Orosur Mining Share Discussion Threads

[siday2580] 15/10/2018 15:06

58To be clear...there appears some confusion. Loryser is under voluntary Creditor protection via court.Loryser is also a seperate legal entity. Those liabilities relate to Loryser not OMI. Court appointed controller needs to make a list of Loryser creditor claims etc. relating to those liabilities. Controller also makes notes of Loryser assets. Loryser Creditor meeting in Dec 2018.Orosur has plenty cash balance with another $2m to come in.

[augustusgloop] 15/10/2018 14:46

Another interpretation of the deal is:

If Newmont had paid $2m for the mine (as per the contract for 90%) - this money would have gone directly into the subsidiary 'Loryser' whose accounts are under the control of the courts.

But instead 'buying' $2m of shares in OMI - puts that $2m as cash in control of the holding company - so the Directors can pay their own salaries with it.

By the time the court proceedings have played out and demands for payment are enforced on the holding company (as per any guarantees and environmental stuff), most of this $2m will have been spent.
$0.5m at least of the cash has already gone.

[bigtbigt] 15/10/2018 14:21

Can we all agree that in the absence of Newmont, OMI would be bust (given the facts August has pointed out) ?

Some are contending that having 2M from Newmont now, and promises of up to 4M more to be handed over some time way into the future, this somehow saves them from being bust now. Clearly nonsense IMO

And if Newmont do pony up 30M to develop the new resources, none of that money goes to OMI. It will be spent on the developments!! The final mine will then almost all be owned by Newmont, not OMI. ...all assuming OMI can somehow avoid being bust now.

Newmont have, for a mere 2M, simply put themselves at the front of the queue for picking up the assets later this year.

I suspect this was seen as a nice way to wrap things up for the charlatan OMI execs, walking away with their accumulated salaries and benefits and avoiding making good at all their mining sites. I had knowledge on these guys way back, and all the bad things I heard and suspected have turned out to be true

[augustusgloop] 15/10/2018 14:09

There is no sale of Uruguay.

They have closed the mine - the gold has gone - 1.3 million ounces stolen from OMI shareholders.

If they were selling it - they would have put it up for sale.
In Dec they will be selling off the remaining assets - to redistribute to creditors.
That is second hand machinery etc.

And then they will go into liquidation incurring another $5.4m of environmental costs.

[tidy 2] 15/10/2018 14:04

The sale of Uruguay will be more attractive with higher gold prices and all infrastructure is in place.

[augustusgloop] 15/10/2018 13:56

'And don’t forget the current gold price which is rising daily.'

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Makes no difference: "-- In August 2018, the Company placed its San Gregorio operations in Uruguay under care and maintenance."

So they are not producing gold anymore.

To all intents and purposes, they are in the Uruguayan equivalent of court enforced administration including mine closure --- but have decided to misleadingly call it "reorganisation procedures"

[tidy 2] 15/10/2018 13:50

And don't forget the current gold price which is rising daily.

[tidy 2] 15/10/2018 13:50

Uruguay asset will deal with that and more. Newmont with Anza is a different story and secured through to production

[augustusgloop] 15/10/2018 13:47

How can OMI last to see the Anza mine in operation?

Today's RNS shows that they LOST $6.575 million in the last 3 months.
They have $1.1m of cash left (on 31st Aug) - that has probably nearly gone now.

Be a bloody good performance if they can last until the creditors meeting in December.

[augustusgloop] 15/10/2018 13:40

"Under the reorganisation proceedings, the term for credit verification ended on
September 3, 2018, and a court-appointed Controller has validated all
the credits and has filed a report on the assets and debts of Loryser
on October 3, 2018. The report is currently subject to review and
potential reassessment before the creditors' meeting scheduled for
December 2018. A final date for approval of the report, including the
final list of creditors and assets, is dependent on whether there are
any challenges. The Controller is preparing a second report assessing
the status of Loryser and explaining the causes that led Loryser to
the current situation. "

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Basically they are bust!

The court has ordered them to accurately list all of their creditors and debtors.

The Court will verify this list and then in December - a meeting of the creditors will decide how they can split the assets between them.

