BigBobby20
16 Jun 2016
Final Results The final results announced today offer a generally encouraging picture, with a modest profit (investment income) to boot. As we know, project planning has had to be adjusted to allow for the challenge to compulsory land purchase but that issue has been adjudicated in favour of Saloro. The knock on effect has been a delay in the date when mining is due to commence, now the late months of 2017. The nuisance value of the delay has a sliver lining in that tungsten prices are expected to rise significantly so that first sales will, it is hoped, result in much better returns. As usual, it appears that things are being efficiently managed, with steady progress on the engineering front and pleasing results (as previously announced) from the test drilling. This is no longer a nine year project but one that will see tungsten mining extend over many years. BB20
BigBobby20
15 Jun 2016
Barruecopardo update The RNS of this morning confirms that the authorities, as expected, have found in favour of the project company Saloro and against the appellant in the matter of the recent challenge to the compulsory purchase of a tract of land close to the mine. This is obviously good news for everyone, though, as we are reminded, the complainant could still launch an appeal. The question here, as always, is whether the appellant has deep pockets and thinks there is any point in going any further with a challenge, given the legal ruling that has been announced.This matter has clearly impacted on the time scale for commissioning and production and we are now looking at late 2017 for first sales of tungsten. The price of tungsten has improved, as we know, by some 30% since the low point at the start of the year. The predictions suggest a steady rise over the next few years, so we could be into production at a time that favours profits. To me, this still looks--especially at this level of SP--to be an attractive opportunity for worthwhile returns.This is not he first time that a company's project time scale has slipped--here, of course, for reasons outside of its control. Oaktree seems relaxed and cooperative in reviewing the agreement, so the company is not under any intolerable pressure and, accordingly, we have no reason to be looking for a high window to jump out of. ORM long time investors have the stripes and gongs that were earned through their extraordinary patience over recent years, so I dare say most of us LTHs will not be too troubled by a mere 18 month run-up to production. Some of us bought in at a higher price and so averaging down may be tempting. For new investors, able to pick up, say, half a million shares for not much more than £5000.00, this may be shaping up as a very attractive play, even a no-brainer.BB20
bizana
25 May 2016
Davy 24/05/2016 Drilling programme confirms extension of mineralisation Several holes in a five-hole, 2,000-metre drilling programme intersected substantial grades and widths below the vertical depths of the established mineralisation used in the open pit model. Currently, the pit design terminates just over the 200 metre level and the drilling just completed records intersections over 100 metres deeper than this level. This points to support for the expectation that an underground mine can be developed when the open pit mining cycle reaches its planned nine-year life. Additional drilling will continue during the construction period and initial production periods. Aside from depth extension, the drilling added data points to the resource model and further confirmed the existing resource interpretation for the project. The drilling also confirms the fact that the northern end of the pit is more complex, with drilling intersecting multiple schist rafts present in the granite that contains the tungsten mineralisation. Additional drilling is required but it will not be in the near term. Project timeline update – detail announced in due course The third party administrative appeal of the compulsory land purchase, which Ormonde believes to be vexatious, failed in the first part of the appeal process. Nonetheless, as guided in its earlier announcement, Ormonde still believes that timelines will be affected – a fact confirmed with the receipt of specialist legal advice in the interim period. The group will provide an update on these timelines when it has put in place a new work schedule following completion of discussions with its project partner and debt provider (no debt is currently drawn so discussions relate to timing and matching of the facility with expenditures). Once completed, the details will be made known in due course. Tungsten market has firmer tone Recent tungsten pricing has recovered from the lows seen in 2015 with APT now trading at around $220 per MTU (metric tonne unit). While any delay in project delivery is unwelcome, this is likely to be minimal in the context of the project cycle and, as we have pointed out before, should ensure that initial production is more aligned with the tungsten price cycle.
