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Think offers could come anytime now until Friday, this is the deadline (10 working days) from last rns.
I have asked where the debt liabilities lie. Whilst primarilly with the Nambian holding company they flow upwards to the PLC which holds the ultimate liability. So there may not be a charge over the other assets but that doesnt matter. So you then ask why isnt the PLC in administration today? Because that wont maximise Orions return.
Either an offer or restructuring of loan
The first we heard of the 2020 date re : life of mine of Tschudi was late April 2018 after Orion told WTI that they will not extend the Kitumba long stop date. It appears to me like WTI are trying to box Orion into a corner? As for the Orion debt, I am pretty sure that Orion has made a provision for this in its books as WTI has been banging on for years that they may be unable to pay any /all debt to Orion. Orion only have a security over Tschudi not the other WTI assets according to my understanding so by saying Tschudi life of mine may not be beyond 2020, WTI is telling Orion that its security may not be worth much. I am a holder and will hold till the end as I think there is more than meets the eye.
Anyone way hung the USD to Namibian dollar exchange rate? Staring to move in our favour
Orion absolutely can call in the loan but thats not the smartest thing to do. My preferred outcome is quite different,WTI sell off Tschudi for �1 but WTI continues to run in return for a management fee. The debt & cashflows go to Orion meanwhile WTI's balance sheet is transformed and it can develop the remaining assets. Berg Aukas & Central Ops are currently worth $1m despite an NPV of 90m so Orion can make more money letting WTI develop the assets than in a fire sale.
Orion can’t call in there debt and put WTI into administration. If that were true WTI would be finished game over today. No point in a review or seeking other options because there would be only 2 options if that were the case. Restructuring the debt or going bust!! Who would want to lend money to or buy a company that has a noose around its neck held by a third party?
I would imagine fairly soon, who knows?
pe6169 When are we Likly to hear about these negotiations plans by?
Depends on how negotiations pan out. If they go well .4 could easily be reached.
Else think this can reach 0.4p or more in the short term? Looks like I’ve been spiked here
They could, I know it�s a drop in the ocean compared to the loan but they would lose their 24.6% of the company.
Another factor in terms of completing this strategic review, is the end of its financial year on June 30 - there will need to be a going concern statement within that about its likely solvency over the following year.
Have to offer the highest price that they have paid for shares during the period. I personally don’t think Orion want the asset anyway, just want to recoup as much as they can from it. A solution could still be found, I just don’t like a lot of the lies that some have posted over the last few days - such as the Form 8 OPD and valuations of the company/asset which completely ignore the fact that there is any debt involved! The problem is that they know when the revenue stream into WTI could now end, unless it can get another asset into production, but that takes capex that it doesn’t have access to.
Latino. You seem to be ignoring the fact that Orion could declare WTI to be in default at any time, call in administrators and take all the assets. They do not need to spend a single penny on buying shares as they could have them for free. This may come as bad news to the delusional rampers here who want to believe otherwise. Orion could do this any time that suits them. Sorry.
Unless they are close to agreeing long term debt restructure (which we all know from rns they are negotiating now), they can buy at these bargain prices and increase stake. And they don’t have to go over 30%, stay under as many investors do.
Agree, Orion are far better re-negotiating debt and continue getting repayments. If they pull the plug they�ll lose, if they go over30% they have to make an offer, if memory serves me right they need to offer the 52 week high, nice as that would be I can�t see it. Therefore I think a revised debt facility will be forthcoming soon.
Unlikely - another �80,000 odd worth would put them in a situation whereby they would be compelled to put in a bid for the company (in excess of 30% holding). If they really wanted the asset they'd just cease being so understanding about rescheduling debt repayments! The equity here is peanuts for them when compared to what they are owed.
For Orion, as they are still negotiating long term debt restructure to buy some more stock at these bargains prices..!
That’s what has caused it to drop so much - can’t remember exact date ithiuy checking but mine was originally sanctioned based upon production through to the mid 2020s. So reduced mine life has a big impact on the project and it’s ability to repay the loan - which wasn’t so much of a concern prior to the problems with water ingress and reduced strip rates (although the earlier repayments may still have been but could have been managed). Reduced mine life is the main reason for my negative outlook on this one over the past couple of months (BOD hinted as much in the interims before confirming last week)
The problem is Tschudi life of mine with pic where it is on present processes only has two years allegedly.who knows how long copper price rises What if he options are avail to Weatherly to extend the LON and how.much would that cost.Are there other options available?
Wow, this message board has sure changed, but good to see the interest both from positive and negative angle (keeps the debate going). I think people are reading way too much into Orion not extending financing to Kitumba. They are probably doing WTI a favour given the deteriorating financial and political situation in Zambia. There has been so much negative speculation over the years on Orion's intentions, but if you read original RNS from Feb plan is to restructure debt to avoid the formal, quarterly amendments to its debt facilities. This was re-iterated back in April. Was anybody on this board at the Jan AGM as Orion board member was there, who talked in a very supportive manner I doubt that this has changed, particularly with the RNS released on debt restructuring we have had since. Interesting times and definitely great message board.
There is of course also the small matter of the cost of getting Kitumba to production, which if i remember right is around $450 million...
It needs to secure funding to purchase Kitumba first - given that it is buying 100% for A$4.75 million doesn't suggest there is currently huge interest in this asset. Otherwise, why would anyone looking to potentially enter into a JV not just go and buy the asset themselves? Especially when $30 million has already been spent on appraising this asset and a mining licence until 2029 is in place?
Do your own research and believe no posters on here (inc me if anyone like it), as we all have our own thinking and interpretation of the current situation! Gla