bizana
11 Jun 2017
Davy - joint brokers to Ormond Davy ViewThe start-up is very good news for shareholders, removing any lingering worry that the project would be deferred or materially delayed. The timing should also suit the tungsten price cycle far better than if earlier start-up had taken place. The management change will also ensure full focus on project implementation. We think the stock should now begin to reflect the value of the project much more fully.Construction contracts placed The project company has authorised the issuance of outstanding approvals on contracts for the larger plant items. This effectively signals the accelerated start-up of project implementation. While a good deal of low level work has been completed the issue of contracts puts the project on a firm timing schedule for implementation. Mine commissioning is now expected to take place in the third quarter of 2018. This is delayed compared to earlier expectations for a number of reasons but in reality may well ultimately benefit the project as the mine now looks like it will be commissioning into a much better tungsten pricing environment.The project is fully financed with Oaktree providing both equity and debt finance amounting to just short of $100m investment. The equity element of this investment was $44.2m of which €16m remains to be committed by Oaktree. This will now be committed alongside a $55.5m debt package.Management changeSteve Nicol, current CEO of Ormonde plc, will step down from this role to concentrate fully on and lead project implementation. This step is being taken to reduce implementation risk and to ensure that budgets and schedules are maintained. Nicol, who is locally based, has been involved with the project for nine years so this looks a sensible development.The last sentence may be of interest.Maybe Davy can convince some of their institutional clients that things are really this good!Market improvesA major element of the decision to proceed with development reflects an improving market for tungsten. APT pricing has steadily improved over the last year and is now trading at $220-225 per MTU (Metric Tonne Unit). This compares to a January 2016 low of $162/MTU. There is evidence that mine concentrate is a tight market which likely reflects the shrinkage in mine capacity and various project delays over the last few years. Tungsten demand tends to reflect primary industry activity and the industrial cycle in general, all areas for which the outlook has improved. At the current price of MTU and exchange rates we value the group at 4.3p per share.
dyfiman
07 Jun 2017
still hanging in....... Message for Mr Bobby............a few days ago you asked who was still using this bb and still holding on to ORM......Well, I'm still around and waiting patiently, as you've suggested folk shoulddo from many moons back.No point in selling up, especially as ORM management and Oaktreeare now making a few waves with mine development.Happty to wait another year....reading your cogent thoughts in the meantime.Best of lucky, as ever, Bobby and also same sentiment to otherswho are hanging in with ORM.END
Phonner
05 Jun 2017
Some news in the Irish Independent newspaper today about Ormonde. I would not be too worried about the buyer for Ormonde's product, as I am sure there are other buyers in the market place: [link]
scholomo
04 Jun 2017
Re: Also boats 6,7,8,9... HI Sorry I have not posted but have been involved with active shares .Still holding and will be topping up in the next couple of weeks.Keep up your postings please and good luck to you.
BigBobby20
04 Jun 2017
Also boats 6,7,8,9... I see I missed out Halfpenny, FredPrior, Greatpotential, Big Chef... Apologies to these and any other past voices that I failed to include in my last post.Would be good to hear again from some of the long suffering aficionados.BB20
BigBobby20
04 Jun 2017
Please come in boats 3, 4. 5... Anyone still here? Only Bizana and I have posted in recent months (though admittedly there has not been much to comment on of late). Where are you Broomfielder, Phil Reid, Billiain, Zen 1, Schlomo and Dyfiman? Are you still holding shares and checking the discussion board?The RNS suggests that life will get much more interesting over the next year. Especially if the tungsten prices continue to climb. Hello....Hello... Anybody out there?BB20
BigBobby20
02 Jun 2017
Topped up. The 9.04am deal this morning is mine. Time, I thought, to take advantage of the depressed SP, reduce my average buying price and look with renewed interest to the future. BB20
BigBobby20
02 Jun 2017
Fast forward. Some helpful clarity on the forward planning with today's RNS.The improvement in APT prices (37% up since they reached a low point of $169 mtu in January 2016) has triggered a rethink of the time plan for production at Barruecopardo. This will now be put on fast forward, with Steve Nicol relinquishing his present role after the forthcoming AGM to focus his time and energies on accelerating progress at the mine. Completion is now projected for Q3 of 2018, thus just over a year from now.This is not to say that Saloro staff have been sitting on their hands in the interim. The company has done a good job of keeping investors informed through reports and an array of photographs of site development at the mine. The faithful may yet have their reward.BB20