bizana
24 May 2016
Today's announcement This note from Davy was issued exactly a year ago and I think it helpful in light of today's RNS
avy ResearchOrmonde Mining Resource Research Home Resource Ormonde Mining Davy ViewAt its recent EGM, Ormonde shareholders passed the proposed Oaktree deal (to invest in the Barruecopardo tungsten project in Spain) by a very large 94%. This endorsement reflects the solid nature of the deal in very difficult markets for resource projects. With all resolutions passed, the project will now move swiftly ahead.The right outcome for shareholdersThe Oaktree deal is a very creditable achievement by management in the context of equity and debt markets that are selective and expensive for small- to medium-sized resource projects. The deal will result in up to $100m invested in the project company, comprising an equity investment of $44.2m and debt of $55.5m. In return for the equity injection and availability of debt, Oaktree will receive a 70% stake in the project company with Ormonde holding the balance. The deal structure is flexible, with equity being invested first and debt repayments organised to allow mine development to be optimised. There are provisions in the debt to allow for cost over-runs, to drill out the deeper potential of Barruecopardo and to pursue the potential of several satellite orebodies.The next step will be to finish detailed engineering designs, following which orders will be placed for plant and equipment. Preparatory site work and finalisation of the process of securing the land requirements will also commence. The certainty of the Oaktree deal also means that a number of essential staff can now be employed at the project level.Valuation thoughtsThe strict read-through valuation of the deal is 2.9p per share. However, we think this is a price that reflects the nature of the market at present and the current weakness in tungsten pricing. Future value in the project is available by confirming additional ore at deeper levels, establishing the status of satellite orebodies and expanded mining operations. The Oaktree deal facilitates all these factors.The project company should manage debt comfortably. At a tungsten price of $250 per MTU of APT, current FX rates and underground mining starting in the fifth year, cash flow (gross) will average $22.5m per annum over the first ten years of the project. At $350 per MTU, the equivalent number is $45m. Ormonde will have a 30% share of these cash flows. Looked at as an investment, assuming an underground development starts five years into the project, we estimate that the stock is worth 3p per share at current tungsten prices and 8.2p per share if tungsten rises to $350 per MTU. At $425/MTU, a mid-range ($400-450) level believed to be more representative of tungsten’s long-term value, the value of the project is 12.2p per share.Current estimates envisage a late 2016 start to mining operations. Although markets may see the interim period as one of low activity, we think there will be a gradual realisation of the value of the Oaktree deal. This deeper understanding of what has been achieved and progress on site should be catalysts for share price performance.---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- More
Phillip Reid
24 May 2016
Re: RNS Highlights (FAO Phil) Good day Bobby, or Bon jour, Guten Tag, Konichiwa, Ni haoIts OK, just having one of my moments. Yes its early evening here, been raining so no activity for me today. I was going running with a student a couple of hours ago but it got cancelled.Actually - not my summary, just cut and paste. I get an email on any news about ORM, but it is also available, asI am sure you know, through the News section here.Hope all is going well for you my friend. Things may be beginning to look up at GFM. Zinc stocks seem to be running down at a rate.ATBPR - got a lot too claw back here before I start looking at profit, but I think others are much worse off than I.
dyfiman
24 May 2016
Re: RNS Highlights (FAO Phil) Such good news for ORM - and PL's - this morning.Yet a little sad that the share price remains around 1.3p involvinga 7.14 % markdown from the MM's.Despite all that I'm holding.... and planning to buy a small chunk.nice to see BB back on the scene and good luck to all youfolks who have not sold out.Best rgds to all.Dyfi.END
BigBobby20
24 May 2016
Re: RNS Highlights (FAO Phil) Good morning, Phil (or perhaps 'evening' in your part of the world).You were quick off the mark with your summary and, yes, what's not to like here? Some of the grades, e.g. 2.59% WO3 (albeit over 6m) are truly impressive. I haven't yet worked out a rough, back of a postcard average from the list given but I suspect it's going to be well above the corresponding figure for Wolf at Hemerdon. The indication of increased tungsten reserves, as projected, puts Ormonde high up the ladder of outside-of-China sources and, of course, adds nicely to the potential of the company. You didn't mention the update on the legal spat that arose recently with a challenge to compulsory land purchase. The news here, while not conclusive, appears to be positive with regard to the eventual outcome. So far, so good, in other words. However, there is going to be time slippage, as we were already told earlier in the year. We shall have to wait and see how much of a delay and whether the project team could, after weighing up the legal advice, begin preliminary works on that particular tract of land ahead of a final determination. Tungsten prices have steadied and turned upwards, though it will be quite a pull to get back to where we were two years ago. Just as well that we shall be one of the low cost producers, able (we hope) to stay the course in spite of the headwinds that we can expect for a year or two yet. BB20
Phillip Reid
24 May 2016
