George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
@Monkey.
Yep had you blocked for ages after your multiple about (2) faces. Along with Moon and one other account.
I cleared all my filters after that RNS. Of course in your case it's added no value.
You are quite entitled to wait to reinvest if it suits you. I have no issue with that. But I detest your chipping away. As said we know ( those in for a long time). The situation.
We don't need your snide reminders.
As to rpers. You need to read my posts. I have repeatedly said that I try and be objective and dislike those that don't acknowledge the serious nature of the situation here.
But really 37 posts in 30 days out of the kindness of your heart to get people to sell if it reemerges....
Get a life Mr Primate.....!
@Smartpunter.
You seem to have experience in these kind of cases. May I ask. If The asset is decided to be sold. Assuming, given the high grades, strong development potential, plus the likely call ongoing for the resource (etc).
It would seem a breeze for a large miner to pay a rate for it, yes? Remove easily the small (relatively, given the mid term resource) debt. Obtaining a really plumb part turn around and expanding mine for the future into the bargain.
Seems (to an admitted non miner type). A no brainer for a bigger fish....Newgen are also not miners, so won't be them. So if they can't wait. They easy get paid by the value of the mine with lots over,, and the asset moves to.... AN. Other.
But the question is. If the debt is £1, and the asset potential £10 (say). Then legally do Newgen get £5 if it's sold at such a price. Share holders here nowt?
This seems pretty hard. Is that how it works. Seems pretty odd if so. But what's the score please?
I am a technical guy by trade. So forgive the numpty legal understanding.
Cheers.
As the assets are in control of the lender, a raise is impossible - the shares have no value.
Only two options, repay the loan by mining or selling it.
Look at the agreement on Companies House. When the loan is in default, control of the company is given to NewGen.
Having worked at Bridge Lender where this senario played out a hundred times, I can tell you the primary purpose of Newgenz management of the mine is the maximum rate of return and repayment of principle, fees and interest as soon as possible. If they don't sell the mine they will wait to maximise the return.
At current CU prices the mine is problely profitable but a decade away from clearing its debt. Will Newgen wait? Hard to say, but quite possibly
Laughable really.
36 posts in 30 days from the talking Ape. That's not even counting his newly created recent buddy buddy accounts and those all negative postings.
All 36 extolling the worthlessness of the investment, strap lined with the mantra:
"Sell out all existing holders, as soon as you can directly this reopens"....
With of course the unwritten, but clear as day adjunct of....
"So I can buy in again AS LOW as possible, if it looks even remotely viable given the resource"...
Frankly, all those still invested are very well aware of the difficult situation that the share is in, without this constant dirge... We will all therefore no doubt make our own decisions based on the actual details of any deal (or otherwise). So can't see why you are bothering.
Investors await that detail now still, and that detail is all that counts. I hope to see this soon, & in the current Q....
But how desperate are some people to influence that buy/hold/sell call... hey?
If you are looking for any positives. I guess the constant attention of the well known swing traders may offer a bit of solace, in a funny (though tediously repetitive) kinda way.
Hopefully the new CFO will be galvanising TB to update the market as soon as practicable. Then one way or the other the issue will resolve and all concerned can move on.
Have a good weekend.
I have a small position in Rambler.
I initially thought the suspension and financial reorganisation would be resolved reasonably quickly, comments from John Meyer (SP Angel, the Nomad) saying he could not understand why the stock needed to be suspended aligned with my thought process.
As time has ticked by it seems, despite many initiatives by Rambler (cost cutting, hedging etc), a rising copper/gold price and generally improving market conditions, there is still no agreement with Newgen.
In my view the longer the delay the more likely a settlement will not be reached, there is no real explanation from the company. Toby Bradbury (the CEO) has continually pointed out how Ramblers gold/copper reserves is inconsistent to the modest debt position, this in my considered opinion makes it even more unusual that an agreement has not been reached by now.
I am bracing to lose my entire investment here, in my view if Newgen wanted to play ball they would have done so by now, what is there to discuss after all, either they agree to restructure their loan or not, it should not take circa 3 months to decide.
