Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Probably a few things:
1. The market is no longer familiar with the company
2. It is currently a single product company, Manganese
3. It hasn't actually declared its first dividend. In the UK some investors won't touch non-dividend paying companies. Looks like a short delay before they declare the dividend. A strong indication is not the same as declaring it.
4. It looks like JMS has an issue with trolls same as RRR and RGM
Tshipi dividend confirmed. Total proceeds to Jupiter are R1.1 Billion and the manganese price continues to trade between $5.50 and $6.00 / dmtu. I know people are reluctant to invest in RRR because they know Andrew Bell's shameless raids on the companies coffers, but why are Jupiter's shares trading so low?
https://www.jupitermines.com/cproot/838/3/20180910%20Tshipi%20Declares%20R2.0%20billion%20Dividend.pdf
When did commercial production start at Steelmin, maestro? Have I missed something? Have we sold anything to a customer?
torpey
the time you are talking about RRR didnt have over £3m in the bank and jms shares were delisted and were valued at 7c per share. Now they are valued at 35c a share and we have 18.5m shares in them, so thats around £3.55m in value for them.
The jms shares give us a dividends of circa £800k per annum, so they are nice little earner.
Then we own 22% of Steelmin plant which has commenced commerical production recently, if that plant was built from scratch it would have easily cost over $70m.
Then we have migori licenses which we are trying to get back, it has a reserve of 1.2Moz with a potential to be increased.
Just cant believe mkt cap is only 4m for the whole company its absolutely ridiculous.
Indeedy!
Hopefully wrapped up very very soon.
https://twitter.com/Boardo65/status/1038232164905578496?s=19
Yep, it is a 3% NSR royalty to the amount of $2m and then it drops to a 0.5% NSR royalty for a further $1m.
The issue for shareholders, and indeed RR themselves is the reality of how long it will take that money to be recovered.
It's not unlike the situation where say someone owes someone else $1m but because they've fallen on hard times they can't repay it straight away and instead agree to pay it back drip by drip at $1000 per month. That means it will take 1000 months or 83 years to pay it back which is pretty useless to the person who is owed the money.
With RRR and Para, we've been told that the quarterly revenue is just $13,658
That equates to $54,632 per year so to recoup just the first $2m is going to take approx. 37 years.
It's not difficult to see then why some pay little attention to that royalty in terms of treating it as a "sum of the parts" asset.
It is not a profit, it is an NSR: Net Smelter Royalty. The money falls due and payable whether makes a profit or not. So to call it a profit is nonsense. What masters is how does Para owe us and how is being paid and when.
We want Para to make a profit because of the shares and warrants. If it is profitable it also means the payment of the royalties is more certain and they will be larger.
DYOR
Joebop: "there were some monthly production figures in a Bloomberg link helpful posted"
Forgive me but when people invest in a company it behoves that company to publish the revenue figures it is receiving from its various projects on a regular basis, warts 'n' all. Shareholders shouldn't need to go anywhere else for such basic data.
Helpful, apologies for the slip of the tongue re income and balance sheet.
Anyone know off hand what rrr spent on the Colombia venture? All in. Writedowns? Legals?
Helpful is eager to chalk these royalties down as a profit. It just gets me curious.
Magic, there were some monthly production figures in a Bloomberg link helpful posted. They were fairly miserable to be fair. A few lads with wheelbarrows would shift the ore no worries. Probably what they do!
And on the issue of lack of updates what has happened to Shoats Creek?
No RNS from RRR since partner Mayan Energy pulled out of Shoats Creek, relinquishing its 50% working interest there. In their RNS Mayan stated:
"The relinquishment will also protect Mayan from potentially significant Plug & Abandonment ('P&A') liabilities associated with abandoned well bores at Shoats Creek."
Investors will surely want to know what the hell is going on there and where RRR have been left now that Mayan have pulled out imo.
Joebop, yes I seem to recall the royalty was confirmed by RRR as being for all ore processed at the mine.
That's not the issue.
The issue is that the royalty revenue is so pitifully low that at the last reported quarterly revenue rate it will take approx. 37 years for RRR to recoup that first $2m of the royalty. For that reason I would guess the markets are not particularly interested in it and maybe don't factor it into the cobblers "sum of the assets" valuations that so many rampers try to use.
RRR has (afaik) only provided 2 revenue updates in regards to this. The revenue for quarter ending March 2017 and the quarter ending March 2018. The lack of regular updates should be enough to make people cautious imo. The mine clearly stopped producing during part of 2017 but I don't recall RRR ever RNSing that salient fact.
When the updates cease on a project it is invariably bad news in my experience.
Since we are now in Sept the royalty revenues for quarter ending June 2018 should be known, so where is the update RNS with those figures?!! My guess is the numbers aren't great.
Grow up.
You won't see income on the balance sheet, it goes in the P&L.
Investing is about making money not proving who is right.
I look forward to converting my loan notes and making some decent money here.
BTW RRR has a holding in RGM, not huge but worth having. I expect there will be a profit to be taken there fairly shortly.
Research!? Curiousity is all mate.
However, as those rns show, i was clearly right about the nuances.
In future, before you get testy, maybe show the relevant links to support your view. If you do not want to be bothered by those questioning the accuracy of your posts, that is.
Thanks for the links this time.
I'll back magic all the way on this. He may be wrong, but come on, a small gold mine in colombia!? Suprised para got $14m recently if i'm perfectly honest. I'll believe it when i see the income on the balance sheet.
I am not here to do other people's research for them. If it is convenient, I will post stuff.
You may think Tragic knows what he is talking about but he doesn't: as evidenced by his comments about Para.
It looks like the royalty payments will pick up from next March.
And this is how it was settled.
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=RRR&ArticleCode=t7tgph7z&ArticleHeadline=Colombia_Update
Nuances, helpful.
Plus magic tends to back up his answers, something which is rare from you, with all due respect
This stated clearly what the dispute was about.
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=RRR&ArticleCode=1oqftzeu&ArticleHeadline=Columbia_Update
https://beta.companieshouse.gov.uk/company/07291586/filing-history
Rrr ceded control of Melville Bay. End June.
Ok make your own answer up.
AB has tweeted today, that RRR has the royalty. What is the point of asking anything if you disbelieve all answers?
Was that the same legal team they used for the Greenland deal?
Rns, rrr/rgm and legals in the same sentence....one tends to assume the worst number, and divide by 1000 to get to a figure rrr are due but will never see.
Mr magic, is helpful correct in saying the royalty is over all gold processed at el limon, or is there a loophole para have found?
Read the RNS's. RRR went to legals over it. The royalty is over all gold processed at El Limon.
Do those royalty payments include a charge over the toll processing they are doing?
Helpful: "you know the ones that are not worth having!!"
Still needing to make stuff up Helpful?! Sad TBH