Odyssey Marine (OMEX) Reports Deferment on Two N. Atlantic Shipwrecks; Offers Other Updates
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Odyssey Marine Exploration (Nasdaq: OMEX) provided an operations update on several projects.
Due to current weather conditions in the North Atlantic and the previous commitment of the Seabed Worker to another charter, operations on the SS Gairsoppa and SS Mantola shipwrecks have been deferred until weather in the area is appropriate for operations in the second quarter of 2013. The ship is offloading approximately 17,000 additional ounces of silver and other artifacts in Falmouth before it continues on to Norway to conclude the charter. This additional silver bullion, originally thought to indicate another area of the ship containing silver cargo, was the only additional silver found in the areas inspected since offloading the first cargo of silver.
Work on the project aboard Seabed Worker began on June 4, 2012. During the 83 operational days (days not affected by weather delays, transit or time in port) of this period, the Odyssey team surgically opened and cleared approximately 70% of the holds and compartments of the SS Gairsoppa which were suitable for transporting silver cargo. These areas were opened and inspected using the ROV controlled hydraulic shears, deck removal tool and small grab system operated from nearly three miles above the shipwreck site. During these operations, a total of 1,218 silver ingots, which are expected to yield approximately $44 million at current silver prices, were recovered from the SS Gairsoppa as well as several hundred artifacts which have been declared to the UK Receiver of Wreck. Based on experience and data gained this season, and armed with improved tools and technology, it is expected that the rest of these areas can be searched and cleared within 30-45 operational days upon Odyssey's return to the site.
Operations on the Mantola were also conducted to test ship and equipment capabilities during the early part of the expedition, and recovery operations on that shipwreck are planned to continue immediately after completion of the Gairsoppa.
The monetization of the silver recovered from the Gairsoppa to date is underway and expected to be completed before the end of this year. At current silver prices and after accounting for contractual obligations to the UK government and Galt Resources, the recovery to date will result in an increase of approximately $26 million to Odyssey's net income in 2012.
Odyssey anticipates that an additional 1,599 insured silver ingots, representing approximately 1.8 million ounces, and what could be a substantial amount of uninsured silver remains on the Gairsoppa site. Documentation of the insured silver lists four separate lots with individual numbers for each ingot. The inscribed number on every silver ingot recovered to date matches this documentation. Silver from only three of the four lots has been recovered and none of the lots have so far been fully accounted for. The fact that a substantial amount of the insured and manifested cargo remains to be recovered leaves open the possibility that the uninsured cargo, which according to sources including "Lloyd's War Losses" could total an additional three million ounces or more, may be located with the remainder of the insured silver on the shipwreck. In addition, there is a reported 600,000 ounces of insured silver believed to remain on the SS Mantola.
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Due to current weather conditions in the North Atlantic and the previous commitment of the Seabed Worker to another charter, operations on the SS Gairsoppa and SS Mantola shipwrecks have been deferred until weather in the area is appropriate for operations in the second quarter of 2013. The ship is offloading approximately 17,000 additional ounces of silver and other artifacts in Falmouth before it continues on to Norway to conclude the charter. This additional silver bullion, originally thought to indicate another area of the ship containing silver cargo, was the only additional silver found in the areas inspected since offloading the first cargo of silver.
Work on the project aboard Seabed Worker began on June 4, 2012. During the 83 operational days (days not affected by weather delays, transit or time in port) of this period, the Odyssey team surgically opened and cleared approximately 70% of the holds and compartments of the SS Gairsoppa which were suitable for transporting silver cargo. These areas were opened and inspected using the ROV controlled hydraulic shears, deck removal tool and small grab system operated from nearly three miles above the shipwreck site. During these operations, a total of 1,218 silver ingots, which are expected to yield approximately $44 million at current silver prices, were recovered from the SS Gairsoppa as well as several hundred artifacts which have been declared to the UK Receiver of Wreck. Based on experience and data gained this season, and armed with improved tools and technology, it is expected that the rest of these areas can be searched and cleared within 30-45 operational days upon Odyssey's return to the site.
Operations on the Mantola were also conducted to test ship and equipment capabilities during the early part of the expedition, and recovery operations on that shipwreck are planned to continue immediately after completion of the Gairsoppa.
The monetization of the silver recovered from the Gairsoppa to date is underway and expected to be completed before the end of this year. At current silver prices and after accounting for contractual obligations to the UK government and Galt Resources, the recovery to date will result in an increase of approximately $26 million to Odyssey's net income in 2012.
Odyssey anticipates that an additional 1,599 insured silver ingots, representing approximately 1.8 million ounces, and what could be a substantial amount of uninsured silver remains on the Gairsoppa site. Documentation of the insured silver lists four separate lots with individual numbers for each ingot. The inscribed number on every silver ingot recovered to date matches this documentation. Silver from only three of the four lots has been recovered and none of the lots have so far been fully accounted for. The fact that a substantial amount of the insured and manifested cargo remains to be recovered leaves open the possibility that the uninsured cargo, which according to sources including "Lloyd's War Losses" could total an additional three million ounces or more, may be located with the remainder of the insured silver on the shipwreck. In addition, there is a reported 600,000 ounces of insured silver believed to remain on the SS Mantola.
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