Ormonde Mining Share Discussion Threads

[wanobi] 25/8/2018 23:27

thanx guys, wishing you all the best with this one,, cheers W

[cyberbub] 25/8/2018 22:52

Wanobi, many of us bought high 6-figure or even 7-figure numbers of shares in Ormonde at lower share prices than today's, because we think it's a good risk - but remember that investing is always a risk, anything can happen in the future - only invest what you can afford to lose...

[12vic] 25/8/2018 19:15

20th May 2015

[wanobi] 25/8/2018 17:42

cyber, 12vic, so good to meet you guys here, sounds like you've both been here for some time and really know the company well,,,,, many thanx for sharing your valuable insights with me, this much appreciated as I am a complete novice to all this..

So, here we are, commissioning starting in Oct with production due to commence by year end, in a stable part of the world, funding sensibly sorted, tungsten price on the up, other projects mothballed or closed/reduced with shortages of tungsten developing in Non-China concentrate supplies and a total decrease in Global Primary Supply of 4.5% since 2015!!!

This all looks very good to me.....,,, many thanx indeed guys.

Hoping to buy more of these before the share price runs away from me.

12vic, when was the 30/70 farm out, so I can make sense of the chart, thanx?

I see in 2006 it was up at 23p, 2012 at 12p then to much lower,,,,with up trend starting around April/May this year,,,,, 50DMA crossing 200DMA in Aug 17 at about 2p and staying above it ever since!!!

Cheers
W

[12vic] 25/8/2018 15:53

Wanobi as Cyberbub points out we only get 30% of the profit due to the 30 / 70 share of Saloro with Oaktree the financers and major holders.

There are several advantages to this though. All the debt accrued in the construction phase sits with Saloro. Oaktree are both the only lender to Saloro as well as being the major stakeholder. Should there be any issues along the way , this gives far greater flexibility and stability than a multiple or external lender agreement.

To explain the debt repayment, the actual figure is not yet known as the plant is still to be finished and the commissioning costs to follow.
All in Cost to Saloro which are believed to be around $180 mtu include repayment of the debt facility. If you want to play this safe you can factor in an extra $10-15 into the mtu calculations. My personal opinion is that $180 is a comfortable figure and the actual numbers may be slightly lower. A key message that we have had throughout construction is that we are very much on budget.
My point about the production is that if they are at full capacity c 360,000 mtu rather than say 250,000 mtu , then they will be paying down the overall debt far quicker. I think this will be the aim because they will want to take advantage of the the current Tungsten market that has generally been in ascendance.
Another bonus we have is that because our funding was agreed prior to collapse in the resource sector we have been able to hit the ground running and are probably 18-24 months ahead of another significant mine coming back on line.Unsurprisingly since the Tungsten market has recovered other projects have been dusting off the covers and coming back to market in various guises to seek finance.
Again we were only able to do this as a result of the oaktree deal which was much maligned at the time due to the 30/70 split.
So the catch is the 30/70, but I think we would not be where we are now if the Oaktree investment had not gone ahead. I'll be happy to take the c $9-12 million a year which will likely be Orm's share.

[wanobi] 25/8/2018 15:27

Ah yes, overlooked that, so that's £12m profit pa and £96m over current mine life provided the $180 number is correct & as you say price of tungsten doesn't screw things up!! Where did you get the $180 number from cyber, thanx?

Cheers W

[cyberbub] 25/8/2018 14:34

The catch is that Ormonde only gets 30% Wanobi.But that still means that we are substantially undervalued at today's share price and tungsten price... the only significant risk now is the tungsten price.

[wanobi] 25/8/2018 14:08

thanks 12vic, so that's $300-$180=$120 profit per MTU x 300,000 = $36m p.a. x 8 years = $288m profit!!!?? I that correct?? thanx

what's the debt amount and debt terms please? thanx

what's the catch!?

thanx, cheers all W

[12vic] 25/8/2018 11:57

Wanobi

APT is at US$ 300-315 per MTU 20th August. The expectation is this may increase as the Chinese enter a fresh phase of environmental checks on their own producers.

APT is a product that is processed from Tungsten . Ormonde will be selling Tungsten ore to processors so the price received by the company will be marked down from the APT price.

