To be honest didn't see SP dropping this far (0.65).
Getting to levels where another Spanish gold operator will stick in a cheeky offer of 1.25p and probably get it easy for that price.
Next best thing is for Orm to invest in a JV Partner that knows what they are doing!
B
With the terms of Oaktree's offer (to settle within 5 days after Ormonde have achieved shareholder approval etc), and with the USD strengthening v the Euro, we really shouldn't have long to wait before our Co effectively becomes a cash shell (with the added benefits of 2 gold interests).
Next few days, at most, should do it.
B
Hi Trek - just for clarity, I'm in agreement with your stance on this one.
The only caveat I have, is the Co really have to galvanise themselves and really optimise the opportunity market conditions present. Time will tell if they can truly achieve this. Clearly, I think they sill.
All the best.
B
I'm new to Byotrol and while IMO it may be no firework stock, it really should be building into the increasing global healthcare awareness brought into sharp focus by the coronovirus crisis and the potential for superbugs generally to wreak havoc with our world today.
We all know there are no guarantees in life and, certainly not in AIM, but today's marketplace for the Company's products provides management with a huge opportunity.
They just have to take it!
B
I am slightly surprised at the extent if selling today.
In football parlance, it isn't even half time yet.
Once Oaktree transfer the funds, the contingent risk is removedand then it won't just be traders that will waken up to the discount to NAV.
And with it being hard cash (as well as the Co owning a couple of small gold interests), a few Corporates will also be having a close look I suspect.
I think its fair to say the (positive) effect on the SP will put today in the shade just as soon as Ormonde signal receipt of the €6m (gross).
B
You are absolutely right about AIM - I've been investing there for decades, so I know the score.
Orm (and 1 other) were a bit different for me - these 2 go back a very long way - otherwise, in and out in a day if it works.
All the best.
B
From the amended intro to the Co website, Ormonde describe themselves as "a reputable natural resource company......".
Unfortunately, I cannot attend tomorrow's EGM in Dublin, otherwise I would be happy to challenge the Co's view of 'reputation' and what that means in their terms.
In my past life, I have dealt with Davy & Co and, from my experience, I rated them highly and indeed were a significant factor in my original decision to invest in Ormonde.
That was cemented by my direct contact with the late Kerr Anderson, Ormonde's true driving force.
However, as we all know, firstly the financial markets moved against the Co, but the real failure came with the Co's inability to manage the development of Barruecopardo successfully.
So, nowhere to run from a professional perspective. You have simply let everyone down.
Just how the Co deal with the Oaktree offer, will determine just what kind of reputation the current Ormonde team actually have.
...........I think most shareholders already know.
B
Like previous posters, I wholeheartedly agree that 'backing the right team/people' is absolutely key in driving success.
With Barkby, I dont have any qualms on that score and subsequent Exec appointments have simply underlined tgat fact IMO.
However, where I do admit to some reservation, is on the disparate nature of many of the businesses now under the Group's umbrella. Some do make sense but I struggle with any synergies with others; and I don't buy the 'hedge' argument for spreading business risk either.
We really need an update on how the initial integration is going and what future tgey see fir tgeir respective business 'silos'.
While the Group as a whole looks a bit like a collection of Dragons Den opps, I am sure the business will prosper once we better see it focus.
B
You may well be correct on pricing.
On the basis the Oaktree offer is approved and subsequently settles, there will be a lot of cash in the hands of a small Co. One which the BoD and various Execs have let all shareholders down badly.
If a significant interest materialises from a Party who have some nous and want an AIM Listing, the existing/proposed BoD will not be able to control events.
IMO a sale of Ormonde post Oaktree settlement is not only the most equitable way forward but should optimise shareholder return.
For the absence of doubt, I am not suggesting there is such an interest in Ormonde at present.
B
Tungder - I guess we all know why!
No doubt, our BoD will say Oaktree's 'offer' is for Saloro's interest in the operating JV and through Ormonde's shareholding in Saloro will the monies upstream to Ormonde as tge 'Holding Co'.
Even so, what Ormonde SHOULD have done (IMO) is have outlined in their recent Circular, the definitive terms of say share buyback or Special Dividend to disburse the settlement monies to Ormonde shareholders.
After all, Barruecopardo WAS Ormonde and the peripheral gold interests we have always had were never considered before as a basis of carrying the Co forward.
The business entity that is/was Ormonde is effectively finished with Oaktree's settlement and our BoD should be looking at financing (separately) any future business enterprise.
B
As we lth's have voiced our lack of support for this BoD on many occasions recently, we openly question their (collective) ability to optimise the future development of Ormonde utilising Oaktree's settlement monies (assuming this completes etc).
I do not however think they will waltz off on any number of jollies financed by this settlement as I believe they may not be the most competent but, neither are they crooked (IMO).
Finally, assuming the Oaktree deal settles as intimated, given the very obvious discount the SP will then trade to NAV, dont we simply become a very obvious takeover target?
Such an event would move the SP very close to the NAV, but given its cash it could be even viewed as a reverse takeover to gain a Market listing for example.
