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  1. #1

    Post OEG - Orpheus Energy

    Orpheus Energy Limited (OEG) was formerly known as Australian Motor Finance Group Limited (AGQ).


  2. #2
    Make the drill work for YOU springhill's Avatar
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    Default Re: OEG - Orpheus Energy

    Shares on issue ~132M
    Options ~17M
    Share price $0.115
    Market capitalisation* ~$15m
    Cash $3.0m (March 2012) - plus $2.24m from cap raise in May - less costs from June quarter.

    Substantial Holders
    Coalworks 33.3%
    Board and Management 10.5%
    Paul Fillion 7.2%

    Orpheus Directors
    Wayne Mitchell
    AASA, AAIM (Chairman)
    Mr Mitchell is a qualified accountant with over 30 years extensive senior management experience in the natural resources sector, both in Australia and in South East Asia.

    David Smith
    B Econ, Dip Mgmt - Executive MBA (Executive Director)
    Mr Smith was previously an investment banker for 15 years, where he advised and raised capital in a range of industries, and particularly for emerging coal and iron ore companies. He was most recently Head of Corporate Finance at BBY Limited and prior to that, he worked at Ord Minnett and then JPMorgan Chase.

    Wesley Harder
    BSc. Dip SIA. MAusIMM.(Director, Exploration Manager)
    Mr. Harder is a former coal analyst with Jackson Ltd stockbrokers. He has also worked as a field exploration geologist for fifteen years in Australia and its near neighbours.

    Tony King B Sc. BA. (Non-Executive Director) Mr King is a professional Metallurgist and qualified geologist with over 20 years operational and technical experience within the resource industry. He has also been involved in design and construction of coal washing plants and has participated in a wide variety of resource projects.

    Orpheus Energy Limited is a coal company focusing on coal production and exploration in Indonesia. OEG also owns some Australian coal and industrial minerals projects. Orpheus has signed a strategic alliance with PT Mega Coal International which is an existing coal producer and exporter. Orpheus is on a fast track to growth, through increasing production at the recently acquired ADK project, moving its B26/34 projects into production, definitive exploration programmes at the Papua project and acquiring near term production assets.

    About PT Mega Coal
    PT Mega Coal is a privately-held coal mining company with an extensive local network and mining experience in Indonesia. OEG has an existing strategic alliance with PT Mega Coal, notably including its joint ventures for ADK, B26/B34 and Papua. The strategic alliance with PT Mega Coal enables the opportunity for continued additional coal concessions in Indonesia.

     PT Debbia Mining to pay Orpheus US$8 per tonne on all coal sales
     Orpheus not responsible for any capital, operating or marketing expenses
     B2 targeting production of 30,000t per month
     Expected to recommence production in August

    Orpheus Energy is pleased to advise that it has executed a life of mine Royalty Agreement with Indonesian mining contractor PT Debbia Mining, whereby OEG will receive US$8 per tonne on all coal sales at its 51% owned B2 project in East Kalimantan, Indonesia.
    After a lengthy assessment on how B2 would optimally resume production, it was determined that the most cost efficient, lowest risk and profitable strategy would be to appoint a competent mining contractor, proficient in thin seam mining, under a royalty payment arrangement. Orpheus is not responsible for any capital, operating or coal marketing expenses under this arrangement.
    The mining contractor is currently undertaking some additional pre-drilling to finalise the mine plan and will shortly start mobilizing mining equipment at site. The target production rate is 30,000 tonnes per month (360,000 tonnes per year) and B2 is expected to re-commence production in August.
    The current JORC Coal resource at the B2 project of 0.95Mt indicated and 0.18Mt inferred will provide an initial mine life of approximately three years. Exploration programs soon to be undertaken at the adjacent B6 project (an exploration target of 1.5Mt to 2.5Mt and calorific value of 5,950 to 6,850 kcal/kg*) and nearby B34 project (an exploration target of 5Mt to 10Mt and calorific value of 7,200 to 8,100 kcal/kg*), approximately 60 km west, will delineate additional resources to continue mining in this area.

    Executive Chairman Wayne Mitchell said,
    “We are pleased to enter into this agreement with an experienced mining contractor. We can now recommence production at B2, and the royalty arrangement means the company assumes no financial risk with the royalty going straight to Orpheus’ bottom line.”

