Oromin AGM report
I was at the AGM this morning, we were in the big room since there were many in attendance, by my count at least 20. I think 100% the board was there. There were almost 100 million shares in attendance or by proxy, so a very large turnout, both in shares and bodies.
There were no major announcements, most of the meeting was taken up with Chet and David Mallo leading the room through a powerpoint presentation similar to the one on the website.
Ownership was brought up and Chet explained that Bendon is a full funding partner with Badr holding 13 percent carried interest.
We talked briefly about the volume last week, no one really said one way or another what was going on but some took advantage of the volume and added shares.
Geologically the property is excellent. There are lots of ounces there and many yet to be captured in the feasibility. The new discovery has David Mallo excited saying that there are results pending there and they are on hole 13.
please ask any questions you may have and i will do my very best to answer them!
warmest regards
caliche
Caliche… thanks for attending the ole AGM and your report. I was also told by an attendee, that Chet said publicly they will Deliver 100 % of the Shares to a new owner/Buyer. Guessing it was not in his Forum format at the meeting, but in public to other people in the room. I was told this is now Public knowledge. Perhaps not appropriate for him to make that announcement, or not on the official Agenda or as New Business. But he did tell an attendee of this. i also hear that Mamasato is a nice big Surprise, and is called Big mamasato….. but not as big as Goulouma…… what were the questions people asked ?Any comment
thanks GF
Back on May 12th the company (ole) said it would release the NI 43-101 technical report within 45 days on Sedar and their website. They only have a huge heap leach report posted on Sedar dated June 20th. I have not found this report anywhere. Does anyone know if and when we might see this? It is also about time they update their company presentation on their website as it is dated March of this year. You would figure that if the company was for sale they would want to get all this info out ASAP.
Any comments? As always thanks.
Tony
What Pete’s saying……….
Grandich Client Oromin Explorations My understanding of the recently concluded AGM was:
•Over 72% of shareholders voted for the re-election of all directors. This include IAMGOLD and Teranga voted yes That’s important as it demonstrates confidence in what OLE has been doing .
•Oromin, Bendon and Badr are in agreement 100% to move this project forward as a whole entity.This should make it more attractive to senior mining companies as a possible takeover.
•Oromin is not getting any credit below 350m depths yet I’m told they’re down 1000m and are still in it. The potential is impressive when you crunch the numbers using a consistence grade. Just look at the July 14th press release – 8.63 g/t over 2 metres. at a depth of 1,077-1,079 metres. Adding ounces should be in OLE’s future.
•OLE thinks Mamasato can be a great addition when negotiating blue sky with Majors.
Bottom line – OLE is moving forward corporately as well as continuing to drill new targets. I think OLE appears to be dressing itself up for what could be a fairly quick courting period given the need for multi-million ounces gold deposits worldwide.
Grandich mentioned in his latest post on OLE that they are not getting any credit below 350 meters yet. I assume this is no credit as far as NI 43-101. I believe more drilling is required to make these 721K ounces under Masato official. Does anyone have any info on this and or on the pending tech report? David Scott has not returned my email.
Comments?
Tony
Are they one of the Bidders?
African Barrick reports solid progress
The company continues to seek acquisition opportunities to diversify country risk away from Tanzania. The strong cash balance and pull-back in gold mining shares have helped acquisition screening, although any targets must offer exploration potential and be able to compete with promising organic growth projects. JP Morgan Cazenove expects full-year EPS of 63.7¢.
Goldfather…..Yes , I do ( as I mentioned to you last week)….Also believe bidding war could develop between them and IAG….
Ya,,,, now wouldnt that be great ! and next week too…. But i do bet they both will try to buy it. IAG has 19 mil shares already…. but Barrick AFrica may be better Funded.
IAG signed a memorandum of understanding with China National Gold Group Corporation (March 2011) to cooperate in the PURSUIT AND DEVELOPMENT of mineral deposits in the regions of IAMGOLD focus…….What do you think this might mean re Ole if IAG wants to pursue them???
In my opinion , it could well result in China National Gold Group Corporation helping IAG fund a big acquisition—like Ole… If African Barrick and IAG both pursue buying Ole , Money will not really be a problem for either one …as African Barrick can also rely on big daddy Barrick to assist…Don’t underestimate shareprice buyout potential ( I will try not to overestimate)….
I do not mean to keep harping on this NI 43-101 technical report but I will. Maybe they are waiting for more deep drilling results to be able to include more ounces in the report. The difference between last years report and this years was I believe only about 157K ounces plus the heap leach ounces. I guess they are looking for more consistency in the deep drilling grade to establish a higher and more accurate ounce count.
Does anyone have any other theories?
