Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Yellowman, sorry but can you elaborate? With the current PoO > £55 there will be another £ 100 million by end 2021 in the bank. So by June 2020 largely enough to repay the bonds. The funding for drilling can be financed as we all know Oil will still play a major role in the energy suplly for the next 10-15 years to come. So I do not agree with your opinion, unless you prove me wrong.
Tommy, indeed some forces are working behind the scene. It looks like some larger investors are putting a lot of pressure on this board to go in one or another direction by suppressing the sp. It is obvious that the current sp is not reflecting the financial performance of this company. But either the management is reluctant to give in on some points; resulting in a suprressed sp, or LOOP does not perform better than last year. Just a year ago the sp was 68 pence, at the start of the pandemic. In the meantime the global office work has shifted permanently to remote working solutions. So there is no doubt LOOP will grow in a market that is sustainably growing for decades to come. As I said already earlier, the market has to stop thinking LOOP is in one-on-one competing with ZOOM or TEAMS; because they are serving a niche. A niche where reliability and security are key. And LOOP performs very well in this niche.
I expect that the pipeline of LOOP will have grown from £84 million to nearly £100 million; the cash positon will have further improved, and I expect that the ARR of £34 million will be extended with £16 to 20 million of expected revenues for 2021. If so, LOOP is worth easily £ 1,85 to 2,35. So hope they can deliver; it would release the negative sentiment for once and ever. GLA
When the PoO goes up, HUR hardly moves....When the PoO drops HUR gets punched! What a pathetic play by a pathetic bunch of sellers.
Daltry,
I only say that if CPR is slightly better, Production rate is stable HUR sp should now be @ 7 - 9 pence easily.
+ 7% ; means some parties still believe the value is somewhere in the pipeline....would love to see ORM announcing the deal. Negociating is one, getting things done is more important. Come on!
118% over the last 12 months.
Wolf, I would not sell the shares for now. I'm sure a positive rerate is imminent. HUR is on average 118% lower than 6 other oil exploring shares (Tullow, BP, Shell, Premier Oil, Statoil, Spirit Energy). GLA
Oops he did it again...
He played with your heart...
....
Hahaha
(He = Maris)
Can you imagine the sp is -33% compared to 5 years ago, when the company had little revenue, high debt rate and a product that was not as sophisticated as it is now! If I was the CEO I wish I could set-up a rewarding structure through dividends or a buy-back program and make my sp less vulnerable to derampers and fools...
There is just no logic when one analyses the financial profitability of this company, it's debt position, it's cash position, it's revenues. It has recurring business more than 80% of other AIM companies, and still the sp gets f*cked since 5 months... I don't get it. Sorry to be p*ssed off.
The deal is still on the table, but I assume far from easy to get sealed given the copper price evolution. So what options does ORM have to figure it out?
- Getting into a joint-venture with another party to get the seller agreed, sharing the revenues but also the costs.
- Raising the price, knowing the return is less profitable, and risky
- Step away from the table and find another business, which falls within the current competencies and expertise of the management. But then the cost for Due diligence and contractprepartion falls into the water; probably 150 to 200.000 Euros.
Beaten down as usual...bloody h*ll!
It's hard to believe Loopup is going to bring out results in 2 days. So little volume. It's like no one is interested in this company. I have to admit that the sp manipulation certainly doesn't help. Everytime some invests, there is a sell to level the sp over the last 2-3 months. I was expecting the sp to climb to 90-95 by wednesdayevening...
Am I right google finance does not show the ORM shareprice since yesterday? I assume it has to do with the transition of the listing? Is there another platform to follow the sp?
In general exclusivity terms range from 2 to 4 months; depending on the complexity of the assets and the deal. But exclusivity is only valuable if both parties want to come to an agreement. The seller knows that ORM prime shareholders doesn't want a sharedeal structure. So if they believe they can get a better offer or a better partner; they can easily put ORM against the wall telling the deal will only go through if the shareholder structure remains. If not so, at least they will sell at a premium.
