Amedeo Res Share Discussion Threads

[napoleon111] 17/7/2014 14:59

Iran Aims to Return to Shipping Market

Order of 10 Bulk Carriers From Yangzijiang Would Be First in Four Years

[napoleon111] 16/7/2014 10:14

"Fortescue Metals Group (FMG) is in talks to order four more VLOC bulker newbuildings, the company disclosed Wednesday. These latest ships are expected to be delivered in late 2017 and early 2018. Last month Fortescue invested $275m on four VLOC newbuildings in China at a yard later to emerge as Yangzijiang Shipbuilding. Fortescue chief executive Nev Power said he expects the four additional ships to cost about the same as the agreement struck last month. "Once the eight ships are delivered they will transport about 12% of the total ore Fortescue ships through Australia's Port Hedland."

[howdlep] 08/7/2014 10:03

a very tight spread at the moment 0.95/0.97p

[deepvalueinvestor] 07/7/2014 18:25

Good to see growing interest. Feedback was initially positive for tyru but AMED seems to be the one seeing the buying. I remain a buyer of both.

[nick9013] 07/7/2014 18:02

Multi bagger

[liquid millionaire] 07/7/2014 15:51

Hey guys an' gals can we all please give share_shark a tick up in the header as AMED is looking very bullish so should be 10-1 as opposed to 1-2

[davethechef] 07/7/2014 15:48

Also likely that Quatar Investments Corporation are looking to add, which again is encouraging, and should add to the share price Additional developments with MGR possible, I guess as well.
Lots to look forward to, with a long term view.

[howdlep] 07/7/2014 15:44

and of course we have a current target from Daniel Stewart of 2p, before any new contracts are announced.

[sirraman] 07/7/2014 15:20

Thanks for all the feedback guys...its really encouraging.

Not many sellers today...about time this re-rated upwards ..as the potential gets out. IMO any further contract gains in the next few months and/or dividend payment from MGR will take this above 2p...?

Sirra

[davethechef] 07/7/2014 13:22

Also, thanks to youngba from LSE

I was at the presentation too and can fully corroborate what Jam has posted.

A couple more snippets - although only minor:

Zafar apologised right at the start that Glen couldn't be there: "because he's in advanced discussions". He didn't say whether that was with PrimePoint or a different customer.

As I understood it - and I think this tallies with what Jam is saying - AMED's share of any nett cash outgoings related to the JV partnership just gets taken off their initial investment into the JV. SO AMED don't have to put in more cash in the meanwhile. I also calculated at the time from what Zafar was saying that AMED have enough cash-in-hand for two years of operation at the current burn rate.

They had won the existing rig contract in competition with nine other yards - which is brilliant news in terms of their potential ability to convert existing discussions into firm orders. They are in discussion with potential clients from Europe, Far East and Asia. Prospective clients are 'crawling all over' their existing build - ie on site inspections of the WIP and, given the very positive response from the existing client WRT quality and the fact that they are on schedule etc can again only be good news.

Yes - can confirm that Zafar indicated 10% profit on existing order but they would be looking at 20% on future orders now they are establishing their bona fides.

Zafar did quickly run over the capacity of the new yard once it is completed - details are probably on the website but I haven't rechecked lately - but I didn't have time to write it all down. Anyway it was massive in terms of the number of semi-subs, jack-ups etc etc that could all be built at the same time. This is where the point Jam made WRT materials costs becomes hugely relevant: Zafar specifically said that the steel suppliers (clearly the most significant raw material cost) supply on credit and do not get paid until the rig builder gets paid. Nice!

I did ask the question as to what %age of MGR AMED would own if they were to convert all of their convertible loan. As far as I understood it Zafar said that the %age they owned would be unlikely to increase because the majority shareholder in MGR, as a private company, would just increase the shares in issue to compensate.

And, yes, the PrimePoint orders are NOT dead. Detailed discussions still progressing and could be 'months' yet before final confirmation - or cancellation of course.

I think it's perhaps mentioning in closing that Zafar came across as a very genuine, fairly unassuming, open and totally credible guy. A couple of the other guys presenting were maybe just a touch too slick and script-driven, but not so our man from AMED.

I hope this helps put just a bit more flesh on the bones of Jam's post but basically it's ...'Yes, wot he said!'

[puku] 07/7/2014 10:54

I was also with Zafar at that post presentation chat. Dave has summarised it very well. His 50% chance on a new rig order was "tongue in cheek" but believable, and there are other rigs up for grabs. Add that Zafar said the yard could deal with 10 rigs plus other stuff all at same time. I was worried about working capital but he said Amadeo would not need to put up any moneys. Once the first rig is finished then 18.58 % of revenue/profit accrues to Amadeo, although as an associate (of VZJ) he wasn't sure how the accountants would treat it..Gob-smacked when I looked at share price on Friday, DAMN - but bought in at 94 p early this morning as I think this one could be a Biggie..

[nick9013] 07/7/2014 10:48

Indeed it is

[loverat] 07/7/2014 10:44

This looks like it is going places now.

[howdlep] 07/7/2014 09:42

1p paid...

[howdlep] 07/7/2014 09:19

yes and so good to see management wanting capital growth rather than looking to dividend payouts. Always a far better use of money to invest in a growing business

Amedeo Resources Strategy



Investment Strategy

The Company's Investment Policy is to invest principally, but not exclusively in the resources and/or resources infrastructure sectors, with no specific national or regional focus. The Company may be either an active investor and acquire control of a single company or it may acquire non-controlling shareholdings.

