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  • $65 To $79 Million Likely Recovered From SS Central America And In Custody Of US Marshals 1 comment
    Jul 18, 2014 9:25 AM | about stocks: OMEX
    • OMEX VP swore of $25 million value recovered in April-May
    • May-June Recovery Activities 216% number of Double Eagles and 163% ingot ounces
    • Gold secured by US Marshals and court order proceeds to receiver and OMEX
    • Only 15% of shipwreck excavated

    After review of the unsealed documents, and Meson's helpful side by side recovery inventory lists, there were a few key data that can lead to an accurate estimate of the value of the recovery so far.

    The recovery activities of May 8-13 brought up 14 ingots (File 56-1.pdf) and 412 Double Eagles, among other coins, dust, nuggets and artifacts.

    In the Declaration of John Opperman (Omex VP), he certifies under penalty of perjury that during this recovery dive: "The SS Central America cargo Odyssey has recovered so far has an estimated market value of $25 million." (File 46 Main.pdf, page 10, section U. Insurance Challenges and Requirements")

    The inventory for the next recovery activities May 19-June 12 shows 888 Double Eagles and 1700 ounces of gold. (File 63-Main.pdf). These data points - given that they are the most valuable line items, represent 216% the number of Double Eagles and 163% of the ingot weights, indicating the value of recovered artifacts for the May 19 - June 12 activities of between $40 and $54 million.

    This indicates total value through June 12 of $65 to $79 million. Odyssey's 50% take* is $32 to $40 million.

    Loans on receivables (especially those secured by US Marshals and court-ordered) generally have much more favorable terms than the Fifth Third line. It's clear that OMEX has or will have access to more than enough cash to cover another year of operating expenses.

    And there are still three more months of recovery work to explore the remaining 85% of the wreck, as the "excavated area represents approximately 15% of the shipwreck." (File 90-main.pdf)

    [all file references are available on the US District Court PACER system]

    *Odyssey will receive 80% of recovery proceeds until a fixed fee and a negotiated day rate are paid. Thereafter, Odyssey will receive 45% of the recovery proceeds.

    Disclosure: The author is long OMEX.

    Themes: gold, shipwrecks Stocks: OMEX
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  • Long_OMEX
    , contributor
    Comments (21) | Send Message
     
    Well said.

     

    And we now know: "The next report, which will be filed before July 25". (Mark Gordon - OMEX Press Release)
    18 Jul 2014, 10:35 AM Reply Like
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