What other possible reason is there for this????


They owe $19.5m to suppliers and workers etc.

They only have $2.2m of saleable assets and cash.

The creditors have gone so far as to get the court involved in securing payments -- so in the Dec meeting -- they will want paying.

If OMI can't pay in full in that meeting -- then the assets will have to be sold - to pay the creditors.

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Newmont will then buy the Anza asset -- and the payment will be distributed between the creditors.

[tidy 2] 15/10/2018 13:36

As 10% gives 500k oz high grade gold just think what the other 90% could provide. Now Newmont is involved you know it won't be small and they have advanced DSG tech to give em the heads up on decision making. Well they are in soooo speaks volumes. It is some statement to make they they will spend minimum $30m proving up Anza through to production that is a lot of OMI does not have to come to the market for and newmonts expertise comes with this deal.

[tidy 2] 15/10/2018 13:24

Why even engage ignore the silly man.

[wallywoo] 15/10/2018 13:18

augustus: tell me after years of posting negative posts on OMI, have you finally gone short? You would be making a lot of money if you prediction of bust by December comes true

[tidy 2] 15/10/2018 12:10

OMI currently trading at a significant discount Vs peers. 500,000 oz (estimate) would be from only APTA target which is just about 10% of overall Land package at Anza. Not done yet at APTA...with mineralisation Open in all directions and at Depth. Continental Gold 3.7m oz from Buritica ($860m NPV) is the best proxy...we can pro-rata for 500,000 oz for OMI just to get indicative MCap for OMI. Continental MCap is CAD$490mMP

[tidy 2] 15/10/2018 12:07

Since Newmont bought their continental stake Buritica NPV Has increased further and growing as more is proven up. Newmont will fund Anza through to production agreeing to spend minimum $30m on operations and studies. During this period they will pay omi $4m more on top of the $2m to date.

[tidy 2] 15/10/2018 12:05

Newmont were restricted to 19.99%. Indirectly they own 21% and a bit as they also own 19.99% of Continental who own 6.1% of OMI. Newmont paid $109m for 19.99% of continent which they were also restricted to, yes they want more there also. Continentals Buritica is next door to Anza with $860npv and over $500m cap. Both on the same middle cauca belt 10% of Anza has 500k oz gold. That's just 10% of part of their acreage

[tidy 2] 15/10/2018 11:59

You are way off the mark you need to research.

[augustusgloop] 15/10/2018 11:57

bryall,

I take it that you are a novice at investing.

That's how these guys work.

They paid $2m and either got control of the assets for free - or got the shares for free.
Which was worth $2m, the asset or the shares?

[augustusgloop] 15/10/2018 11:54

tidy,

let's say that they bought 100% of Anza from OMI -- how much would they have to pay?

Doing the deal this way - they pay $2m (already) then pick up the rest from the administrators after the creditors meeting - for say $1m.
Having the contract means that no one else can buy Anza.

If I were Newmont, I know which option I'd go for.

[bryall2] 15/10/2018 11:53

Augustusgloop, I would suggest you learn to read, Newmont have aquired 19.9% of Omi paying $2 million dollars for 29,213,186 shares, they have used the word purchased, so how does that square with your interpretation? Al.

[tidy 2] 15/10/2018 11:46

Correction 75% then elect 5% more

[augustusgloop] 15/10/2018 11:43

There's a creditors meeting in December - to dish out who is going to get what.

OMI current assets = $6.8m (only 1.1m of which is cash).

OMI current liabilities = $21.4m
($19.5m is trade payables etc)

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So, in order for their creditors to not wind them up --- they need to find $14.6m BEFORE the meeting in December.


Good luck with that.

[augustusgloop] 15/10/2018 11:36

OMI are bust

Anyone reading that balance sheet can see that.

Even if Newmont paid them the $4m now -- they still couldn't survive a year!

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Newmont didn't really buy OMI shares - they paid $2m for the ownership of 90% of Anza (under the contract terms) - and got the shares for free!

OMI are clearly going bust -- Newmont have that contract and so will pick up the full asset for peanuts from the administrator.