BigBobby20
23 May 2017
Tungsten prices edging up Charlotte Radford (Metal Bulletin, May 22) reports that ammonium paratungstate (APT) prices in Europe are continuing their rise against a backdrop of firm demand and tight supply. On Friday, May 19 APT prices in Rotterdam were $215-225 per mtu, up from $212-222 per mtu previously. Demand for tungsten intermediates shows no signs of waning, she notes, with an encouraging number of enquiries from the hard metal sector. "The market's not slowing down" one buyer said. Traders are of the opinion that the interest will continue. BB20
BigBobby20
22 May 2017
Re: APT price Well spotted, Bizana, and the kind of news that will bring some much needed cheer to the tungsten faithful. Depending on whether one compares the low or high point of the range of prices you report, the result, respectively, is a rise in the price of APT since the end of January of better than 7% or, if you prefer, 8% (each calculation over the three months mid January to mid April). These are more or less the percentages that emerge from the end of month APT selling prices for end of January compared with end of April that I reported recently. A well researched analysis posted on this board just a few weeks ago was predicting a 4.5% yearly for the next few years, This kind of rise (if sustained) is of a magnitude that will please tungsten producers, like recent start up Wolf for example, in that the improvement in selling prices could well signal profits rather than a loss. Grossed up--though there are obvious dangers in such assumptions--the annual rate of rise by the end of 2017 would be circa 30%. In the rate of increase holds, the delay in moving to production at Barruecopardo might then look inspired.Whatever the actual rise in prices by the end of the year, any further improvement is to be welcomed and loudly cheered by the long suffering ormondistas. Is this the time when the bold (or reckless) return to the well? BB20
bizana
20 May 2017
ATP Price European ATP 19/05/2017215-225
BigBobby20
30 Apr 2017
Re: Tungsten and APT price rises My post of yesterday, which drew on a Wolf report, showed the market price for APT at the end of March ($208-16mtu). At the end of the present month, the Metal Bulletin shows Tungsten European free market APT, $/mtu: $212-219 from $208-216. Here's hoping the steady rise will continue over the rest of this year.BB20.
BigBobby20
29 Apr 2017
Re: Tungsten and APT price rises Apologies to all. In my last post I appear to be claiming (paragraph 2, see square brackets) that tungsten condensate is APT. This is incorrect, as the run of the sentence later shows, and my "helpful" clarification (!) was misplaced and needs to be ignored. Tungsten condensate is used to produce APT and they are different entities. The substance of my post, however, remains unchanged.BB20
BigBobby20
29 Apr 2017
Tungsten and APT price rises Our tungsten look alike, Wolf, which operates (though not without some recent difficulties) in Devon, has posted some interesting information on its website, from which the extract below is taken. The market projections take us back to an earlier line of discussion on this board, which had to do with the price of APT condensate and the way that relates to what buyers pay for actual tungsten. Without fully rehearsing the arguments, we can say that tungsten prices are improving steadily and likewise those of APT, which has a higher mark up than many investors generally realise. This improvement in prices, outlined in the Wolf report, supports the predictions of the last eighteen months and is clearly some good news for the ORM faithful. Elsewhere in the Wolf report, which is worth a read if only for some orientation re the tungsten markets, it is suggested that further rises will follow during the course of this year (which should mean a more favourable trading environment at the time when Barruecopardo begins production (hopefully eight or nine months from now). "The global supply of tungsten concentrate [that is to say APT] remains constrained and during the Quarter there were further indications that the historic methodology of determining tungsten concentrate prices relative to the APT price may not be fully representative of the current market. The tungsten price has improved significantly over the past quarter having risen over 12% with the London Metal Bulletin reporting a price for APT of $208-216 per mtu at the end of March."This shift in pricing seems to be having a beneficial effect on the Ormonde SP, which is inching forward of late.BB20.
bizana
14 Apr 2017
World Tungsten The following link provided by "Steelwatch" on Advfn ha a wealth of information:[link]