Thanks
Tony
Tony– I differentiate between the technical reports mentioned in the May 5 & May 12 NRs and a NI 43-101 compliant update on ounces………The latter will most likely NOT be forthcoming until Q-4…RE the technical reports… I have no comment , theory , idea as I expected them to be posted on the Ole website long before today…
If I am correct re timing on updating the ounces , the Q-4 update should include all drilling thru Sept. 2011……IMO Most lkiely Thanksgiving is my guess for releasing that update …. which then will trigger serious buyout offers more in line with Chat’s expectations…(and mine)…
Company posted their 3 month financials ending May 31st on SEDAR dated July 27th, 2011. They had $11.6 million on May 31st 2011. I belleive that should easily last them until the end of their fiscal year ending Feb 2012. Chet got a bonus of over $300K on July 20th 2011 for his part in the fund raising during 2010. Must be nice to have millions of shares, millions more in options and also get a nice bonus. Hopefully we will all get rewarded once more ounces are proven and the rumor that the joint venture is now in accordance to act as one is made public. I still believe that there is a chance that they are holding up the delayed tech report in order to throw in some some recently certified ounces.
Comments?
Thanks Tony
This gold thing is interesting and perplexing. Six years ago when gold was less than $1000 an ounce people talked about a b/o of $2-$4 a share. Now with gold skyrocketing we are still hearing those numbers from some on this board and the sp is hovering around $1. None of this makes sense when we read the results of the latest reports and despite the obscure language it is obvious that OLE is on to something big. Six years ago Caliche said this was a Monster and he may indeed be a prophet. But with b/o looming sometime this year we hope, why the anemic sp? Is it the market makers? With such promise why is OLE languishing at a time when it should be a slam dunk? I have always been in Arlene’s camp regarding a b/o above $5 a share. Just frustrated in Indiana where the heat making us all exhausted. Any thoughts? Even rumors make me feel good. It helps to dream.
Riff…a few comments 1) We now have 150 mil shares. Lots of dilution happened.2) at start they roused about 3 projects, senegal, the oil play, and a third i forget the name… Cornahario?? We’re down to One left…. 3)Back then it was lots of Hype BS and lots of People that opiniated that dont really have any intelligent Logic ( still some of that here)…. this is reality now. No room for the Previous BS. ……
They are talking about $1.5 bln. Thats a lot of Clams ! Nothing to be ashamed about that amount. Lot of dough for a Co to come up width…. Anybody who is Logical, and knows what they are talking about will believe this is a realistic figure…. if not they are in … then La La Land. Riff… you been here a long time… do the MATH . Dollar amounts per Gold class ( indicated, inferred, BS)….x oz x 45% ( now) by 150 mil shares. $1.5 is actually hi. ….. unless Bidding and POG gets more….. but we’ll see what happens. Some say the market knows best….. i think we get a Solid Offer by Sept 10, and close late Nov…………
Riffdoc…Basically , Goldfather is saying that if you do not agree with his opinion , you have to be non-logical , living in la la land , and don’t know what you are talking about…He also expects firm offer by 9/11……You know my opinion which is somewhat different as I do believe that price of gold will be up and that competitive bidding will occur… most likely Q-4… Best Regards , Arlene2
CNBC had a chart a couple of days ago showing that gold mining stock are lagging at this time which we, IMHO, fall into the same vein! Yes, the pun was intended.
Mallard—-Yes , I saw it too and obviously believe it……Also believe Ole will catch up in a big way come buyout time as prices for gold in ground are going up also along with the spot gold price….We may see a big dip in spot gold prices over the next couple weeks , but if we do , it will be short lived…Late Aug or early Sept to Dec should see a surge north towards $1800/ounce…
Randgold CEO said today that Western Africa is one of the top three remaining top spots for gold discovery in the world.
This is a quote from the article:
“He ranked Russia, Siberia more specifically, as one of the world’s top three locations for new, large gold discoveries alongside Western and Central Africa.”
If OLE is truly for sale then Randgold may be one of the bidders.
Comments?
Tony
Hey Tony…. good eye, I saw that too. ! Nice speaking w/ you yesterday. !…and was thinking the same thing. I hope they are interested, as they are a neighbor. I hear they like to grow their own Projects vs acquisition…. also hear they are cheap. But they’re sp is like $90, they are a $7 bln Co ( same size as Img). But i’d love to ahve their stock in exchange for ours…. and more good news, the Gold world read his Quote abt W Afrca, and the majors know Ole is on the Market for Sale. BTW, I hear things are Progressing Well on that front.
Bought soem more today…… super deal under $1…. and a b/o is close…. hearing “its progressing along”… will be a a nice Profit in a short time for the $1.5 bln sale Price im hearing. Ok, i’ll do the math for the #’s challenged… thats $4.50 w/ a finance perked 45%… Gonna happen fast once announced. May not be announced rite away b/c of contingencies and CA agreements. Hearing the sp aint gonna inch up, as soem here are suspecting. Will stay status qou, then shoot to the b/o price…. all just from what i continue to gather from reliable sources….
