Member Info for Flaberghast

https://www.investegate.co.uk/ormonde-mining-plc--orm-/rns/barruecopardo-tungsten-project-update/201812140700024551K/

Someone's seems to have been confident purchasing 1.5m over on ISE.

Barruecopardo resource is much better defined than La Parilla, the grades are better and LoM longer. They’ve spent the money in the right places. LP seems rushed in comparison. The debt is secured with a third party, unlike here. I prefer ORM because you don’t have to worry about a placing every 5mins with MM. Could be more upside here based on production but more risk imo.

Ormonde going great guns today. Projects are quite different but should see some good action again here soon.

https://www.youtube.com/watch?v=Rhs-jFHPC30&feature=youtu.be

http://ormondemining.com/timeline-in-pictures/

When compared to WRES, the current reserves and modelling of the resource are far superior and Barruecopardo has higher grades than Hemerdon and La Parilla. The plant has been designed to the resource specifications based on historic mining. Both of these aspects give me confidence any teething issues in comparison to PREM or WLFE will be minimal. Hold for a few years and Oaktree will offload the project swiftly.

https://youtu.be/jKp2WWjy4gg

Tungsten price has remained flat last few weeks just under $300/mtu. Economics are very compelling at this price given ORM's running costs. Any dividends from Saloro will be profit in ORM's accounts given 1m eur fee covers management costs. ORM's still trading at a significant discount to project NPV at current APT price. If you're a tungsten bull it's a good opportunity I should think.

Happy to see WRES and ORM doing well today. Both going into production as Drakelands closes and fresh inspections are ongoing in China. Expect APT price to rise over the coming months.

Rise over in Ireland most likely due to this news today. There was always some uncertainty regarding the offtake. https://mobile.reuters.com/article/amp/idUSKCN1LC0ME?__twitter_impression=true

My rough workings to get to Davy's NPVs. At current APT I have NPV of 12.2p. At $400/mtu, which might not be far off by year end I have 16p. https://drive.google.com/file/d/1JoTZhzF3WmSNAFS8Y4-THjm3PFVrr9uU/view?usp=sharing

They get 75% of the management fee regardless of cash flow. Where are you getting your information from?

That includes repaying the loan......$7.5m per year over 9 years.

If you use costs of $119/mtu and $330/mtu saleprice (20$ less than current spot) to work out gross profit. Minus €1m fee and $7.5m for debt repayment over 9 years you get net profit of $46.25m. Using capital costs of $55m the NPV8 is £52.75m net to ORM or c. 12p. I would say NPV4 would be more realistic which would be £65m net. Not difficult for a muppet

It’s not difficult to work it out, unless you’re a muppet. You seem to be making a meal out of this. Net cashflow on 260k mtu @$330mtu selling price including €1m fee is $53.75m. At 360k mtu it’s $75.5m. The debt won’t be paid off immediately as the company has previously said. Some of the cashflow will be used for dividends, debt repayments and development of the underground mine. After that, how much do you think the project is worth to ORM? 12p isn’t ridiculous based on ORM receiving half of their proportion of cashflow.

The only reason the company didn’t make a profit this year is because €0.25m management fee income is deferred until 2 quarters of positive cash flow are achieved. Definitely no need for a placing!!!

So I’m going to sell all my shares Monday morning and buy SOU.....? Thanks for the tip guys

There should be quite a fair bit over the next couple of months. Just taken a few more this morning. I think people will be jumping on this before end of Q2 when South Dagi results and 2017 FY results come out

“In order to speed up the development of South Dagi, the Board has decided to order the work over of three of the original wells on the licence, with additional equipment acquired on Sakhalin Island. This will assist in mitigating against the decline at Petrosakh and thus increase throughput at the Company's refinery”