Member Info for Broomfielder

Hi Brightonscot - apologies if my rant about WHI has misled you.

I was referring more to their own business in which they are not exactly setting the heather on fire. They also seem to have a predilection for appointing Directors whose businesses have gone bust. As an aside, I cannot see their value as a NOMAD to Rur unless I have missed something over the past x years.

I will also contact you direct as suggested; thanks.

B

Todays announcement by WH Ireland IMO really sums up the complete pointlessness of the NOMAD purpose as part of AIM governance. Clearly, (again imo), the performance of WHI and some of its supposed high (sic) quality directors in recent times has to be questionable at best.

As for advice / guidance etc........well, we can all see how they have really stamped their mark on Rur!

For the absence of doubt, I am a lth in Rur who, like other similar lth's, will have seen the value of their shareholding trashed over the years. Maybe not that unusual for AIM Cos. I have no other axe to grind other than to see some form of value recovery.

Thus whilst, along with others, I am of course pleased with the resumption of EdS' loan repayments, to get some real idea as to how our BoD are performing, you only need to look at Rur's own website under Corporate Governance. Our Directors adoption of the Qoted Companies Alliance Code clearly sets out their duties etc which of course go beyond the minimal legal requirements.

On reading the Code and reflecting on our BoD's performance, I think most investors would begin to understand the frustration of many lth's. That and the fact they ignore any direct attempts at contact.

So, shareholders are by any measure poorly served by the parties employed and paid to look after our interests.

Whilst cost containment has rightly been a priority especially in recent times, you have to wonder if have any of our BoD have actually been to S America or is the extent of their duties confined to opening a file (Rur) a couple of times a month and making a few phone calls?

Yes, we might be making some progress but the difference between where we are and where we should be in terms direction, advice, information, strategy etc is truly miles apart.

B

Agree with all you say here Optimist.

B

Optimist - Its unfortunate, but spreads of the sorts of levels we are seeing with Rur, do put some investors off. Thats understandable.

Its in everyone's interests (bar the MMs perhaps), that the greater liquidity in our shares, the better from every possible angle.

As for the sale of Rur etc., thats really been the position for some considerable time now. Whats irritating many lth's (including myself), is the lack of detail/response from our BoD on what steps they have undertaken to achieve their objectives because there have been precious few results thus far. We are not talking about a short period of time here.

Sterling Trust's principal asset is its shareholding in Rur. They have BoD rep on Rur. And, on the face of it, the objective of the Administrator of ST should be trying to assist Rur rebuild its share value.

However, as Gfd has been pointing out fairly graphically, not everyone plays to the rules. And this is also a reason why we should not take Auditors statements too literally either, even assuming they are made with the best of intentions etc., they have too often been shown as naive or simply misleading in so many UK Corporate failures or anomalies of late.

I doubt whether any Auditor has been to EdS, mind you that might also apply to our BoD. Given it is our principal asset and major source of income, the recent RNS should, inter alia, have clarified the status of CAMESSA's loan and whether it is secured and does it rank ahead of Rur etc.

We really need a lot more clarification than the window dressing appearing in the Accounts.

B

Recent trading activity has no doubt contributed to the modest reduction in 'spread' seen in the last 2 days.

However, if the MM's are serious in creating / sustaining a market for Rur's shares, then they have a very considerable way to go.

You really are going to have to be a very enthusiastic investor to buy in to a share with a spread of 30%+ and while I accept the 'real' spread is slightly less, we really are way out of the ballpark on this aspect when looking at many other
AIM Cos.

B

The resumption of the EdS loan repayments enabling us to move belatedly to a debt free position will surely remind any interested parties that we are, on any number of measures, a prime takeover target.

Just lets hope its not PE nor any other potential predator who isn't prepared to offer fair value.

B

Hi Optimist - As I said, I do hope you are proved right (and I'm sure just about every shareholder would agree).

The resumption of our sole source on Income has to be good news in anyone's language and at least provides the hope that we can indeed contemplate moving forward, firstly to repay all Rur's debt and thereafter.......

Its here we come a bit unstuck IMO.

The current BoD do not possess the skills to operate Rur as its current M & As suggest. We are in essence an investment Co with assets we are unsure are still marketable, far less at what price. No progress has been made here other than the very questionable disposals to a certain PE etc.

The EdS JV appears to operate in a vacuum given the absence of any detail available on this Co (eg where did the US$2.5m insurance settlement go?), its loan from Rur (the terms of which are virtually non existent), along with similar info on Patagonia's facilities which seem also dependent upon EdS performing etc. And this is in an environment where Argentina's Gov is struggling to find funds (with the aid of the IMF).

