ADY - Admiralty Resources

[SM Junkie]

Thank god I only had a small position in this company. I have already lost 95% of my investment, so nothing is left but a few hundred. Only held for the Lithium, so I got burnt with the rest of you.

I guess this is the nature of the beast and a bit of a harsh learning lesson.

 

[shccbell]

This will be the last time I post on this joke of a company. I'm bitter yes losing some $60K through believing PT's mis truths. The reality this isn't a normal situation and trying to lean to much from this could be dangerous. The company and its directors bordered on acting illegally and IMHO deliberately try to mis lead investors.

The company was a spec but PT kept telling the market contracts and funding where effectively done. The de-merger was smoke and mirrors designed to keep people in the stock and allowing many closely connected to the company to exit at high prices.

I will never believe a SPEC's CEO ever again none of them can be trusted. I believe the who thing stinks and I still can't believed I got caught up in the nonsense.

 

[prawn_86]

Very tough break for holders.

Why was the management allowed to sell of a large assett without shareholder approval? Is it because it was classified as 'non core'? If so, who does these classifications?

Also, would/should there have been due diligence carried out in order to sell to a $1 private company?

 

[sjx]

Also, would/should there have been due diligence carried out in order to sell to a $1 private company?

From my knowledge.. I would of thought absolutely. This is all very unorthodox if you ask me. The whole saga has left the bitter taste that so many feared.. (including myself)

T

I feel for you shccbell.. many have been burnt hard I suspect, I've lost quite a bit. The dermerger was a joke. They are cheats it seems. I know a few who have registered complaints with ASIC. I am yet to put one in myself. All this happened very, very quickly.

It seems very strange that Charge Resources - a company registered on the 10th of October comes up with that much cash to purchase a company in such a short time.. Most of us .. (i would actually assume all of us) were ultimately in it for the lithium, and they willingly trade off our prospects with what seems a bi-company.. lol what a con

(charge resources asic listing)

http://www.search.asic.gov.au/cgi-bin/gns030c?acn=133_792_524&juris=9&hdtext=ACN&srchsrc=1


So now the only question is what happens next.. maybe they'll go down? I haven't even exited yet. Who else hasn't exited. Scchbell, prawn? The next week will be an interesting one.. Who knows when the next suitable exit might arise..

not happy jan!..

 

[mayk]

Why was the management allowed to sell of a large asset without shareholder approval? Is it because it was classified as 'non core'? If so, who does these classifications?

My understanding is, if the company is not producing/extracting the resource, it can be sold with BOD approval.

I am still holding this, but a really small parcel. I am almost net zero, as I traded this company a bit.

I sincerely sympathize with those of you who have lost tens of thousand of dollar in this.

Still no one answered my question, is their Iron ore business worth anything?

 

[sjx]

Still no one answered my question, is their Iron ore business worth anything?

Well in my opinion no.


Iron prices have have been at a record high, and hasn't Admiralty already proven that they can't manage this? Did their iron business even make a profit? I reviewed the annual report when it came out but I've forgotten.

 

[rub92me]

Still no one answered my question, is their Iron ore business worth anything?

Their iron ore business has been running at a loss since production started. The really worrying thing is that production has actually declined according to their latest announcement and is now at a laughable 15-20,000 tonnes per month. And they seem to be burning through 4 million dollars a month to achieve it which is clearly not sustainable.

 

[Busyboy50]

Yep. Count me in as another mug who believed the demerger story and the potential of lithium. Have to say am very suspicious about new company emerging to buy the lithium assets at such a convenient time. And no, don't believe ADY shareholders will be given any preferred status at IPO - if you believe that, you'd believe in the tooth fairy. Yep, we've been dudded - I'm just not sure whether it simply poor management or something more sinister....and I speak here as a VRE shareholder, I reckon THAT mob set new benchmarks in poor management...

 

[walterp96]

I totally agree with you both. This smells bad. It really looks like a scam. Also, according to the announcments, Thomas is still on the board. I am living in France and I would like to know if it is possible in Australia to request an investigation on this ? Rincon was the family jewels and Thomas just gave them away for a free lunch ???? This is criminal. I want my money back - every cent of it.

 

[walterp96]

Does anybody know who "West, Mark Griffith" is ?
Especially if he's in any way related or connected with board members of ADY ?
Or does anybody have background information about CHARGE RESOURCES PTY ?