The proposed investments to be made by the Company may be either quoted or unquoted; made by direct acquisition or through farm-ins; may be in companies, partnerships, joint ventures; or direct interests in resources projects. Target investments will generally be involved in projects in the exploration and/or development stage. The Company's equity interest in a proposed investment may range from a minority position to 100 per cent ownership.

The Company will initially focus on projects located in the Middle East and Asia but will also consider investments in other geographical regions.

The Company will identify and assess potential investment targets and, where it believes further investigation is required, intends to appoint appropriately qualified advisers to assist.

The Company proposes to carry out a comprehensive and thorough project review process in which all material aspects of any potential investment will be subject to rigourous due diligence, as appropriate. It is likely that the Company's financial resources will be in vested in a small number of projects or potentially in just one investment which may be deemed to be a reverse takeover unde the AIM Rules.

Where this is the case, it is intended to mitigate risk by undertaking an appropriate due diligence process. Any transaction constituting a reverse takeover under the AIM Rules will require Shareholder approval. The possibility of building a broader portfolio of investment assets has not, however, been excluded.

The Company intends to delivery shareholder returns principally through capital growth rather than capital distribution via dividend. Given the nature of the Company's Investing Policy, the Company does not intend to make regular periodic disclosures or calculations of net asset value.

[fairlight] 07/7/2014 09:08

Amazing what a bit of PR can do - maybe more will see the potential in this company

[howdlep] 07/7/2014 08:55

another little tickup. Watch that volume arrive in a rush (if the mm's can fill those orders with such a low free float) on a break of 1.1p...

[davethechef] 07/7/2014 08:51

Well, I guess you need to register with proactiveinvestors.com!

Sorry, won't allow link. Maybe on Amedeo's website now, the presentation, I haven't checked. GLA

[howdlep] 07/7/2014 08:41

0.98p now being paid. A break of 1p coming up. Then the all important break of 1.1p...

[howdlep] 07/7/2014 08:39

thanks for that DaveTheChef,

and of course with a yard very near completion, what a great time to be showing around potential new customers...

[davethechef] 07/7/2014 08:31

Below is thanks to Jam4u take on his attendance at the Presentation, posted on
LSE
'So, firstly Zafar Karim the Executive Director presented. A link to the slides he used are above. I dont think everything cna be mentioned as some was quite detailed and technical inits nature. But here goes my main takes: - The $1.8Bn order for Semi-subs is not dead and in fact talks are continuing. The issue is that the customer needs to meet the conditions precedent for it to be formalised. Some of these are yet to be met. Talks are continuing. Zafar went as far as to say that the announcement should never have leaked and that it was the time of the Chinese New Year and someone from YZJ had been 'celebrating' and blurbed it our oh I mean mentioned it to a broker who was at the party. - The presenter asked Zafar whee there any other orders expected. Zafar's response and reaction was very interesting. He paused, smiled and basically said that a number of discussion were happening right now. And while nothing is ever guaranteed that they were hopeful. He also emphasised that the nature of these types of deals in their very nature are that they take time (many months) to negotiate. I cant remember if was in the same response but at one point Zafar also said that Glen Lau was supposed to be there to present himself but that he couldnt as he was at a very critical and sensitive stage of negotiations. To me he implied a contract was very close to being confirmed. - The yard should be fully completed and ready in Autumn of this year - He emphasised the capacity of the new yard and also at the same time the long lead times for each rig build. But that with a new yard coming on line, the market for drill rigs is very healthy that they were positioned to take advantage. (My summary). - He also made light of the importance of the link with the biggest shareholder (Qatari) and Glen Lau in the rig building business. - If a rig wasnt paid up by the time it was built then it is of no issue as they would then plan to rent it out at circa $200k a day. They do not incur a cost as the rig is built as the way the materials are procured is that it is on credit and as payments are received then that is used to pay the debt off. (ie. no cash flow cost to AMED). - MGR Resources; Nothing new here really and he mentioned again that they are looking to get into supplying the metals for rig build and ship builds. They are also in talks to increase the amount they broker for. - He doesnt see a need to raise further monies any time soon. Basically, its as we all know, One order and this will go BOOM! That in my opinion is not too far away. The fact that the yard will be ready soon says to me that they will have one or two things to crack on with. Oh and the firts order typically is at 10% margin then after that they are 20% margin he said. Interesting few weeks and months coming me thinks!'

[davethechef] 07/7/2014 08:26

Presentation, from Thursday

[...]


Looks like Quatar Investment Corporation wants to increase. Below snippet taken from above.

'Amedeo's largest shareholder is interested in increasing the value of its stake rather than maintaining its percentage stage.'

[howdlep] 07/7/2014 08:19

and of course with such a low free float (19%) the chart technicals can rapidly advance as mm's try and attract sellers to fill buy orders...

[howdlep] 07/7/2014 08:14

MACD about to go positive and a golden cross likely in a week or so. Some like to wait for technicals to occur, others believe real profits are made with a low entry price...

[howdlep] 07/7/2014 08:06

a nice buy at the bell. Now lets break the 1.1p area and watch that volume and momentum pickup...