23 January 2014
Amedeo Resources plc
("Amedeo" or "the Company")
Amedeo Resources plc ("Amedeo" "the Group" or "the Company") (AIM: AMED) the resource, resource infrastructure and asset focussed investment company today announces an update ahead of the financial year ending 31st January 2014. Amedeo is pleased to report continuing good progress in all areas of its business.
Amedeo's largest investment is its 46.5% stake in YZJ Offshore Engineering PTE Ltd ("YZJ Offshore") which has a 40% stake in Jiangsu Yangzijiang Offshore Engineering Co Ltd ("YZJOE"), the new offshore rig building yard.
Amedeo is pleased to report that yard development is ahead of schedule, with the wharf and finger pier near completion, and the skidway and 900 tonne gantry crane expected to be completed in the first half of 2014. In addition the civil works and workshops are 50% completed and expected to be operational in the next few months.
Meanwhile, our US$175 million first rig order is progressing well at our partner's (Yangzijiang Shipbuilding (Holdings) Ltd) yard and is on schedule to be delivered mid 2015 with the main hull nearing completion.
Moreover, as potential customers note the progress and the quality of the first rig, discussions regarding orders for further rigs continue and are advancing.
MGR Resources PTE Ltd ("MGR"), the wholesale trader of ferrous metals and ore, in which Amedeo has a 49% stake, continues to go from strength to strength. The investment of US$49,000 in MGR equity and convertible loan of US$1.95 million were made and advanced, respectively, in April 2013. By the end of July 2013, MGR had paid its maiden dividend of US$210,000 and a second dividend, together with a management fee, are expected to be received shortly.
MGR continues to grow and it is now broking approximately 100,000 tonnes of iron ore per month. Moreover, advanced discussions are currently underway which are expected to increase this amount further with longer term contracts.
MGR continues to explore opportunities in related sectors of chromium and nickel.
Amedeo continues to review new investment opportunities in the resource,resource infrastructure and asset sectors.
During the fiscal year, the Company was relaunched and has been reorganised with the objective of having a relatively lean and self-sufficient structure supported by positive cash flows. We are pleased to report that significant progress has been made in this regard. With lead times and cash returns from the offshore construction business being relatively long, as mentioned above, an investment was made in MGR which is already generating cash income in the form of dividends and management fees. In addition, cash administrative costs have been significantly reduced as compared to last year thereby reducing the gap between the outgoing and incoming cash.
Non-cash items (primarily share of profit and loss in associates and foreign currency gains/losses) continue as in the previous year.
Full year results are expected to be released in early May.
For further information please contact:
Amedeo Resources plc
Tel: + 44 (0) 20 7583 8304
Daniel Stewart & Company Plc
Tel: + 44 (0) 20 7776 6550
Beaufort Securities Limited
Tel: +44 (0) 20 7382 8300
Tel: + 44 (0) 20 7653 9850
About Amedeo Resources plc
Amedeo Resources plc is an investment company whose policy is to invest principally, but not exclusively, in the resources and resources infrastructure and asset sectors. Amedeo has a deep and broad global network and wide contact base in these sectors, including in East and South East Asia and the Middle East which it leverages to source and make investments. These sectors exhibit high growth and are strategically important. Amedeo is a proactive investor which assists its investee companies to grow by providing investment, expertise and contacts.
This information is provided by RNS