I have been reading about Subsea resources, and I will be keeping an eye on the stock, as their first salvage operation is imminent, and it will be interesting to see what level of sucess they can achieve, measured against their expectations.



SubSea Resources has been formed to salvage cargoes from cargo ships that have been lost in deep water. Only a handful of wrecks have been salvaged in water depths exceeding 1000 metres, whereas hundreds have been worked on in depths down to 300 metres. The barrier to deeper work has been a lack of technology, which is now available mainly due to developments in the offshore oil and gas industry.

Sonar scan of wreck

SubSea Resources has identified at least 70 commercial salvage targets and has identified twenty major target vessels containing cargoes with a gross value of over $450 million (based on recent LME metal prices and contemporary lading records). In the first phase of the companys business plan it aims to raise the cargoes from six of these vessels over the next three years.


In addition, it is anticipated that certain historic cargoes may be integrated with the commercial salvage operations. Some of the historic targets have potential values of many millions of dollars each, bringing the combined value of identified historic and commercial targets to well over $1 billion.




Initial Salvage Targets

SubSea Resources has an initial programme to salvage the cargos of six commercial wrecks in the period to 31 March 2008. The gross value of these six wrecks is estimated at US$180 million.

The wrecks allow for a mix of weather conditions - allowing for both northern summer and winter working conditions. All wrecks are in international waters and all of the cargoes will be recovered through contracts with the legal owners. The water depths range from below 1500 meters to 5000+ meters.




Corporate website : http://www.subsearesources.com/index.php

In today's Daily Telegraph!

SOURCE

Ocean depths yield fortune for Subsea
By Melanie Feisst
(Filed: 02/09/2006)

Salvage operator Subsea Resources has now proved it is no mere "treasure hunter", its chief executive has insisted, after it laid its hands on part of a hoard of 5,500 tonnes of high-quality copper lying on the sea bed.
advertisement

Mark Gleave said Subsea, which floated on Aim in a wave of publicity in October 2004, said the company had raised a 12-tonne sample of copper from its first major salvage operation, dubbed Celia.

The company targeted the wreck of Francois Vieljeux, a "very ordinary cargo ship" sunk in a severe storm off the north west coast of Spain in the 1970s.

In its holds, now lying 1,000m below the surface, is copper wire, bars and cathodes worth around $30m (15.7m).

First tests from the sample showed that the copper is 99.9pc pure, Subsea said.

It expects to agree to sell it on to the copper market once 500 tonnes has been recovered.

The company aims to retrieve 80pc of the Celia cargo from the seabed using a giant mechanical grab before the end of September.

It will keep 90pc of the money raised from selling the copper, while the remainder will go to the ship's insurer, Lloyd's of London.

Mr Gleave said: "There were many people, serious investment people, who even quite recently considered the whole thing was a joke. It's not.

"It's a reality that you can take a large vessel and equip it with the right gear and personnel, applying years of engineering knowledge, to recover cargo from great depths."

A pity Melanie could`nt get the share price right.
up .25 to 15.75 I think she got the 15 round the wrong way....
So much for financial journalists.
Cheers.

From the Independent newspaper.
===============================

Copper treasure haul for salvage specialist SubSea
By Michael Jivkov
Published: 02 September 2006

The salvage expert SubSea Resources has begun recovering copper from its first project, a wreck at the bottom of the Atlantic Ocean off the coast of northern Spain.

The AIM-listed group said "Project Celia" had begun removing copper from the Franis Vieljeux, a ship which sunk in a storm in 1979 while on its way from Tanzania to ports in northern Europe. Its cargo included 5,500 tonnes of copper and 700 tonnes of zinc. SubSea expects to be able to recover about 80 per cent of this total, which analysts estimate is worth about 17.3m.

Mark Gleave, the group's managing director, said: "The fact that the method we have developed is now proven to work is fantastic for SubSea going forwards. With proven technology and ability in place, the company is confident the recovery procedure can be repeated".

SubSea shares fell 1p to 41p yesterday, valuing the group at 45m, as investors locked in profits from the stock's recent strong rise.

The shipwrecks SubSea targets are usually owned by the financial companies that had insured them. The group either buys the rights to the booty on board or cuts a deal with the insurer for a percentage of the sale value.

Over the past 20 years, it has built a database of more than 12,000 wrecks. Prime targets are identified according to cargo and ease of salvage operation.
After the area of the wreck is surveyed and the ship located, the recovery is undertaken by the Geomaster, a 117-metre vessel capable of holding its position over the target area even in force seven winds. A remotely operated grab is then used to recover the cargo from within the shipwreck. The Geomaster can haul a maximum of 400 tonnes a day in optimum conditions.

SubSea's technology enables it to go after wrecks lying up to 6,000 metres below the sea surface, which is far deeper than the traditional cut-off point.