The 250,000 is MTU , but this is base case in terms of production as there will be capacity to ramp up to around 360,000 MTU. The likelihood is the company will try to facilitate this as soon as possible for a quicker paydown on debt.

[12vic] 25/8/2018 11:42

It's been a long time coming but it seems the market is finally understanding the need to revalue this company. To those that held or jumped on board in the meagre years the rewards are slowly unfolding. In Jan 2016 the share price was touching a measly 1p and Barruecopardo was a hole in a field , even with the funding secured there were numerous false dawns and ownership issues to overcome. I've followed this closely for the last 3 years it still amazes me to see what has been achieved in a time where many such companies have faded away or struggled just to survive.
I have a large investment in this company which has now tripled, my money is here to stay though, because there is clearly so much more to come .

[wanobi] 25/8/2018 11:33

Hi Cyber, I'm just starting to learn about ORM & Tungsten etc... Please can you help me interpret your post 3714, thanx, cheers W

"Output c 250,000 units p.a. of tungsten (APT) at an all-in cost of about $180"

MTU = Tungsten Prices are quoted in metric tonne units (mtu).
An mtu consists of 10kg of WO3, as contained within the particular material in question, concentrates or APT

W03 = Tungsten trioxide, (containing 79.3% tungsten metal), as the critical constituent in the minerals in mine concentrates

APT ammonium paratungstate, the main secondary downstream product made from concentrates.

Is the 250,000 units you quoted = 250,000mtu?
Is the all-in-cost you quoted = $180 per mtu (=$18/Kg)?
Is that US$ or AU$?

And, what is the latest APT current price please, thanx?

Best I found online - APT prices quoted in metric tonne units or mtu of WO3 (1 mtu = 10kg) APT price at 30 June 2018 US$347 per mtu...... not very current!

many thanx W

[cyberbub] 24/8/2018 23:26

roykeane, operational leverage means that a 7-day operation would yield more profit than 7/5 X a 5-day operation... the fixed M&A costs would stay the same etc

[wanobi] 24/8/2018 19:18

steelwatch,, many thanx, I removed my post, as soon after I posted it I clicked on the chart you mention and realized that perhaps my post was of no benefit to anyone! :-) I'm very new to advfn and investing in individual stock so please excuse my ineptitude, thanx!! I shall certainly take a look at the link you've posted & very much appreciate you reporting the price each week, which I shall look out for on Tuesday...

roy, 12p would make me very happy, lol, fingers crossed...

cheers all W

[roykeane2] 24/8/2018 18:53

Well always nice to have a new big figure on the UP side. Just by way of reminding myself this is a 12p stock when mining 5 days a week and price is 225 a ton. So NOTHING stopping them going all out 7 days a week so that alone moves the stock price to 16.8(12 divided by five, then 7x). Now plug in the current price of 300 versus the 225 and clearly that puts this baby in a rocket!!!!!!

[steelwatch] 24/8/2018 17:31

wanobi - it's not that easy unfortunately. There is a chart of sorts (small centre bottom row) in the header above. Occasionally you get a glimpse here, or more if registered:



I've been posting recently the price range each week on Mondays, but may be Tuesday next week if I get it.

[admiral jellicoe] 24/8/2018 16:21

Steam pressure rising.....Let the good times roll!!!!

[wanobi] 24/8/2018 16:20

no problem Gosoftly7, you're most welcome, its a small start for me here, looking to add more, cheers W

[bazaoil] 24/8/2018 15:36

1.5 million shares traded on iseq too.

[cpap man] 24/8/2018 14:55

There is a very good reason why ORM are headed northwards mega time and it ain't no tip!!!!

[dolores123] 24/8/2018 14:41

Must have been tipped Somewhere.

[gosoftly7] 24/8/2018 14:36

Thanks Wanobi. You moved the dial.

[cpap man] 24/8/2018 14:25

Yes Iain222 and it is possible that we know each other as well?!?!?

Reckon that the ORM train is just about to leave the station on an epic journey!!!!

[rileyma] 24/8/2018 14:23

Be suprised if we dont wake up tuesday to a crisp updated gallery,showing off gleaming finished plant