Ormonde Mining Share Discussion Threads

[cyberbub] 05/2/2018 08:23

Thanks 12vic

[12vic] 03/2/2018 14:42

Afternoon Cyberbub.

Saloro will hold and have obligation for any debt repayments. Ormonde holds a 30% beneficial interest in Saloro. Whatever value/cashflows generate from the mines operations over and above that required to meet debt repayments will accrue to Oaktree/Ormonde on a 70%:30% basis (through their ownership of their respective interests).

The key figure is approx $180 APT at this price Saloro more than meets Opex and any debt repayments on the project. Given that prices are currently nearer to $320 the project is well buffered in terms of profit margins. The terms of the debt repayment are flexible and Oaktree the major holders have shown on a number of occasions that they are prepared to revisit to suit both partners. If tungsten remains at these prices my expectation is that efforts will be made to pay down debt element as quickly as possible, there are also built in facilities to allow Orm to make dividend payments.

It makes sense to look closely at the immediate revenue streams before investing , but initial production at Barruecopardo is only the tip of the iceberg. There is already an opportunity to further extend mine life through an underground operation but beyond this there are multiple historic sites / decommissioned pits within the mining concession and exploration permits. There is potential for Barruecopardo to develop into a processing site served by multiple mines.

Outside of Saloro , Orm owns other prospective sites in Spain both for gold and Tungsten , not to mention La Zarza copper / gold /silver which completed feasibility some years ago. This could also be revisited . At the moment though and quite rightly the focus of the company and brokers notes is purely on Barruecopardo.

Hope this helps.

[dolores123] 03/2/2018 10:16

cyberbub have a look at post 3263. Also an earlier post did confirm the basic broker view which post 3263 repeated and then expanded for apt price and 7 days working.

[cyberbub] 03/2/2018 09:38

Does anyone have a link to a broker target for Ormonde?I understand that they have given away 70% to the funder of the mine construction. But is the remaining 30% a completely free carry, or do they have to pay 30% of ongoing costs too?What is the target production cost per mtu?Thanks for any info.

[12vic] 02/2/2018 22:02

Roy - agree with you and have to wonder how much national media coverage the mine is picking up within Spain. Clearly the locals will be very aware of what is going on and benefiting from the build , but whether they would have bought shares in the company I'm not so sure - you might know more on this?
On the point of the share register, willing to bet the price over the last couple of years has lead to a reduction of holders and consolidation of ownership. When the real interest generates closer to production this should have a positive impact, I can't see many that have bought and held over last few years wanting to bail before the project has had the opportunity to mature. Still opportunity to make many multiples of return here.

[bazaoil] 02/2/2018 19:07

Good week all round. Nice share price increase and volume starting to increase also. Onwards and upwards.

[roykeane2] 02/2/2018 18:29

Guessing the importance of Noble to Orm is way lower now that we are fully sorted on finance, courtesy of Oaktree. Not too many 100m investments that employ several hundred in a remote region of Spain so feel the share register should have a few local names on it Vic.

[roykeane2] 01/2/2018 21:56

No reason stock doesn't drive on. Must be room for a Spanish broker as last time I saw share register, no local support was visible and this is a Spanish Success story. Anyone putting a 100m investment into Ballygobackwards of Spain really should be up there in lights!!!!

[dolores123] 01/2/2018 19:19

Nice substantial trade!!

[12vic] 01/2/2018 19:04

Last trade 1.9 million at 2.8 so £50,000+ , fine way to end the day!

[roykeane2] 01/2/2018 16:42

Good to see, I hope Davy or whoever the broker is takes them to fund managers in Madrid and Barcelona as it's a very exciting story for Spain(probably going to be biggest tungsten miner outside of China)!!!

[dolores123] 01/2/2018 14:34

Sp on the up today!

[bazaoil] 01/2/2018 12:15

Excuse me as i am not as experienced an investor as some on here but can someone verify my figures. Davys estimate that based on a price of €250 per mtu Ormonde is valued at 32.5 mil min or 5.3p per share. They say this increases to 8.7p per share at a price of $300 per mtu. Current prices of approx $320 per mtu would in turn value it at 10.06 p per share. I assume this is based on a 5 day week which would in turn value this at 14.084p per share on a 7 day week.This is over 500% increase on the share price from where we are now and is by no means an exageration whatsoever. With the stage of construction we are at now I can only see this snowballing. I know i am probably simplifying things a bit but please feel free to correct me.

[terropol] 01/2/2018 10:11

Roykean2, I knew Kerr quite well.
It was a very sad story is passing away.
He would have loved to see the project taking shape after all the waiting and negotiating.

[dolores123] 30/1/2018 09:45

The construction process looking really good and confirms the dream is becoming reality.

[12vic] 30/1/2018 09:43

Thanks Steelwatch.

[steelwatch] 29/1/2018 18:31

Tungsten APT European US$315-320/mtu vs US$310-318/mtu last week

[roykeane2] 29/1/2018 18:10

The local Mayor is a big decision maker as one of 9 key decision makers in Spain. His entire family worked that mine backin the Phillips days, so this is his big darling project. He is a massive supporter, so hats off to him and Kerr and he were thick as thieves down the years. Best of luck to all involved

[12vic] 29/1/2018 09:20

What a great post Roy , really captures how this has all come on. Good to see both the town and the company benefiting from what seems a very close relationship. Invigorating to see it all shaping up. Have considered a trip out a few times, but always distracted to other things. Will look again maybe for commissioning or full production 2019.
To have known Kerr and been involved so early on must be a special thing.

[roykeane2] 28/1/2018 21:31

Yes I did Ian, fantastic man and enjoyed his company in boardrooms,shareholder meetings, golf courses and very vacant looking sheds in Spain to examine samples under ultra violet light. He is up there smiling down and the pictures are a sensation to me in comparison to that site. It always reminded me of a Clint EAstwood cowboy scene , it was so remote. The town must now be thriving again with all that building and traffic. My dad hails from NEAR Bangor Erris in CO Mayo and the towns weren't UN alike. Not anymore !!! Onwards and Upwards

[iain222] 28/1/2018 12:00

The contractors look to be going ahead with great pace, obviously getting kinder weather than ourselves in the UK !.
What with the Tungsten price rising steadily 2018 should be a good year for Ormonde, not before time for the long time shareholders.
Roy, can I ask did you know Kerr well ?
I was one of his long term friends.

[roykeane2] 28/1/2018 11:08

Man o man what a difference a few months make. I visited the old site with Kerr (Rip) and now look at the changes. Amazing!! Onwards and upwards

[steelwatch] 27/1/2018 14:14

Thanks vic. Looking good 8-)

[12vic] 27/1/2018 12:18

Morning,
Just checked the Ormonde site , there are now progress updates for January. Huge changes taking place and all coming on at a pace!

www.ormondemining.com/timeline-in-pictures/

Bit more on the tungsten price next week would be good :)