Wti Oil Etc Discussion Threads

[keya5000] 31/8/2017 08:34

dixi 100% agree, the actual final wording 'near term' is more positive.

They would hardly be making the repayments when you consider the new bridge that was taken recently.

All good and much the same but you could buy 30% lower.

[dixi] 31/8/2017 08:17

Seeing the drop here I am left wondering what was expected? Not least the final sign off paragraph is becoming more positive in its tone?Production and costs is still key.

[jamdan1] 31/8/2017 08:14

People spotting a bargain....just wish I bought today and not yesterday....doh

[keya5000] 31/8/2017 08:05

waterloo when you are the financier and you are so balls deep in that Orion are with this the tail can almost wag the dog.

Orion are being very 'understanding' with their support and there is no reason to suggest they may pull the rug from beneath what must be a massive cash cow for them.

[waterloo01] 31/8/2017 07:41

And there is that warning again. Orion will own this come year end. Brave chap from Twitter.

[leedskier] 31/8/2017 07:38

1 US Dollar equals 13.02 Namibian Dollar



Weatherly has 1000 tonnes per month fixed September to December at an average copper price of US$6,077 per tonne and US$ to N$ exchange rate of 13.38; and 1000 tonnes per month fixed January to March at an average copper price of US$6,464 per tonne and US$ to N$ exchange rate of 13.25.

[pedro57] 30/8/2017 21:51

Barondaytrading who is a well respected and followed investor on Twitter disclosed today that he has taken large stake in WTI when shares were at the low a month ago. He essentially is behind most of the volume when L&G exited. His buying bodes well as his picks usually come good and he is very bullish medium and long term on WTI mainly because of Central Operations reopening and Tschudi lowering C1 costs. hxxps://twitter.com/barondaytrading?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

[leedskier] 30/8/2017 11:58

As I suggested above, it would be $6800 a MT this morning. Bring it on!

[billthebank] 30/8/2017 09:53

Looks pretty simple TBH and that is after 1.26 is broken then BOOM!!! So with POC at a fab level can't see anything stopping this baby.

[billthebank] 30/8/2017 09:48

I have to admit I like the shape of our graph. Must do some analysis!!!

[leedskier] 29/8/2017 19:27

Exactly 12 months ago, Copper was $4600 a MT.

Tomorrow it should show $6800 a MT.

The difference on just 15K MT per annum is an additional $33 million in revenue.

Orion are a fund that invests in mining companies.

They will know that if the bull market in copper runs, their money is secure, not only from the open cast mine currently in operation but from the mothballed underground mine which if brought back into operation has production costs of $2 a pound -- copper is currently $3.10 a pound.

[leedskier] 29/8/2017 15:13

~Forgive me I feel a yawn coming on

[waterloo01] 29/8/2017 14:44

Yes into ATYM but one difference is they have very low debt and should do $100m EBITDA in 2018. Not saying WTI isn't worth investing in, but Orion (who also have a stake in ATYM) have WTI over a barrel. Orion could have called in the loans here, but didn't, which I guess says something. I'm just asking the questions as a I think copper is on the start of a bull run, and am looking for other copper plays. WTI mentioned on ATYM board some time back, hence on my radar.

Re M&A no idea but it's in Orions hands, not WTI.

[dixi] 29/8/2017 12:59

Choice for Orion - capital appreciation via WTI shareprice rising with copper, or take copper from the hedge and curtail WTI's potential greater gains for now - all assuming WTI is back on track of course.

[leedskier] 29/8/2017 12:57

If ATYM, which waterloo01 appears to be invested in, is worth £200 million, it seems bizarre that WTI is only worth 5% of that.

[keya5000] 29/8/2017 12:48

Waterloo, that maybe the case, what is to stop some form of M&A here though?

Look at the mcap and then add on the debt, compared to its peers it and its sum parts are now grossly undervalued.

If a Chinese approach came in and it covered the debt are there any 'blockers' that would prevent a take out in full or partial whih could prevent the deal happening? Would the commitments to Orion have to be followed through by any potential buyer.

For example ATYM this morning put more mcap on than the entire current mcap of WTI.

