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SOU CEO responds to investor questions on its projects in Morocco and Italy. Watch here

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SOU CEO responds to investor questions on its projects in Morocco and Italy


Member Info for MrMagic


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Member Since: Mon, 13th Jun 2011

Number of Share Chat Posts (all time): 9,353
Number of Share Chat Posts (last 30 days): 46

Last Posted: Fri 14:33


Post Distribution over the last 30 days




Fri 14:33

HawaiifiveO - "Let alone all the other cash generative projects"

The LM#20 well at Shoats Creek is producing a mere 20 barrels of oil per day net to RRR (RNS 14 July), maybe slightly more now. We await revised production figures. It has been a huge disappointment given the early rampy test results of over 300 bopd.

The small 3% NSR of royalty from El Limon is also not particularly impressive. US$6,135 was received for the first 2 months of that royalty (RNS 5th Sep). We await the figures for last quarter. Para hope to increase production next year, but as always, I will wait to see what actually transpires.

"A £530k dividend is expected shortly from Jupiter"

Yes, a welcome bit of cash but not expected until March 2017, 3 months from now and is likely to be in the form of an equal access share buy-back. In terms of the valuation of the Jupiter holding, the company stated this in the Annual Report just published:

"the corresponding 9.8 cents per share value implies that the Company’s holding in Jupiter Mines is valued at AUD 2.68m (£1.30m)."

A somewhat different valuation to that which you are suggesting. I am mindful that AB is a director of Jupiter and as such will know what is going on there including any progress with Tshipi. The Manganese price hasn't changed a great deal since March this year so that doesn't appear to be a factor to radically change RRR's valuation. (Manganese chart: http://www.infomine.com/investment/metal-prices/manganese/1-year/)

In making that £1.3m valuation the company stated that it had taken into account EVERY Jupiter share transaction between the de-listing date in January 2014 and the 2015 financial year-end. It also contacted Jupiter to enquire if there were any subsequent transactions up to 30 June 2016 and there were none. Hence the valuation of £1.3m remained.

The Annual Report just published highlights some key figures for the year up to 30 June 2016 including:

Total Loss for the year of - £283,280
Directors' Emoluments £270,873
Admin Expenses £758,351
Wages and salaries £284,473
Total staff costs £427,494

This for 4 Executives and 1 Administration staff member

Good luck with your punt HawaiifiveO, but I'm afraid I can't share your uber optimistic numbers at this stage.
Wed 21:26

RGM Results

As with the RRR results, they contain the clause at the end:

"These results are audited, however the information does not constitute statutory accounts as defined under section 434 of the Companies Act 2006. . . . . The financial statements for 2016 will be delivered to the Registrar of Companies by 31 December 2016"

Never seen this before. The results are usually the full thing and include an Independent Auditor Report.

What's the reason for this situation?
Wed 11:47

Isdeer,

That's a poor defence really. The spike was obvious and it was inevitable that the merry band of ramping aliases would quickly disappear as they have now done. And sure, it happens on many AIM shares but that neither excuses it, not means that it shouldn't be highlighted by matlot or anyone else. The same bunch of idiots will imo be back in March just before the Jupiter payment to do it all over again.

Meanwhile, RRR plods on, with, imo, regular income streams that are too few, too small and with costs still too high and a BOD which persist in extracting silly salaries and expenses whilst continuing to dilute shareholders. Nothing changes that I can see and the forthcoming AGM resolutions will imo confirm this when they include a resolution requesting authority to issue a shed load more shares in 2017. The rampers play it down every year saying that every AIM company does the same. Nevertheless the share issue keeps rising year on year.

Shares in issue have increased by almost 100% this year, last year they were increased by 154%. You have to have some empathy with the numerous posters claiming this is just a lifestyle company for the BOD.
2 Dec '16

First_Timer - "RRR have 27.3 million shares so lets say at 40c each that equates to 11millionAUD converted is approx. £6million"

You list assets just like a paid Broker Report does, neglecting to factor in the repeated increase in share issue which makes the projected MCAP artificially look better. A recap of dilution is in order:

Shares in issue year on year

Dec 30 2011 - 738,657,883
Dec 20 2012 - 1,086,741,764 (a 47% increase)
Dec 03 2013 - 1,450,570,545 (a 33% increase)
Dec 31 2014 - 2,371,116,172 (a 63% increase)
Dec 21 2015 - 6,033,861,125 (a 154% increase)
Dec 31 2015 - 241,354,445 shares after consolidation
Today - 467,325,740 (a 94% increase . . . so far !)

I say again. The irrefutable proof will be the AGM Resolutions which will appear shortly this month. If they contain the usual resolution requesting authority to add tons more shares in 2017 then your theories that the small income streams will meet expenditures will crumble quickly imo.

.
2 Dec '16

No Jonnstone I was quoting First_Timer, hence the quotation marks !

Value will only be realised imo when regular income matches expenditures. Limon and SC and a ways off that point yet imo. I'm not fooled by the current spike but happy for others to punt and good luck to them.
1 Dec '16

"I can see amongst many investors/ex investors that trust in AB is most certainly not there this is one reason I still feel this the price doesn't yet reflect true value"

Well presumably there is a reason or indeed reasons, why that trust is not there then ? Have you assessed what they are?
1 Dec '16

First_Timer, not bitter in the least. I think you will find LTH's are simply experienced rather than bitter. They know the score, and they've seen countless other people rave about POSSIBLE future outcomes and incomes. As I said, Greenland supposedly going to sell for £10-15m and so on. All have turned out to be utter tosh and meanwhile the share issue has just continued to rise ridiculously, with 2 capital re-organisations being done in the space of 12 months and the SP has tanked horrifically, just look at the 3-5yr chart.

Now you are suggesting that the small royalty from El Limon and just 20 barrels of oil per day net to RRR from Shoats Creek are going to cover expenses ! The amounts received that we have been told about just don't indicate that so far imo. Will they in the future? Maybe, who knows? You seem prepared to take a punt and speculate that they might and good luck to you with that punt. For myself, I will wait to see an RNS that shows the Lemon royalty is returning any meaningful level of monies and that SC is producing any meaningful amount of oil. In essence, "show me the money" not the spin and speculation.

BTW you should know that El Limon is in South America, Colombia not North America Columbia ! Don't worry though, even RRR and the Nomad can't get that right sometimes !
1 Dec '16

First_Timer

You will have to forgive all the LTHs who have seen such fantastical predictions as Para's future gold production guesstimates. We were told a couple of years ago that Greenland would be sold for £10-15m. Before that people were told that gold production would be 200tpd. DBar oil was going to be amazing, Cloud Computing would be the next best thing. No deramp here, just sticking to published facts rather than spin and hook bait. Despite all the previous spiel the company still has a pitiful MCAP and the SP has been decimated over the past years. Shares in issue doubled this year. More will come imo. When guaranteed income streams match expenditures then I will believe it will turnaround.
1 Dec '16

@Yare/tapper. Thanks for the correction, it's why I always ask other to check figures.
Not sure what happened to the calculator (Windows) must have had something in its memory. Anyways . . .

Para profit - $1,336,000 then. Thus 3% = circa $40,000

Still not gonna make a dent this year
1 Dec '16

Well Zumore, one of Wesport Energy's directors is Brian Kinane who is formerly of Yorkville Advisors UK LLP.
(https://www.endole.co.uk/profile/profile_new.php?id=16710579)

I guess he'll have plenty of advice and experience of placings !


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