Ormonde Mining Share Discussion Threads

[hedgehog 100] 04/3/2020 16:26

'Cash is king', and that's even more so than usual in depressed markets.
And ORM's cash burn should be relatively low at the moment, as it's not currently engaged in mining operations, and it will be earning interest on its £5M.+ of cash.

It's excellent what ORM are doing: focusing on the future, to build shareholder value, as ORM has in the past before bad luck intervened.

And I'd expect an update - and perhaps even multiple updates - this month.

10/02/2020 07:00 UKREG Ormonde Mining PLC Directorate Change
" ... It is our intention, in the short term, for the new Board to work together with executive management to build a fresh and exciting vision and strategy for Ormonde, absolutely focused on value creation for shareholders including, if appropriate, through the pursuit of M&A opportunities." ..."

[alamaison5] 04/3/2020 13:41

It's all about directions, and as far as I am concerned there isn't any...
As someone rightly said -"just pocketing monthly wages while it last-".

Lucky they've struck that deal, imagine if they didn't, lol.

[computercoders] 04/3/2020 11:44

Another AIM disaster..the market just doesnt trust the board

[computercoders] 04/3/2020 11:44

Yeah it is disgusting what they're doing here

[silverspoon2009] 04/3/2020 11:34

Poor sods here, another example of directors shafting shareholders, no doubt the Euro 6m cash will soon be burnt.

New directors are hardly awe inspiring either, Tim Livesey has done nothing as CEO of Oriole Resources except take a fat wage, shares down 60% since he took over.

[cjohn] 04/3/2020 11:34

I'm not going to begrudge you your role as cheerleader…..

[hedgehog 100] 03/3/2020 15:41

CJ,

Take a look at the CGNR chart I posted yesterday: its share price declined over the period in question, i.e. start 2002 to end 2010.

Most mining minnows rose nothing like as well as AVM did in the noughties.

And posters seem quite happy to blame directors when a share price falls: well, it cuts both ways, so lets give some credit where it's due.

Avocet Mining (AVM) under ORM's new Executive Chairman Jonathan Henry achieved great operational success before he resigned in April 2010, so well done to him for that:

17/03/2010 07:00 UK Regulatory (RNS & others) Preliminary Results LSE:AVM Avocet Mining Plc
" ... PRELIMINARY RESULTS FOR THE 9 MONTHS ENDED 31 DECEMBER 2009
· Gold production of 82,174 ounces at cash cost of US$650/oz, and average
realised gold price of US$995/oz
· Net cash generated by operations of US$17.1 million
· Profit before tax and exceptional items of US$7.9 million
· Wega Mining acquisition - expected to more than double annual gold
production to over 200,000 ounces
· Inata first gold pour 20 December 2009, first gold shipment of 11,000
ounces took place 26 February 2010
· Increase in Penjom resource of nearly 0.4 million ounces to 1.2 million
ounces ..."

[cjohn] 03/3/2020 15:28

Hedgehog "From the start of 2002 to the end of 2010, the AVM share price more than 20-bagged:"


Come on, Hedgehog, this has nothing to do with Jonathan Henry. AVM, like other mining minnows, rose to absurd heights in the mining mania that peaked in 2010. Its share price in 2010 bore no relation to its prospects or existing situation.

The most you can say is Jonathan Henry has worked in the mining industry before.

[hedgehog 100] 02/3/2020 14:13

Absoultely Jbe.

Depressed valuations mean that ORM could pick up something really juicy, propelling it to a much higher valuation overnight

'Cash is king', and that's even more so that usual in depressed markets.
And ORM's cash burn should be relatively low at the moment, as it's not currently engaged in mining operations, and it will be earning interest on its £5M.+ of cash.

Also, thanks to Maverick 12 on LSE for this latest news:
ORM are currently attending PDAC 2020 in Toronto, Canada: "The World's Premier Mining Exploration & Mining Convention", March 1 - 4 2020, Metro Toronto Convention Centre.


Company development news is expected in the short term.
And I would think that a RTO (reverse takeover) here is quite possible, given ORM's cash.

I'd expect an update - and perhaps even multiple updates - this month.

10/02/2020 07:00 UKREG Ormonde Mining PLC Directorate Change
" ... It is our intention, in the short term, for the new Board to work together with executive management to build a fresh and exciting vision and strategy for Ormonde, absolutely focused on value creation for shareholders including, if appropriate, through the pursuit of M&A opportunities." ..."

[jbe81] 02/3/2020 13:59

I actually think the recent market fall is good news for Orm, they have a lot more relative spending power than they did a week ago.

[hedgehog 100] 02/3/2020 13:38

It's a fact that most mining sector minnows lose investors money in the long-run, but many also give a multibagging rise or rIses at some point.

So investment timing is key: buying low (like at the moment with ORM), and selling high.

And long-term, I suspect that ORM has actually outperformed the majority of such shares.

To illustrate this, compare two Irish mining minnows that floated around the turn of the millenium: ORM and CGNR.

CGNR (Conroy Gold & Natural Resources):
Has declined from the equivalent of over 3,000p in early 2000 to just 12p now.
I.e. a loss of well over 99%.
And the general pattern has been one of steady decline, bar a few spikes.



