Member Info for Broomfielder

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.

Given Barruecopardo has been their 'trophy' development over many many years, who will trust the Management to invest 'our' €6m wisely?

Lets hope so.
This scenario is close to 'worst case' - at least with Oaktree's set up, cash was always more likely than paper in any offer.
B

As expected, the need for increased liquidity has taken the form of a loan rather than equity as the terms of the existing JV would or, at least, should have set out a path should such a credit crunch arise.
Whilst I guess PI's should be grateful there is no dilution, Oaktree have clearly not missed the opportunity to be their usual rapacious selves and shaft us on the Interest (and possibly other hidden) charges.
We were over a barrel and in the circumstances had very little negotiating strength here.
I may be wrong, but I think this is the first time any Interest details on the original loan has been made public.

I think most PI's are no longer sure whether or not PE has either the appetite or the wherewithal to move toward achieving control of Rur.
He tried and failed to secure finance for his last attempt at a takeover.....he has since disappeared from view.
As for Gordon, he has tried his best and certainly stuck his head above the parapet. We cannot expect him to fight all our battles.
Meantime, the extension of ST's Administration is a hammer-blow to precipitating any sort of end game for Rur. Further drift seems inevitable unless we die of old age in the meantime..
Yet more bad news is also likely to come from the imminent Argentinian elections where the (previously) failed Socialist candidates are expected to succeed. Some of their policies include unwinding the current high electricity prices (and their subsidies) which are likely to be detrimental to EdS' profitability and, in turn, its ability to repay the loans due to its JV parent, part owned by Rur.
Me thinks, our train is finally going to run out of track....albeit, it is taking some time!
B

I can see that ST's creditors must have confidence in their Administrators......after all, they thought they could wrap things up within 12 months...of 2015!
Got that slightly wrong. Now just what else have they misjudged?
More than time for a decent burial of ST and, of course, Rur.
Perish the thought that there still seems to be a lot of people making money at others expense in both Cos.
R

Appreciate the AGM feedback T-REX.
Rgds.
B

Well even Orm management finally realised the Market needed an update.......so, we got a 'sticking plaster' bereft of any measurable detail. But there again, we never get detail do we.
I suppose the news could have been worse.......but it could also have been better.
B

LB - I was fairly sure it was different Cos (I seem to recall it was either GF or GFD or both that provided some useful background info there).
I was looking for confirmation before I posted, but glad you have resolved matters.
B

Dont really disagree with anything you say Leicesterboy.
With the impending move from ST being in Administration to then being in Liquidation, I think most shareholders are hoping this may provide the catalyst (or final shove) toward Rur's endgame.
After all, its been my long term view that Rur themselves have been in de facto Administration with BoD's focus being the (orderly) wind down of our Co. Its simply getting to a position where a break up becomes as simple as it can be.
Anyway, if it comes to pass, we all had better keep a close eye on the cash as it swirls around.........!
Rgds.
B

Today's Interims read rather like previous versions - NAV per share down again to 4.3p per share (from 4.7p) on the back of further losses following our dalliance with Profits emanating from the Peruvian asset disposal (?).
I am sure we PI's are reassured (sic) that our BoD continue to focus on asset disposals (no details provided of course), as well reducing Overheads (apart from their own remunerations etc) etc........
Only slightly interesting point I see concerns what will happen to the Loan repayment sums received by Patagonia (50% owned by Rur) on basis EdS can commence paying their principal instalments.
Also Rur's remaining short term debt from Bridge should be cleared in Q4.
Then what.......bonuses for our hard working BoD?
B

Good stuff Onit. I think even the most stoic of long term holders must be questioning their continued involvement here. I certainly am.
If our Co's own problems are not enough, it looks like the political scene in Argentina is about to lurch toward yet another crisis. Oh joy!
Rgds.
B

Just like the old blues classic, it seems to me that most of us (and if I'm honest, myself included) have rather given up the fight here. The recent downward trend of the SP rather reflects PI's bailing out I guess. And who can blame them.

So, is there anyone left thats up for a fight?

B

Lets hope so bbr, although personally, I have always found white (or any other colour) of knight to be in very short supply in AIM.
I know Gordon has put a lot of effort into his recent attempts to secure a seat at our (sic) BoD, but I can't help but think PI's, as is so often the case, have been stamped on once again.
I am fast approaching my exit here after many many years and I have to say I have never been so dispirited with the plight of the PI.
Yes another significant loss to be marked up for me here......to join a number of others I'm afraid.
All the best everyone.
B