 

[mayk]

I totally agree with you both. This smells bad. It really looks like a scam. Also, according to the announcments, Thomas is still on the board. I am living in France and I would like to know if it is possible in Australia to request an investigation on this ? Rincon was the family jewels and Thomas just gave them away for a free lunch ???? This is criminal. I want my money back - every cent of it.

http://www.asic.gov.au/asic/asic.ns...mpanies+or+people?openDocument#complaint_form

You won't get your money back, you took this risk, so you could be rewarded. The risk became risk and you lost. Just shows that fundamentals sometimes are not rock solid.

 

[walterp96]

Thanks for the link.
I agree with you about taking a risk. My risk evaluation included financial, geographic and economic elements. I did not consider that being ripped of was among the options. Giving away Rincon Salar for 36$m to a company freshly created (actually 10 days ago) is more than suspicious. Giving away all the rights, patents, etc. even more so. It looks like it was simply "handed over" without much defending of Admiralty's (and its shareholders) interest.

 

[J.B.Nimble]

Couldn't agree more - giving away Rincon Lithium was an outrage. There were so many ways that this could have been floated out in previous months with equity interest to ADY shareholders and returning some cash to ADY that one can only wonder at the competence and integrity of the directors. How could one have such a gem of a resource and screw it up so badly. Yes, the credit crunch could be cited as extenuating circumstances, however it just feels amateurish or crooked - take your pick. I, for one, would love to see someone set up a database of directors - the good, the bad, and the downright ugly - so that we can more easily see the track record of their brilliance, incompetence, integrity, or otherwise. There are companies I would love to invest in but for similar doubts - never again a company involving PT...

 

[sjx]

Still no announcements or news directly from this company... Unbelievable.

Holding onto my ADY shares for now.. while management have proven that they are terrible at handling IO, I firmly believe that demand for IO will rise in the coming months and maybe....

....just, maybe ADY management might get their act together and sort themselves out with the cash left over from the Rincon Salar sale.. hell, maybe they'll actually make a profit from the Cia Minera Santa Barbara IO mine..

am i being to optimistic?

 

[roland]

Hi Guys,

This is 3rd hand now, copied from another forum claiming to have copied it from yet another forum. Take it for what it is worth.....

This was posted on another site by T_Oberlaender.

Quote-

Here's the email that I sent to Phil Thomas:

"Dear Mr. Thomas,

As a shareholder of Admiralty Resources, I am very confused and
concerned by the recent sale of the Rincon Salar asset.

This asset has been valued by your company in excess of $40 billion,
yet it was sold for $36 million to an unknown and newly formed
company. This transaction appears to have been done in place of the
proposed de-merger to spin off the lithium assets in Rincon Lithium
Ltd., which would have properly rewarded shareholders.

Please get back to me immediately with any information you can
provide
that will make sense of this transaction. In the absence of any
response, or any sensible explanation, I will be following up with
inquiries to the appropriate agencies, both security and law
enforcement."

Here's the response I received:

"Hi

I am just a non-executive director now, but let me give you some
facts:

- no-one valued the business at $40b - that's the value of the
inground
lithium resource if you took it out and sold it at current prices, the
market is so small it would have taken 1,200 years!
- the market valued the whole company on the day of the sale at A$35m,
so the fact it was sold just one part not operating at $35.2m was a
major achievement
- Rincon had a book value of $23m, and a $9m loss - so getting
someone
to buy it for $35m and then asking them to spend US$125m to develop it
and we get to have 10% of the equity should they list was a major
achievement.
- the car market has become severely depressed, oil prices have
halved,
project finance has completely dried up and asset values in latin
America have been decimated, and to top this off Argentina has grabbed
pension assets and nationalised them, making asset protection almost
impossible to insure. Not an ideal climate to launch a new chemical
business in.
- Why sell the Rincon - we had no ability to issue any more shares
(15%
rule), we owed Hawkswood $11.745m and we had a fixed and floating
charge
over the business.
In other words we had absolutely no where to go - except maybe the
obvious.
- The demerger was difficult to implement due to taxation reasons and
had absolutely nothing to do with this asset sale, which I would have
thought was obvious.

