Ormonde Mining Share Discussion Threads

[dyfiman] 22/12/2015 14:30

ORM THOUGHTS at Christmas...........FROM WALES !!


YES......... the share price is dire

Yes....... there's not a lot the management can do

Yes....... at times I've felt like jumping out of the window.

BUT......... ORM has hooked up with Oaktree who are, apparently,
very pleased (having struck a deal much to their advantage)
and the plans to open a tungsten mine (With gold and
copper possibilities also, still stands.

SO.......... I don't know about you folks out their, but I'm holding on
and well prepared to be patient for up to a year as the better
option of selling up. that's because there is a good
chance that the plan in hand will work. It's just a time
thing (hopefully) as time is something I have.

SO.......... (for the last time), let's enjoy Christmas and retain
some optimism that management and OAKTREE can pull
a rabbit out of the hat.

FINALLY......Merry Christmas all Ormers still standing; particularly
the likes of Big Bobby, Steelwatch and Dolores who
have in the past flown the ORM flag with some passion.

END

[steelwatch] 22/12/2015 13:17

Looks like there is a distressed seller in Ireland:

[admiral jellicoe] 21/12/2015 20:31

Dropped 41% on de Iseq today. That should be it hopefully, we have hit bottom!I'm only looking at a 650% rise to break even!!!!Talk about loosing ones shirt!!!Thankfully I did diversify into other stocks which are still up, however I hope to buy more ORM next year, perhaps from February onwards.Commodities have been a bloodbath this year and de rout in oil may not be over yet!The carnage in China is a worry too.

[dolores123] 21/12/2015 15:01

The Tungsten price has ticked up!!!

[12vic] 18/12/2015 10:53

Not sure but no announcements or significant change in shareholders that have been published so probably continued lack of appeal across general mining sector. This type of movement unfortunately seems to have a larger impact on penny shares.
Have a look at Wolf minerals these are down from 15p in Oct to around 8p today. I haven't looked at their chart but imagine its similar to Orm's.
I guess the real thing is that anyone investing in Orm right now is contrarian to the commodity market and has to accept volatility and the impact this has on valuation. The risk is that we continue to see some downside short term , the hope is that we see the benefits when the mine is on line and market conditions change.
My strategy is to give this some time and see the mine develop, so will more likely hold or buy more if the opportunity arises. Having said that if an unexpected game changing negative is released by the company then I may well run to the hills. I am fortunate this is money I can afford to lose so this gives me some fexibility.
Probably no correlation with Orm but I'd imagine the start of US interest rate rises will begin to have additional impact on those struggling in the sector.

BTW I have been in contact with the Orm regarding some questions I asked about ways of keeping shareholders updated on the mine progression. Maybe some refreshed IR product coming in the new year.

[dolores123] 17/12/2015 15:58

Whats going on today!!

[admiral jellicoe] 15/12/2015 22:59

I must admit it seems we are living in very strange times. Commodities are all low, especially oil. At 35 dollars nobody is making any money producing the black stuff.Even S.Arabia which can produce oil very cheaply requires a price of about $80 to balance the nations books. Saudi Arabia has become so bloated that it requires about this price to pay the nations finances. When will the worm turn, who knows? However one thing for sure is that low prices cannot go on forever.I think oil will go back up in 2016,

[dolores123] 15/12/2015 22:35

Excellent news Steelwatch!.

[steelwatch] 15/12/2015 19:15

Rising, however imperceptibly

SP Angel today:

Tungsten - APT European prices $170–180/mtu vs $170–177/mtu – second price rise for over a month



See also:

[dolores123] 15/12/2015 19:08

Surely the price of a metal as rare as tungsten will turn up in 2016 and so lead to an upturn in the price of Ormonde's shares!

In the meantime the mine is being redeveloped for production.

