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Ormonde Mining Share Discussion Threads
Showing 6401 to 6425 of 6425 messages
|So some options for the management and close to the current price range. Interesting to see the take up should we have a price rise.|
|Markets are in a funny place.IMO|
|Very interesting Gosoftly. To be honest I hadn't realised the situation at Wolf had reached this stage. Not a shareholder but had followed previously. Have just read their most recent RNS's.
I agree with your point about the Oaktree financing and although I was not a shareholder at the time, its clear the effects were significant for longer term shareholders. Hopefully some were able to average down on last years low prices. The package we are left with does look robust in comparison with other funded projects. Our partner being the debt provider also provides an additional sense of security.
The other company that I wonder about is Almonty. Many here have probably followed them after their attempt to buy out Orm . They quickly moved on taking positions on other projects building share in the tungsten market. Although they have working properties, they have borrowed heavily in various forms to make their purchases,I haven't researched the financial position, possibly they are more secure than some of the others you mention. They recently pulled out of a proposed deal to buy ATC Alloys but again have not researched the circumstances.|
|Orm through the equity and the debt facility have close to USD 90-100 million. To get the operation up and running will cost close to USD 60-70 million - some of this being VAT which will be reclaimed. So that is access to a whole lot more finance than they need.
If you look at Aureus with New Liberty, started-up but had start-up problems and shareholders have lost virtually everything.
If you look at Wolf with the Hemerdon project, they got up and running and had issues and now have had to suspend trading on the ASX because they can't meet a debt repayment obligation - outcome for current shareholders not yet known
If you look at Diamondcorp with the Lace mine, they have started to ramp up but have hit problems and have said that they need more financing, what form this will take is not yet known and the effect on current shareholders is unknown.
I think DCP have a good mine which will make money and then a lot of money once they really get going, but getting over that line is hard.
ORM have raised and have access to a lot more than they need with their forecasts, but they may well need it.
I think we gave away to much for the financing, but at least the financing looks very robust in comparison to the above three mines which had just enough to get over the line and any issues hiccups have been costly.
Fingers crossed that the land issues are resolved in good time and we are able to hit the schedule.|
|Very comprehensive Vic makes sense
Just read the announcement outlook seems strong and reassuring to me and confirms what l have already gleaned.|
|Just to add to Steelwatch's last post.
"As part of the Project Financing, OCM Tungsten Holdings will, pursuant to the Facility Agreement, provide to Saloro a 5 year USD 55.5 million term loan facility, at an overall interest rate of 12% per annum. The purpose of the loan facility is to fund the development of Barruecopardo and once completed to fund the working capital requirements of the mine and related group companies, including the cost of investigation of an underground mine at Barruecopardo and potential satellite deposits which may provide additional ore to be processed at the Project. The Facility Agreement allows the Barruecopardo JV Board the flexibility with respect to repayment of principal, allowing Saloro to accumulate cash, if appropriate, enabling the potential for such cash to be applied for the fast track development of an underground mine. The Facility Agreement also allows Saloro the option to make distributions to its shareholders during its term."
So the key points for me are:
1. Ormonde will only pay for 30% of this debt.
2. It's not clear we will need to borrow on the whole facility. The other 44 million should go a long way first. I do not believe there has been any draw down at this point. All indicators to date are that we are running under budget.
3. The terms are flexible. Allowing delays in repayment , distributions to shareholders etc.
4. The Senior partner is the lender as well as the holder of the majority of debt and they have already demonstrated their own flexibility around timings of project additional debt discussions.
5. The package covers development , operational costs and exploration going forward , this should limit company dilution for Ormonde.
Seperately - If you are buying into Ormonde at the current share price you are still significantly at discount to Oaktree's investment cost and that of most of the larger shareholders + you have the added value benefit of progress made over the last year ( positive underground drilling results / commencement of development works ) and reassurance that the permitting issues compulsory purchase are coming to resolution.
Of note Aurum mining had their AGM today so we may have news on plans for the other JV gold projects soon. Aurum recent placed for new funds so maybe in a position to commence further work.|
|Management seem to know what they are doing|
|Admiral - the point is that the flexi-loan is to Saloro, not Ormonde Mining PLC. This is all explained in the EGM Circular link I posted above. The Barruecopardo JV company now owns Saloro
so 70% of the loan is, in effect, Oaktree lending indirectly to themselves.|
|Thanks admiral very comprehensive|
|Building development companies (BDC) charge high rates, but they can also pay big dividends to shareholders, one example would be Prospect Capital Corp, pays about 11% dividend / year etc. New York Mortgage trust is another.I don't know Ormondes exact details but they could be paying 12% on what they draw down, and perhaps 5% on what is available to then. We discussed this before when Oaktree came on board first etc.Ormonde only require 45 million to get phase 1 up and running, perhaps less. In addition I think they had a review of the contract given the oil price crisis and market conditions etc.Management seem happy with the deal, so let's see what happens!|
|spooky - who pays the 12% please and on what amount?|
|Nope, i was quite interested until i found out they were paying 12%, that makes it a non starter for me.|
|hazl - the full monty:
Think spooky is trying, somewhat clumsily, to spook us, LOL|
|Cannot post or research easily today but experts here sure to reassure l imagine though nothing is risk free imo|
|Does anyone have any thoughts on the fact that they are paying 12% on any money they get from Oaktree Capital?|
|Found info about prices in next five years vary|
|On iPad so difficult to post but thanks vic|
|Hazl thanks for posting the sciencedirect document. I had not seen this previously. Very interesting to compare the feasability studies across the 5 projects.|
Steelwatch vic,this seems very helpful to me,relatively new to this company.
The outlook looks very interesting.
Various application,hardmetals,tool,roads,aviation and so on but of course incandscent lightbulbs less demand though still used in China.
A big problem seems to be illegal smuggling over there.
There seems to be a significant difference in demand between the different countries and regions as well.
|ORMONDE is mentioned above....interesting charts showing tungsten demand over next five years|
|Interims on Friday according to Morning star.|
Very very interesting about the central banks America and so on.........
|Excellent 12vic worth posting again perhaps?
Especially the initial one?|