The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
It re-iterates buy with target price 1.2p
Great day all round for both WRES and ORM. I am invested in both. I have been a long time reader here but havent posted. Enjoy the varied conversations and topics. I look at my Orm investment that has roughly trebled in the last year and can only see Wres going a lot further over the next 12 months. The bottle of Vino will taste a lot nicer tonight!
Ah here we go again with the Troll Tungderman...... For anyone not familiar with him just ask some fellow investors over in WRES ( Troajan, K3VMC, Hartlepool bob amongst many) and they will enlighten you to the amount of drivel and rubbish that comes from this person and then in the end he ends up promoting his beloved Almonty.(PS i have nothing against Almonty) . He gets off in trying to discredit any Tungsten company that he is not invested in.
Last week he had a go at Oaktree ( who are managing over $120 BILLION ) and are in his words "shatting themselves" because one of our competitors Wolf have gone under. C'mon pull the other one!. Today it apparently takes 6 months to drain a pit :).... Your cracking me up! You should do standup.
Now i have the dilemma... Do i trust myself and the research i have done while also attending AGMs , speaking to people involved in the mine, reading RNS's etc etc over the last few years or do i listen to a known de-ramping troll. MMMMMmmm let me think! Anyway thats my last on the matter. I was just educating people in case they were not familiar with the person. No doubt i will get a scathing reply from Dungderman but am i bothered or will i reply...You guessed it. .Over and Out Baz .
It is re-assuring to know that Tunsgten prices do not correlate directly with the recent market turmoil. European APT prices actually ticked up slightly for the first time in a long while this week and Chinese prices also consolidated and went up. Weeks away from full commissioning and the first high grade new Tungsten mine to get up and running in years is ours. Hold steady everyone.In my opinion I can see the SP only going one direction over the next few months. Perfect timing!
The reality is that to meet demand a new mine the size of ours needs to "go live" every year. The fact remains that no new mines have come to the market over the last few years and now one of the major ones, Wolf, has left the market.
With the increased costs of production experienced in China they cannot afford to let APT prices fall greatly either. I read an article last year that said that China will not let APT prices drop below $270 due to these increased production costs. I waited to see if this would be the case when prices dropped over the last few months but there does seem to be a base price that has not been breached. APT prices in China are actually up $5 this week and this goes along with predictions that prices would re-bound slightly until the end of the year and then increase more in the first quarter of next year.
We are now a few weeks off full commissioning for this world class mine that has proven good grades of Tungsten, in Spain and with world class mining equipment. The work is done on this investment. It is just fully built and will be bringing product to the market in a short time frame. IMO the SP is only going to be going in one direction. Over and Out ..Baz
Sad news day for Wolf Minerals. Feel very sorry for Investors, Workers, local economy and all involved.
Just seeing on fastmarkets/metal bulletin that they are saying APT price momentum to accelerate in quarter 1 2019 due to new Chinese Inspections etc. Perfect timing IMO.
Just reporting back from AGM. A lot of positives and i am looking forward to production starting in a few months.
- Firstly the slight delay in starting commissioning is totally understandable when you see the size of some of the equipment going into the processing plant. It put any doubt that Oaktree might have delayed it because of APT prices out of my mind. With the massive supporting steel works etc its easy to understand why something of this scale pushed back full commissioning to December. Totally justifed.
- Again it seems like Oaktree/ Orm have got the timing right. A report, just last week from metals bulletin, predicts another spike in tungsten APT at the start of 2019 right when we are starting production. There will be more Chinese inspections etc and they predict demand to be up. Perfect timing again IMO.
- The Noble offtake agreement is still in place in case anyone wasnt sure. They did say that Oaktree are in advanced talks with them about amending one or two small things in the agreement ( basically improving it in my opinion) and that there will be an annoucement on this in the not too distant future. Definitely before production.
- They re-iterated that they expect the Tungten mined to be of very high grade. They also had results from when the mine was originally mined and this showed very high grades using techniques that were not as advanced as today. The expect high premium quality.
- Nothing too much that we we did not already know. Updated pictures and Drone showing how impressive the mine is. They said they thought it was a good idea to organise a trip for investors when the plant is fully commissioned.
Again they said , unlike a normal lender, Oaktree can be flexible when it comes to repaying back the loan.
Ormonde will be supplying 12/13% of non chinese tungsten once up and running.
The thing i like about everything was that it was a little boring.. This company do exactly "as it says on the tin". They delayed developing the mine until prices increased....Done. They agreed to build a mine in a specific timeframe and have done within two months of that timeframe and to a very high standard with word leading equipment....Done.
The next phase will be production and, in my opinion, the SP is only going in one direction. Baz out
I'm going to go to it. Will report back. Baz
AGM tomorrow. Should be positive and very interesting.
Yes Scotty. Have been with them a few years. In fairness they are good value. €2 per trade in Ireland + 0.058% on purchase, €4 per trade in Uk + 0.058%. I have a few mill shares here but i tried to top up with Degiro last week. They informed me that they have removed WRES from their platform for some reason. I am opening an account with II to top up some more. Can only see this SP going one direction.
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Degiro wont let me buy purchase anymore of these. I am in the process of setting up with a new broker so i hope Mr 3 mill stays around a few more days to keep the SP low.
Thanks for the replys. I will have a look at the different suggestions. I am based in Ireland.
Good luck to all here and on the trip. I have been fortunate to be up about 300% in Orm. A lot of the increase has come in the months nearing completion of the mine. I will remain in Orm but I am anxious to start increasing my holding here as i firmly believe this has fantastic potential. The one factor , above all IMO, is that i love that management have invested so much in it themselves. Once the 3m seller goes this will bounce very quickly.
Baz
Hi.. First time posting on this page but have been following daily for about a year now.
I have a few mill of these but over the last few days i have being trying to top up at full ask prices through Degiro. I got some on Monday but ever since my buys are rejected. I contacted Degiro today and they inform me that their internal limit has been reached for this share. Does anyone know what this means. The girl i was talking to was a little like " the computer says no ! ". I was only trying to top up by about another 500k shares. Baz.
I also believe that with a project this size that it is inevitable that there will be final delays- albeit only a small one.
However Oaktree have , and correctly, delayed the constuction process in the past so that this reaches production at the prefect time. Many are of the view that they will offload it once completed thus it is in their interests to do so when the plant is most valuable i.e. starting production when APT prices are high. I too believe APT prices will rise in the coming months after the summer lull. Chinese production costs have risen sharply over the last few years and along with continued environmental inspections means that China cannot afford for APT prices to drop much further. These increased costs, i believe, gives a certain protection that we will not see the really low APT prices again.
I know it was touched on before but if Oaktree do decide to offload it they will be looking to get the best possible return. I presume this will only be good news for us investors. All in my honest opinion. Baz.
New drone flyover on site also. Very impressive
Further Chinese environmental inspections starting on 20th of August. Will help W prices. Looking forward to next few months.
Agreed. The Photos on the site were updated a month ago back on the 17th/18th of July so there should be some progress since then. Looking forward to commissioning and hopefully before the AGM at end of Sept.
Gallery updated on Ormonde site also. All going according to their timescale.
The Sp is a steal at this price espcially when you look at the timeframe left. Dont forget Davys valuation is based on a 5 day working week and ORM have already said they may look to going 7 days( 360,000 mtu) as early as possible if climate is right. The climate is perfect! IMO