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Red Rock Resources Share Chat (RRR)



Share Price: 0.85Bid: 0.80Ask: 0.90Change: 0.00 (0.00%)No Movement on Red Rock
Spread: 0.10Spread as %: 12.50%Open: 0.85High: 0.85Low: 0.85Yesterday’s Close: 0.85


Share Discussion for Red Rock Resources


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ontarget
Posts: 1,378
Off Topic
Opinion:No Opinion
Price:0.725
RE: RNS
8 Sep '17
okenia, yes it's natural and I went through the same process for a year or so back in 2011/12, but to still let it consume you 6 years later is sad in the extreme. If he has let it go on for this long and been unable to get over it as appears to be the case IMO he may need to seek the councilling route now.
 
ontarget
Posts: 1,378
Off Topic
Opinion:No Opinion
Price:0.725
RE: Steelmin update
8 Sep '17
No you've misunderstood booboo - the loan still has to be paid back!
As the (multiple) RNS states Steelmin will refinance the loan from RRR with lower cost finance on or before when production starts. Refinance means they will borrow the equivalent amount from someone else at a lower interest rate and pay back what they owe to RRR with the proceeds of the new loan.
okenia
Posts: 9,251
Off Topic
Opinion:No Opinion
Price:0.725
View Thread (3)
RE: RNS
8 Sep '17
Ontarget - it's a very natural human trait to try to find someone else to blame, when things go wrong, and we shouldn't be too mean to those struggling with that psychology. I've made some howlingly bad investments in the past - albeit ofc I thought they were good at the time (or else I wouldn't have invested!) but in retrospect it was my decision to invest. I wasn't clever or smart enough with those trades and I ended up on the wrong side. No-one to blame other than me - it's my job to trade the secondary market, which is NOT the same as the operational tasks of the company named on those stocks. All failures are thus mine.

To blame a company for ones own poor stock trading decisions shows a fundamental misunderstanding of what a stock market actually is, and where responsibility sits.

And as such, I don't lurk on BBs where I have lost money, forever trolling the company and its new investors, in some desperate attempt to soothe my emotional wounds and prove "it wasn't my fault, honest!!!"
booboobooboo
Posts: 998
Off Topic
Opinion:No Opinion
Price:0.725
RE: Steelmin update
8 Sep '17
Looking more and more likely we are going to end up with 30% of Steelmin and remain holding a £3.5M loan we don't have the means to pay back and nor do they .
okenia
Posts: 9,251
Off Topic
Opinion:No Opinion
Price:0.725
RE: RNS
8 Sep '17
I'm very happy for it to 'drag on'. Every month brings in 1% of additional equity, and then beyond that brings in additional cash. 1% of Steelmin per month return for doing nothing but sitting on our hands. As a debt provider you don't make money by the debtor repaying the principal (early), you make it by stretching things out and racking up the interest. Duh-huh.

Guess you're not going to make your next fortune as a mortgage provider MrM, bless.
ontarget
Posts: 1,378
Off Topic
Opinion:No Opinion
Price:0.725
View Thread (2)
RE: RNS
8 Sep '17
It's a win/win for RRR MrMagic, because as you point out in the case where the loan is repaid at the latest date RRR get to own 30% in a company expected to produce initial annual revenues of $35m+.

I understand you got burnt by RRR many years ago. Let me let you in on something - so did I, badly, in 2011, and so did a lot of other people. I have been able to completely get over it over those years though, so much so in fact that I can now assess that same stock that burnt me completely objectively as a new investment just as I can any other stock!
You unfortunately appear to have decided to spend the rest of your life obsessing over your loss those years ago. You need to get over it MrMagic - what sort of life can it be seriously? I really do feel sorry for you as I felt the same way for a year or so.
ontarget
Posts: 1,378
Off Topic
Opinion:No Opinion
Price:0.725
RE: Steelmin update
8 Sep '17
Agreed okenia, it really is a great deal.
MrMagic
Posts: 10,967
Observation
Opinion:No Opinion
Price:0.725
RNS
8 Sep '17
Quelle surprise !!

Steelmin fail to pay back the loan . . . . gosh no one expected that did they . . . . !!!

And the rampers all say "yes but we just get an additional 1% every month they don't pay up to a max 30%"

Really . . so tell me, what benefit is the existing 16% holding delivering to shareholders? I mean really?
We have 16% of what? Are we getting any royalty there? Is that 16% holding liquid? Even ignoring that, will shareholders here ever see any of the money from that holding if it is ever sold?

Still, AB gets a seat on the board so that's ok ! He's in the money.

Here's what I predict will happen, total conjecture on my part, pure cynicism, so not fact

I predict Steelmin will continue not to repay the loan and that it will be refinanced as per the original RNS:

"Steelmin to be able to refinance the Loan for an additional 8 month term by paying a 5% fee, outstanding amounts to then be amortized monthly"

So that would be up to 16 months we would have to wait before getting the loan repaid.

Meanwhile RRR has saddled itself with an enormous $4.4m loan with our old friends Yorkville. That loan similarly can be refinanced:

"Loan offers an additional term of 8 months available for a 5% refinancing fee and amortized monthly"

This imo will just drag on and on.
okenia
Posts: 9,251
Off Topic
Opinion:No Opinion
Price:0.725
View Thread (2)
RE: Steelmin update
8 Sep '17
RRR get the loan repaid in full, in cash, plus between 16-30% of Steelmin depending on when the loan is repaid.

My guess is that this setup is good for both companies. Let's say the Steelmin expectation (and they should have a good grip on this with lead items for delivery and refurb etc) was a restart by end of 2017 and concurrent/dependent financing at that point.

That's about 20% equity they give away.

By structuring the deal this way it gives them the opportunity to reduce that amount if they get refinancing earlier - bring it forward and they get a bonus of paying less than my hypothetical 20% 'base case' scenario.

Likewise rrr gets a fee if they slip on that base case, and get upto the 30% level in extremis (which probably reflects the mandatory takeover level). Again good for Steelmin as there will be a limit on the debt they can raise, so they don't want it suddenly to be needed to pay an additional cash penalty to rrr.

It all seems remarkably well thought out for a RRR deal, there's clearly been a lot of heads inputting to this beyond just Andrew!
okenia
Posts: 9,251
Off Topic
Opinion:No Opinion
Price:0.725
RE: Steelmin update
8 Sep '17
"Red Rock to receive a further 1% of the fully diluted equity of Steelmin if the Loan is not fully repaid by 1 September 2017 and a further 1% each month until April 2018, 0.9% in May, 1.1% in June, and then 1% per month up to a maximum holding of 30%."

Yes it's a penalty, RRR are still owed the full loan amount. The penalty for late payment is in equity not cash, but the loan is still due in full and in cash.




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