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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): 8,535
Number of Share Chat Posts (last 30 days): 139

Last Posted: Sat 22:31

Post Distribution over the last 30 days

Sat 22:31

The term "anticipates" in that statement, for me, relates to the amounts ($500K-$600K). It doesn't imo apply to the more definitive statement that "these costs WILL fall over the next four months or so"

If it covered both parts it would have said

"The Company anticipates that its share of cased and completed LM #21 and LM #22 wells as well as related production support facilities will cost between $500k and $600k and THAT these costs will fall over the next four months or so".

If we aren't paying this spread over these 4 months then we are presumably storing up a larger payment that may have to made in a shorter time frame.
Sat 21:46

"i have no reason to believe RRR have yet made any payments towards the LM#21/22 drills."

I'm not expecting the company to announce every payment it makes TBH. The costs and time scales were clearly outlined in the 27th Nov RNS:

"The Company anticipates that its share of cased and completed LM #21 and LM #22 wells as well as related production support facilities will cost between $500k and $600k and these costs will fall over the next four months or so"
Sat 20:11

Also . . . as I tried to tell Adam, it is one thing to come up with guesstimates of cash numbers but another thing completely to know how any monies will be spent.
Sat 20:03

Trying to guesstimate "cash in the bank" is nigh on impossible unless you work for the company. We have no idea what expenses are being incurred. We have no idea what the Kenya legal costs have been thus far, we don't know what the redundancy payments were for the staff that were released and so on. We have to wait for the March Interims to know the details.

The problem with your guesstimates is that you have no start point. You need a baseline to work from and the only one that exists is the position as at end June 2015 where there was £29K.

Since then there was

+£453,750 - from share subscriptions
+£250,000 - from YAG CLN
- £275,000 - for EO investment
- £250,000 - Jul-Nov run costs (@50K pm)

The run costs are probably light there imo.

I think your cash burn costs are too small. AB said in the interview this week that "pure admin" is somewhere near to £30K so the full costs are imo likely to be closer to £40K for Jan and likely higher in Dec imo.

For the LM#21/22 participation I would work on £103,000 per month fro the months of Dec to Mar.

Overall I think there should be money in the bank to last us up to end Mar, but I stress again, we don't know the full running costs and outgoings. I would honestly just wait for the Interims.
Sat 18:22

Really you need to work back from End June 2015 which is the point that the last Final Results covered. At that point there was only approx. £29K in cash and cash equivalents.

From that point factor in the income received and the likely monthly cash burn for the months July-Dec.

The factor in what you have just posted
Sat 16:32

Can you just explain your El Limon royalty numbers again please
Sat 16:07

Adam - ref your post 15:01 - you said:

"We will get a 3% return on sales not profits... minus some offsettable costs lets say we just get 50% of this do the maths... 200T per day. gold price $1100 3%= $33 lets say we get just $16= $100,000 per month £70k per month= £840k per year... "

I can't follow your numbers I'm afraid. Have a feeling you have mixed up tonnes and ounces.
Sat 14:34

"$225k this months $225k in June, and also you seem to have forgotten royalties from Colombia.. you also disregard the $1m note"

Note also young Adam, that according to the last End Of Year Financials the Total Director Emoluments were £181,169. Half of that was AB's emoluments. (pg 40)
Sat 13:57

"$225k this months $225k in June, and also you seem to have forgotten royalties from Colombia.. you also disregard the $1m note"

Adam - you talk about the future cash payments as if they were your own money and you know how YOU would spend it. Unfortunately the flaw in this thinking is that you are not AB. You have NO IDEA how AB will choose to spend any of the monies that are raised. Prior to Dec you would have told me that ALL of the SRT holding would be used for "value adding projects". There have been 3 sales of those shares. Only ONE has been declared as being for the Shoats Creek venture. Where did the money from the other 2 sales go?
Whilst you are thinking that through, tell me please where the £9m that was raised in the past 3 years has gone. Seriously, please tell me.
Sat 13:29

Another poorly researched ramp post Adam. You really do seem desperate.

"I am 100% for share issuance if the dilution will add significant value."

This is a silly statement TBH. Why? Because between the dilution and that adding of significant value lies a significant time span. In that time span the SP will plummet due to the increased share issue and then you will be playing catch-up. The "added value" you talk about will be used to get you back to break even.
Look at Shoats Creek. Money raised there for a project that adds value (via revenue). The money was raised at the start of Dec 2015, that's over 2 months ago and so far, no value has been added. Had that money been raised via share issue the SP would have dropped significantly while you wait for that value to be added.
You trade in sound bites Adam, to an audience that know precisely how things work here. No-one is going to want to expose their investment here to the coming placings imo. That you try to convince them otherwise is less than honourable imo.

"$225k is coming in in a week or so and another $225k in June which should cover expenses for a year.2

$450K equates to £310K. AB made it clear that "pure admin" only was SOMEHERE NEAR £30k per month. So very clearly the full running costs and expenses are much higher than that. Your $450K (£310K) doesn't even cover pure admin does it which according to AB is obviously more than £360K per annum ?
All this info is there for everyone can read and/or hear yet to try to convince us that something else is fact. Very silly.

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