Ormonde Mining Share Discussion Threads

[admiral jellicoe] 24/2/2015 15:38

Dolores,The fastest way to lose friends / make enemies is to recommend which shares to buy!

[granto2] 24/2/2015 15:32

when the RNS landed I went, good grief we are screwed but on reflection this may be alright depending on the split.

[dolores123] 24/2/2015 15:18

Admiral - turnover in ISE building - have you been spreading a good word or two??

[terropol] 24/2/2015 01:50

Never easy is it?
I would be very surprised if the management agreed to more than 60-40 split.
If they are trying to give more away then all shareholders should vote the management out and put the asset for sale.
We have to wait and see what comes out...
There is always a chance of a third party coming in and making all this a no go...
With spare cash is got to be worth a top up....

[granto2] 23/2/2015 16:46

up to my neck at work, I think that the deal may be ok, not for long tremors here unless they can reinvest. it will be interesting,

[digger jim2] 23/2/2015 13:57

Mikeja

ORM will NOT be selling Ammonium paratungstate (APT) they will be selling a scheelite (calcium tungstate) mineral concentrate

[buywell2] 23/2/2015 13:16

2p or not 2p

That is the question

[dolores123] 23/2/2015 13:13

some buying interest!

[admiral jellicoe] 23/2/2015 11:34

Some interesting comments there from posters on III, Broomfielder and Big Bobby etc.

[granto2] 23/2/2015 09:59

Dolores123, I spend about an hour working on Ormonde accounts over the weekend, it's going to be ok.

[husbod] 23/2/2015 09:59

ORM and WLFE - compare and contrast guys and gals. One in Devon run by Brits and Aussies the other in Spain. If you go onto the WLFE bb and then onto the wolfminerals website you will see their roadshow details - it is really worth reading.

[roykeane2] 23/2/2015 08:27

was it not the case that the company stuck with the 26m tons for the purpose of getting the feasability accross the line. I seem to remember the mine is open to the north and south not to mention drilling below them so there is enormous possibility that the 26m tons is only a small fraction of the material

[dolores123] 23/2/2015 08:23

anyone feeling any better about this after a weekend of reflection?

I think that if oaktree's share is not too extreme then ORM could possibly achieve a decent annual profit as referred to by Admiral in his above posts.

[admiral jellicoe] 20/2/2015 22:53

VISH65

I'm just trying to keep my focus here.

Ormonde has turned into a graveyard for many investors. It has been a steady drip drip drip of the share price sinking. We still require to keep focused and 'eyes on the prize'

What you mention is one of the facts of exploration / production. As soon as you start producing from a oil well / reservoir or mine.... you are on a countdown timer.

You have to find a replacement reserve before your existing reservoir / mine runs out.

That is the risk, and yes some company directors run things like a personal home enterprise, with shareholders rarely getting a look in, not just in mining but all other sectors as well.

However there is also the possibility that the BoM will want to start hoarding cash, building up a war chest.

This would allow them to start developing the other prospects ie. Salamanca, La Zarra etc.

It could be that Ormonde would want to get out of Barruecopardo once the warchest is full enough.

Why put money into Barruecopardo.... when you are only getting 40% of the profits? Get enough money together, set up your own mine, and keep 100% of the profit!

But that is speculation for the future!!!

[vish65] 20/2/2015 21:56

AJ - nobodys mentioned financing will include a budget for stage 2 evaluation (ie UG). If UG appears a possibility I would imagine it will take a lot of the surplus generated in the early years . The profit numbers may well be downgraded by investigation and development costs.(drilling , tunnelling , shafts etc...). Profits attributable to shareholders being someway off. This I've leanrnt from other miners. Managemgment are good at spending 'profits'.

cheers

[steelwatch] 20/2/2015 19:14

Don't forget the fall off in value of the € which may reduce capex in $ terms

[admiral jellicoe] 20/2/2015 18:40

Yeah... not too far off there at all it's 27.88%...

So if you were to go back to the original figure of 29 million euro / year, minus 27.88% gives you 20.9 million euro profit approx.

60:40 split would give Ormonde 8.36 million / year profit at 280e/ Tonne.

Then add in the the management fee, and hopefully other incentives.... you might get close to 9.5 million approx.

We just don't know.. however we are going to find out soon enough in the next 2 months.

While Oaktree may have the upperhand..... there has to be something in it for Ormonde. If it is looking like 70:30 or worse then there could be little or no point in closing out a deal. There has to be something in it for both.

[jdk14] 20/2/2015 18:19

So the profit per tonne at 350 = 251 profit

at 280 = 181

Which is a reduction of 70 euros per tonne = 70/251 (haven't got a calculator handy but that is in the order of 28% reduction.

Please correct me if I'm wrong

[admiral jellicoe] 20/2/2015 18:02

JDK14,

I thought the cost of producing 1 ton was approx 99 euro, according to the Ormonde website on the Barruecopardo project page.

Hence the 29 million euro @ 350 /tonne / annum had taken into account the 99 euro cost.

I could be wrong of course.

What would be your own figures?

[jdk14] 20/2/2015 17:12

If you reduce the price received by 20% the profits will fall much more - marginal costing rules OK

[admiral jellicoe] 20/2/2015 15:18

Yes... but don't forget.... Ormonde still have the other mining projects in the ground.... again all on paper.

However for the first 5 years... Ormonde could be raking in 11 to 12 million euro.

But as the debt is reduced and the warchest increases other mines could be brought on line... increasing the annual income perhaps getting closer to 20 million / year.

So in short... Ormonde has the potential to do very well in the long term.

However if the split is 75 : 25.... then the figures will be seriously affected. If the price of Tungsten sinks... then the figures are affected etc.

I'm feeling a bit more confident now... it's still all to play for!

It's ORMONDE or Bust......Tally Ho.............!!!

[dolores123] 20/2/2015 14:59

Strange the broker reduced their share price target to 8p!! I wonder what they knew at that time??

[granto2] 20/2/2015 14:54

Admiral Jellicoe. I did the exact same as you and came up with a similar calculation. more later...

[dolores123] 20/2/2015 14:52

Admiral - and using an after tax PE of 9 would give an share price of 16p!