17th Jun 2014 10:18
LONDON (Alliance News) - China private equity investor Origo Partners PLC Tuesday reported its results for 2013 alongside an interim management statement for the first-quarter of the new financial year, showing a decline in net asset value across both periods.
Origo Partners said its NAV declined by 21% to USD135.0 million from USD171.5 million, over the course of 2013, followed by a further decline to USD115.8 million in the three months ended March 31. Over the course of 2013, the company's portfolio decreased in value to USD153.9 million from USD209.0 million. Origo put the value of its portfolio at USD157.8 million as at the end of March.
Chief Executive Chris Rynning said that poor market conditions, namely flat or declining commodity prices, hit Origo's natural resource investments in 2013, which were further weakened by political uncertainty in Mongolia. The uncertainty has meant that Origo has been limited in its ability to exit investments and raise new capital.
"We remain focused in the year ahead on reversing the negative trend in the value of our assets and realising our investments as the portfolio matures. Our investments in high-quality natural resource projects should pay dividends in future, given their location close to China and the limited number of new discoveries and developments of new sources of supply," Rynning said in a statement.
"Our investments in cleantech are well positioned to benefit in the long term from supporting government policy and growing public demand in China for environmental improvements," the CEO added, though Origo saidits cleantech companies, which are all early stage growth ventures, still require time and further capital to fulfill their potential.
Meanwhile, Origo unveiled the results of a scoping study on the Mandal Moly molybdenum and tungsten project in Mongolia, owned by portfolio company Moly World Ltd. The company said that the study has identified the potential for an initial small scale open pit operation that could be brought into production for an investment of USD43.6 million, including working capital, with the option of further expansion, depending on future molybdenum prices.
Origo acquired a 20% stake in Moly World for USD10.0 million in 2011. One of its subsidiaries has an off-take agreement covering up to a fifth of all production from Mandal Moly as long as Origo retains a stake of between 5% and 20% in Moly World.
Origo shares were Tuesday quoted at 7.80 pence, down 1.0%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
OPP.L