Oriole Resources Share Discussion Threads

[geotrav] 02/6/2022 15:21

The current management and board were not even engaged when all this happened, they’ve been picking up the pieces ever since, yet you seem to want to blame them somehow for the crash? They only joined through 2018, after Engelbrechr was let go.

Odd…

[tadtech] 02/6/2022 10:15

This chart shows the decline in value since Mr Englebrecht was appointed on 1st September 2016, the shares were 1.9p on that day and rallied somewhat weeks after.

By requisition RNS day the share price had already dropped to 1.15p - a 40% drop under Englebrecht's tenure, market not happy about the proposed Crusader deal.

Between requisition RNS day and the meeting NO VALUE was lost, the share price stayed in a 1.1p to 1.2p range.

The company re-appointed the ex CEO (Bob Foster) as a stand in from November 2017 to end February 2018.

On March 1st 2018 Tim Livesey was appointed, the share price was .95p but never rallied, the rest is history, the shares are now .24p - a loss of 75% under his tenure.

These posts hopefully demonstrate the loss of shareholder value was NOT caused by the shareholder requisition as some will have you believe.

[tadtech] 02/6/2022 09:44

The company line has always been that it was the shareholder requisition in 2017 that destroyed value, not so.

The loss of shareholder value was caused by the disastrous reign of Marcus Englebrecht who wanted to acquire a near bankrupt ASX listed exploration company for £32m payable in 2 billion new Stratex shares, it would have left existing shareholders with only 19% of the company had the deal progressed.

Management has never ever accepted the deal was a lousy one, the directors of that company (Crusader Resources) would have all been retained on combined salaries of around £1.2m.

Such were Crusader's financial woes Stratex had to loan them around £1.5m, when the deal was voted down by STI shareholders, Englebrecht removed from the BOD, their market value fell to circa £5m as their shares collapsed to 7c, a far cry from £32m.

Eventually Crusader had to sell one of their two gold projects for a mere £300k, clear clarification that the proposed deal significantly overvalued the target.

The twist turned further as once Mr Englebrecht was removed from Stratex he joined Crusader (the target company) as CEO, he failed again, their shareholders called requisition meeting - he was removed.

In conclusion the proposed deal was poor, management has defended the acquisition to the hilt blaming Stratex shareholders for the loss of value, not true.

[observer007] 01/6/2022 20:16

In my view the market has majorly punished the company for failure to deliver on claims made over the legacy assets, this failure has lead to significant dilution since.

The BOD suggested there would be asset sales early into their reign, they also said that they expected to recover cash (was it $2m) from the Turkish legal claims, nothing has happened except they sold the Tembo Gold shares for £170,000 when 18 months later the stake could have been sold for £1m+

To add fuel to the fire the CFO then made a extraordinary statement recently concerning dilution, he feels this is not an issue, well it may not be an issue for him but it sure as heck is to the shareholders.

Equity raise discounts are penal currently, as much as 20% to 30%, some of this discount may be factored in to ORR share price, we will see.

[jackbal] 01/6/2022 19:44

Any business forced to sell such a large chunks of itself at ever decreasing prices is failing I don’t care what the sector they are in.

You either don’t understand equites or are pretending not to

[geotrav] 01/6/2022 18:59

people bagging this stock who have hidden agendas…

[geotrav] 01/6/2022 18:57

Sprott, Blackrock both exited on the back of the failed requisition in 2017…

The requisition is what brought the company to its knees and the current board and management have been rebuilding from a crash point. They’ve added some remarkable new assets, and yes they dilute - it’s a junior explorer, that’s what they do.

If you don’t understand the business why are you still invested in ORR?

[thecoyone] 31/5/2022 08:34

I see the dumping continues early doors with another 1.5m sell.

I posted this last year, it still stands, OK Iamgold has extended their JV but so what, it has added no value so far, the BOD will soon be diluting shareholders to the tune of another 500m+ shares.

There have been modest drilling results at projects and a tiny JORC declared in Senegal but that's it.



The new management team have delivered nothing material since they were installed in Q1 2018.

They have lost or diluted out of sight every institutional shareholder that the old BOD attracted which at one point included Sprott, Blackrock and Teck.

They have diluted every legacy Stratex shareholder into oblivion.

They have issued over 1.4 billion shares and will shortly issue 400m or 500m more.

They have not delivered any meaningful asset sale despite implying 2 years ago they would.

They have not had success in any legal case in Turkey despite assurances to the contrary.

They have delivered no meaningful share price growth, when the new CEO was appointed the share price was around 1p.

