Member Info for optimist13

Just placed a limit order to buy 80k shares. I wonder if it will get filled.

Can't even buy 10k shares at the moment. I think we could see a decent increase sooner than we think.

It doesn't take much to move the price up.

I don't think the MM's know what to do with the share price. When the company announce the sale of assets and the repayment of the loans and outstanding creditors, the share price will move to a completely new level. Not sure what that level will be, but it will certainly be a hell of a lot more than it is today. We are still priced to go bust, but a read of the interim report and the 'tone' of the directors comments, certainly gives me the impression of a company that is on its way back up. Adding back the impairment charges for EdS and the NAV is circa 10p.

Well, not long until we get the next announcement regarding the sale of some assets and the repayment of the short term loan which is due for repayment at the end of this month. With the reduction in overhead costs and general expenses, the company achieved close to break even at the operating level. The easing of working capital at EdS should allow for the repatriation of higher levels of overdue finance and interest repayments in the second half of the year and could signal the return to a positive working capital position.

News Rurelec Swings To Interim Profit After Keeping Tight Rein On Costs LONDON (Alliance News) - Rurelec PLC on Friday said it swung to a pretax profit in the first half ... Alliance News30 September, 2016 | 11:30AM Email Form LONDON (Alliance News) - Rurelec PLC on Friday said it swung to a pretax profit in the first half of its financial year and said it continues to focus on keeping costs under tight control. The electricity utility posted a pretax profit of GBP2.0 million for the six months ended June 30, swinging from the GBP14.1 million loss reported a year earlier, despite revenue dropping to GBP116,000 from GBP620,000. Rurelec said this came after one-off charges incurred a year earlier, relating to provisional write-offs and impairments on its Argentinian and Peruvian projects, did not repeat. The company said its 50% owned Argentinian operating entity Energia del Sur was now operating well at a local level, though it had been subject to increases in its working capital requirements. These have begun to ease within the past month, Rurelec said. Meanwhile, in Peru, the projects owned by the company continue to be actively marketed, and interest has been shown by a number of potential purchasers. A "very tight rein" continues to be maintained on overheads in the UK Rurelec said, leading to a reduction of more than 50% in the first half when compared with the prior year period. Administrative expenses fell to GBP1.2 million for the six months to June 30, compared with GBP2.3 million a year earlier. Rurelec said its focus remains on stabilising its financial position, keeping costs under tight control and selling some assets. Shares in Rurelec were up 8.8% at 1.22 pence on Friday. By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland Copyright 2016 Alliance News Limited. All Rights Reserved.

Just to clarify. The full year accounts state that the impairment on the loans are £13.3m, and the impairment on the investment is £8.2m.

I thought it was interesting that Simon Morris made reference to the outstanding loans loans and interest to EdS before impairments. I could do with a little help from an accountant, but as far as I can make out from the final results last year, the book value of our investment in EdS has been impaired by £21.5m. That is 3.8p per share. I am curious as to why he put up the pre-impaired value when previously it was all about writing the investments down. Why would you want to highlight the huge write-offs unless you wanted to make clear what the actual original investment cost was. Would appreciate another take on this. TIA.

Morning jeddicat - I would agree the news this morning is worth far more than the current lift in the share price. I think some of the wording used in the release today is far more positive than of late and I suspect that an asset sale must be 99.99% certain which will transform the balance sheet. They state working capital is improving at EdS which should mean we will see more funds being repatriated in the second half of the year. It could be wishful thinking, but today's report feels like a turning point for Rurelec and maybe the future prospects will be a lot better than many people thought a few months ago.

A bit more optimism. In the notes to the accounts regarding other reserves the company makes the following comment: "The Capital Reduction that took place during December 2014 resulted in the creation of a non-distributable reserve. The condition for this reserve to become distributable is for the outstanding creditors in December 2014 to be settled. At the date of approval of these accounts there are some £1.6 million of these creditors outstanding. The Board of Directors consider that these amounts will be settled in the short term and therefore the £45 million remains within the Other Reserve, which is non-distributable until these settlements have occurred." Now, how long is short term

I suppose this constitutes optimism compared to the previous downbeat comments: "The company is operating well at the local level however it has been subject to increases in its working capital requirements which restricted its ability to make repayments of outstanding loans to the UK. Within the last month the working capital requirements in Argentina have begun to ease. The Board is also expecting to appoint a consultant in the near future to help improve our dealings with the Argentine operation." So, we are now owed £37.5m from EdS, prior to impairments. Makes a joke of our current mkt. cap.