In the short term, Rur should be debt free (more than a year later than advised) but still clearly good news. But where does this Co and its current Board then take us to add value (or should I say rebuild value lost)?

They IMO can only effect a trade sale or similar or perhaps engage in a JV with a partner which has the expertise to operate Rur's business in S America. If they exist, you would have thought they would have sought to buy Rur or its assets at knock down prices when not so long ago we were close to being totally out of cash.

In conclusion, I agree the short term news has been positive but the cash burn for effectively a close to Dormant co means our assets/income are being used to subsidise our BoD's living standards at shareholders expense.

This is certainly my frustration together with my inability to get a response to these concerns from our BoD on precisely what strategy they have for OUR investment.

B

I don't doubt you are genuine in your views Optimist, but unfortunately, Rur's recent track record (and indeed that of our BoD) in no way suggests that they genuinely have shareholders interests at heart, nor indeed the ability to realise (for fair value) those assets Rur still has.

Of course, none of us know what may transpire in the future, but the portents don't look favourable, lets say!

I do hope you are proved right but realism borne of more years than I would like to admit in dealing with Corporates, their 'executives', their advisors et al, has left me with a jaundiced view on many 'operators' within Corporate UK. That opinion certainly embraces Rur.

I do not have anything like Gfd's investment, but I certainly feel betrayed by the behaviours of many within Rur. They cannot seriously hold their heads up and declare they have our interests at heart. Of my initial 10 or so investments in AIM c11 years ago, Rur remains still 'in play' despite many others going under, but its difficult work out, just why.

However, the options we have, as PI's, I think are now very limited. I am no expert on CVA's but I do know Rur has to be insolvent as a pre requisite. Given EdS apparently now resuming their (informal) loan repayments to Rur, that point may prove difficult.

I have no appetite to throw further monies at this investment but I will certainly be keeping a watching brief.

Rgds.

B

Whilst we are perhaps well used to volatility when it comes to AIM investments, what does strike me as odd with Orm's recent SP activity, is the scale of daily trades seen when we have been used to often nominal levels of volume.

Accepting that the move from explorer to producer does bring a natural reappraisal of investments, there nevertheless seems a surprising amount of sells at this stage IMO.

Hopefully, its not a case of PI's being the last to know as can often be the position with AIM. And with Oaktree pulling all the strings we will only ever get to know from the media.

B

Despite some more obvious 'buys' within todays trades, its fairly clear the 'sells' continue apace with the SP dropping closer to the 4p level that I had thought was consigned to history.

Maybe more of a sector malaise than pecuilier to Orm but, as usual, with info on AIM invariably scarce PI's are left guessing. Trading volumes (at least for Orm) are again very high already today.

At least, we should very shortly be seeing an RNS confirming commissioning etc

B

I was hoping you were right Flaberghast (on the sellers running short of stock)..

Judging by todays trades so far, it seems to be a clear reply of, 'oh no, they aren't''.

However, wish they'd give it a rest - its not just the share price that they are depressing!

B

Since the low point for the SP of little more than 1p a few years ago, there have been relentless sales (usually in amounts of 50k or 100k). Whether its one large player or a wider spread of holders, its difficult to say, but their strategy is perplexing as sales into the rise from from 1p to 5p have continued on a regular basis. So they seem not simply desperate for cash otherwise larger fewer disposals would have been negotiated.

So these trades are chunky but not huge. However their sheer regularity have no doubt contributed towards constraining the increase in the SP.

In fact, you could almost imagine that is the underlying intention.

Although we have witnessed a considerable recovery in the SP, it remains well short of past peaks and most investors I think will be looking for further upward movement once production is underway in the very near future provided APT prices do not soften overtly.

We are however now only 30% owners of Barruecopardo, but IMO we (ie the SP) should still c50% be north of current prices provided production bears out the forecast mineral recovery rates, overheads, APT prices etc. And thats ignoring the anticipated but as yet unproven additional Resource which may yet prove to be truly transformational.

Its not uncommon for long term holders in mining shares to sell/ reduce etc prior to production, but I do confess Ormonde's share transactions over the past few years have been more puzzling and quite different to other small mining cos I have been involved with at similar stages of their development etc.

B

Its certainly good news that the overhaul (inc turbine repair etc) to EdS facility have now been completed and that its fully operational and thus also fully income generating.

Yet again, however, silence from our BoD on a plethora of key pieces of info.

