Member Info for Hedgehog100

The root of ORM's problems seems to stem from lower initial ore grades at the Barruecopardo tungsten project than anticipated, due to more complex geology:

23rd May 2019 7:00 am RNS Ormonde Mining PLC - Barruecopardo Update
" ... The initial ore feed from the northern starter pit, a small pit representing only the first few months of mine production, has returned lower grade than forecast due to localised complexity within this peripheral remnant zone; ..."
https://www.lse.co.uk/rns/ORM/ormonde-mining-plc-barruecopardo-update-bsy2gcj5aztzkd2.html

How is that the fault of its FD Paul Carroll?

I note that construction of the mine was completed in line with the Project's capital expenditure budget and broadly in line with its construction schedule (see 19th. June 2019 RNS), which supports the view that Paul Carroll as FD was doing a decent job.

EAAS reminds me of Telecom Plus (TEP) before it really took off, rising from 100p in 2006 to over 1,900p in 2013.

TEP, trading under the name of Utilities Warehouse, supplies cheap electricity, gas, broadband and mobile services, to residential and business customers via a single monthly bill.

Telecom Plus was built-up by its CEO Charles Wigoder, who previously built a service business in the 1990s when he founded People’s Phone, for the mobile market. The business was sold to Vodafone for £77M.

And he reminds me of the new EAAS CEO Harvey Sinclair, who built up the Hot Group before selling it for about £50.5M.:

20th Dec 2019 7:00 am RNS Proposed acquisition of eLight
" ... Harvey Ian Sinclair, Chief Executive Officer (age 48)
Harvey co-founded eLight and is a proven technology entrepreneur, who has achieved a number of successful exits of businesses over the last 15 years across a variety of different sectors; Software, Internet, ecommerce and in the Hospitality sector. In 2000, Harvey founded The Hot Group Plc (THG), which listed on AIM in 2002 and which he led on a successful consolidation of the online recruitment market, through a buy and build strategy, before leading the sale to Trinity Mirror in 2006. Harvey was investment director for Scottish Enterprise at Design LED between 2015 and 2019. ..."
https://www.lse.co.uk/rns/AXM/proposed-acquisition-of-elight-p4tkehre8cqwzbi.html

There are I believe some very savvy investors accumulating here, who recognise the immense value and terrific growth prospects.

ORM has seen some great times before - including fairly recently - and it can see them again.

E.g. from just a penny in early 2016 to over 5 and a half p in 2018.

The mining problems then emerged gradually, giving investors plenty of time to reduce their exposure accordingly, and lock-in some great profits if they'd bought cheap (like now).

Broomfielder - I would think that a RTO (reverse takeover) here is quite possible, given ORM's cash.
And as 'cash is king', this could bring in some extremely exciting assets.

Yes, cheap isn't it - what a buy opportunity!

You are a classic buy high, sell low merchant.

Wakey wakey - that's not how you make money in investing!

Would you be attracted to a shell with the following characteristics?:

• Market cap. about £3M. (£3.07M. at 0.65p).
• Has just received over £5M. in cash.
• Two other assets worth maybe £2M. - £3M.
• Operating in a stockmarket sector currently in a bull market.
• Has a new Executive Chairman with an impressive track record in that sector (multibagging a share price when he was FD/CEO).
• Company development news expected in the short term.

Well your luck is in, because ORM is it!

Just buy and wait, and it's hard to see how you won't make money here.

No Keith,

You are one of the myriad of retail investors who can't take responsibility for their own losses, and instead seek to blame others, boring everyone to tears with their incessant whingeing.

Mining development is very risky, and it won't always work out.
It's easy to be judgemental about what can just be bad luck.

If you deal in facts, then you should recognise that AVM multibagged when ORM's new head Jonathan Henry was FD/CEO there, and applaud him for a job so well done.

Jonathan Henry was appointed Finance Director of Avocet Mining (AVM) on 2nd. December 2002:
https://www.investegate.co.uk/avocet-mining-plc--avm-/rns/director---senior-mgt-change/200212020700014806E/
He was then appointed Chief Executive Officer of Avocet Mining (AVM) on 12th. July 2006:
https://uk.advfn.com/stock-market/london/avocet-mining-AVM/share-news/Directorate-Change/16098821
And he resigned as Chief Executive Officer of Avocet Mining (AVM) on 29th. April 2010:
https://uk.advfn.com/stock-market/london/avocet-mining-AVM/share-news/Announcement-of-Chief-Executive-Officer-Succession/42582522

Nipknot,

As you and Talltonys lost money on AXM - although I sympathise - you appear to have become overly cynical and suspicious.
Hence all this paranoid b.s. about Dubai, pensions, blah blah blah.

EAAS is as different to AXM as chalk is to cheese.
AXM was still not generating revenue from its technology after over a decade of trying. A classic jam tomorrow 'device' company - virtually none of which succeed.
EAAS in contrast already has turnover of millions, and growing rapidly. A classic high growth service company - of the type that have accounted for many of AIM's biggest winners.

