Member Info for optimist13

I see Merrex Gold were up another 9.52% on Friday.

Added a few more this morning. It is only a matter of time before the company announces a sale of one of the assets and the repayment of the outstanding loan. Once that happens you will not be able to buy the shares at anywhere near the current price.

Looking at the charts, we are in break-out territory. I can see this reaching the target price of 20p highlighted in the report very quickly. NAV 34p = no brainer in my book.

Does anyone know when the full year results are being released. I note from previous statements that the year-end was changed to the 31 December. Last year the final results were released just over 3 months after the period end. On that basis, the results are now overdue.

And still can't buy any online at the moment.

Can't buy any on-line at the moment at the asking price. With relatively few shares in circulation I expect this will move up very quickly on any positive news.

Added a few more this afternoon. This one is definitely under the radar and it is only a matter of time before more people see the value here. With such a significant discount to net assets, the first positive news of an asset sale will certainly highlight the disparity.

In all of the years I have been trading shares, I have to rate the timing and content of the RNS to be one of most poorly written that I have ever seen. It appears that the company has deliberately set out to make the update as negative as possible and neglected to given any information regarding the progress in Chile or Peru. Events continue to unfold in Argentina with the Court ruling in favour of the Government yesterday which paves the way for the issue of new Bonds which will see a raft of infrastructure initiatives implemented and new investors looking to invest as well. Reference is made to budget figures for EdS, but does anyone know what they are. I certainly do not remember seeing any or know what the repayment schedule is for last year or the current year. Mushroom theory prevails here and I hope the regulators are taking note. It will be interesting to see how the final report is written and whether the make further adjustments to the NAV. However, the RNS aside, there is still a lot of value in those assets and it is a lot higher than the current share price. We await the next instalment.

http://www.investegate.co.uk/rurelec-plc--rur-/rns/short-term-loan-facility-and-trading-update/201604131655181272V/

Don't have time to comment much today, but it appears to me that the directors are deliberately attempting to put a very negative spin on the performance. They state that EDS is meeting its third party obligations, but what about the monies owed to Rurelec for loans and interest. More from me tomorrow, but I have the feeling they are deliberately trying to keep a lid on the share price.

Jignasha_Patel- please accept my apology as I interpreted your post as inferring that IPSA were in administration. I do see a big difference between the influence Sterling Trust administrators in both companies by virtue of the shares they are disposing of in the respective companies. You are also correct regarding Sterling Trust's shareholding in Rurelec.

Jignasha_Patel, IPSA are not in administration. The administrators for Sterling Trust are looking to dispose of a minority stake in IPSA which is a completely different ball-game to Rurelec. For the sake of clarity, Sterling Trust hold 63% of the shares in Rurelec. It has been demonstrated on this board that posters who have divulged their holding, hold in excess of 5% of the shares. I feel quite certain that should an outside investor seek to acquire the shares, they would have control of the day to day running of the business and would quite easily achieve the 75% support from disgruntled shareholders if the wanted to exert a full takeover.

Sippman - thanks for your input, although I don't quite entirely agree with your view of administrators. The most important element to all of this,, in my mind, is the worth of the EdS investment. Last year the situation did not look promising with CAMMESSA not releasing payments to suppliers and the price of electricity being kept down by the previous administration in Argentina. Move the clock forward and you now have a completely different situation with investors keen to get back in to Argentina, wholesale and retail prices for electricity increased dramatically and funds being able to be repatriated. It is my view that the directors sought to take advantage of the Sterling Trust administration by attempting to force through a deeply discounted open offer before the full benefits of the changes in Argentina and the benefits to Rurelec could be realised. I do not trust the BOD, but invested here because of the disparity between the NA's and the share price. I am very comfortable that I will see a good return, but I feel for LTH's who , in my view are being stitched-up. I hope I am proved wrong, and whilst I expect to realise between 3.00p and 5.00p for my shares, this grossly undervalues the worth of the business in light of the changes in Argentina.

Brightonscot - yes, IPSA have certainly cleared the decks for their next move, but where is the money coming from. As I have posted before, IPSA is technically insolvent and has no hope of meeting its debt obligations unless it receives cash from Rurelec and completes a transaction for the remainder of the plant. Meanwhile, Rurelec have nothing to say, other than working capital is severely restricted. It seems very apparent that a deal is being worked in the background and I only hope that the administrators for Sterling Trust ensure that they receive a fair value for the 63% shareholding in the company. The administrators for Sterling Trust also appointed outside consultants to seek out potential buyers of the stake and I cannot believe that with all the positive changes in Argentina, there is not considerable interest in our 50% holding and loan book in EdS

GFD, the financial results for last year have to be released before the end of June. In the great scheme of things, that is not a long time to wait and apart from you and I, very few people are posting at the moment. Apart from the results, I am sure we have not heard the last of IPSA and they are on a tight time-frame to avoid being de-listed. Then there is the administrators for Sterling Trust who have been working with other specialists to secure the sale of the shares in both Rurelec and IPSA. All in all, I am sure there is a lot going on in the background and eventually we will get an update. Depending on what the company have to say will probably dictate the strength of feeling from LTH's to seek any remedies.

GFD, your comments certainly puts into perspective how ridiculously undervalued the company is currently.

we have two sells and the share moves up 10%. Are we finally going to hear some news?

The MM's appear to be doing their best to hold the price down. Can't buy any online at the moment at the quoted offer of 1.35p and the bid is virtually at the mid-price. A couple of more buys and we could see a decent jump in the share price.

The investments are starting to roll in now: http://www.businessinsider.com/r-fiat-chrysler-to-invest-500-million-to-revamp-argentina-plant-2016-4?IR=T Extract: "MILAN (Reuters) - Fiat Chrysler Automobiles will invest $500 million to revamp its Cordoba plant in Argentina where a new model will be produced next year. The new model will be launched in the second half of 2017 and, once fully operational, the plant will have a total production capacity of more than 100,000 vehicles per year."

I stated yesterday that our loans to EdS and PEL were at rates of between 10 and 15 percent. I have checked last years accounts again and I see the rates are between 8 and 18 percent. The accounts do not give a breakdown of the loans, but do confirm that the loans are payable on demand and that there is a first charge against the assets of EdS: "2The amounts owed by joint venture companies are interest bearing at rates of between 8 per cent and 18 per cent and are repayable on demand but are not expected to be fully received within the next twelve months. During the period the Group received $5.4 million from EdS in service of the amounts due. £8.6 million (2013 - £7.7 million) is secured by a first charge against the assets of EdS."