ORM: declined from 4p in 1999 to 2p in 2000, but has since spent most of the next two decades above 2p, and over 20p in 2006.
And it started this new decade at well over 2p, i.e. higher than nearly 20 years previously.

[hedgehog 100] 02/3/2020 13:31

Utter rubbish.

ORM's new Executive Chairman Jonathan Henry, appointed in mid February, is one of the big attractions here, considering his stellar track record as FD and CEO of gold miner Avocet Mining (AVM).

Jonathan Henry was appointed Finance Director of Avocet Mining (AVM) on 2nd. December 2002, moving from another senior finance management role in AVM.

He was then appointed Chief Executive Officer of Avocet Mining (AVM) on 12th. July 2006.

And he resigned as Chief Executive Officer of Avocet Mining (AVM) on 29th. April 2010.


From the start of 2002 to the end of 2010, the AVM share price more than 20-bagged:

[costax1654x] 02/3/2020 12:00

New directors are known as being useless

[silverspoon2009] 02/3/2020 11:52

Problem is the market suspects they will burn that cash, a number of the former BOD remain and the new directors have hardly set the world alight historically.

[costax1654x] 02/3/2020 10:49

Is going in wrong direction

[hedgehog 100] 28/2/2020 11:59

At just 0.575p ORM is trading at barely half of its £5M.+ cash, and it has other assets too.

For a shell that's spectacularly cheap, and history shows that this sort of discount tends not to last.

In fact, depressed valuations should increase the fire-power of ORM's cash, and increase its RTO (reverse takeover) opportunities, as IPOs (initial public offerings) become more difficult.

That's a paradox of shells: they can actually benefit from a stock market correction, effectively become more valuable, just as they are being priced down with virtually everything else!

[hedgehog 100] 28/2/2020 11:08

I'd expect an update - and perhaps even multiple updates, in March.

By which time markets should have stabilised, and with the gold price still strong ORM could enjoy a good rerating back up.

Bad markets always throw up great opportunities to buy undervalued shares on the cheap, and ORM is certainly looking like this right now.

Markets are due a bounce after at least six consecutive days of losses, and the current extreme buy opportunity in ORM is unlikely to last long.

[jbe81] 28/2/2020 10:58

Hope you take some profits at ESL, no problem with Orm holding back news in current market .

[jbe81] 28/2/2020 10:47

Hope you take some profits at ESL, no problem with Orm holding back news in current market .

[jibba jabber] 28/2/2020 07:57

When are these bellends gonna update their intentions?

[computercoders] 27/2/2020 19:53

I'd already had one bite at the cherry when I originally bought ORM at average 0.675p and sold average 0.90p I then bought back at average 0.77p and sold that lot at 0.62p average. So yes probably about broke even. Will definitely come back in soon for a few.

[cjohn] 27/2/2020 15:51

Well, there, I agree with every word you say, Hedgehog!

Far more risk at ESL, given the debt levels.

Also, to my mind it makes no sense short-term trading a stock like ORM, because of the spread. The only likely winner there is the MM.

[hedgehog 100] 27/2/2020 14:57

computercoders 27 Feb '20 - 07:51 - 2618 of 2623 0 0 0
"Lazygun I sold ORM yesterday to put into ESL. Was that crazy? Nope. I will buy back in here once ESL at 40p though. I even sold some BPC yesterday to buy more ESL. Only a bit of BPC though."


Computercoders,

It may not have been crazy (although you must have sold ORM at a loss), but it was a speculative gamble.

Punting on a share that has crashed like ESL, when there is no solid cash underpinning, can make money, but it can also backfire horribly.

And as I write, ESL (Eddie Stobart) is down 30.7% today, at 8.25p.

Why gamble like that, when with ORM you have fantastic upside, but without that sort of risk.

But of course if you have an uber short term horizon, you can lose on ORM even if the share price rises, because of the big spread.

[hedgehog 100] 27/2/2020 14:47

Aaogplc,

I think that you can loosely describe ORM as a shell now yes, even though it still has some mining properties.

The sale of its interest in the Barruecopardo tungsten project constituted a fundamental change of business under AIM rules, and the company is now working towards a replacement.

Company development news is expected in the short term.
And I would think that a RTO (reverse takeover) here is quite possible, given ORM's cash.
As 'cash is king', this could bring in some extremely exciting assets.


10/02/2020 07:00 UKREG Ormonde Mining PLC Directorate Change
" ... Assuming completion of the Proposed Disposal and their subsequent appointments, Tim and Richard, together with Mr. Jonathan Henry, who will move from non-executive director to Executive Chairman, will provide Ormonde with the appropriate leadership, governance, experience and strategic direction as it targets a new phase for the Company, focussing on the creation of value from its current assets, together with pursuing growth through M&A, supported with the cash proceeds from the Proposed Disposal of EUR6 million. ...
It is our intention, in the short term, for the new Board to work together with executive management to build a fresh and exciting vision and strategy for Ormonde, absolutely focused on value creation for shareholders including, if appropriate, through the pursuit of M&A opportunities." ..."

[aaogplc] 27/2/2020 14:24

Does anyone know if Ormonde is now a shell