AXM has now gone, (which you should be glad off), with the RTO (reverse takeover) of an exciting new business into its shell, with some impressive new management.

Many of the largest companies have their roots in RTOs, including even FTSE 100 constituent WPP, the world's largest advertising company:

"WPP plc
... WPP plc is a multinational communications, advertising, public relations, technology, and commerce holding company headquartered in London, England. It is considered the world's largest advertising company, as of 2019. ...
The company was founded as Wire and Plastic Products plc to manufacture wire shopping baskets in 1971. In 1985 Martin Sorrell, searching for a listed company through which to build a worldwide marketing services company, bought a controlling stake...."
https://en.wikipedia.org/wiki/WPP_plc

News could come at any time, and the interim results due next month should be accompanied by some welcome publicity.

Keith,

The one posting nonsense is yourself.

It's a fact that Avocet Mining (AVM) was one of the star performers of the noughties, and that ORM's new Executive Chairman Jonathan Henry was AVM's FD or CEO for most of that period.
So please don't tell lies by saying that he's useless, just because you want to buy back in more cheaply.

I am in no way connected to the board, but I can appreciate a huge success when I see it.

This is the opportunity to be in at the start of what could be an extremely exciting growth story.

Keith,
I have reported your post to LSE for being insulting.
And the fact that you're having to resort to insults suggests that you've lost the debate.

Note that Jonathan Henry is an Executive Chairman, not a non-exec. Chairman: that's a sign that he intends to have a very hands on role here.

Also note that the company intends to start rebuilding in the short term, so they will not be hanging around:

10th Feb 2020 7:00 am RNS Directorate Change
" ... Assuming completion of the Proposed Disposal and their subsequent appointments, Tim and Richard, together with Mr. Jonathan Henry, who will move from non-executive director to Executive Chairman, will provide Ormonde with the appropriate leadership, governance, experience and strategic direction as it targets a new phase for the Company, focussing on the creation of value from its current assets, together with pursuing growth through M&A, supported with the cash proceeds from the Proposed Disposal of €6 million. ...
It is our intention, in the short term, for the new Board to work together with executive management to build a fresh and exciting vision and strategy for Ormonde, absolutely focused on value creation for shareholders including, if appropriate, through the pursuit of M&A opportunities." ..."
https://www.lse.co.uk/rns/ORM/directorate-change-hppvgwekywz8xlb.html

Slalom,

Jonathan Henry has previously just been a non-executive director with ORM: that can be a very peripheral role, and not one where you would be involved in actively running the company.

Now he's stepped up to become Chairman that's very different, and his proven ability, as well as his wealth of experience and contacts, should prove to be invaluable in building ORM back up.

And I look forward to some exciting newsflow from ORM very soon about its intentions in that regard.

"From the start of 2002 to the end of 2020, the AVM share price more than 20-bagged."

Sorry for the above typing error: it should read:
"From the start of 2002 to the end of 2010, the AVM share price more than 20-bagged."

And remember that ORM itself more than ten-bagged at one point during that decade.

In contrast, one poster here has been going on about the ORR share price performance since January this year ... as if one month is much of a period to judge by!

ORM's new Chairman Jonathan Henry, appointed just four days ago, is one of the big attractions here, considering his stellar track record as FD and CEO of gold miner Avocet Mining (AVM).

Jonathan Henry was appointed Finance Director of Avocet Mining (AVM) on 2nd. December 2002:
https://www.investegate.co.uk/avocet-mining-plc--avm-/rns/director---senior-mgt-change/200212020700014806E/

He was then appointed Chief Executive Officer of Avocet Mining (AVM) on 12th. July 2006:
https://uk.advfn.com/stock-market/london/avocet-mining-AVM/share-news/Directorate-Change/16098821

And he resigned as Chief Executive Officer of Avocet Mining (AVM) on 29th. April 2010:
https://uk.advfn.com/stock-market/london/avocet-mining-AVM/share-news/Announcement-of-Chief-Executive-Officer-Succession/42582522

From the start of 2002 to the end of 2020, the AVM share price more than 20-bagged.

ZIN's recovery transition is being led by a new management team with a proven and very recent track record of transforming underperforming TV businesses into highly profitable companies.

That's a very important ingredient for a successful recovery situation.

And while the full benefit will probably not show until the next financial year, if there are clear signs of progress then the share price should start moving up much earlier in anticipation.

Especially from the current lowly valuation of 82.5p, a near 10% discount to the 90p placing price.

ZIN's interim results for July-December 2019 are due next month (announced on the 15th. March last year), and the signs are that they will be positive.