    “This development progresses our Indonesian coal strategy of rapidly ramping up production in Kalimantan. Together with our Kintap ADK project, which is currently producing 50,000 tonnes per month, Orpheus will soon be producing at the rate of 80,000 tonnes per month (net 40,000 tonnes to Orpheus) once B2 resumes mining.

    “The next step for us is to bring additional Kintap area satellite mines into production and we look forward to updating shareholders on developments”

    Why Indonesia ?
    *Indonesia and Australia remain the key players in the export coal market.
    *Indonesia has been the fastest growing exporter, overtaking Australia as the largest supplier to the global seaborne market in 2005.
    *China plans to add 1TW new coal-fired power plants by the end of 2020, triple the size of its total capacity from the current 650GW.
    *Demand visibility from India is also strong as with plans to add 100GW of power plants over the next five years.
    *India is even more relevant to Indonesia’s exports since its imports the bulk of its total coal from Indonesia. *The Indonesian coal sector has risen 12% in Q1 2012 to outperform the Jakarta Composite Index

    Kintap ADK Project
    •In March 2012, Orpheus secured a 50% interest in Orpheus’s JV partner PT Mega Coal’s ADK operating coal mine located in South Kalimantan, Indonesia
    •The joint venture provides that OEG will earn 50% of net profits of ADK’s coal mine operations.
    •Minimum A$15 per tonne cash profit margin targeted
    •In April 2012, Orpheus shipped approximately 28,000 tonnes of ADK thermal coal
    •Existing infrastructure in place – port allocation secured via two separate ports – PCMU and SSDK - ~15km away loaded onto barges for shipment
    •Exploration programme ongoing with JORC resource drilling underway
    •Coal mined from the ADK mine to date has an average calorific value of 5400 Kcal/Kg (ADB), and is low in ash (6%) and sulphur (0.4%).

    B26 Project
    B26/B34 project comprises two areas, B26 and B34.
    •B26 is located in East Kalimantan, ~100km from Balikpapan and has a total exploration target of 2.8Mt to 4.5Mt* of high grade thermal coal with some coking coal potential (current JORC Resource of 1.13Mt).
    •Port allocation, ~27km away, has been secured. Haul road improvements to facilitate streamlined truck movements are almost completed.
    •Part of B26 has already had trial mining in 2011 and the next stage mine plan has been developed by Minarco Mine Consult:
    4 potential mine pits for up to 246,000 tonnes
    Target production rate of 30,000 tonnes per month
    Target SSCC / thermal coal split of 15% / 85%
    Target strip ratio of 15:1
    45o of overall highwall slope, to generate the pit shells, situated to the north and south of the previously trial mined area.
    Sales offtake agreement currently being negotiated to reflect current prices.
    Mining contractor about to be appointed and PRODUCTION IS EXPECTED TO RECOMMENCE Q2 2012

    B34 Project
    •B34 is located ~60km west of B26 and it is ultimately planned to be mined using the same road/port infrastructure.
    •B34 has an exploration target of 5-10 Mt of coal and target calorific value of 7200 to 8100 Kcal/kg*.
    •Drilling program is planned for Q4 2012 to establish a JORC resource. B34 has had historical geological mapping and reported the following high quality coal samples:
    B3: low ash (1.5%); low total moisture (8.3% ar); energy content of 7,123Kcal/kg.
    B4: low ash (1.9%); low total moisture (6.5% ar); energy content of 7,235Kcal/kg.
    •Following conversion of B34 Exploration KPs into Exploitation IUPs, scheduled for Q4 2012, mining from B34 is planned to double OEG’s total production out of the area.

    Papua Project
    •Highly prospective greenfield exploration area located within 40km of the coast in Papua.
    •Coal outcrops throughout the tenement area
    •Field Exploration and drilling program to commence in Q2 2012

    Additional Indonesian Projects
    •Orpheus has progressed plans to expand the Strategic Alliance with PT Mega Coal with an ongoing acquisition program underway.
    •A number of projects have been identified for possible acquisition located in the Kintap area of South Kalimantan.
    All have good infrastructure including good proximity to barge loaders or appropriate port sites and transport options.
    •The framework has been developed to allow completion of the following activities:
    Technical review of each project;
    Memorandum of Understanding with each owner;
    Term Sheet for Orpheus Participation; and
    Completion of legal due diligence.