Even if some of this may have already been made public, it would have been useful to summarise eg if the repairs (EdS) cost US$6m and the CAMMESA loan was of a similar sum, what has happened to the US$2.5m insurance settlement? Is the CAMMESSA loan secured and does it rank in priority to Rur's loans and indeed those to Patagonia who also owe Rur? How does repayment of Rur Project Finance loan expected from EdS during 2019 'sit' with planned repayment by Rur to Bridge Properties? They are broadly similar principal amounts albeit the former is in US$ and the latter, in Sterling.

I could go on.....but at least it has been confirmed there are no further accrued Interest due by Rur on its Bridge Properties loan.

C'mon Board of Directors, start acting fully in shareholders interests!

B

Lets hope so bbr.

Someone buying certainly has, at the very least, to take a 'long' view on share prices given the almost obscene spread currently levied by the MMs. They are certainly ensuring this share will remain illiquid for the foreseeable future.

However, given the New Year, best of luck to all Rur shareholders..........you just never know!

B

Essentially 'not fit for purpose', the only question facing shareholders IMO, is whether or not they are simply out of their depth, trying their best as book-keepers, but simply not possessing the skills nor the acumen to 'Direct' the co, or..........
is their silence on so many issues (which should be in the public domain and are directly relative to shareholder value) which could be suggestive of something altogether more sinister.

Private shareholders on AIM are invariably left to scramble for information, treated with little more than derision when it suits many cos and always left lacking any voice to have the simple right to be heard far less represented on many occasions.

With Rur its all 3 of the above.

Now whether we can advance our (collective) position from our current one is a moot point. CVA is certainly a possibility, although getting the 'appropriate Administrator' is a black art all of its own. Not to say, we shouldn't look to give it a try however.

B

Some painful memories in there GFD for most of us, inc the Birdsong facilities.

I wasn't aware of the carbon Credits position, or I have simply forgotten these among the many many issues that beset this small Co of ours. For what is an effectively dormant Co., we sure as H*ll throw up some interesting issues!

Like you, I have undertaken a considerable amount of effort in trying to flush out a public persona for EdS but to no avail. I have often wondered if in fact it actually exists.

One thing is for sure, we (PI's) won't ever get the true story here.

B

Well, Director share purchases, even modest in size, would certainly help......as would a whole raft of other things, many of which have been aired on this bb.

Strange thing is, if and I stress if, EdS maintain their Loan repayments to RUR, we should be debt free in the not too distant future.

Assuming that might just happen (even the recent RNS was about as bullish as our BoD can get), where does that lead us to?

Rur are essentially an investment Co in any case as the current BoD clearly are not equipped to actually operate the Co as it once was etc. So where do we go, if not seek to out a buyer or JV partner (who have the tech knowledge and local contacts etc) who might just buy us out in future?

I am genuinely at a loss here as we are little more than a zombie Co but one which may soon have cash and a performing, if risky, loan (I am just ignoring our other assets for the time being).

Now we all know such 'shell' cos will eventually attract a predator, be they PE or someone else who might just use RUR as a platform to move into an entirely different market. They might also do a cheap deal with PE, heaven forbid.

For the moment, I am just pleased we seem to be gathering in some cash - just hope it aint all being spent on our BoD and their expenses.

B

...should have stated, confirmation/clarification of the precise sum released to EdS from CAMMESA for the turbine maintenance (ie was it in fact the full US$6.4m as stated previously or if not, how much?).
Also, confirmation that the Insurance settlement of US$2.5m was received by EdS for the damaged turbine.
A total of the expected spend on both the repair and maintenance mentioned.
A breakdown of actual loan repayments made by EdS to RUR since previously reported Interim H1 figures - as well as explaining the source of funds used for paying down the historic outstanding Interest mentioned in todays RNS.
Details of remaining (RUR) temporary Loan facilities remaining broken down into Principal and Interest accrued but as yet unpaid etc as well as the current daily rate of accrual.
On the basis completion of EdS repair and maintenance does indeed complete satisfactorily in a few weeks time, a brief indication of expected cash flows during H1 of 2019. This should hopefully confirm RUR should shortly be debt free.
An update on the other asset sales apparently underway.

These are my first thoughts having glanced at the RNS having spent the best part of 6 hours on the M6 and others, so apologies if I've missed something obvious.

B

As I have mentioned before, RUR and its shareholders desperately need dynamic leadership aligned to integrity rather than the bookkeepers we have currently.

Even if I give our current BoD the benefit of the doubt (on integrity), imo it rather rules out PE.......unless he offerred 20p a share that is!

B

As good as it gets as far as I am concerned - unlike so many mining projects I have either witnessed or been a shareholder in etc.

Quite refreshing then.

Now all we need are high grade recoveries with costs fully controlled etc. Icing on the cake will be proving up the expected mineral resource which could place Barruecopardo in the truly stellar category.

B