Re: RNS Highlights Highlights· Excellent results obtained from 2,000m drilling program commenced during Q4 2015 including:BAR83: 23m @ 0.26% WO3 from 172m (including 4m @ 1.23% WO3)BAR83: 5m @ 1.95 % WO3 from 404mBAR85: 25m @ 0.21% WO3 from 334m (including 5m @ 0.59% WO3)BAR86: 6m @ 2.59% WO3 from 253m· Results further support the current resource interpretation at Barruecopardo;· Confirm the significant potential to extend tungsten mineralisation at the Project: and· Demonstrate the potential to extend the nine year mine life at Barruecopardo substantially through the development of a "Stage 2" underground mine at the ProjectSteve Nicol, Ormonde's Managing Director, commented:"The excellent drilling results achieved from the recently completed drilling program below the base of the planned open pit are most satisfying, confirming our belief that there is significant potential to substantially extend the mine life at Barruecopardo through the development of a Stage 2 underground mine. Works in this regard, including further drilling, will continue during the project construction and initial production periods." Drilling Results The five hole drill program was carried out with the objective of confirming extensions to the mineralisation at depth beneath the main central part of the planned 9 year open pit, whilst also following up a potentially expanded zone of mineralisation under the shallow northern end of the planned open pit which was identified by drilling in 2012.An opportunity exists to significantly extend the currently defined nine year mine life of the Project through the development of a Stage 2 underground operation, with the identification of additional mineral resources below the central part of the planned open pit being the primary focus in this regard. The results of this initial drilling program lends growing support to this potential. The Project Company will continue to advance its goal of establishing and developing a fast track Stage 2 underground mine at the Project.Regards
Nige the snake
24 May 2016
RNS should eventually now start a northward journey
BigBobby20
20 May 2016
Apologies ...for posting the same piece twice. I saw no confirmation that my first post had been processed. Must have dozed off, I suppose.BB20
BigBobby20
20 May 2016
News one day soon. Just over a month to the final results for 2015-16, if we assume that the date of publication will be close to that of last year (26.06.15). It will be good to have some newsflow at last and to see how well develpments are taking shape and whether time lines have slipped much as a result of the issue concerning the compulsory purchase of a tract of land at the Barruecopardo site.Tungsten prices seem to be trending up but advances are painfully slow. Let's hope the positive predictions of metal analysts come good and begin to kick in as production gets under way. The Ormonde SP tempts me, as a way to lower my average. At the moment, however, I am building up a stake in one or two other companies that I hope will love me back. BB20
BigBobby20
20 May 2016
News one day soon. Just over a month to the final results for 2015-16, if we assume that the date of publication will be close to that of last year (26.06.15). It will be good to have some newsflow at last and to see how well developments are taking shape and whether time lines have slipped much as a result of the issue arising from the compulsory purchase of a tract of land at the Barruecopardo site.Tungesten prices seem to be trending up but advances are painfully slow. Let's hope the positive predictions of metal analysts come good and begin to kick in as production gets under way. The Ormonde SP tempts me, as a way to lower my average. At the moment, however, I am building up a stake in one or two other companies that I hope will love me back. BB20
BigBobby20
03 Mar 2016
Re: RNS: Project Development Hi Dyfi.I agree that the minor legal spat over compulsory purchase will probably not hold things up for long. After all, the legal protocol for compulsory purchase has been around for a very long time and we can safely assume it is tried and tested. The statement makes clear that the management team has, for now, switched efforts to other agreed targets. As you suggest, it's a busy "tasks done and tasks to do" list that has been announced with plenty of evidence of key developments in place and some even completed. I hope the storks approve of their new home. I picked up a large top-up tranche recently (as posted), feeling that this has now become a relatively safe investment and motivated by the thought that the SP needs to rise by only a penny or so for me to double this particular injection of funds. BB20
dyfiman
29 Feb 2016
Re: RNS: Project Development @Bobbie...............Very pleased to see you are alive and kicking BB !!!!!And very pleased with today's RNS containing a verycomprehensive run-down of where we are at the moment andwhere we are heading in the months to come.Think that the hiccup with a landowner is not too worrying inthe great scheme of things as the local authorities have a vested interestin seeing the mine open ASAP and locals getting jobs. I remember this sort of thing happening to the then EMED project in Huelva with rather more landowners trying it on big-time ! Was sorted eventuallywith buckets-full of filthy lucre.Finally, so pleased I stayed with ORM and happy to sit and wait for thetime when they start pulling out the tungsten and whatever else there that'sof value.Best regards to you once more BB.END
BigBobby20
29 Feb 2016
RNS: Project Development A pleasing progress report is presented in today's RNS, together with the unfortunate negative that one land holder in Barruecopardo is contesting an aspect of the land acquisition (otherwise nearly complete). There is the consequence that the resulting legal enquiry may well affect commissioning, pushing it on by a couple of months.Market prices for tungsten have steadied and shown a small uptick. We'll have to wait to find out where prices go from here, though this is largely academic until we are shipping tungsten. BB20