ZIN has already announced £9.3M. of new business wins for that period, and the December RNS was confident of improved margins:

10th Sep 2019 7:01 am RNS Zinc Media Group PLC - £4.8 million of New Commissions
"Zinc Media announces £4.8 million of new commissions for new financial year
Zinc Media Group plc (AIM: ZIN), the leading TV and multimedia content producer, is pleased to announce new commissions, contributing to the current financial year totalling £4.8m, including three returning series, across its portfolio of TV companies. ...
Mark Browning, Chief Executive Officer, commented:
"These commissions represent a strong start to the new financial year for our TV businesses. I am particularly pleased with the performance of Reef TV in the last few months, while Tern, Brook Lapping and Blakeway London continue to deliver strong commissions and build healthy pipelines for the rest of the year." ..."
https://www.lse.co.uk/rns/ZIN/zinc-media-group-plc-48-million-of-new-commissions-eiedw2hqd13ehgz.html

10th Dec 2019 7:00 am RNS £4.3m of new TV commissions
"Zinc Media announces £4.3 million of new TV commissions and improving gross TV margins
Zinc Media Group plc (AIM: ZIN), the leading TV and multimedia content producer, is pleased to announce new commissions secured since its 10 September 2019 announcement totalling £4.3m across its portfolio of television production labels, with new commissions anticipated to deliver improved margins more in-line with industry standards. ...
Mark Browning, Chief Executive Officer, commented:
"It's good to see the bulk of our TV labels booking steady revenues but more importantly I am pleased to see that new commissions are now anticipated to deliver improved margins which are more in-line with industry norms. Improving gross margins on TV commissions in London and Manchester is the first priority in our transformation plan and early signs show demonstrable progress, which is critical for our longer term profitability." ..."
https://www.lse.co.uk/rns/ZIN/43m-of-new-tv-commissions-6u5pkd6akyw6ecq.html

Massively undervalued here are barely £3M.: with about £5M. cash, plus two mining assets worth maybe two or three million.

But I wouldn't expect that to last too long.

The company is considering a number of initiatives that it believes can add value, and I believe that news on these could deliver a strong rerating upwards ... especially as we are in a gold mining sector bull market.

17th Feb 2020 7:00 am RNS Completion of Disposal
" ... Commenting on the completion of the disposal and the subsequent Board changes, Jonathan Henry, Executive Chairman, stated:
"Following completion of the Barruecopardo disposal and receipt by Ormonde of the €6 million proceeds, a number of previously proposed Board changes can now take effect. ...
With the new Board in place, we are now fully focused on taking the Company forward into its next chapter and are already considering a number of initiatives we believe can deliver value to the Company and its stakeholders." ..."
https://www.lse.co.uk/rns/ORM/completion-of-disposal-rwiqfh6cs7e9gkr.html

From Proactive Investors earlier this week:

"Ormonde appoints new rockstar board, following disposal of Barruecopardo
Ormonde retains some promising exploration ground at La Zarza
Alastair Ford
08:09 Mon 17 Feb 2020
" ... Jonathan Henry, previously a non-executive director, is appointed executive chairman, while Tim Livesy and Richard Brown are appointed non-executive directors.
“I believe that Tim and Richard's extensive experience and contacts in the resource sector will assist the company greatly in its future development,” Henry in a statement.
Livesey is currently running Oriole Resources and is one of the powers behind Minexia, which runs fundraising platform NR Private Market. Brown was formerly chief executive officer of Gabriel Resources.
And Henry himself is no slouch. He has run several companies over the years, including Avocet Mining and is currently non-executive chairman of Giyani Metals Corp (CVE:EMM). ... "
https://www.proactiveinvestors.co.uk/companies/news/913038/ormonde-appoints-new-rockstar-board-following-disposal-of-barruecopardo-913038.html

From Proactive Investors yesterday:

"Ormonde Mining changes tack with Barruecopardo sale

Philip Whiterow
14:22 Thu 13 Feb 2020

... Gold and copper

Ormonde's remaining interests are in gold and copper.

Salamanca and Zamora Gold are held through a joint venture (48%/44% respectively) with Shearwater Group PLC. The area is one of the most prospective gold terrains in Spain, Ormonde believes.

Ormond also holds gold exploration permit applications elsewhere in Spain.

Ormonde is looking to sell La Zarza copper-gold project in the Iberian pyrite belt of southern Spain, having taken an impairment charge of €600,000 for the former working mine in its 2018 figures. ..."

https://www.proactiveinvestors.co.uk/companies/news/222423/ormonde-mining-changes-tack-with-barruecopardo-sale-222423.html

Thanks to KMann on ADVFN for this excellent recent summary:

kMann 29 Jan '20 - 13:50 - 652 of 665 0 5 0
"net result of restructure, zero debt, funding, earn out paid on full.
£25-30 mil turnover, increasing margins.
looking at recent events in the sector, it looks like the right management took over at the right time.
time for a proper re rate"
https://uk.advfn.com/cmn/fbb/thread.php3?id=43847547&from=652

And at 81p mid, ZIN is now trading a a 10% discount to the placing price of 90p (0.18p pre-consolidation equivalent).

The directors also invested over £80K. in the placing.

This looks to me like an extremely good value recovery play, and this buy opportunity may not last long.

It's not uncommon for there to be a slight, temporary dip below a placing price, which then rapidly disappears once the extra available shares have been absorbed.

At 0.8p, up from 0.65p for most of last week, a rerating upwards is underway.

Yesterday, ORM traded as high as 1.05p mid price, at about 2p.m., so the fallback is a nice opportunity for a second bite.