I fear Newgen's actions will wipe out shareholders, the loan arrangement was woeful, to offer the entire assets of Rambler against a $20m facility was abysmal, I sincerely hope I am wrong but the last update had shades of grey in it which I feel is ominous.
As for John Meyer suggesting that Toby Bradbury is a 'consummate professional' well as a shareholder I could use other summaries !
https://www.mining.com/web/erg-sees-copper-rising-on-high-demand-supply-worries/
Monkey ,moose ,DJ ...3 in 1
For Gods sake why dont` you lot call a truce! Neither side will change their view - just wait out see how it pans out. You are like bickering schoolchildren - my Uncle can beat your Uncle - no he cant`. Given what is going on in Ukraine what the **** does it matter - you lot deserve to be on the front line to get a hard dose of reality and to find out what is really important in life! Grow up and give it a rest ffs!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Best I got? You literally pulled numbers out of thin air for costs and I used numbers from audited financials…
I think this calculation is too bullish. At their 1H results on 26 Sep they stated: "We project our C1 cost at the end of 2022 to be in the range of $2.70-2.80/lb". Interestingly in the RNS on Wed we did not get a C1 guidance or reiteration of this (might not be an issue but still worth noting). Using the C1 guidance at $2.8/lb and a copper price of $4.2/lb for 2023 and assumed 7,000t production you would get to an implied $21.5m of cash generation in 2023. If we reflect administrative costs (C2) of ~$5m this goes to $16.5m. This would imply ~$1.38m of cash per month or $4.1m per quarter. This could be used for development capex and dealing with working capital issues. I think RMM is on much sounder footing, but would prefer some aggressive hedging at this level. There are also big question marks on communication of the group (again apparent in RNS this week) and how it was possible to drive the company against the wall in the way that has happened.
Wow, and thats the best we get, absolute joker.
Can't do the maths as the abacus beads are stuck probably, and you call others stupid, LMFAO.
Nothing but desperate wanting a cheap re- entry price, scaremongering at its best.
Moose will post next, watch the pattern as using a different account, so predictable it's embarrassing.
Regardless of RMM being suspended, everyone is entitled to post their thoughts, assumptions, it's your own opinion and point of view, simple.
Rambler spent right around $35m in H1 on production and capital development so $17.5m a quarter or about $5.8m a month. Even if they are actually realizing the $1m a month savings they claim (which is unsustainable in the long run), that means the cash burn rate is right around $14.5-15m a quarter. Pretty much just shows that they’re treading water at the very best.
From gold they only get 20% of sale price as they took $11 million from elemental for forward sale of gold .
Come on Doom & Gloom Gang, where are your responses and calculations??????
Not a single valid or genuine response from the Doom Brigade apart from "They aren't" is about as good as it gets.
Thanks to your response DanielC43R.
If you are so positive without any doubt that RMM lost money from Oct-Dec 22, then show your calculations, let's see your figures, don't hide behind your keyboard.
I have adjusted my previous calculation but the end result remains th same.
Saleable Copper produced - 1588 Tons
1588T x $8,330/t (hedged price) = $13,228,400
Gold sale - 401 ozs × $1,750 = $701,750
Total Copper & Gold Sales - $13,930,150
Let's say 14 million for arguments sake.
If RMM are supposedly not making any money, then show me calculations how they are spending the $13,930,150?
If they are employing 186 staff (miners / engineers / operators) lets for arguments sake pay them all $300 / day for 3 months solid.
My very quick *** packet calculations:-
186 x 90 x $300 = $5,022,000 ( This equates to all the staff being on over $108,000 / year )
Plant Lease Hire (3 Months) - $750,000
Fuel / Parts / Electricity (3 Months) - $2,250,000
Drilling / Blasting / Haulage (3Months) - $1,500,000
Management / Consumables (3 Months) - $750,000
Miscellaneous - $500,000
Under $11,000,00 million and I think in my opinion I am being very generous, prove different to me.
