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EXCLUSIVE: David Lenigas answers investor questions in a detailed interview about UKOG, Doriemus, LGC Capital, AfriAg and Angus Energy.


Red Rock Resources Share Chat (RRR)



Share Price: 0.625Bid: 0.60Ask: 0.65Change: 0.00 (0.00%)No Movement on Red Rock
Spread: 0.05Spread as %: 8.33%Open: 0.625High: 0.625Low: 0.625Yesterday’s Close: 0.625


Share Discussion for Red Rock Resources


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iRick4G
Posts: 605
Off Topic
Opinion:No Opinion
Price:0.875
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RE: Paranoia
23 Jun '17
Sounds like we're going to need a bigger oubliette
 
ludeck
Posts: 755
Off Topic
Opinion:No Opinion
Price:0.875
Quite regardless of how crazy...
23 Jun '17
...or otherwise this deal might be, the fact is that it pushes out any possibility of "profits" beyond the very short term. Given AB's record, the only thing that anyone (sane) who is considering an investment in RRR will be looking for is very short term profits from momentum trading.

So with this announcement will come a significant sell off (if that has not already happened) and very little new interest.

Come back in a few months for the next spike...
zumore
Posts: 4,306
Off Topic
Opinion:No Opinion
Price:0.875
The more i look at it
23 Jun '17
it does seem a pretty bonkers investment idea by Andrew Bell. I mean to get RRR a 16% stake in the company Steelmin he has taken out a $4,230,750 YA loan (or around £3.3 million) and then lent all that money to this unproven company. Of course we may never see that money again. I think reckless is an understatement.

I think the more sensible approach would've been to tell Steelmin if you ever raise the necessary money yourself and you become a producing company then RRR would consider having a little stake in you. Certainly would've been a less risky approach. It's amazing that Bell today got RRR in debt to the tune of $4,230,750 with YA.
MrMagic
Posts: 10,682
Observation
Opinion:No Opinion
Price:0.875
Who pays the piper?
23 Jun '17
Let's get this straight . . .

Ignoring the Steelmin side of this.

RRR is borrowing USD $4,230,750 (£3.3m) from YORKVILLE via institutional investors.

RRR in it's recent interims stated that it had current liabilities of £1.8m. It also expends £800,000 per annum on Admin and Exploration Expenses.

Could someone explain please where RRR will get £3.3m from to repay this loan plus the £1.8m liabilities and run costs? It certainly won't come from the paltry trickle of El Limon royalties (currently $5148 per quarter) and it's not going to come from the earnings from LM#20 at shoats creek which suffered sand ingression.

Who pays the piper here?
Helpful
Posts: 4,916
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:0.875
View Thread (2)
RE: Paranoia
23 Jun '17
Better than that: if production time slips, the date for refinance slips and so does receipt of our repayment. Consequently, our percentage stake goes up. If they want to delay repayment for a few months, then all to the good.

If they put it into production, repay us and then are a bit slow to ramp up it won't hit its EBITDA figures but then then hey, it cost pretty much nothing.

I suppose the risky bit is that the management start to go crazy about expansion plans, we dob in actual cash and then it goes "tits". Up until we have to dob in actual cash, the risk is de minimis.

DYOR
PINMAN
Posts: 267
Off Topic
Opinion:No Opinion
Price:0.875
RE: Paranoia
23 Jun '17
Well even if production times slip we will own 16% for very little actual cash.
colinH100
Posts: 1,751
Observation
Opinion:No Opinion
Price:0.875
RE: Paranoia
23 Jun '17
I think the important part of your post, Pinman, is "when operational." Given AB's track record it won't become operational on time, or up to the required production level, or both. Remember the Rosa Mine and Colombia.
Helpful
Posts: 4,916
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:0.875
RE: Paranoia
23 Jun '17
We both know that is out of date now and the current position is materially different.

Anyway, quoting hard facts is not paranoia but some of the rest is.

I have listened to the podcast (some parts twice): my view is the same. This looks a good deal to RRR and some of the comments underpin the estimate of what Jupiter is worth to RRR and the timing of receipts. AB was also pretty positive about the monies due from Para.

Investing is all about timing; so some people who invested years ago lost money and they can't get over it!

Just riding my UKOG monies at the moment. When the time is right I will take some profits and move it over here or NTOG. On the NTOG board there is exactly the same thing: people screaming about what happened two and three years ago instead of looking at what is happening now. The same thing on the UKOG board: some people bought in on a spike a year ago whinging over the last few weeks and suddenly today, it is all happiness. Anyone who did research on UKOG knew exactly what was happening re its drill programme.

Investors should look at the facts and stay rational (or at least try to, not always easy).

DYOR
iRick4G
Posts: 605
Off Topic
Opinion:No Opinion
Price:0.875
RE: Paranoia
23 Jun '17
Except we've been in this situation many times before and it's never played out like it was suppose to, taking this into account the sell off is about right
PINMAN
Posts: 267
Off Topic
Opinion:No Opinion
Price:0.875
RE: Paranoia
23 Jun '17
So we borrow the cash against Jupiter (this sort of gives a good indication of just how valuable this asset is) we then lend the cash to steelmin on terms they fully repay us and give us 16% of the business within 3 months and when operational within months produces 7 million that we get 16%. Total cost to us fees expenses and 2.2p warrants.
Seems a good deal to me..
So the sell off seems overdone




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