Amedeo Resources PLC
Amedeo Resources PLC is an AIM quoted investment company whose investment policy is to invest primarily in the resources and energy and related infrastructure and asset sectors worldwide.
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 are strategically important. Amedeo is a proactive investor which assists its investee companies to grow by providing investment, expertise and contacts.
Amedeo’s first investment, made in July 2012, was in a new marine vessel construction joint venture Jiangsu Yangzijang Offshore Engineering Co. Ltd (“YZJ Offshore”) with a multi-billion dollar Singaporean listed shipbuilder, Yangzijiang Shipbuilding (Holdings) Ltd.
YZJ Offshore’s marine vessel yard is located on 1.6m square meters of prime shorefront on China’s east coast, some 50 miles north of Shanghai. This is the ideal location for a marine vessel yard due to its deep water and absence of bridges en route to the open sea.
Construction of the new yard commenced in mid-2012 and now the yard is fully operational. The yard won its first order, for a Le Tourneau Super 116E Class design self-elevating mobile offshore jack up rig (“Explorer 1”) in December 2012.
Explorer 1 was physically completed in December 2015. Following completion, commissioning commenced, a process of testing and certifying which takes several months, subsequent to which the rig is now ready for delivery pending final delivery checks.
The rig has yet to be delivered as the purchaser of Explorer 1 is in the process of securing financing and employment for the rig. In the meantime, YZJ Offshore has continued to seek further orders, and with Explorer 1 completed to a high standard, is utilising it as a showpiece.
The rig market has been soft and no new orders have been secured. Signs of improvement, however, are evident as YZJ Offshore has had enquiries including interest in Explorer 1. In the meantime, YZJ Offshore has been utilising its facilities to provide berthing capacity and build modules for LNG vessels.
Following Legendary’s investment, in April 2013, Amedeo acquired a 49% stake in a ferrous metal and ferrous ore trader, MGR Resources Pte Ltd (“MGR”). This investment provides Amedeo with near term recurring income.
In January 2017, Amedeo acquired a 2.5% stake in Ganjine Kani Company (“GKC”). for US$500,000, a copper mining company. GKC is a producing miner which has, to date extracted around 1m tonnes of ore. GKC has three mines. MGR intends to work with GKC to supply copper to East Asia.
Amedeo, with its new shareholders, management and strategy is playing a long game in key strategic sectors. While the fall in commodity prices including the oil price since 2012 has inevitably slowed the progress of Amedeo, in the medium to long run, Amedeo has the potential to generate substantial returns.