[12vic] 02/12/2015 08:57

Bizana - thanks for the posting.
The longer Tungsten prices are low , the more opportunity for market consolidation . It maybe we see fewer producers going forward particularly in the Chinese market. I posted a piece a while back on China Molybendum - they've set up a reserve with the aim to buy 46,000 tonnes of Tungsten that's a 1/3 of China's 2014 production numbers. The thought process is that its cheaper to buy at this price than go to the trouble of exploration and actual mining. Presumably they have enough cash to do this and the current market costs are cheaper than their own production. I guess this might be construed simply as a massive bet on the price of Tungsten going forward. What it does do though is outline how low cost Tungsten projects are being exhausted in China. So a market leader looking to corner the market in terms of reserves,sends out a positive message in terms of perceived price rise. But when this might happen - we're back to guessing again.

hxxp://www.chinamoly.com/06invest/DOC/E_03993_A074.pdf

[admiral jellicoe] 01/12/2015 11:44

Not looking good there at all. I wonder what is share price Angel's take on Ormonde now?It's all geared to the current price of Tungsten, upside present as well.0.7pence puts it at approx 1 euro cent, am I glad I held off topping up, I'll buy back in when the share price hits rock bottom.I wonder when will Tungsten turn?

[dolores123] 30/11/2015 19:08

Davy seems to change its mind every 6 months - it once said ORM was valued at 21p if I remember rightly - if so how wrong are they!!

The Spanish authorities delayed this project for years and now we are at the bottom of the commodity cycle waiting for an upturn - the local community as well as shareholders are suffering.

[bizana] 30/11/2015 11:17

12Vic - this from Davy 26/11
Davy Research
Ormonde Mining
Resource Research Home Resource Ormonde Mining Davy View
While commodities currently attract little interest, an axiom of cycles is that ‘low prices tend to cure low prices’. In the case of tungsten, supply-side stress together with forecast steady long- term demand should in time result in higher prices. Timing is an imperfect science; however, even allowing for that, building a mine during a price slump is a much better proposition than building a mine at the top of, or on the wrong side of, the cycle.

Development is underway and on schedule
The Barruecopardo project, in which Ormonde now holds a 30% interest, is well underway and on schedule to produce a maiden concentrate at the end of 2016. The preliminary work for on-site water management will start before the end of the year with the larger elements of the development proceeding in the first quarter of 2016. Mining will initiate in a starter pit at the northern part of the historic workings towards the end of 2016.

Tungsten price is a challenge but looks to be unsustainable
The price of tungsten continues to disappoint and is trading at lows not seen for several years. With poor pricing visibility and liquidity, the market is difficult to read, but current price action appears to be a reflection of immediate weak demand (especially in several important end-markets such as oil and gas and mining) against a backdrop of inventory liquidation and the opening of new mines. However, supply-side stress is forming with mine closures in both Western and Chinese markets underway. Longer-term demand is forecast to grow at rates slightly higher than global GDP. If this is the case, the market will require continual investment in new capacity and will easily absorb new projects that are on-stream or due (as in the case of Barruecopardo). The timing of a price recovery is uncertain but is supported by cost curve analysis that points to a large element of production below current pricing, including the majority of Chinese mining enterprises.

Post-Oaktree, investment upside is still present
The post-deal shareholding structure of the now fully funded project reflected the very tough funding conditions that prevail(ed) in the market. While some disappointment was voiced with respect to the level of dilution, we believe that a 30% share of a viable funded project was as good an outcome as could be expected. Moreover, there is still upside (examined in more detail later) by expanding the mineralisation and running at higher mining rates. The stock is heavily geared to the tungsten price, all the more so if production rates are increased. Current tungsten prices deliver very low rates of return and generate a value per share for the project of around 0.7p. However, pricing that is more reflective of markets over the last ten years produces a discounted per share value of 4.0p (rising to 7.2p per share with more tonnes and greater output).

[steelwatch] 27/11/2015 10:09

I don't suppose there is a great deal to see yet on the ground vic. The last update was pretty comprehensive I thought.

"-- Focus of activities over next quarter is on placing orders for priority 1 and 2 equipment, agreeing Construction Management Contract, commencing water line installation, finalising water dams engineering, commencing environmental works, and continuing to advance compulsory land acquisition."
~
Steve Nicol - "Activities on the ground continue to gather pace as the Project moves towards a commissioning date prior to the end of 2016, and I look forward to updating shareholders on progress in the interim on a regular basis.”



However, several strategically positioned webcams and daily uploading to youtube, or something like that, should be simple enough to arrange. No doubt they will need site security personnel.