POG at $1713- has got to be a great Leverage and Negotiating Point for Chet in the Current Buy Out phase they are in now in ( as we’re hearing). Unfortuneately the sp is near the lows at 88 cents, but i dont think that will matter. Strange that some here said that 5 mil oz gold and POG at $1500 will drive the price to $5. What is that all about ? Greedy stupid and maybe desperate Pumpers in a penny stock i guess. But Here we are at 1700 and 5 mil+ gold and its at 88 cents. But regardelss, the $1700+ must really help Chet in Negotiations with the majors interested in adding this great Project to their portfolio.
Grandich said the buy out could happen fast. If some here are correct that majors are putting the bids together now, i would think a Major or two who want to add Resource Ounces to their bottom line—- would jump all over Oromin fast.
Just wondering in the Psychology involved here. $ 1700 POG, or 88 cents sp, whats the most important. Grandich has said for years about Chet he cares more about digging for gold rather than investors. so i guess hes not going to start now after 7+ years to look for investors, or drive the sp up. and if he has 9 mil oz of gold at 88 cents, looks like its not worth taking another couple years to prove more gold . he;s going to get his price now regardless of the current stock price.
i dont post much, ( too long here sorry) but here a long time. Seems the Ole gang is all long gone. Its has been a torturous wait, but i think $4 is worth the wait. And hearing thats about the number they are worth.
Good luck Chet
JP MORGAN now predicts spot gold to reach $2500/oz by year end……And yes , I am sure this will all help Chet in his “negotiations” to get over $5/share….
Final price for any property is a function of multiple scenarios… whereas alot of JM’s have sold there properties for anywhere from $50-$350 per resource oz… there have been an equally impressive number of buyouts at much, much higher prices..
I am not a greedy pumper, nor do I consider myself stupid… but the following are facts:
Kinross bought out Red Back $7.1Billion & based upon the established resource oz of Red Back at the time – primarily from their Chinaro Project in Ghana & their Tasiast mine in Muriatania – it was more than $1000 per oz
Barrick acquired 60% of the Cortex mine in Nevada by buying Placer Dome for $10.4Billion & then the remaining 40% from Rio Tinto for $1.7Billion – Total of $12.1 Billion…as of 12/31/2010 the total resource count for Cortez was 14.5Million oz…that’s $834/oz… and the resource count is substantially higher now than it was in 2006
Just the facts
h1
Red back was an established Mining Company. Their stock was nearly at $25.00 when bought. Ours is 88 cents for gods sake. They had multiple mines producing over 400 thousnd oz per year.so thats not a very good comparable. and i think the Cortez is in nevada as you say. not w africa ! I also believe they were very established mining companies . Placer Dome i think was producing 1 mil oz p/ yr and was getting 22.00 per share.(more facts) Oromin is (projecting) 160 thou oz after they get around to building the mine in another year. those arent very good comparisons. If you believe however that $5 is attainable, i hope youre correct, but dont see it . Do the math for all the different types of gold Oromin has, and its a long way from $845 per ounce. closer to $150 to $200 . We all hope you are right at $5, but if the Market is always correct, how do we get from 88 cents to $5. I did say Good Luck to Chet
whatever ED
h1
S/P was not a factor in Chet’s last two projects in Peru and Panama either ED and he surprised on the upside in a big way when gold was just $300 an ounce. The price of gold will no doubt factor large in any b/o. All this is speculation but Chet has always dealt with Barrick and he has a lot here to sell.
I’ve been here a long time myself but I think h1 has a point regarding multiple scenarios. I don’t see selling this concession for $300 an oz when gold is $1700 + an oz under any circumstance and if history is any indicator neither will Chet..
Riff— lets get the most we can. But i just showed that comps are difficult to use. Theyre all different. And how many OZ are you counting? The 4 mil Indicated, the 1.5 inferred, and the 4 mil oz BS. Heck, at $300 for all of it is like 2.7 bln. Not gonna happen. I’d take $300 p/oz any day. As my comparisons showed, for what we have in oromin, your prices are way hi. ( i think). Hopefully we will all find out in a couple months. I’ve been seeing $200 for M & I ounces, and a lot less for Inferred, and a lot less for BS ounces. And theres NO Mine built yet. Now how good is chet at negotiating, and how well is he IN with Barrick, or HOW BAD does iamgold want it.?? We’ll see.
Chet`s putting his money where his mouth is…albeit a small amount.
