Deep ROV System Delivered for Commodity Shipwreck Program
TAMPA, Fla., Oct. 21, 2013 (GLOBE NEWSWIRE) — Odyssey Marine
Exploration, Inc. (Nasdaq:OMEX), a pioneer in the field of deep-ocean
exploration has to-date monetized over 900,000 troy ounces of the
silver recovered from the Gairsoppa shipwreck in July 2013 at an
average price per ounce of $23.56 for a gross total of $21.5 million.
In addition, fixed price swap contracts on 500,000 ounces for October
and November at an average of $23.75 per ounce brought the average
price on the 1.4 million ounces sold or hedged to $23.58 per ounce. At
current market prices, the company estimates that the monetization and
hedging program will generate total gross proceeds of approximately $39
million from the 2013 recovery, in addition to approximately $41
million generated in the prior year from the 2012 recovery.
The price of silver when the Gairsoppa silver was landed in the UK was
$19.53 per ounce. Through the implementation of hedging and marketing
strategies, Odyssey has been able to derive an average sales price
considerably higher than the market spot rate. On silver sold or hedged
to date, an incremental $5.3 million is expected to be generated over
the value of the silver on the date the silver was landed.
“Our silver processing plan, hedging strategy and sales plan have been
successful in creating additional value and cash inflows for the
company,” commented Philip Devine, Odyssey CFO. “We began to monetize
the silver as of mid-September, have sold $21.5 million to date, and
expect to complete the monetization process before the end of the year.
We expect these cash inflows, which will appear in our Q3 and Q4
financial statements, combined with the monetization of our seabed
mineral deposits and other income to place Odyssey in its best-ever
best cash position and allow us to pursue a number of major projects in
Odyssey is continuing to pursue additional 20th century commodity
shipwreck projects and last week took delivery of a customized 6000
meter Remotely Operated Vehicle (ROV), tooling and handling system. The
ROV system and tools are scheduled to be tested in the next few weeks.
Following a successful system test, preliminary work, including
reconnaissance to determine the state of the shipwreck and assess
necessary equipment for a recovery expedition, is planned to begin on
one of Odyssey’s new deep-ocean commodity projects.
Odyssey has negotiated salvage contracts that grant the company 90% of
the net recovered cargo for four 20th century deep-ocean shipwrecks
carrying valuable commodities when they sank. The company is continuing
to add additional commodity shipwreck projects to the program.
“Our current commodity target list represents over $800 million in
total potential recovery value,” noted Mark Gordon, Odyssey president
and COO. “We are continually developing projects from this list in
order to have a solid backlog of opportunities ready for operations.
The addition of the 6000 meter ROV to our suite of tools gives us
additional cost-effective search and inspection options for our
deep-ocean 20th century commodity projects. With our recent success in
recovering more than 99% of the insured silver from the Gairsoppa, we
are excited to expand this element of our business. We anticipate
realizing significant regular cash generation from our commodity cargo
recoveries for many years to come.”
About Odyssey Marine Exploration, Inc.
Odyssey Marine Exploration, Inc. (Nasdaq:OMEX) is engaged in deep-ocean
exploration using innovative methods and state of-the-art technology
for shipwreck projects and mineral exploration. For additional details,
please visit www.odysseymarine.com. The company also maintains a
Facebook page at http://www.facebook.com/OdysseyMarine and a Twitter