I see we are still awaiting receipt of the $1m from the sale of the Canchayllo assets. That will certainly help with the cash flow.

Yes, and the report actually sounded marginally upbeat. I wonder where the MM's will take the share price today....anybody's guess.

Friday mornings are normally quiet on the news front, but will this Friday be the exception with Rurelec. Literally any decent news should see a significant uplift to the share price, given that they are currently priced to go bust. MM's still happy to take shares at the moment and the buy price remains at 1.34p. I haven't ruled out a suspension and take-over offer being tabled on Friday, but at least we know we are going to get some sort of update along with the interim report...hopefully.

Patience, patience. I would imagine the interim report will be released on Friday, the last day of the month. In previous years that is the day it has been released. The big question is, will it include details of any disposals and the amount of funds that are now being repatriated from Argentina. It will also be interesting to see what the overhead costs are now given the reduction in staff numbers and grossly overpaid previous directors.

Missed this from earlier in the week: http://en.mercopress.com/2016/09/20/general-electric-pledges-us-10bn-in-argentina-over-the-next-decade Extract: GE said its investment will help build seven power plants that will add around 1 gigawatt to the country’s electric system. The figure includes the US$350 million GE has already decided to invest alongside state-controlled oil company YPF to build plants in the Neuquen and Tucuman provinces.

jeddicat - Peter Earl is a director of IPSA and he stated that he was looking/hoping to do a deal with Rurelec on the balance of plant in IPSA to pay off their creditors and enable them to complete a reverse takeover. Some investors here thought that it would be an attempt by him and his cronies to get Rurelec on the cheap. Events have now moved on, and IPSA has now de-listed from AIM as it was unable to complete a transaction in the required time-frame. Disappointing for IPSA shareholders, but in my view, very good news for Rurelec shareholders As I have said previously, I think the administrators for the Sterling Trust block of shares are now calling the shots at Rurelec and will want to maximise the return to the creditors of that company, which just so happens to be in the best interest of us lowly PI's. News is due very soon, but I believe the assets in Argentina and elsewhere to be very saleable, and given the current NAV compared to the share price, anyone investing at the current level should see a very good return.

Feeling quite relaxed about this share at the moment. The news coming out of Argentina is very positive for business and we know we have a very efficient plant there, which can be enlarged. We have a first charge against the assets of EdS, which gives us a degree of leverage to obtaining the payment of the outstanding loans and interest. When you consider how much money the company has invested in that plant alone and then add in the value of the other assets, I believe there will be considerable interest in a deal which will be beneficial for shareholders. The company cannot raise any further funds via a share offering currently, so it is just a case of waiting for the announcement. I have steeled myself for the possible delay in the publishing of the interim report, but I believe it will all be done and dusted by the end of October when the short term loan is due to be repaid.

It is all sounding rather positive: http://en.mercopress.com/2016/09/15/bp-really-encouraged-by-argentina-interested-in-increasing-investments Extract: BP “really encouraged” by Argentina, interested in increasing investments British Petroleum is looking to increase its investments in Argentina after seeing “tremendous change” in the country since President Mauricio Macri took office nine months ago, CEO Bob Dudley said on “Bloomberg Markets” this week. Argentina just “feels different,” Dudley told Bloomberg's Erik Schatzker at the inaugural Argentina Business Investment Forum in Buenos Aires.

Good morning GFD. Yes, it is very disappointing for IPSA shareholders. It makes you wonder what the Sterling Trust administrators now make of PE and his cronies, given that Sterling Trust hold a significant number of shares in IPSA. Rurelec is now the only real asset that Sterling Trust hold and I am pretty sure the administrators will be keen to extract maximum value for the creditors of that company.