw material cost) supply on credit and do not get paid until the rig builder gets paid. Nice! I did ask the question as to what %age of MGR AMED would own if they were to convert all of their convertible loan. As far as I understood it Zafar said that the %age they owned would be unlikely to increase because the majority shareholder in MGR, as a private company, would just increase the shares in issue to compensate. And, yes, the PrimePoint orders are NOT dead. Detailed discussions still progressing and could be 'months' yet before final confirmation - or cancellation of course. I think it's perhaps mentioning in closing that Zafar came across as a very genuine, fairly unassuming, open and totally credible guy. A couple of the other guys presenting were maybe just a touch too slick and script-driven, but not so our man from AMED. I hope this helps put just a bit more flesh on the bones of Jam's post but basically it's ...'Yes, wot he said!'
1p taken.
yard nearly complete the management will be aggressively seeking new orders - also good news that they are still negotiating with Primepoint for the 2 semi-subs order. Wonder what AMED market cap would be if the yard was at capacity - certainly many times current.
Totally agree. Many thanks. Let's hope that a new contract is close. Can you imagine the yard being fully booked for several years.WOW.
Thanks for the feedback and presentation .. much appreciated. GLA
Well appreciated Jam4u, nice write-up and thanks for link. Back in February proactiveinvstors.com wrote a very encouraging view of AMED, which partly got me interested. I hope you don't mind, but I posted your 'take' & presentation link on ADVFN. More the interest etc. Thanks again
Looks very positive
So, firstly Zafar Karim the Executive Director presented. A link to the slides he used are above. I dont think everything cna be mentioned as some was quite detailed and technical inits nature. But here goes my main takes: - The $1.8Bn order for Semi-subs is not dead and in fact talks are continuing. The issue is that the customer needs to meet the conditions precedent for it to be formalised. Some of these are yet to be met. Talks are continuing. Zafar went as far as to say that the announcement should never have leaked and that it was the time of the Chinese New Year and someone from YZJ had been 'celebrating' and blurbed it our oh I mean mentioned it to a broker who was at the party. - The presenter asked Zafar whee there any other orders expected. Zafar's response and reaction was very interesting. He paused, smiled and basically said that a number of discussion were happening right now. And while nothing is ever guaranteed that they were hopeful. He also emphasised that the nature of these types of deals in their very nature are that they take time (many months) to negotiate. I cant remember if was in the same response but at one point Zafar also said that Glen Lau was supposed to be there to present himself but that he couldnt as he was at a very critical and sensitive stage of negotiations. To me he implied a contract was very close to being confirmed. - The yard should be fully completed and ready in Autumn of this year - He emphasised the capacity of the new yard and also at the same time the long lead times for each rig build. But that with a new yard coming on line, the market for drill rigs is very healthy that they were positioned to take advantage. (My summary). - He also made light of the importance of the link with the biggest shareholder (Qatari) and Glen Lau in the rig building business. - If a rig wasnt paid up by the time it was built then it is of no issue as they would then plan to rent it out at circa $200k a day. They do not incur a cost as the rig is built as the way the materials are procured is that it is on credit and as payments are received then that is used to pay the debt off. (ie. no cash flow cost to AMED). - MGR Resources; Nothing new here really and he mentioned again that they are looking to get into supplying the metals for rig build and ship builds. They are also in talks to increase the amount they broker for. - He doesnt see a need to raise further monies any time soon. Basically, its as we all know, One order and this will go BOOM! That in my opinion is not too far away. The fact that the yard will be ready soon says to me that they will have one or two things to crack on with. Oh and the firts order typically is at 10% margin then after that they are 20% margin he said. Interesting few weeks and months coming me thinks!
Hello folks, I am still a very 'comfortable' holder in AMED. I did attend the presentation on Thursday night and managed to get some q's asked in the networking half hour afterwards too. I was somewhat buys on Friday and completely forgot to come back here an dpost till I checked just now. Here are the main headlines and might explain the buying on Friday: Firstly, A copy of the Presentation slides were emailed to me and link is below: http://www.proactiveinvestors.co.uk/genera/files/companies/3_amedeo.pdf In case this post gets deleted I will start a reply with my take on the evening in the next post.
Yes hopefully a bit more interest in AMED next week.
Thanks.Was difficult to remember details and even more difficult trying to keep a signal while checking RNS's. Have a good week-end. It was an interesting day.
Whistler MGR do supply China and other countries in Asia with ore - for general steel production. It was 100,000 tonnes per month not year they were increasing from.
MGR are broking 100,000 tons of iron ore p.a. They are trying to increase the output to 200,000 p.a. Iron ore plays a big part in producing steel.If MGR are selling their ore for the sole use of building rigs and ships. Using my phone at work. Will leave it short. Any comment or am i totally off track.