Member Info for optimist13

The process has started: http://www.12newsnow.com/story/30739924/argentine-president-eliminates-some-taxes-on-agricultural Extract: Argentine president eliminates some taxes on agricultural

The MM's dropped the price but you couldn't buy any. I put limit orders in at the asking price, but they wouldn't fill them. Good news due very soon IMHO.

I believe Mark Keegan's position became untenable given the open offer fiasco and his close links to Sterling Trust. So, we are left with Simon Morris whose CV looks very solid. I expect we will hear further announcements either today or tomorrow.

The plot thickens!

jaf1948 - I believe the political change in Argentina is going to be the the catalyst for the change in fortune of Rurelec. When the currency controls are lifted/eased, this will allow the company to repatriate the outstanding loan payments and interest from EdS. Once the company has access to capital, the developments in Chile can go forward. With net assets of circa 8.00p, people fortunate to have averages around the current share price level have every right to be optimistic. The company had been priced to go bust, but I'll bet nobody would take a bet on that happening now.

The drum beats louder: http://www.cnbc.com/2015/12/11/goodbye-fernandez-hello-macri-for-investors-no-more-crying-for-argentina.html Extract: "We think that his comments are steps in the right direction and indicate pragmatism, in that they seek a solution to economic problems while addressing restrictions imposed by social, political, and economic realities," Barclays Investment Bank economist Pilar Tavella wrote in a note to clients last week. Barclays expects that currency controls "will be fully dismantled after some replenishment of central bank liquidity."

Flightman - thanks for the link. I have been busy elsewhere today. Great news.

I think it is right that the company do not make comment about EdS until there is a formal announcement from the new government on the lifting/easing of the currency controls. However, it seems to me a certainty that this will occur, which will be hugely beneficial to Rurelec and will solve the capital constraints in one fell swoop if the £10m can be repatriated.

They are still saying it: http://www.wsj.com/articles/argentina-inaugurates-president-mauricio-macri-1449788730 Extract: Mr. Prat-Gay previously said the government would eliminate a burdensome system of currency controls “as soon as feasible.” Mr. Macri’s advisers also said his administration will cut income taxes for lower-to-middle-income workers, seeking to boost consumer spending before a devaluation that is widely expected to accompany the elimination of currency controls.

The pieces are falling into place: http://www.independent.co.uk/news/world/americas/argentina-s-painful-transition-mauricio-macri-faces-contentious-start-to-his-term-as-president-a6767186.html Extract: Mr Macri’s choice for finance minister, Alfonso Prat-Gay, said earlier this week that a devaluation of the Argentine peso would possibly happen as early as 14 December, entailing a lifting of existing currency controls. “The programme to unify the currency market is the first signal for the economy to start to normalise,” he told Argentinian newspapers.

Very interesting comment from J P Morgan today: http://blogs.barrons.com/emergingmarketsdaily/2015/12/09/argentina-stocks-bonds-to-buy-as-economic-pivot-begins/ Extract: "Argentine equity markets have underperformed, as investors likely anticipate ARS [Argentine peso] devaluation. Stocks have fallen by 8.9% in USD terms since the November 22 elections. Telecom Argentina (TEO) and YPF (YPF) are among the biggest losers in the equity markets, and we believe that highly distorted sectors such as utilities and agriculture will present better opportunities."

Apizzie - Rurelec's largest asset is in Argentina. The assets consist of a 50% stake in a profitable power generation company - EdS, and loans to EdS for the construction of the facility. The problem is that the company has not been able to access repayments from the loan or interest, or indeed profits from EdS because of the current currency restrictions that have been in place in Argentina. The new president of Argentina, who is being sworn in today, has promised to remove the currency controls. This should mean that Rurelec will be able to access some/all of the monies owed. This is vitally important to Rurelec due to the current severe constraints on working capital. I would suggest you do your own research as this is a high risk share, My own view is that even in administration, the shares in Rurelec are worth far more than the current share price. If the company gains access to the funds and can fund the ongoing development of its other assets, the shares have huge potential. The stated net assets per share at the half year were 7.8p.

Marci is moving quickly: http://en.mercopress.com/2015/12/10/macri-s-candidate-will-head-the-central-bank-from-the-first-day-vanoli-resigns Extract: Macri's candidate will head the Central bank from the first day; Vanoli resigns Argentina Central Bank President Alejandro Vanoli resigned Wednesday under pressure from President-elect Mauricio Macri, who plans to remove currency controls with reserves standing at a nine-year low.

Argentina are 3 hours behind us, and the ceremony takes place at around noon - I think. Not really expecting to hear anything on the wire until this evening/tomorrow morning. Assuming Marci delivers on his election promises, we will then need to give the company time to analyse the implications. The short term loan is due to be repaid by the end of the year and as long as we have an announcement by then, I am happy to wait.

Here we go: Argentine bank governor bows to pressure for resignation http://www.ft.com/cms/s/0/800b0b4e-9ebd-11e5-b45d-4812f209f861.html#axzz3ttyIhSLI

It just gets better: http://en.mercopress.com/2015/12/09/malcorra-does-not-discard-a-trade-agreement-with-us-obama-could-visit-argentina-next-year Extract: "Malcorra also revealed that relations with the US are very fluid and did not discard an official visit by President Barack Obama to Argentina sometime next year. ”Dialogue (with the US) is fluid. It is the number one country in the world in terms of economic power and strategic positioning. (Macri) had a very good first conversation (with Barack Obama)” said the minister designate adding that “there are strong signals from the White House that President Obama will come to Argentina next year.”

It will be interesting to see if the following happens tomorrow: http://www.bloomberg.com/news/articles/2015-12-07/fernandez-bickers-with-macri-over-argentina-transition-ceremony "President-elect Macri, who takes office Dec. 10, pledged during the campaign to remove import restrictions and currency controls and let the peso float freely on his first day in office. He won the November 22 elections with 51.4 percent of the vote against 48.6 percent for the ruling party’s Daniel Scioli, ending 12 years of leftist ruling led by the late Nestor Kirchner and Cristina Fernandez de Kirchner."

The sale of the Hydro in Peru completed on the 17 July 2015, and the outstanding proceeds of $1m were to be paid in due course. To my way of thinking, the company would have had to release an RNS if the money had not been paid. GFD, would you consider a period of 5 months to be outside the definition of 'due course'.

There was a £3.9m impairment of the loans to Argentina included in the half year results. IMHO, once the currency restrictions are lifted, this impairment can be reversed. If I am right in my assumption yesterday, then, because the loans are in USD, then the value of the loans will not diminish following any devaluation of the currency. Adding back the impairment figure of £3.9m gives a NAV of 8.4p, using the interim results as a guide. Still a long way to go before any value is restored here.

As you say, the buy limit has dropped to 50k, yet there have not been any trades since 09.17. It does make you wonder if there is positive news about to land.