Ormonde Mining Share Discussion Threads

[cjohn] 19/3/2020 14:54

OK. I agree. Provided they don't blow the cash on a crass acquisition or more disastrous exploration activities.

Management should learn from experience and not destroy more shareholder value.

It goes almost without saying they should return all net cash to the owners.

I'm perfectly capable of using that cash myself to take advantage of the current opportunities, as is everyone else on here.

[jbe81] 18/3/2020 19:55

Nothing needs to happen right now when the market is in free fall, Ormonde's opportunity gets better everyday

[jibba jabber] 18/3/2020 15:17

JBE81, Nothing will happen here without any positive news. The market knows they have money, and values it at .5. So, you know?

[jbe81] 18/3/2020 13:59

Not doing anything with the cash looks better everyday, Orm is turning into one of the best opportunities on the market

[jibba jabber] 18/3/2020 13:18

Seriously now, what have these gimps been doing for a month? I'm sure they read the boards, so, my question is......what has been happening in the calendar month since the sale went through?

[hedgehog 100] 16/3/2020 15:45

ORM's chart looks nicely poised for a potential big move upwards:

[hedgehog 100] 16/3/2020 15:02

"... The ultimate beneficial owner of Empire Cinemas Ltd is Irish entrepreneur Thomas Anderson.
... In July 2016, the company sold five cinemas, including the flagship in Leicester Square, to Cineworld cinemas for £94 million. ..."


"... It was probably one of the deals of the year. In July, Tom Anderson agreed to sell five cinemas in his Empire Cinemas chain to rival Cineworld for £94m (€109m).
The consideration for the deal was half cash and half in Cineworld shares. The shares are subject to a 12-month lock-in period. ..."



Very difficult for companies to raise cash at the moment, and many will go bust.

So ORM, at 0.525p trading at about half its cash, is sitting pretty.

Even in a crash, about half of cash tends to be the bottom for a cash rich shell with low cashburn.

But the upside could be massive.

[jbe81] 16/3/2020 12:10

Potential investments are probably 50 per cent cheaper now

[cjohn] 16/3/2020 11:46

It certainly gives underpinning to the share price.

[jbe81] 16/3/2020 07:47

Orm's cash pile is going to get more valuable by the day it seems.

[hedgehog 100] 13/3/2020 16:23

Thomas Anderson has increased his ORM holding to 63,375,000 shares (13.41%), up from 10.87%.

I.e. an increase of about 12 million ORM shares.
And at the current ORM share price of 0.575p, these extra shares are worth about £69K.
That is a strong vote of confidence in the value here.

TA was already ORM's largest shareholder, but still has plenty of leeway before he reaches the 30% level at which he would have to bid for the company.

And he should have plenty of cash after selling his CINE shares.

[cjohn] 13/3/2020 15:54

There's no doubt that the crash is throwing up some enticing opportunities! ORM being one.

[hedgehog 100] 13/3/2020 15:34

I would think that Thomas Anderson would either support the return of cash to shareholders, e.g. via liquidation, which would give this proposal a big boost.

Or he sees an even more value-enhancing alternative.

Either way we should make a good return.

It's worth remembering that the market crash has not reduced the value of cash, which ORM has in abundance: on the contrary, it has enhanced its effective value.

[astubbs67602] 13/3/2020 14:04

Lots of buys going on now and blue for once!!

[jbe81] 13/3/2020 13:28

Not surprised that Thomas Anderson is buying more, either he is privy to a plan to create value or he will have enough shares to liquidate the company and will be turning a big profit on any shares he buys at these levels

[hedgehog 100] 10/3/2020 17:41

Thanks CJ.

I don't think that it would take much of a share buyback programme to rapidly return ORM to 1p+.

And even an indication that such a programme was to start should have quite a positive impact.

[cjohn] 09/3/2020 16:46

Ok, fair enough. I do understand that. You've been forthright in your defence of the current board's possibilities.

It's ok to be critical of boards, you know. They are in general far too well-paid and when they fail, there should be consequences.

In the case of ORM, they are proposing to enter a new cycle of exploration, when their previous effort, with ORM's main resource, the tungsten mine, was an operational disaster, with numerous different serious errors along the way.

The objective here is not to attack the board - though it's evident that we don't have confidence in their ability to produce value for shareholders - the aim is to recover capital for owners, ie us, who ultimately determine what the company is for. The directors are our employees.

Your suggestion of share buybacks is a good one; there could also be a special dividend, leaving a small amount of capital for management to go about selling the other mining assets. (In that way, we could be more confident that the cash will not be blown on a value-destroying acquisition or on pay and perks.)

[hedgehog 100] 09/3/2020 13:52

"How about adding your shares to the concert party?"


CJ,

I've thought about it, but I don't think that it's really appropriate as the concert party has been quite critical of the board, and I am been supporting the board.

But I could potentially vote for the motion, depending upon what it says, the company's reaction, and the share price and outlook at the time.

[costax1654x] 09/3/2020 12:33

Kibo to announce by Friday Med update

[cjohn] 09/3/2020 11:49

hi Hedgehog,

"The issue of the competence of ORM's management has been debated, and I think that I have effectively rebutted the criticism."


You have certainly disagreed!

The operational history of the tungsten mine is littered with errors and oversights.

But as far as I'm aware, there's no intention to attack the board. We merely want the board to catalyse shareholder value.

The idea of buy backs is not a bad one, btw.

[hedgehog 100] 09/3/2020 11:36

CJ,

The issue of the competence of ORM's management has been debated, and I think that I have effectively rebutted the criticism.

And long term I think we'd make more money if ORM continued.

But a bird in the hand is worth two in the bush, and with ORM trading a half of its cash, the winding up option is starting to sound attractive.

Alternatively, the company could seek to return cash to shareholders by a share buyback programme: at this level, that would be cash per share enhancing.
And it should be very positive for the share price.

So my advice would be to make any motion broader, and not to attack the board, which could cause people to oppose the motion.

[cjohn] 09/3/2020 11:32

Hi Hedgehog,

"Because of the generally greater illiquidity and risks of penny shares..."



I believe we are in broad agreement in our approach to investment. I think you are a fellow value investor.

I have lived solely from private investing for the last 15 years. I pick up shares in undervalued companies, usually trading at a discount to tangible asset value (such as ORM).

Are you aware of the significant corpus of academic research indicating outperformance of not only

1. Small company shares

but also 2. illiquid shares?


One of the reasons, ironically, that such shares sometimes trade at such pitiful valuations is because most investors steer well clear precisely because of the perceived extra risks.

I have had outsize performance time and again with highly illiquid shares. (Obviously, there is an art and discipline at avoiding the pitfalls of such a strategy. One such for me is to always seek shares with strong asset backing.)


Have a good day. How about adding your shares to the concert party?