Member Info for JODO

CP and Delano: you get free real-time prices on LSE if you register.

Still only £6K, though.

Not! unfortunately.

Is an undiluted placing possible.
Would not a placing higher than the current share price qualify?
100 shares at 1€ each; 10 more shares placed at €2 each; the 110 shares should now have assets worth €1.09 each.
Am I doing something wrong?

Mr B
That’s what it says: a multiple of 16+!

Phoenix III

By the end of last year, Ormonde had 110 people working on site and beginning to assemble the fixed plant and install the crushers and ore feed conveyors etc.
The process plant commissioning commenced last month and the completion of the mine commissioning and commencement of production is to follow on in the subsequent two months.

The group’s former CEO, Steve Nicol, also a mining engineer with 30 years’ experience and who has brought mines on stream around the world, is now based in Salamanca and is focused on bringing this mine into production by February 2019.
In its initial nine years, mining will be carried out by simple, conventional, open-pit methods, adopting traditional drill and blast mining with shovel and truck operations. This makes things very simple and reduces mining costs associated with the one million tonnes of tungsten ore planned to be mined every year.
The nature of the tungsten mineralisation makes it easier to manage and will only require low-risk metrological processing.
The cash operating costs per tonne is $100 and the break-even point for the Barruecopardo mine, with full cost recovery, is $170 a tonne. With the current price of tungsten at $280, the mine should be profitable immediately.
As the one million tonnes of ore will produce 260,000 tonnes of tungsten mineral a year, the mine should produce a cash operating surplus of just on $30m pa. Based only on a planned $10m pa of non- cash interest and low capital repayments, this would mean Barruecopardo could produce a net profit of $20m pa.
With its 30% carried interest in this joint venture, Ormonde Mining shareholders are looking at an attributable profit of just on $7m pa, which works out at earnings of €0.125 a share. This would equate to a share price of over €1, although the current share price is only €0.06.
Moreover, the mine should have another 12 years’ life once the open pit operations have finished (all the processing plant is to be fully utilised for the full 21-year life of the mine).
Ormonde’s long-suffering shareholders, who have seen the share price up at 15c over a decade ago, could now begin to generate a significant return for the high risk they have taken over the decades. If so, it will not be before time.

Phoenix II

One of the most frustrating things for Ormonde shareholders is that, from the time the company proved the big tungsten ore body in Salamanca over five years ago, it has taken an awfully long time to bring this resource into production, despite the deal with Oaktree having been signed up to four years ago.
Donoghue is a mining engineer by profession. He has over 30 years’ experience in evaluating and developing mines throughout the world and was general manager of Delta Gold in Australia for eight years. He is very aware of the cyclical nature of metal prices, which is based not only on world economic growth, but more particularly on the supply/demand dynamics of the particular mineral concerned.
Some 80% of tungsten is produced in communist China. This an unreliable source for the west, and the Chinese government has also imposed export restrictions, making a tungsten mining producer like Ormonde more valuable.
Variations in supply can be a big factor too. What was the largest tungsten mine in the western world – the Canadian Cantung mine – closed down three years ago and many older mines are struggling to stay open with reducing grades and limited reserves. No new mines have been opened since 2011.
The tungsten price hit a 25-year
low of $160 a tonne in January 2016 but, since the closure of the Cantung mine, the tight balance between supply and demand has moved in producers’ favour, with the tungsten price moving up steadily. It is currently trading at $280 a tonne. Despite having the funding available, Donoghue deliberately slowed down the development of the mine, apart from overseeing long-term essential projects (such as developing access roadways, water dams and water reservoirs) and also completing necessary land acquisition,
with 85% of the required land for the mine bought in 2016. The remaining 15% of land required the support of local government, which used its powers to acquire the land and fast-tracked the acquisitions, demonstrating strong local support for this mine.
By last summer, the last remaining procedural steps required were completed, with Ormonde having all the rights and land required to develop the Barruecopardo mine.
As the price of tungsten continued to increase last year and with the market continuing to move in Ormonde’s favour, Donoghue and his COO, Fraser Gardiner, moved rapidly to complete all the civil works and construction of the required offices, workshops and process plants.

Phoenix I

AFTER 25 years of mineral exploration in Spain, Ormonde Mining is on the cusp of delivering a mine producing 13% of the western world’s tungsten – a mineral that is essential for the production of, for example, the super alloys used in turbine blades for jet engines. This has been a long journey, but productions is due to start in Salamanca next February. This is set to turn Ormonde from a high-risk exploration punt into a solid producer and, therefore,the company will have to be valued in a very different way. Ormonde will attract a wider range of institutional investors, many of whom are not investors in exploration stocks.
Ormonde’s executive chairman, Mike Donoghue, has not only brought this
mine near to fruition this year, but has done so without any financial risk to Ormonde’s shareholders by signing the company up to a $100m joint venture agreement with the big American Oaktree Capital Management private equity operation. Oaktree acts as a vulture fund but, in this case, has demonstrated another face of private equity by taking the whole of the financial risk in the development of Ormonde’s so-called Barruecopardo tungsten mine in Salamanca, western Spain.
Oaktree is providing direct funding to the operating company by investing $44.5m in equity in return for a 70% shareholding in Barruecopardo Joint Venture BV and is providing the operating company’s initial stand-by debt facility of $55.5m.
As the total cost of the mine is only expected to come to $94m, the joint venture vehicle has $6m draw down headroom from its standby debt facility if required.
The total cost includes $36m for plant, engineering and construction costs, and $24m for other capital costs associated with land acquisition and infrastructure like roads, waterworks and power lines.
This arrangement leaves Ormonde Mining shareholders sitting on a risk-free 30% stake in this operating mine and puts a face valuation on Ormonde’s 30% stake in the mining joint venture at $19m, which works out at $3.5 per Ormonde share. However, this is not the basis on which the shares will be valued – they will be valued on the actual profitability of what is about to be an open mine.