In other words, there's a gilt edged opportunity out there for the opportunist........and, yes I do hope this happens, 'cos I've lost rather a lot here already!
Best of luck ALL.
B
Beginning to see this 'value-trashing' all too often in AIM, where anything higher than the 'norm' in a trading context for a particular Co is 'rewarded' with a ridiculous below-bid offer to undertake the transaction.
Perhaps not unexpected here though.
B
Hi Optimist - I agree Rur should now have positive cashflow all (still) being well at EdS.
As for asset disposals, lets just say that getting anything like value for these hasn't been our BoD's forte.
And as for getting cash out of Argentina.......well I think shareholders may have to resort to an SAS style operation to have much chance of success here.
You haven't got a canoe by any chance?
Rgds.
B
Are shareholders expected to wait until June announcing the FYE Audited accounts before we hear further from our BoD?
Rur has been a zombie Co for some time equivalent to being in de facto Administration.
Can someone put us out of our misery as its clear the ordinary shareholders wil get no benefit from its continued 'operation'.
Even if our EdS activities can be sold, it seems any cash will be locked into Argentina........all a bit like Bolivia all these years ago. Just a different approach, thats all.
B
I will declare my position up front - I am a lth and yes, I have incurred significant losses having now sold down to a relatively modest holding over recent months.
Having said that, I have no problem whatsoever at all with newcomers arriving and seeing opps to optimise potential gains from buying a share at an obvious discount to NAV (or at least that will be the case if the Oaktree proposal gains the requisite approvals).
Whilst lth's will have little faith in the BoD despite the proposed changes (per Circular), the problem for any investor, is how they control the Co's cash burn (once the Oaktree monies are paid over).
Also, do investors get any say on what assets are then purchased etc?
Well I am well aware we are not shadow directors, but the issue to my mind boils down to whether you trust the BoD going forward. Its as simple as that.
Do they have the skills and competence in sufficient quantities to justify that trust?
After all they failed spectacularly with their flagship project and shuffling a few deckchairs on the Titanic, sorry, Ormonde might just not be enough in my view.
Regardless, its a gamble, make no mistake and I do hope investors make some money (for a change) - just don't expect AIM and its pathetic controls to help you.
All the best everyone.
B
One day, even the UK authorities can't ignore the criminality that pervades AIM and are going to have to clean up this cesspit.
The extent to which PI's are being ripped off is scandalous and the so-called 'light touch' legislation by way of control falls way way short.
Hi Flundra - I don't disagree with anything you say here. Very much echoes my own thoughts on the matter.
As for my 'doubts' concerning settlement of Oaktree's offer - these stem simply from the lack of transparency which has been a feature since our American backers started to run the show. We never were privvy to the JV / Loan doc etc I am simply wary of most things I see on AIM these days until all is done and dusted.
All the best.
B
Well, as a lth, I can certainly understand the anger felt by many of my fellow travellers over many long years.
Nonetheless, I also fully understand that events have moved so significantly in recent days and the opportunities that many new investors see are simply part and parcel of our free and, often less than perfect, financial markets. I have absolutely no problem with them enthusing about all the upside etc.
However, even in the short time since Orm raised their white flag, the SP hasn't quite performed as many thought (or had hoped). Sure, some might say that there are still substantial sellers eg M & G but I think some doubt must remain on whether Oaktree's offer will proceed to settlement. Its open to debate in any case, but for one thing, the Market has not (yet) priced this in as a 'given'.
Also, what is the way ahead assuming a settlement with Oaktree is achieved, given Orm who had focused entirely on Barruecopardo, and had openly scorned their other assets prospects. On this, we have no clues (albeit an RNS outlining such plans as some are promising would be very welcome), but history suggests that this hope is a pipedream.
And also, what do we make of the Management team who got their much trumpeted world class opportunity so spectacularly wrong. Can they be trusted with €6m and the opportunities they will have to analyse?
Finally, the precise nature of the 'offer' (from Oaktree) appears vague enough to suggest there is no guarantee shareholders will see any of these monies. Meantime, do we know the monthly cash burn Oaktree currently even assuming the BoD aren't going to line their own pockets?
These and, no doubt, other points underline why many investors may still harbour reservations about jumping in with their tuppence worth here.
For the absence of doubt, I would be delighted to see the SP advance and while I will never recoup my losses here, every little helps as they say. But the harsh world of reality awaits the unwary here.
GLA whoever you may be.
B
Never in many many years of investing have I had a day quite like this......not only Petrel but I would be invested in Ormonde as well....
Best of luck all - I think we are going to need it.
And yes, I am finally done with AIM this time.
Couldn't agree more Keith.
All shareholders have been shafted here and lth's have a right to be bitter. Cos and their management can really seem able to get away with anything on AIM.
Whilst new investors can take a different view on where things will go in future, they would be as well to reflect on the Management's performance here.
They should have no future here and the €6m (excluding write offs etc) cash settlement rightly belongs to shareholders.