You'd think a septuagenarian with four successful resource companies to his name would be happy to sit out these volatile times. But all John 'Algy' Gordon Cluff says he wants these days is "a slight rest from Africa - you know, midnight at Ouagadougou airport and all that." His sabbatical takes him back to where he began his long career - and investors who have benefited from his expertise before are likely to follow him again.
The eternally restless entrepreneur stepped down as chairman of Africa-focused gold miner Cluff Gold last month to start his latest eponymous venture, Cluff Natural Resources, which will initially focus on oil and gas in the North Sea. The shell company is raising £3.75m in a share placement priced at 5p before listing on the Alternative Investment Market on 22 May.
"Hopefully by July we'll be able to announce at least the first transaction we have in mind. I want the first acquisition to have either cash flow or an incipient cash flow." He envisions acquiring private companies for shares, or perhaps farming in to existing licenses.
Algy Cluff
Although his reputation is one of an old Africa hand, Mr Cluff actually first made a name for himself in North Sea oil in the 1970s and 1980s. Despite years of declining production and exploration in the region, Mr Cluff believes the North Sea is alive and well, with recently announced tax incentives favouring smaller players who stand to benefit from operating fields that are too small to interest the majors. He's also open to deals in the mining arena.
"This is a marvellous time to start a new company," Mr Cluff says. "There are a number of companies that have run out of money completely and can't meet their cash calls. So, without being too bloodthirsty, there should be some very good opportunities - particularly in the mining business, not so much for oil."
Mr Cluff admits this will probably be his final go at running a resource company - though he recalls with a grin that he has said this before. "Some cheek said why don't you call it 'Cluff Off!'" His 40-year career has been conspicuous for the returns some investors have enjoyed, and he was one of the 'Midas Men' we profiled late last year.
Algy Cluff's track record
| Company | What happened to it |
|---|---|
| Cluff Oil | Sold in 1970 for £14m |
| Cluff Resources | Sold to Ashanti Gold for £100m in 1996 |
| Cluff Mining (later Ridge Mining) | Sold to Aquarius Platinum for £150m in 2009 |
| Cluff Gold | Currently worth £106m and touted as a takeover target |