There is a risk of going bust but prefer that risk option to mass dilution. With Measured and Indicated
Resources grading 1.80% copper and 0.35 grammes per tonne gold, containing 945 million
pounds (428,000 tonnes) of copper and 271 thousand ounces of gold, at a 1% copper cut-off I expect there will be plenty of potential buyers.
Rambler BoD have left themselves vulnerable to a cheap takeover especially with the small amount of debt compared to measured and indicated resource. An underground developed mine in this jurisdiction, with labour availability, a mill and easy port access would cost £100s millions to develop. A lot of work has already been undertaken in respect to what the mine could potentially build up to which is multiple of current production.
The resource is also open at depth and therefore potential to increase reserves whilst maintaining 20 year plus mining life.
"There is a large percentage of shareholders who are private investors. They generally would vote against unless a rights issue."
Of course PIs can vote how they like. Might bust the company though.
Even if the costs you just cobbled together were remotely close to reality (they aren’t), Rambler had a payables backlog of $15.5m at the end of Q2… The “profit” they made this quarter wouldn’t even put a dent in that let alone the debt repayments.
With current copper price a sale should get each shareholders 75p/ share at least.rambler is going to be 100 million company in fre months may be by q4 2023 .
You have few thousands mortgage repayment to your house doesn't mean your million pounds house has to sell for few grands. Rambler is on right track and will prove them right by summer this year.
All derampers here is talking nonsence without understanding copper prospects and price in few months .
Newgen will deal with all money aspects and make decisions on maximising profits for their shareholders. The miners will operate the mine.
RMM ex management have basically nothing to do, they cannot raise money as RMM doesn't have any assets or income, if they are still employed they will operate under Newgens instruction.
Throwback to long-**** djcryin posts
@YugoBoss - 1588 x 2204 (lbs in a tonne) = 3,499,952 lbs. Cu average price during 4Q 2022 was approx. $3.6 (using data from IFCM website). $3.6 x 3, 499,952 = $12,599,827. Let's not forget the gold too with 401 ozs at approx. $1750/oz during 4Q 2022 giving $701,750. So about $13,301,577 or $4,433,859 per month.
The issue, I believe, is with the debt situation and having enough left over to service that debt. We know that they do not have enough left over to cover debts with the current financial package. If they could cut costs further, say another $1M per month, and start processing from the high grade areas (3.6% and above to double the 1588 tonnes) they might succeed. Head grade for that quarter was 1.84% Cu, they have reported drill results in areas with much greater grades (e.g. 13m at 5%, incl. 4.6m at 11.4% in the UFZ). GLA, Dan
Saleable Copper produced - 1588 Tons
1588 x 2240 = 3, 557,120 / lb's
Let's say $4/lb = $14, 228, 480
If RMM are supposedly not making any money, then show me calculations how they are spending the $14,228,480?
If they are employing 186 staff (miners / engineers / operators) lets for arguments sake pay them all $300 / day for 3 months solid.
My very quick *** packet calculations:-
186 x 90 x $300 = $5,022,000 ( This equates to all the staff being on over $108,000 / year )
Plant Lease Hire (3 Months) - $750,000
Fuel / Parts / Electricity (3 Months) - $2,250,000
Drilling / Blasting / Haulage (3Months) - $1,500,000
Management / Consumables (3 Months) - $750,000
Miscellaneous - $500,000
Under $11,000,00 million and I think in my opinion I am being very generous, prove different to me.
A sale of company is more likely than mass shareholder dilution. Any large equity raise will need shareholder approval. There is a large percentage of shareholders who are private investors. They generally would vote against unless a rights issue. BoD also cannot work against interest of shareholders and a recent case with Hurricane Energy has shown what private investors can achieve.
Overall still comfortable here especially with current price of copper. Viability of mine and prospective buyers lining up to get it on the cheap should see me get my money back and hopefully a good return on top. Definitly not the price I was hoping for when first investing but still good.
....yet producing thousands of tons of copper per annum, in a rising market.
RMM's assets massively outweigh debts so even if sold due to inability to service debt, we're on a winner (well, those still 'in')