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Member Info for MrMagic

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Member Since: Mon, 13th Jun 2011

Number of Share Chat Posts (all time): 8,318
Number of Share Chat Posts (last 30 days): 100

Last Posted: Today 16:43

Post Distribution over the last 30 days

Today 16:43

Dougal, let me check I have the right figures. SRT owns 15% of Sugar Dragon, and RRR only owns 8% of SRT itself. So effectively RRR has only a 1.2% interest in Sugar Dragon yes?
Today 16:24

Apologies, I got myself mixed up with the wider deals. You are correct. 15% holding and SG intends to list (Q3 2015) via an IPO and have appointed Merchant Capital Markets as lead manager for the offering.

The holding was to be bigger of course but RSL(SRT) terminated its agreement to acquire 60% of SG.
Today 11:49

dougal66 - "RSL owns 15% Sugar Dragon which is expected to IPO by end this year"

lols Dougal. It never ceases to amaze me how the pump squad and rampers can't get the basics right about the companies they try to push. I suggest you go read the SRT RNSs Douggy.
Sat 20:24

Yes cheers for the info. It still seems somewhat odd to me that for such a small outlay that NCT would not snap up SOG's share in a flash.

According to the NCT Interims, they had circa $2.34m in cash and cash equivalents as at June 30th. Then you've just raised £750,000 or circa $1.12m via issue of equity. So that's close to $3.5m of actual cash and yet you say you are struggling to find $500-600K to be spread over some 4 months or so? ?

I clearly need to study NCT's financial running costs further because at face value it would seem a no brainer for NCT to pick up SOG's share of SC for such little outlay particular as it is spread over at least quarter of a year and is touted to return income within 6-12 months.
Sat 10:44

Helpful - "The Frio at Shoats Creek is a great asset. In due course you will see that each well has about 180k/200k EUR. LM20 came in well ahead of expectations, the net pay was about twice the size they were expecting"

Helpful - "if NCT had more cash it would taken care of everything itself."

These two statements don't really make much sense to me I'm afraid. If the wells are good and producing good revenue, how is it that NCT can't find a measly $500-$600 for LM#21 and LM#22? It equates to just £300K roughly. NCT has a MCAP of some £7m and you're suggesting that over the past 6-12 months they couldn't find £300K? That really doesn't stack up in my mind but doubtless I am missing something.
Fri 23:41

I concur. The term "anticipates" is an immediate red light. Also note that the statement there is referring only to the costs of the SC venture itself, read it again:

"Red Rock has made and is making sales from its asset portfolio that will it anticipates enable it to meet the near-term costs of this drilling and production participation"

Are these the only costs of the company? Nope. So how are the remaining costs being funded?

Note also that cash on hand was just £29K at end of June according to the Final Report recently published. Some money was raised via the CLN and placings/subscriptions and £275K went out for the EO investment and of course there have been running costs for July, Aug, Sep, Oct and Nov to foot. Work through the RNSs and tot up money IN and money OUT and then factor in whatever you think monthly running costs have been (remembering that the recent redundancy cost cuts don't come into effect until next year). Then you will have a view on whether or not money is needed right now, regardless of the SC venture costs.
Fri 18:22

A potential income generating venture, much needed here. A step in the right direction for sure.

I didn't see anywhere stating there will be no placings though. The AGM notification makes it clear what the future intentions are imo.
Fri 09:28

matlot - "or rrr going bust if they cant off load a massive amount of shares into the market as no one wants them anymore as they are completely bored and fed up of bell's spin year after year"

It does seem like PIs have had enough of the MO here imo. Constant dilution, little to no value added to counter it and an SP that keeps sliding downward. I can't see who would buy just at this point in time with the various negative factors in play just now.

Firstly there is the running YAG Convertible Loan Note which still has £175,000 to convert. If all that were converted at current prices (0.015p-0.02p) it would generate close to 900m shares. That's about a 15% increase in the total issue. Since the monies there are for working capital and IC there doesn't appear to be any immediate value to counter that dilution imo.

Secondly there is a Share Consolidation planned as outlined in the AGM Notification (Resolutions 7 & 8). Who buys just before a consolidation? In theory a consolidation changes little but in practice many AIM consolidations result in SP drops.

Thirdly the company plans to continue issuing shares in 2016, up to £1m worth of nominal (0.01p) shares (10 billion). Again,. see the AGM Notification (Resolution 6).

There are positive things happening too. For example, running costs have been reduced, the SRT holding has some good value to it, the Shoats Creek venture (if taken) could provide a potential income source, there is still a holding in Jupiter and the longer term prospect of a royalty there as and when iron ore markets recover.

Unfortunately most of those positives, for me, are somewhat overshadowed by the immediate negatives.

AGM Notification
Thu 10:45

Me too Harley. The BID price is shown as 0.017 clear as day.
Thu 10:22

harley24 - "up again to 0.019... 11.7%"

Looking at the ASX the BID price is shown as 0.017p, so seems same as yesterday to me.

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