There is no exit policy or value generating event in the pipeline, they are totally dependant on Iamgold in Senegal who have no interest in promoting Senala, a statement made by Tim Livesey himself.

The project in Cameroon is extremely long term and hideously dilutive.

They have failed to deliver any meaningful new project despite suggesting they would in the cash raise RNS last October.

The business model looks flawed in today's environment, dilute and dilute some more in the hope of finding a resource, note it can take 5 to 7 years to develop a meaningful saleable resource.

The market will not re-rate this company until the new BOD can deliver a meaningful value event but how ?

Long term shareholders like myself have lost a packet, the shares were once trading at 4p with only 450m in issue, even buyers over 1p have lost 50% of their capital in under 6 months.

Oriole is a company run by geologists for geologists.

One thing you can be sure of at Oriole ---> DILUTION

[terminator101] 30/5/2022 19:18

Bet they weren't happy that todays waffle didn't attract buyers. Seems that placing might be down at 0.15p or even lower.

[flughafen17] 30/5/2022 08:34

Make no mistake they will raise cash again shortly, worth noting the last 2 placings were carried out around September for about £1.5m.

If the share price holds at current levels shareholders can expect a further 600m-700m shares to add to the issued capital soon enough.

This is why volume has dried up and interest has waned.

A total avoid until the placing is out of the way IMO.

[geotrav] 29/5/2022 14:44

Thecoyone, Cameroon is wholly under ORR control, whereas the previous management of Stratex let Iamgold into the earn in at Senegal - very different situations.

Also, Cameroon is a very large / district scale play, where Senegal was a single licence - so again, very different.

To me it doesn’t seem that the current management like the deal they inherited on Senegal.

[thecoyone] 29/5/2022 08:44

Jackbai

You make a very good point about the longevity of the projects which seem deliberate, the market has no appetite for early stage explorers at the best of times let alone in the current risk off environment.

Oriole management are in a perfect position, pulling out £500,000 a year in salaries & perks. They know the projects will not return shareholder value for years and their options packages are not performance related.

If you want evidence of how flawed the business model is then look no further than the project in Senegal, this has been on the books for over 10 years, before the JV with Iamgold around £6m of shareholders funds were spent on exploration, in 6 years no JORC resource or value add, now Iamgold has spent another £3.5m.

Oriole have now cloned the Senegal model in Cameroon, this project is even more early stage, how much money will need to be spent, £5m to £10m is a real possibility, even then the returns to shareholders are likely to be negligible.

The market has seen through Oriole and it's management, no wonder the share price is in the gutter.

[jackbal] 19/5/2022 15:30

Quite frankly if they all left it couldn’t get much worse.
They have paid themselves handsomely at our expense.
Smiling smug Bob on 10k a month telling us we don’t understand dilution and that it doesn’t matter paints a far more vivid picture than my criticism.

[jackbal] 19/5/2022 15:03

Geo your nonsense narrative is parallel to the bod’s. Co-incidence?
And do you mean taking role elsewhere like the one Tim just took at MTL or his previous one at ORM where the new bod ousted him?

[geotrav] 19/5/2022 14:35

Observer, yes there was an increase to Bay, but the rest have remained static since 2018 and have taken reductions during covid and shares in lieu at times as well.

For an incoming team, taking on the reigns of a disastrous company post the requisition 2017, I’d be surprised if anyone would have accepted less to be honest!

I wouldn’t have been surprised if the management had bailed off into higher paid roles before now, but they seem committed to Orr.

[observer007] 19/5/2022 13:56

There has definitely been a increase in salaries at Oriole, for this financial year it looks like salary and benefits will exceed £450,000 now they have promoted Claire Bay.

If you take listing costs and other corporate overheads it looks like around 50% of the last £1.5m cash raise goes into fees and remuneration.

Oriole, given their size, does appear to reward their executives at the high end of the AIM scale.

[geotrav] 19/5/2022 08:09

Another ‘informed commentator’ who cannot read the annual report…

Keep deramping, makes it cheaper for the rest of us to get on board!

[flughafen17] 19/5/2022 07:54

Nothing but a lifestyle company, no wonder the market has seen through the situation and values it accordingly, directors on £150,000 for what ?

Glad I got out at the last pump, what price the next placing ?

[jackbal] 18/5/2022 16:33

Touche Geo!
I’m not clever or skilful enough for all that, plus I wouldn’t buy at any price until I know the extent of the dilution.
As it stands 30% dilution would be welcome, at .2 it’s more like 40%
Until we can see the damage no point guessing what a good entry level is…