    Australian Projects
    Hodgson Vale

    •Project is located in SE Queensland in proximity to other producing coal mines
    •Past drilling shows coal measures exist in the EPC with medium grade export quality coal potential
    •Drilling is planned later in 2012 to explore for coal in the southern zone of EPC 1145
    •Past drilling shows potential for chemical grade Ground Calcium Carbonate (GCC)
    •Orpheus proposes to outline zones of high quality limestone suitable for GCC
    •Exploration target of 30-40 Mt* of high quality ground calcium carbonate (with target white rating index of 89 91%)
    •Drilling is planned in Q2 2012 to delineate a JORC resource
    •Project lies just north of Unimin’s operating bentonite mine.
    •Past work shows potential for high quality bentonite
    •Orpheus’s joint venture partner has previously located outcropping bentonite on EL7142
    •Existing granted EL7124 has been extended by ELA 3657
    •A drilling program is scheduled to commence in Q2 2012 to delineate a JORC resource

    •OEG not affected by the recent legislative changes by the Indonesian government concerning foreign ownership

    Revenue, experienced directors, aggressive expansion, major partner, small cap, cash in hand, substantial news flow for rest of year.
    This is going in my low cap, low liquidity thread.
    Attached Images
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

  3. #3
    Make the drill work for YOU springhill's Avatar
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    Default Re: OEG - Orpheus Energy


    Orpheus Energy announce that it has agreed with Coalworks Limited, the terms of repayment of its outstanding $2.2 million convertible note.
    Key terms of the repayment include:
    -The note will be redeemed for shares in Orpheus Energy at a price of 13c per share, being the same price as the recent share placement completed in May 2012;
    -Accumulated interest on the note up to 6 September 2012 will be paid in shares at the same price, rather than cash;
    -The note will be fully repaid, subject to shareholder approval at the Company’s AGM;
    -The total number of shares to be issued by Orpheus Energy will be 18,181,180 fully paid ordinary shares, consisting of 16,923,077 shares issued in respect of the principal outstanding of $2.2 million and 1,258,103 shares in lieu of accumulated interest.

    These 18,181,180 shares will then be distributed on a pro-rata basis to shareholders of Coalworks, at the Record Date of 26 June, 2012
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

  4. #4
    Make the drill work for YOU springhill's Avatar
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    Default Re: OEG - Orpheus Energy


    -Heads of Agreement (“HOA”) signed with PT Citra Bara Prima (“CBP”) over a ~195 hectare coal production project in South Kalimantan
    -Located adjacent to one of PT Arutmin’s major operating coal mines and approximately 10km from Orpheus’ Kintap ADK project
    -Exploration target of 2Mt – 4.5Mt with a drilling program planned to commence by end September to establish a JORC resource
    -Mining planned to commence by end October using nearby existing infrastructure.
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

  5. #5
    Make the drill work for YOU springhill's Avatar
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    Default Re: OEG - Orpheus Energy


    Orpheus Energy announced that the Indonesian Ministry of Energy and Mineral Resources has approved the application by OEG’s fully owned subsidiary PT Orpheus Energy, for an independent coal trading licence - Decree No: 702.K/30/DJB/2012.
    Holders of such licences are regulated by the Ministry of Energy and Mineral Resources and various Presidential and governmental decrees relating to coal mining operations, the exporting of and domestic use of coal production, as well as pricing benchmarks.
    The coal trading licence provides Orpheus with a new potential profit centre as it enables the company to not only sell its own coal but also production from other miners. Targeting power stations and trading groups from India, South China and Thailand, it is anticipated that Orpheus will ramp up its current trading volume of approximately 30,000 tonnes per month to several hundred thousand tonnes per month over the coming year. Coal trading in Indonesia typically earns $1 - $3 per tonne net margin for the coal trader.
    Orpheus has appointed a specialist coal trading executive, Mr Arun Valliyamai, to join its Jakarta team. Mr Valliyamai has 17 years of experience, including the last five years in Indonesia, and has specialised in thermal coal, from sourcing through all coal selling activities.
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

  6. #6
    Make the drill work for YOU springhill's Avatar
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    Default Re: OEG - Orpheus Energy


    -12 hole drilling program at the Citra Bara Prima (‘CBP’) each to a target depth of 100m
    -Located adjacent to one of PT Arutmin’s major operating coal mines and approximately 6km from Orpheus’ Kintap ADK project
    -Exploration target of 2.0 – 4.5Mt
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

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