Apples and pears perhaps but if anyone knows the answers or holds an opinion of the above it would be great to see it.

[waterloo01] 29/8/2017 12:40

Indeed, except in the last RNS the C1 costs were $6344, so will be making a loss per tonne on the Orion portion. Orion look to have WTI by the short and curly's, especially with the quarterly repayments of $8m+ on top of the agreement till April 18

As a potential investor, I'd need more clarity.

[billthebank] 29/8/2017 12:19

waterloo it is a very reasonable question and I missed that RNS Deffo worth deep review after all if Orion are able to acquire up to 700 tonnes a month @ $6000/tonne and if C1 costs are maintained @ $4700 then we are talking a serious impact on the company as Orion would simply sell this production on the open market and at pres $6700 make a total fortune. Odd though as they have such a large holding they dont want to kill the fatted cow!! The company with this hedge in place would only be making and this is rough ($6000-4700)X 700 + ($6700-4700) X 700 Approx $2.4M/month. Still not bad though. Might contact the company to establish more info unless someone has done this?

[jp2011] 29/8/2017 11:30

Re Leedskier: no, the $10m is working capital for longer leach times and capex for new leach pads.If they can sort out Tschudi and start repayments then share price will be north of 2p. Once it gets >2-3p then you could look at new equity funding to restart central ops, there could also be some m&a to bring in additional to make central ops more viable.

[waterloo01] 29/8/2017 11:26

I was hoping current investors might have some ideas having done the research?

JP, thanks. Where does it say the 1st 550 tones isn't available for Orion? As for Orion not taking up the option! Unlikely wouldn't you say!

[jp2011] 29/8/2017 11:22

The only thing I would add is that Orion have the option but not the obligation to take up to 700t/mth @ 6000 subject to WTI having satisfied their hedges (550t/mth) and having available production, i.e. If production were 551t then Orion can buy 1t for 6000 but they lose out on 699t.

[leedskier] 29/8/2017 11:17

Then surely your guess is as good as anyone's.

[waterloo01] 29/8/2017 11:09

This is all known and out in the open,hence my questions.

[waterloo01] 29/8/2017 11:01

Weatherly announces that, following discussions with Orion, it has entered into a further amendment and restatement agreement with Orion. Under the Amended Facility, the first repayment of Facility B Loans has been deferred to 30 June 2017 and Orion has agreed, effective until 30 June 2017, to limit its acceleration and enforcement rights on the terms set out in the Amended Facility. The Facility B Final Maturity Date remains unchanged at 29 February 2020, and each Facility B repayment will be increased so that the Facility B Loans will be repayable in 12 equal repayments.

As a loan rescheduling fee, Orion will receive, inter alia, the right to buy 700 tonnes of cathode each month from Ongopolo Mining Limited for the period from 1 May 2017 to 30 April 2018 at a price of US$6000 per tonne (the "Updated Offtake Terms").



Weatherly has entered into a further amendment and restatement agreement in relation to its existing facility with Orion (the "Amendment and Restated Agreement"). Under the facility as amended by the Amendment and Restatement Agreement (the "Amended Facility"), the first repayment of Facility B Loan has been deferred to 31 August 2017 and Orion has agreed, effective until 31 August 2017, to limit its acceleration and enforcement rights on the terms set out in the Amended Facility. The Facility B Final Maturity Date has been changed to 28 February 2020, and each Facility B repayment will be increased so that the Facility B Loans will be repayable in 11 equal repayments.

The repayment of the US$8.6 million lent under Facilities C and D of the Amended Facility has been deferred until 31 August 2017.

Both RNS's carry the following health warning (although copper has recovered somewhat since).

If copper prices remain at current levels it is unlikely that the Company and its subsidiaries will generate sufficient surplus cash to meet all loan repayments under the Amended Facility when due and planned capital expenditure to support achieving production and operating cost targets. The Company continues to positively engage with Orion on the subject.

[leedskier] 29/8/2017 10:58

Aside from current operations, I wondered whether the $10 million loan at LIBOR +2% is to restart OTJIHASE.