Project Celia is scheduled to be completed by the end of the month. The group's focus will then shift to Project Ella, a mail ship with an estimated 20,000 ounces of gold on board worth 5m. In the new year, SubSea plans to move into projects Vanilla and Miranda.

Vanilla has an estimated cargo of 9,500 tonnes of copper, while Miranda 4,500 tonnes of nickel.

Analysts have suggested the group's pipeline of projects could be worth more than 90m.

Got to say I am very interested here, however I will see if the sp drops a tad Monday, if not I will probably buy anyway as it seems a fun stock to hold.

Well done Andy, I see you have been in a while, you are darn good at finding this sort of thing.

Are you still in Sterling or have you reduced orr moved on?

SWW,

Thanks, I agree, SUB look an interesting stock to hold, lowish market cap, plenty of potential, and the excitement of finding buried treasure!

Still in SEY, not one share sold.

Subsea Resources FY pretax loss widens to 3.1 mln stg vs 239,644 stg
AFX


LONDON (AFX) - SubSea Resources PLC, which recovers high value non-ferrous metals and other valuable cargoes from deep water ship-wrecks, said its full-year losses widened on administrative and operating expenses incurred in preparing for offshore operations.

'My comments on the group's expected performance in the period after 31 March 2005 anticipated that the group would by now have reached profitability. This has not proved to be the case due to the difficulty in finding a suitable recovery vessel,' said non-executive chairman Christopher Rowe.

Pretax losses for the year to end March widened to 3.1 mln stg from 239,644 stg the previous year. Its salvage operations did not start until after the year end, so there was no turnover for the year.

Its Ella project was delayed due to refurbishment of the John Lethbridge taking longer than expected.

However, Rowe said in recent months that the company has been put in a very strong position and he is confident that his March 31 2007 chairman's report will see the company entering its next phase and producing revenue.

newsdesk@afxnews.com

i agree this is a fun stock to watch, but imo, not one to buy ...... for sure the prospect of finding the modern equivalent pieces of eight always has appeal to "boys' mentality" but take good note that the company has not delivered as promised ...... all too frequently a bad sign of things to come.

further ..... have just returned home from NL and seen very bullish article in Shares Mag stating categorically that SUB has recovered +/-5kt high grade copper from the Celia project worth 20/25m ...... this does not tally at all with yesterday's RNS and update on Celia project nor with the market's sp reaction

......and then there are storms and huge waves.

Who would have a ship?

I'll stick to the car, then there are storms and huge jams!

Hum hum.........

Fun it is, fun it will stay, I weas going to buy in below 40p, but I stioll haven't.

I'm still not stalking you cynic, but we do seem to hit a fair few of the same stock threads.

aren't i pretty enough to stalk then?

I can't answer that here, someone may be watching.

Psst! .... e-mail me a pic then

I'm shy!

So SWW and Cynic - choose between drilling for oil using 2D and 3D seismic to guess where and how much (if any!) versus diving for sunken bullion clearly registered as to location and value at Lloyds? Why do we assume SUB is a higher risk than, say, SEY? Discuss . . .

sd

no need to ...... i currently hold neither thought used to be in SEY and was tempted by the sirens at SUB

We be pirates so there be gold down thar'

I've not said I wont buy.

I like this stock but cheaper!

I think this stock appeals to just about every bloke out there; slightly more interesting than insurance & banking!
I think I am right in saying that their income is to be derived from raising non-ferrous cargos which can be sold on the metals exchanges. I suppose they have to keep their cards close to their chest, but it would be nice to know what projects are in the pipeline & what cargos?
Also their profits are going to be dependent on high commodities prices, which may not remain this high for much longer.
Am watching with interest & agree with sww that sp needs to drop somewhat before I am tempted.

Harry and others .... please read my comment a few posts back ...... something strange that seemingly the company (or Shares Mag) should clarify as you will note

I dont think this will help the cause.

I am still watching but now unlikely to join in.

http://moneyam.uk-wire.com/cgi-bin/articles/200610160700194790K.html

SWW,

Well I think the selloff is overdone IMO.

I don't currently hold, but may well consider a few at this level when funds allow.

The RNS looks honest enough, and I didn't expect a problem free ride here, clearly they are trying out new technology and methods, and at the depths they are trying to recover from, (deeper than the Titanic!), there were bound to be some teething problems.

Oversold IMO.


SubSea Resources PLC
16 October 2006

SubSea Resources PLC
(or the 'Company')

Activity Update


John Lethbridge to be deployed on Celia
Geomaster returns to North Sea following initial operation on Celia
Miranda update


Celia

Following the successful completion of the phase 1 survey of the Miranda
project, the John Lethbridge (SubSea's 75 metre survey and recovery vessel) is
to replace the Geomaster on the Company's project Celia.