[12vic] 27/11/2015 09:47

Does anybody else feel that Ormonde / Saloro could do a better job keeping us updated ? It seems that a lot of the information coming out to investors is based around translations from Barruecopardo's local news papers. Positive in its own way but you can't help making a comparison with Wolf minerals and the live streaming / regular photo galleries that were provided during their development at Hermerdon.
In an attempt to address this I've made contact with Saloro and Ormonde I'll obviously post an update when I have one.

[12vic] 16/11/2015 14:50

Thanks for the update Contrarian. Also looking forward to the latest drilling results for the North pit extension. Barruecopardo is a much bigger venture than the current 9 year life estimate. Less than a km way is Valdegallegos , the Saturno pit previously mined for Tungsten but also with a 300,000 oz gold resource. The Bollo Tungsten pit which is also considered likely to hold a gold resource as well. These are all owned by Saloro as also are Dora, Marta and Can again gold-tungsten projects. When Ormonde trimmed their portfolio several years ago in a deal with Aurum mining they specifically retained all their Tungsten/Gold projects, releasing some of the Gold only prospects.
In terms of exploration we have barely skimmed the surface on Barruecopardo and its adjoining deposits. The focus is of course on getting the mine up and running but actually long term the prize may be much greater than originally thought.
The value of the Oaktree deal is that it makes all of the above tangible far earlier than it might have been had Ormonde chosen a different funding route

[contrarianinvestor] 15/11/2015 14:04

Another Spanish article from 6 Nov 2015, this article covers request for interest in jobs (110 direct, 200 indirect during construction phase) in the new Barruecopardo mine, a company called Randstad is tasked with creation and management of database of specialists job applicants

hxxp://marcaempleo.es/2015/11/saloro-crea-los-primeros-empleos-en-la-mina-de-wolframio-de-barruecopardo/#

Job Application link > hxxp://saloro.com/uf//RANDSTAD%20PARA%20SALORO%20150520.pdf


Google Translated
======================================
Saloro is already running the first works of Barruecopardo tungsten mine (Salamanca) because it has the administrative authorizations and continue forward with the reopening of the mine. This project will create 110 direct jobs and 200 indirect jobs in an initial phase extraction just comenzar.Los profiles that are demanded for the beginning of work in this mining are drivers, operators, administrative, mechanics, managers, electricians, assistants ....

Saloro is the subsidiary in Spain of Ormonde Mining Plc., An Irish company that operates in Spain. Saloro SLU intends to incorporate staff at all levels to develop the project Barruecopardo tungsten mine in Salamanca, Spain. The selection process for this project acba opened and from this link can access and send your application: Saloro

It has initiated the development of a database with people interested in becoming part of the initial construction phase of the project will be implemented by contractors selected by Saloro specialists. They have entrusted the management of this database expert HR consulting firm Randstad.
In case you are interested in register with the database, follow the instructions provided by following this link .

[12vic] 01/11/2015 08:09

Another article about Chinese Tungsten production. Again the theme reflects the different approaches companies are taking when they are unable to produce at current cost.
It also indicates that today's low prices are viewed predominantly as short / medium term.

www.miningreview.com/chinese-player-develops-appetite-to-dominate-global-tungsten-market-supply/

[12vic] 01/11/2015 08:06

Some interesting articles that give an insite to current mindset of Chinese producers.

www.asianmetal.com/news/data/1263181/Chinese%20tungsten%20concentrate%20market%20price%20on%20the%20decline

and Japanese Tungsten consumers.

www.asianmetal.com/news/data/1261628/Japanese%20consumers%20delay%20purchasing%20APT

Warning though the content might only be as accurate as the translation!!

[12vic] 29/10/2015 20:51

Very much so.

I'm not certain where, but read that the average Chinese Tungsten mine survives at around $165 Mtu. If prices are sustained at this level we should expect to see more fluctuation in supply.

The bright side of all this is that when money does return to the market, those that best weathered the storm will benefit first and take the largest investment share. This is why I think Orm will be well placed.

I don't believe there are many mines in production that offer similar mtu to Barruecopardo - albeit Orm's costs are on paper until we see first production.