Friday 7 June 2013

Another Source of Information/Views - Tau Capital

Thanks to D for nudging me sufficiently to post this...

TAU CAPITAL PLC APRIL 2013 MONTHLY REPORT Covering Oxus Plc

Text relating to Oxus: Tau NAV was down 0.78% for the month April. Throughout this past month and into the beginning of May, all remaining Listed Equity positions have been liquidated. The Fund currently holds Oxus Convertible Loan Notes (CLN) and the two Private Equity holdings, Stopharm and Lucent Petroleum, in addition to cash. 

Oxus Gold CLN’s are valued at 22% of face value (around $550,000) for NAV purposes. The company is currently engaged in legal arbitration against the Government of Uzbekistan in respect to the Amantaytau Goldfields. Whereas the ordinary shares of Oxus are traded on the London AIM market, the CLN’s are not traded.

Both the shares and the CLN derive their value from the claim, or rather the probability of success and enforceability of such claim if awarded in the company’s favour. The company has managed to attract 2 specialised litigation funding entities albeit at undisclosed terms. We expect the arbitration process to be resolved over the next 9 months, and in the meantime the Tau Capital Board of Directors will consider any bid for the remaining Oxus CLN’s still held in the Fund portfolio.

As the listed equity portfolio has now been liquidated, Monthly Activity Reports will be published on a quarterly basis from now on. The next Monthly Report will be issued for June 2013. 

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