Oromin Explorations Ltd. (OLE) As of August 8th, 2011
Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction # or value acquired or disposed of Unit Price
Aug 08/11 Aug 08/11 Idziszek, Chester (Chet) Direct Ownership Common Shares 10 – Acquisition in the public market 10,000 $0.900
Aug 08/11 Aug 08/11 Idziszek, Chester (Chet) Direct Ownership Common Shares 10 – Acquisition in the public market 10,000 $0.850
With Chet buying 20k shares on Monday, a deal cannot be imminent unless it is a bid that has not been negotiated with the company. It would be an obvious conflict of interest if he knew a deal was close.
Comments?
Tony
Nice to see Chets buying confidence. And Tony, would think he could buy at any time before an offer is made or serious discussions commence. I would also guess a Bid or two will be obtained by late aug or early sept.That would be 60 days since they got the news on the street they were for sale and the 100%ownership issue was resolved . All just guessing and from what I hear. Then give it 3 months to Close.
More buying today from Chet. As high a $0.95.
Filing Date Transaction Date Insider Name Securities Nature of transaction # or value acquired or disposed of Unit Price
Aug 09/11 Aug 09/11 Idziszek, Chester (Chet) Common Shares 10 – Acquisition in the public market 10,000 $0.950
Aug 09/11 Aug 09/11 Idziszek, Chester (Chet) Common Shares 10 – Acquisition in the public market 15,000 $0.930
Aug 09/11 Aug 09/11 Idziszek, Chester (Chet) Common Shares 10 – Acquisition in the public market 10,000 $0.900
Aug 09/11 Aug 09/11 Idziszek, Chester (Chet) Common Shares 10 – Acquisition in the public market 5,000 $0.880
Aug 08/11 Aug 08/11 Idziszek, Chester (Chet) Common Shares 10 – Acquisition in the public market 10,000 $0.900
Aug 08/11 Aug 08/11 Idziszek, Chester (Chet) Common Shares 10 – Acquisition in the public market 10,000 $0.850
Thanks Nailati….
great to know. I dont get that stuff…. but as Goldn! mentioned …. not that much for Chet’s 1.2 mil salary…. but these 60 thou sure is ssomething.He’s at least trying to show hes Bullish. I think its great.
Lot’s of speculations and opinions have been given over the past 2 weeks. With Gold prices headed “WAY UP” by all appearances – My current feelings are that any deal may be delayed – But, with that said – just because gold is way up, they offer to purchase will still be offered taking the past 5 years historical gold pricing into account – What does that mean? Bottom line, the past 3 months incredible gold price gains will not give us a huge boost!! This does not mean that we will not get some kind of added value based on the rise and future outlook of gold pricing in the future.
Many say that Gold is going to peak soon, This in no way is going to happen – You have China, Russia and other Countries that never allowed private citizens to buy gold in the past are now allowing this to happen.. Basic Econ 101 – Supply and Demand – Why does this matter? This may give us that 5 year averaging a higher leverage point for gold demand in the future!
I am still very bullish on the $5.00 + buyout based on new gold finds that are above the average as compared to past finds………… We all have been very frustrated with Chet’s low key appreciation of the investors – BUT, we all must admit that this was a known fact right from the beginning and we all knew it… But we all sit back and bitch anyway about it! ME INCLUDED!!
I feel that we will all be extremely happy with the sale when it happens, none of us know what date that will happen and fo how much – We are all speculating and none of us know the TRUE numbers… ME INCLUDED!!
My own opinion is Febuary/March 2012 for a buyout above $5.00 a share, again – THIS IS MY OWN OPINION!!
Congratulations to everyone who has held this stock, I hope we all get to meet each other one day after this thing closes!!!
Kinross just stated on CNBC that they beleive they have a major find at their West African site. He also said that the price of gold is moving up because of demand for safe haven and consumer purchases of gold. He was asked where he felt the best areas for future mining is and Comcast decided to quite sending a signal to my TV.
If this closes anytime in 2012 it would be fine with me. I have stayed in this for way too long and now need to stay until it sells. On issue for us in the US is that the cap gain tax rate of 15% on LTCG is only assured till the end of 2012. We have an election in Nov. 2012 and no on can predict what will occur. Since Chet is Canadaian it might not be a motivater for him…..DW I hope you are close to right….
Although others aren’t as enamored with Chet’s buying as it is a small amount, at least he is buying and that provides confidence to shareholders.
Every CEO makes a significant salary (combined with options, warrants, etc.) but I don’t see many others buying their company stock. Of the 7 small cap gold/oil/gas stocks I own, only 2 (OLE and THG) have seen insider buying by the CEO during this market weakness. This provides confidence, or at least it does for me.
Over the last two months Chet has actually bought over $100K of his own stock, with other insiders chipping in about $50k.
So I take this as positive for OLE.