Ormonde Mining Share Discussion Threads

[hazl] 30/9/2016 07:13

Very comprehensive Vic makes sense
Just read the announcement outlook seems strong and reassuring to me and confirms what l have already gleaned.

[12vic] 29/9/2016 19:39

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.

[hazl] 29/9/2016 13:41

Management seem to know what they are doing

[steelwatch] 29/9/2016 13:41

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.

[hazl] 29/9/2016 13:39

Thanks admiral very comprehensive

[admiral jellicoe] 29/9/2016 12:35

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!

[steelwatch] 29/9/2016 12:17

spooky - who pays the 12% please and on what amount?

[spooky] 29/9/2016 12:12

Nope, i was quite interested until i found out they were paying 12%, that makes it a non starter for me.

[steelwatch] 29/9/2016 11:40

hazl - the full monty:



Think spooky is trying, somewhat clumsily, to spook us, LOL

[hazl] 29/9/2016 09:56

Cannot post or research easily today but experts here sure to reassure l imagine though nothing is risk free imo

[spooky] 29/9/2016 09:37

Does anyone have any thoughts on the fact that they are paying 12% on any money they get from Oaktree Capital?

[hazl] 29/9/2016 08:53

Found info about prices in next five years vary

[hazl] 29/9/2016 08:51

On iPad so difficult to post but thanks vic

[12vic] 28/9/2016 19:11

Hazl thanks for posting the sciencedirect document. I had not seen this previously. Very interesting to compare the feasability studies across the 5 projects.

[hazl] 28/9/2016 15:52

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.

IMO

[hazl] 28/9/2016 15:21

ORMONDE is mentioned above....interesting charts showing tungsten demand over next five years

[hazl] 28/9/2016 09:40

Interims on Friday according to Morning star.

[hazl] 28/9/2016 07:42

Very very interesting about the central banks America and so on.........

IMO

[hazl] 27/9/2016 14:57

Excellent 12vic worth posting again perhaps?
Especially the initial one?

[hazl] 27/9/2016 14:54

Thanks 12vic.
Will take a look.
The various tungsten plays seem to be doing well at the moment I noticed,so this seems to be in the right thing currently.
I am pleased that GOLD plays its part here as well, though, because it could gain either way I think.
Any reports that you think might be of interest please let me know,
Thanks again.

[12vic] 27/9/2016 14:46

Hazl - have been in these nearly a year now. If you want my view on the potential, have a look at posts 2712 and 2716.
Right now this is pretty much a play on the current tungsten price. The mine will be built, and should be economic , but just how so remains to be seen. Should they manage to time this to a rising tungsten curve , then I can see significant expansion , not just underground but on other company sites.

[hazl] 27/9/2016 13:47

fully funded and permitted tungsten project....by the looks of it

[hazl] 27/9/2016 13:41

It's why I originally liked ASA , they have quite a few different metals,so they are covered for whichever scenario prevails.
These seem to be faring better than they were as well.
Is that correct?