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This is why you lost all your money Tragic; you don't understand investing or decision making.
Let me see if I can remember who was telling everyone to get out at 0.175p? Ooh, that would be you Tragic, wouldn't it? Doesn't look like your judgement has improved much.
Hahahaha
That has to be the worst ramp of the year !! 2.5p ?!!!!! just comedy gold.
You can try to spin the numbers any way you please Helpful old chum but here's the bottom line.
Shares all across the market are providing massive opportunities and many are bagging. What you are pathetically suggesting is it is better to sit on £100,000 worth of CLNs that will earn 12% interest instead of converting those CLNs, selling the shares at face value, and putting that money into any number of shares that would double that £100,000 giving 100% return.
Just can't see who you think you are trying to fool here.
Some math
MCAP / Shares in issue = SP
Currently : MCAP (£3.8m) / Shares (697m) = SP (0.555p)
If the CLNs get converted and 138m shares are issued then:
MCAP (£3.8m) / Shares (835m) = SP 0.46p
That's the nub of it. The CLNs are dilution waiting to happen and the only people desperately pumping this POS share are the holders of those CLNs.
13% holder Peter Gyllenhammer has just dumped his shares, hmmm I wonder why?!
Long term holder Briarbank has just dumped his shares
There's simply no tangible reason that I can see for anyone to hold here at this point whilst that imminent threat of a 20% dilution looms if the SP gets to 0.6p. The sensible thing to do is surely to simply take profit, then wait and see if the SP does reach 0.6p and wait for the CLNs to get converted and then buy back at the 20% discounted/rebalanced SP.
Even beyond the CLN conversion price of 0.6p there are then a bunch of warrants waiting in the wings at 0.9p
There are 100s of better shares to put money into imo that don't have those problems imminently facing them.
DYOR
As an example of how to look at the decision making on a CLN: lets suppose the CLN holder has £100k in the CLN and that the coupon is 12% and that the conversion price is 0.6p and it expires on 12/12/2020.
Monthly interest is £1,000; converting at 0.6p gives 166,667 shares per month.
Lets suppose my target price for exit is 2.5p. Then for each month I hold the CLN then I make £4,166.68 per month that I hold.
From 19/08 there are four months left. If I converted flat now and got my money back that would be one thing but if I held I could exit at 2.5p then I have given up 4 x £4,166.68 x 4 which is £16,667 on £100k on early conversion. So I would be giving up a return of 16.67% between now and December. Any CLN holder who thinks that they can exit in December at 2.5p would hold because the accrual of interest materially improves their position.
So it come down to down to a few things: is there any risk that the CLNs plus interest won't be redeemed in December, what is the price likely to be on conversion, what is the fair value calculation once Migori has been reissued, DRC progressed, Victoria progressed and the iron ore assets progressed.
We are in a metals bull market and in particular in the metals that RRR is in: only someone who really needs the money or has a much better transaction to rotate into would convert early. Now if RRR spikes hard and I think that it has gone way over fair value, then that is a different matter. However, I don't see that being an issue before October. If we spike hard off the back of the TSX listing, the ASX listing and progress on DRC then it would be time to sell.
DYOR
And magic - you really are delusional in your posts - no one listen to this guy. ‘Lock in profits’ now??? You don’t hold here, only post negatives, now try to spin to argument to ‘lock in profits’ after a 250% gain embarrasses you (again). What next pal? I seriously worry about your obsessiveness. Must be hard.
Hahaha! Laughable! Utterly clueless - you haven’t got a clue about markets (and some other poster further down said similar). I traded a debt portfolio of over €1bn for many years, and if you clueless amateurs think people would just convert a 12% cpn note at 0.61 if the SP is at 0.60 then you’re more naive and stupid than you already come across. Hilarious stuff. 1) you would need minimum 0.8/.9p for their to be justifiable market liquidity to even think of converting to sell. 2) people that lend money in convertible notes don’t just ‘convert’ to ‘dump’ and get out flat (gosh you really are simple!!). There’s more I could say, but do everyone a favour and get a hobby. Hahaha, so clueless. Watch it keep rising. 10 years and 15,000 posts bashing RRR and the SP only going one way. How sad
From the RNS details I estimate/calculate that if all the CLNs are converted that will result in the creation of some 140m shares which is about 20% of the existing shares in issue. The MCAP would remain exactly as it is so those new shares will simply serve to dilute existing holders. The CLNs are essentially dilution waiting to happen imo.
With so many other shares currently offering great trading opportunities without the threat of CLN dilution I'm struggling to see why anyone would hold here right now. Surely it would be better to lock in any profit now and then consider coming back later after any CLNs have been converted?
DYOR