Member Info for optimist13

Spac3y - the loans to EdS are in US dollars. This from the Sept 14 trading update: "The Energia del Sur (EdS) plant in Comodoro Rivadavia continues to trade at record levels and is reported to be the highest availability plant in Argentina. The strong cash flow from EdS has permitted the continued monthly repayment to Rurelec London of its outstanding US dollar denominated project loans in spite of the continuing excitement in international markets over Argentina's negotiations with the debt "hold-out" hedge funds."

This article is a few days old and mainly relevant to the oil and gas sector, but the last paragraph caught my attention: "In the electricity sector, the administration plans to gradually increase tariffs after more than a decade of virtually frozen rates in Buenos Aires and its suburbs that have undermined investment, leading to deteriorated infrastructure and frequent blackouts." http://en.mercopress.com/2015/12/16/argentina-outlines-oil-and-gas-wellhead-price-policy

Argentine minister 'satisfied' with the market response on first day without the dollar clamp http://en.mercopress.com/ So, the company can take $2m this month from EdS as part of the outstanding payments and interest from the loan if I have read the recent news correctly. Let's see what the company has to say when they get round to telling their owners how they interpret the changes.

No excuse now: http://www.buenosairesherald.com/article/205129/clamp-lifted-major-devaluation-looms Extract: "Starting today, companies and individuals will be able to buy foreign currency for up to two million dollars per month each and there will be no limits for importers. But the Central Bank will only sell them dollar reserves at a much higher price than it currently does, resulting in a devaluation."

Flightman - is KAMEL spouting his usual rubbish. Just put him on filter like other posters have done. From memory, he was stating that he is a shareholder and from Argentina. With his verbal abuse, he does the people of Argentina no credit, and I'll bet he is shorting more shares than the ones he purports to own.

Flightman - just a little more patience required. Remember, we have fully impaired net assets of £43m, and a current mkt cap of £4.76m. Our assets are saleable, and in Argentina even more so with the recent announcements.

I find it amazing that with the changes announced, the company has not made an announcement. We have over £60m invested in Argentina, with $40m of loans and a 50% stake in EdS. This from the half year report: ". Impairment of the Loans to Patagonia Energy Limited ("PEL") and Energia del Sur SA ("EdS") The Board of Directors have considered the value of the investment and loans in PEL and EdS which total £38.9 million and have undertaken an impairment review to assess their carrying value. This exercise has resulted in a £3.9 million write down of the value of the assets due to the deteriorating ability to receive repayment and servicing of the loans, which has led to a reduction in the valuation parameters. These parameters are considered by the Board of Directors at the balance sheet date to have deteriorated from the assumptions of the Board as at the end of 2014. The underlying power generating asset in Comodoro Rivadavia is profitable with US $3.8m EBITDA to 30th June 2015, however the Group's ability to realise value from this asset is severely restricted with little ability to receive repayment of principal and interest on the outstanding loans." The shackles are now off....tell us what the plans are in light of this company changing news.

The company can no longer blame currency controls in Argentina as a reason for not repatriating loan and interest payments from EdS. From what I have read this morning, there does not appear to be a limit on the transfer amount, and as the loans were in dollars, the devaluation of the Peso will not affect the overall value of the loan. We now need a statement from the company confirming the value of the loan and the outstanding payments and interest due and a time-scale for when it will be repatriated.

Another piece in the jigsaw: http://en.mercopress.com/2015/12/16/argentina-outlines-oil-and-gas-wellhead-price-policy Extract: "In the electricity sector, the administration plans to gradually increase tariffs after more than a decade of virtually frozen rates in Buenos Aires and its suburbs that have undermined investment, leading to deteriorated infrastructure and frequent blackouts."

http://en.mercopress.com/2015/12/17/argentina-lifts-foreign-currency-controls-and-let-s-peso-float-as-of-thursday "Argentina lifts foreign currency controls and let's Peso float, as of Thursday Argentina announced on Wednesday it was lifting currency controls and would allow the peso to float when markets open on Thursday, setting the stage for a devaluation, following pledges by new president Mauricio Macri for reforms to spur economic growth."

One step closer: http://www.bbc.co.uk/news/business-35114972 Extract: "Argentina has announced a relaxation of currency controls, the government has said, which experts say is likely to weaken the peso."

Flightman - sorry, but I don't subscribe to your theories about Mark Keegan or shares being bought by the same entities that may be buying the Sterling Trust shares. It is best to just wait and see what transpires. These things take time and we are talking about a significant amount of money.

Flightman - yes, it is frustrating, but I am not unduly worried. As each day goes by, the business outlook for Argentina and our assets there are improving. Whilst I have posted some of the links, there are many more positive articles out there and the lifting of the currency restrictions is key to Marci's plan to improve the economic outlook. Whilst I have no proof, I get the feeling that there will be a major announcement concerning the sale of the Sterling Trust 53% holding, the appointment of new directors and the provision of a new long term loan. Meanwhile, I continue to add. Even if the worst came to the worst, I believe a disposal of the assets would yield a much higher return to shareholders than the current share price.

Marci is moving fast: http://www.wsj.com/articles/new-argentine-president-mauricio-macri-moves-fast-to-reverse-kirchners-policies-1450227573 Extract: "The Macri administration has been negotiating with foreign banks to obtain billions in fresh financing, a break from the Kirchner administration, which boasted it had stopped borrowing money abroad. The government also announced it would cut subsidies that make utility bills here among the cheapest in the world. Axel Kicillof, Mrs. Kirchner’s former economy minister, warned Monday that raising utility rates could hurt the poor."

Leicesterboy - we are back to where we started from a few months ago, except we now have assets in Argentina which in my view are very saleable. The share price is a joke, valuing the company currently at circa £5.5m. The danger is that some entity could well buy the Sterling Trust shares and make a low ball offer for the remainder of the shares, which frustrated shareholders may well accept. The company need to give shareholders an update today as this is just playing into the hands of the MM's.

Not sure what the AIM rules are regarding having a designated Chairman/CEO, but common sense would say that you must have one to maintain a listing. Feel very confident we will receive one sometime today and it hopefully will give an update on the funding position. From all that I have read regarding the changes in Argentina and the pro business stance being adopted by Marci, I cannot believe that a solution has not been found, or will not be found before the short term loan is due for repayment at the end of the month.

Interesting development. This should allow for the rapid implementation of the policy changes: http://www.pulsamerica.co.uk/2015/12/14/argentina-macri-to-govern-first-100-days-by-decree/ Extract: This Saturday, newly elected Argentine President Mauricio Macri has decided to govern “by decree” for the first 100 days in office. Leaders from all national political spectrums are beginning to question how and why this controversial measure will be executed. While right and center-right bodies are defending the decision on foundations of policy “practicality”, center-left and leftist bodies are arguing unconstitutionality. Typically such degrees are implemented during crisis, as witnessed in neighboring countries such as Chile during natural disasters. Few could argue, however that Argentina has been facing an economic-political crisis in recent years.

jaf1948 - you did very well. I couldn't get a quote and even tried limit bids at 1.10. You must have just beaten me to the few shares the MM's were offering.

I should add that the trades below 1.25p were all sells. I have been trying to buy and checked the sell price several times and was offered circa 1.15p.

If my calculations are right, the MM's have taken a net 2.2m shares today, and they were not too keen to see many earlier. Let's see what tomorrow brings.