The Geomaster, contracted from Geoshippng through TS Marine, has opened up the
cargo on Celia to such an extent that it is now possible for John Lethbridge to
access at least 1,000 tonnes of copper (There are currently 5,000 tonnes
remaining on the vessel). John Lethbridge is expected to be on site over much of
the coming winter working period in conjunction with the ongoing Miranda survey.
The Geomaster is returning to Geoshipping for additional modification.

The Company has been very pleased with the performance of the Geomaster and TS
Marine. However, the project's appointed ROV operating company, FUGRO, have
performed very poorly. Without two reliable ROVs available to work the recovery
system, the significant costs entailed in keeping the entire heavy lift
operation at site are not justified. As a consequence the focus of the operation
will now change to a much lower cost but slower exercise, benefiting from the
progress made by the Geomaster. The Company expects to re-deploy the heavy cargo
team in 2007 both on what will be the completion of the Celia project and a
number of other recoveries.

The Company confirmed that recoveries to date exceeded 500 tonnes and that this
was achieved in less than 20 days of actual work, the remaining time having
largely been lost primarily to ROV failures. This 20 day period was not solely
devoted to cargo recovery but also covered hatch cover and tween deck removal
and removal of cargoes of coffee and sisal that were held in the upper holds.

A full report on the project to date will be published once the ROV contractors
have had the opportunity to comment on the poor level of performance.

John Kingsford (Operations Director) reported 'Despite genuinely heroic efforts
from the FUGRO offshore operators the state of their equipment was simply not up
to the task.'

The Company is satisfied that this was a problem that can be isolated to the
FUGRO ROVs, is not generic to the industry and is otherwise very pleased with
the progress of the Celia Project. The Company's in-house designed heavy lift
equipment worked as expected and, aside from addressing the FUGRO ROV issue,
only minor changes need to be made for heavy lift operations to be resumed next
year.

Miranda

The Company's survey team on board the vessel John Lethbridge have completed the
first phase of their survey work in on the Company's Miranda Project. This is a
single cargo of nickel, gross value of approximately US$80m (LME 13/10/06). The
Company has the exclusive recovery contract with the cargo owners.

During this operation SubSea's new state of the art sonar and ROV were deployed
for the first time at depths of over 4,000m (the Titanic lies at 3,700m). The
Company is extremely pleased with the results thus far, with the sonar providing
extremely high quality pictures of the sea floor, over great distances.

In addition to Miranda, this programme is providing several new copper cargoes.
The Company's heavy cargo recovery team will soon be receiving the survey
information and a programme to recover these cargoes will be developed. The
Miranda survey will continue in tandem with the Celia project, as described
below, as weather permits on one location or the other.

2007

As a consequence of the progress thus far on the Miranda and Celia Projects, the
Company plans to re-deploy its heavy lift equipment on the Celia site in 2007 to
complete the recovery and on the following other heavy recoveries; Kate - 70
tonnes silver, Dagma - 1500t copper, and Cristelle - 1500t copper. All of these
are located targets and the Company has either arranged or is in the process of
arranging contracts for their recovery.

Gina and Ella

In addition the Company will continue to plan for the location and recovery of
Gina - 20,000 ounces gold coin and bar. In view of Gina's likely location this
work will be best conducted from February through to April 2007. This cargo is
very similar in size to that of the Ella project which will also be pursued in
2007.

Future work programme

Following the operational success so far on Celia, in particular the excellent
performance of the vessel and the heavy lifting equipment, the Company is now
able to develop a longer term work programme. The Company is now actively
seeking to acquire certain long lead and long term contract items, in particular
ROVS, winches and a suitable recovery vessel.

Mark Gleave (Managing Director) confirmed that 'these changes will impact only
on the timing of the Company's revenue stream, not on the quantity. The work
done both on Celia and the Miranda survey now allows us to make far more
accurate planning of cargo recoveries.'

The Company is now planning for total revenues in the next 12 months of
approximately 50 million to be generated at a cost of approximately 15
million.

- ENDS -


Notes to editors:

The principal activity of SubSea Resources Plc., which joined AIM in November
2004, is the recovery of high value non-ferrous metals and other valuable
cargoes from deep water ship-wrecks (in excess of 1,000m). This activity
primarily involves the locations and recovery of bulk cargoes of non-ferrous
metals in modern metal-hulled wrecks, where title can easily be established and
where original owners can be identified ('commercial salvage')

Enquiries:

Alex Glover
Tel: 020 7930 9030 or M: 07887 610 335

Mark Gleave
Tel: 020 7495 8696



This information is provided by RNS
The company news service from the London Stock Exchange SCDXLFFQBBFFBX

Andy - very honest imo.

Can't ask for better than that, I thought it would drop, but to bomb like this is a bit much.

Now it's started though, I expect this to weaken a bit more.