Skier, is what Gizzard said just before you wrong? If not, yours cant be right.
I don’t know so am genuinely just asking!

https://researchmirabaud.mdcie.co.uk/MIRABAUD_TD_TRACK/external/download?q=18f57a4a21d3a995fd00ef8d7b565678cd4cc4da3vHHdcKQ3D4A9LXuif%2FuG4Fm4Xnq6JIyaWLYDbwZ%2FMys9f8ORtcUFgdIwFXLGLz3YTsfckL%2FRHapywNTXI7QdNM2%2BfJHZeC%2Fm5bKP74CmgSgxdHgwBqj75Nri6mEVrnJSXA5LA7mTb%2BaQ7YKkeCGWKhwHEBu4kjcEDuv04JfCqwWkkvks%2BuSJp23HwbgSiQ4pA1KhYSLIyTEjpxXf7yUcsg%3D%3D

Can one deduce from this that Mirabaud’s estimate of the value to SLE is just short of £54m?
Or can somebody correct me?
Thanks

Mireabaud research note on PVR, 02/10.
In spite of the improvements to the farm in terms from PVR’s perspective, the only other significant change to the deal is the assignment of San Leon’s 4.5% net profits interest (NPI) in Barryroe. The NPI was originally granted by Providence during its acquisition of San Leon’s 30% equity stake in Barryroe in 2011 (which increased its own interest to 80%). When the APEC deal was announced in March, we had assumed that the Chinese consortium would assume 50% of the NPI, however this is not the case, with Providence to retain the full obligation. In practice this is not onerous, with the allocation of the interest reducing our risked Core NAV by just c.9p to 101p/shr.

“The 4.5% Net profits Interest, held by San Leon Plc, has not been assigned to APEC and so remains the obligation of EXOLA.”
From the SLE press statement on 20 September:
http://www.sanleonenergy.com/media-centre/news-releases/2018/september/20/update-on-barryroe-farm-out-agreement.aspx
It’s a PVR liability which doesn’t affect Lansdowne.
Odd however that recent developments have had no positive effect on SLE shares although, as Tidd says, they value it at around a third of their MC.

Fellow Irish, that’s an interesting and honest exposition which causes me to consider my own approach a bit.
Generally speaking, I’m not overly concerned by the current share price, per se, and would intend to buy down to the 0.97 at which I entered (following an earlier Phoenix article).
This is because most of the immediate execution responsibility has been passed from Amn and since the assets and demand are (will be) certainly there, this should eventually come good.
So, while I agree with your critique of the last few years performance, I would be reluctant to wait for the sort of management change you mention before buying.
To be honest, my main concern for the future here is some version of the shafting I suffered in Dalradian; I try to console myself with the thought that, even then, the price would be well above today’s.
Any thoughts?

After reading the rns, an optimist might conclude that - no matter how disappointed at the time - we would have been royally screwed without the farm out!
Hopefully the new operators provide sufficient protection.

Dundee, youve had “lots of other things to do” all morning but you’ve still hogged this board with your own contributions and provoked responses, all with virtually no new information or analysis. That’s not to say that there’s not substantial truth in what you say - provided it was said only once or twice.
Of course the wasted space and reading time would be more than halved if others ignored your repetitions!

Yes, that adds up!

I posted this concern a month or two ago; I’m one of those compulsorily bought out at a 25% loss!
Amazed that executives and a major shareholder can stay while everyone else is forced out just as it nears fruition.

“The price dropped 80% on no oil find but then rose 400 % after. Just an example of how oil companies are tricky.”

Meaning it went back to precisely where it had been?

“Sold out last of holding here, at a fairly large loss but can't stand the boredom and thankfully made most of it back off HUR RNS this morning. Best of luck here”

I can’t figure the arithmetic here. Selling out of one share “at a fairly large loss” can be recovered by a 10pc increase in another. Even if the aex holding was tiny compared to hur, it would be hard for the loss on aex to qualify as “fairly large”

Nelson: it was partly but only partly tongue in cheek. While I share your view on Crusty, there have also been others.
In the current debate, I’m one of those who think that the Board and management have failed badly over the past 18 months but having taken us to where they did, the current deal is the best we could hope for and it’s time to move on.
Not however without trying to hold them accountable because, apart from a question of justice, it has implications for how other assets are managed.
The moving on applies in particular to this bb, because the tricornered tit for tat is crowding out worthwhile discussion and analysis. Crusty might be a little less vitriolic on occasion; Drewky might stop posting that damn list and reacting to the posse of provocateurs; we could all ignore the provocateurs until they go away; then, mirabile visu, those who can would revert to informing and educating the rest of us!