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I ran some new ideas and figures past myself, without referring to my last calculations. I came up with a similar deal/ here goes. I think a fair deal would be a 66% to 35% split. I see Oaktree putting in €25m cash equity into the project in exchange for that 50%, However I see them paying $7.5m cash directly to Ormonde for an additional 16.6%. based on a company value of $50m and $500k for each percent bought. the JV partnership borrows €25m to €30m to build the mine. plus a €500,000 a year Management fee paid to Ormonde Mining. an agreed €3m feasibility fund for the mines extension pencilled in with Oaktree taking the tab The mine should produce €20m operating profit a year. take away €5m for debt repayments. leaving €15m a year, with ORM getting 33.3% or roughly €5m of that and a management fee. but retaining the company's other assets. These are worth several million on their own. so what have we got? I think Ormonde's share producing profit of €5m a year will value the company tungsten mine at a minimum of €25m, add on the Cash of $7.5m less the Short Term loan = $5m (€4m) Plus the value of the external assets , say €3m Total value = $32m or £26m. Or a value of 5.47p a share. Yep a lot different from my last calculation, but this is mainly due to me valuing the company's mine at only 5 times its profits. In reality it could be 7, 8, 9 10, times . But playing safe. either way Fair Value assuming we get a fair deal out of Oaktree, and they gave a generous offer of Pulse Electronics. 5.47p a share is my safety target price.

The value here depends entirely on the equity split I think a fair deal would be a 65% to 35% split. ( It may be 60-40 or gulp 70-30, but I take the mid ground. I see Oaktree putting in €25m cash equity into the project in exchange for that 65%, the JV partnership borrows €25m to build the mine. with a holiday of 2 years attached pending production. plus a €500,000 a year Management fee paid to Ormonde Mining. a €25m loan being paid off in proportion to the ownership level. an agreed €3m feasibility fund for the mines extension pencilled in with Oaktree taking the tab when it comes up. However. The mine should produce €20m operating profit a year. take away €5m for debt repayments. leaving €15m a year, with ORM getting 35% or roughly €5m of that and a management fee. but retaining the company's other assets. These are worth several million on their own. that is how I see it. a buy at these levels but not great for long term investors. I think Ormonde producing a profit of €5m a year will value the company at €55m or £41m. We have a few upsides on my figures, including a price rise in Tungsten as my valuation is based on todays $275 mtu. Plus the opportunity to extend. Plus a merger with Wolf later on. I think Oaktree are sellers not miners so I expect us to be sold on once in production. Taget Value £41m Target Price 12.9p ,,,realized in 18 months. Kerr Anderson says the deal is a good one. I think he is an honest straight talker. my money is in.

I see Oaktree have just bought 100% of Pulse Electronics for $1.50c a share, the SP was trading at $1.10c a share at the time of the announcement, however It was considerably higher the previous year. similar story with us

fair enough, I have had my say. all the best .

can't understand how anyone buys this dog.

`Nope, I never held a share here, I am interested in it though. I honestly feel the SP is too high.

totally agree, the previous license holder tossed it back to the government because they deemed it worthless, John Teeling buys it back for a few grand, issues a RNS about digging for gold !!!!! The muppets run in. As for Wexboy, this share will have to rise 200% from here to reach the level he advised people to sell at. ( I'd rather follow him for now'. People need to watch out here.

say what you like, but he correctly called the share price movement on this share with alarming accuracy for four years now and did so with conviction. people that listened to him saved their skins here. so I cheer you success but its not for me. Not much concrete in the RNS to attract me at this stage .

would have been less than the current SP. so that was not a runner. I see Lansdowne Oil did a farm out deal that reminded me of this and they held on to 20%. 5% is a low return, nett this could be 10%. It is only $4 a barrel. so we would need 500,000 bbl a year to make $2m a year, but that's 500,000 assigned to us. that would require the licence to produce 10,000,000 bbl a year …hmm, think about that. and we still have not had a find yet.

allow Wexboy enlightened you all. he is what he says . , Connemara’s a John Teeling vehicle – it drills holes in the ground for a living, ostensibly to discover gold or zinc. Sigh, I’m not sure I’ve got the energy for these junior resource stocks this year… :-( But we can dispose of Connemara very easily – it hasn’t even got a whiff of resources, let alone reserves! So I’m going to commit the same misguided & short-sighted analytic errors as before – well, according to the muppet experts. [Two years of my price calls beating their asses now, you’d think they’d finally be embarrassed – um, too busy nursing their losses?!] Actually, props to the muppet who despaired of me treating junior resource stocks as investment companies. Why thank you…what the **** else do you think they are? [Hmmm, that’s possibly a very interesting post there]. And have you ever come across investment companies with such ridiculous expense ratios? The inevitable failure of the majority of these companies is down to simple math – not bad luck, as the suckers like to believe. Net cash, less net payables (if appropriate), less annual cash burn, is usually a good valuation methodology: 409 K Cash – 324 K Net Payables – 359 K Cash Burn = Zero Suck on that, ya CONs… Price Target: Zero Upside/(Downside): (100)%

so, to conclude I value this share at 3p, and consider i a strong sell. Best of luck.

Ok I read the Annual report and the CPR last night in bed, with a calculator, this to my newbie eyes is a lousy deal, but possibly the only one on offer. I expect the 5% gross revenue will transform to roughly 10% of the profits from the license. So what is the license worth ? We the cost of a drill here will be close to $40m, The Capex to bring the oil on ship or onshore will be at least another $200m. That's an estimate. And remember Argos won't have to pay any of that. Indeed the entire license of successful could have up to $1billion potentially spent on it, and Argos enjoying a 10% free ride, but thats all if and buts. For now a 90 to 85% stake has been sold for the equivalent of a $40 million drill. I cannot add in the future prospects as they are already factored in here. So our share is valued at $4m plus $6m cash roughly. thats it folks $10m or £6.5m sterling. however this was a fire sale, and the £6.5m is really a fire sale valuation even of accurate. If the drill is successful, and I think we have a 50% chance of that based on the CPR. then the price would clearly double or even treble. But that is a but. a duster would wipe the company out. So add zero and £13m and divide by 2 and you have £6.5m and that is the valuation I place on this. This is a sell. A strong sell. Or pay for a gusher. in tricky geology? Not for me.

i doubt we are a Take Over target. There are much weaker cheaper prospects out their .

but just a confirmation on expected improvements . A slight SP increase only is my guess we'll done long termers

Can I ask what is % likelihood of success on the first well.?

they don't have the money, but I still want to hear the deal

Is this a straight 5% of whatever the oil/gas is sold for? So if the Oil is sold at $60 a barrel the company gets a straight $3? (5%). Do 'we' get the 5% off the top? Different people have different interpretations of 'gross revenues'. I think it's off the top, but is it 5% of gross profits ? Hardly ?

Totally agree, I think there is a reasonable deal in this for SH. I gather we have a vote on this at a EGM?

Anyone read the RNS ? Doesn't say if we are still in the exclusivity period but in any case it looks like a deal is done and it's now a case of waiting to see what that holds for SH long term and newbies

Goes to an EGM