There is nothing stopping the board putting in another asset at a
later
time, to replace the cashflow which was PROJECTED to be about $100m
per
annum from RINCON once it got up and running. (this is equivalent to
selling 1.75m tonnes of iron ore per annum).

Your last comment is deplorable as a shareholder and I personally take
offence to it as I am the fourth largest shareholder, but the only one
that has not sold right through this crisis and if you don't think my
interests are not aligned with shareholders interests then you are a
fool.

You obviously don't read our press releases because the Australian
Securities Exchange sanctioned the sale (listing rule 11.4), all
directors made full disclosure, and I worked day and night for two
months trying to secure alternative options but we didn't get there.
Given we have just been through our public audit I suspect ASIC will
have no interest in your complaints as we as a board complied to the
letter, and as a board can do what we believe appropriate in the best
interests of shareholders and we do what we think is best at the time.

Phil Thomas"

End Quote

 

[sjx]

Thanks for posting that Roland for the ASF members. I saw that a few days ago on HC..

I don't know what to think of it really..

Here's what I mean:

1. If he wasn't so aggressive and defensive in his reply.. do you think he would have been hounded for maybe not caring? Would it have appeared fake if this was the case?

2. And now he's from what I've read.. under a bit of pressure in regard to that response, because he did get a little rude and quite defensive at the end of his reply.. (naming the recipients comments deplorable.. and calling him a fool etc)


While it does seem like a logical reply.. by offering a few answers, I honestly think that there is something else behind this to be perfectly honest. And when he mentions that his the 4th largest shareholder or whatever; I believe much of this is held with Panopus.


Regards,

 

[sjx]

Trading halt requested.. hrmm, very interesting

It seems the sale of rincon has run aground somewhat..

 

[ricm]

To let SH's know here...

To the mods, hope this doesn't contravene any forum rules, if so, i apologise.

You can contact the author of this post at:
prescotts@bigpond.com.au

The following was initially posted, of which it has positively fired up to say the least:



I feel shareholders are not being given the chance to help the company resolve the finance issue. expecially hawkswood loan. its only 10.8 mill for gods sake.

GIVEN THE OPPURTUNITY I BELIEVE ALL SHAREHOLDERS WOULD PREFER TO HELP THE COMPANY SURVIVE THIS MINOR BS SITUATION

This is a credit problem not future vision problem. If we had the capital we require this company would work. and survive.


My Proposal.

We have a charge over all assets by Hawkswoods. we cant Demerge rincon because of this or re-finance

Why can't existing shraeholders be offered to chance to set up a SH loan fund for the company eg $35 million. we SH put in say $2000 each on a voluntary basis as loans funds to company. This will be a convertable loan fund at a fixed SP say 2 cents exercisable for up to 5 years.

1. We get shares at a chepa price down the track whens the Co. goes 100 bagger.
2. Its is voluntary for those who want to participate. Must be a minimum take up of at leat $28 mill for our immediate loans.

Then we push for demerger and IPO of Rincon assets. This separates receivership risk to only IO assets.

Up side. re-capitalisation of CO on successful IPO.

Company goes to 100 bagger lucky SH who risked $2000 make a packet.

What do we think guys should we contact board ourselves and set up a deal. In my accounting experience i've done this many times on a smaller scale but same principle.

PS: for those who give me the stupid answer why does the company simply just issue more shares and capital raise. DYOR. We have already met our 15% capital raise limit which includes option, shares, rights etc for the 12 months. to further increase we need vote SH approval at AGM or EGM to pass increase above 15%. Time is our problem.

 

[rub92me]

What a dumb proposal. And the proponent of this claims to have accounting experience Good luck in finding the required 17,500 shareholders to raise the money as proposed.

 

[ricm]

What a dumb proposal. And the proponent of this claims to have accounting experience Good luck in finding the required 17,500 shareholders to raise the money as proposed.

yes its a big ask, last time i looked, he had up to 350k pledged, and 3 top 20 SH's interested. it did really only start today...interesting to see how it pans out. Admittedly the ann due tomorrow will have a big effect on how things pan out anyway.

if it is all for nothing, well at the very least sends a powerful message to the management...and I at admire the fact that this guy is trying to inspire SH's to at least take an active role in voicing their opinions and/or actions in an otherwise 1 way street.