Unless there is trust and a win-win aspect in the deal that outweighs any other proposal ORM has a chance to get the deal. These are hard negotiations but fragile balance required. In the end ORM should not accept to pay for an overheated value. Hope the stars gets alligned.
Indeed, I think he might see the opportunity to add more shares. But on the other hand, I believe he would rather like to have the copper asset in ORM portfolio too. So I still hope they get the deal sealed.
If I was Crystal Amber I would definitely work my way into the heads of chrysaor. Because we would get rid off some draithfull dead meat at Hurricane:
1. We would get rid of the current Bod ;-)
2. We would spread the risk of our 11% shares over multiple wells producing oil
3. We would let the operations in the hands of specialists; ready to explore new opportunities
4. Realizing economies of scale; resulting in low operations cost to explore oil.
5. We could become shareholder of a great company (at least if they have some partners in the Bod of chrysaor)
So hope some of the Chrysaor's or Shell's are on the hunt today....then things might turn around nicely indeed.
The seller is certainly is a much stronger position. Either the LOI included a price-mechanism for the copper-price evolution, either this will be extremely used and abused towards ORM. A few years ago I was involved in a merger project. Some issues got along during Due Diligence and it took both parties 2 months to finally get things sorted out, and another 6 weeks to get the signing documents. So yes, it can take some time. ORM will not communicate any progress or delay. Either they will come up with a deal, or inform us that the deal is off the table. I would expect, given the information from January that only a financing structure was to be restructured, news any time now before 20th of March. GLA
As ORM Director I would be bloody nervous to get the deal signed, because if the value is there the preditors are on the hunt!
March 4 (Reuters) - Chinese gold mining companies are on a buying spree in West Africa and South America, outbidding rivals for assets in less familiar regions as the governments in their usual hunting grounds turn against them.
China’s overseas mining M&A activity fell overall in 2020, Refinitiv data shows, but the number of acquisitions in the gold sector tripled from 2019 even though a surge in the gold market to record levels inflated premiums.
Bankers and lawyers predicted the focus would continue on the emerging economies that welcome Chinese investment as Australia, Canada, and the United States increase scrutiny of Chinese acquisitions.
Gold-rich regions in West Africa and South America have a particular draw for Chinese companies faced with dwindling resources at home and they are not limiting themselves to gold as they seek to become diversified global companies.
“We’ve seen China mining deal activity double over the past 12 months,” said Hilary Lau, partner and head of Asia energy at Herbert Smith Freehills in Hong Kong.
“Interest is now more evenly split between traditional targets such as gold and iron ore, and new economy metals such as lithium, cobalt and graphite.”
A Johannesburg-based banker, who declined to be named, said Chinese buyers were for the first time aggressively pursuing gold deals in Africa.
State-owned Shandong Gold Mining last year won a nine-month bidding war for Ghana gold mine developer Cardinal Resources, outbidding Russia’s Nordgold with a A$1.075 per share all-cash takeover offer – 134% more than Nordgold had initially offered for the company.
By contrast, its bid for Canada’s TMAC Resources, which mined gold in the sensitive Arctic region, was rebuffed by the Canadian government on national security grounds in December.
Shandong Gold Mining did not respond to a request for comment.
Chifeng Jilong Gold Mining has also ventured into Ghana, sealing a deal to buy Resolute’s Bibiani gold mine in December.
In a statement to Reuters, Chifeng Jilong Gold Mining said investment in developed countries, such as Australia and Canada, is “not active” because assets there are 10% to 30% more expensive than those in West Africa and South America, and mining companies in the less developed regions can do deals more quickly.
State financing is one of China’s advantages in carrying out overseas acquisitions, Chifeng Gold said, adding that it believes the Bibiani mine was bought at a “fully competitive price”.
‘THEY KEEP BIDDING’
China has also stepped up its activity in South America, where Zijin Mining acquired Guyana Goldfields and Colombia-focused Continental Gold in the space of five months last year.
Zijin outbid Silvercorp by 35% to clinch the purchase of Guyana Goldfields, and paid a 29% premium for Continental.
Zijin did not respond to a request for comment for this article.