Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Amazing that the hope still courses through the veins in here...... predicting offers of 40p+, 50-75p etc are just hilarious. Surely the more likely option is NewGen allow RMM to go bust, then pick through the scraps with the other vultures who are surely circling now? What about the dilution that would likely come as a result of NewGen, or anyone, stepping into save RMM?
The debt in the company ranks senior to the equity - in fact equity has almost no power at all when the business moves into financial problems.
1. Administration - the debt owners negotiate a refinancing package, and that wipes out all shareholders at say around 20:1 - or even completely, but if you own shares you can at least divide by 10 their value.
2. New Debt to provide cashflow - OK so the current debt owners add extra debt, but it will be on a very high interest rate say 15% and at a massive convertible rate of say 5:1 or something - so the current equity holders can divide by 5 to 10 times.
3. Asset Sale - OK so the current owners of the business (thats the bond / debt seniors at this stage) equity have lost control - go to the used copper mine market and sell, but the debt holders have first call on any cash that is raised and the equity owners dont get it until 100% of the debt has been recovered as the other debt and bonds have seniority - so how much would be left?
Most people here have forgotten the company has debts and they need to be added into the equation.
Thanks Blue
You guys have absolutely no clue how business works clearly.
Please educate us master Yoda
Buetigeruk has summarised it quite well.
If current shareholders get 5% of the current shsre price they will be lucky.
More likely the debt holders will take the asset and RMM ceases to exist.
****ed that I sank 7k into this two week's before that RNS and after that super positive, lying, RNS in July.
If you have a £40k mortgage on your house that’s worth £2M and you broke your leg and couldn’t work for 6 mths, would you let the bank take your home and give you £1.5M back??
No of course you wouldn’t
That’s rambler!
Of course TB and others aren’t worried. It’s just business and will be resolved (preferably sold for the £1.96M!!
I am more than happy even if I can sell the house for 1.2 to 1.5 million .good explanation know 0 for them who doesn't understand the value of rambler copper reserve and future cu boom .
Is there any opinion regards restrictions on RMM actions to sell or refinance in the Newgen agreement? Is there anything in there that could cause issues in the direction RMM will take to resolve things?
If a company is bankrupt then it is illegal to continue trading.....
The directors then need to appoint liquidators...
The liquidators would then sell the assets and payout in order of priority......
I'm not sure that RMM is at that stage yet....
why u think me and know 0 so happy its honestly best time ever in rmm history. tb done everything that needed to be done.
NO - Im not happy and No TB as Mucked up (with an F)
BUT - if the fall out is that they now have to sell and they have done a decent job on the mining level, then so be it.
They are down to 2 stopes (because engineers messed up the 510) a month ago, so mining 535 now.
BUT one thing is clear - they are not bankrupt and they are not trading whilst insolvent (thats illegal and results in personal liability of directors)
4 Full crews working and mill with plenty of ore
GLA
If you dont pay your mortgage your bank has lien on your property and so they own the title deeds until they are made good by a forced sale that they control, thats why when you get a mortgage you hand over the title to your property until its paid off.
Just like Rambler, as soon as they default on their payments due they are in the control of the debt holders as they then take the assets.
They may attract a PE distressed assets vulture fund / recovery fund, but they are professionals at this and squeeze very hard.
Thanks - Blue
NewGen have no interest in taking over the co for their $20M borrowings - you spurt nonsense here and I bet you're not even invested
Anyway guys - do what ever people want - If I get the chance to add more at current levels I will be doing so - if it wasn't that I am married, I would be borrowing money to buy even more, but I wouldnt do that to my wife
$40M off an enterprise value of $Billions is absolute peanuts - it may seem big if you invest £5k in shares, but in relation to the business it peanuts.
Moon - Ive joined you discord - would you return my msg? M
>>If you have a £40k mortgage on your house that’s worth £2M and you broke your leg and couldn’t work for 6 mths, would you let the bank take your home and give you £1.5M back??
If you have mortgage, then its not your house. Its the bank'd if you fail to keep to the terms and conditions of the loan (not just pay the interest, anything the lender may see fit to add).
The normal course is they take the house and sell it, to pay their debt, if their is anything left you get the cash.
It never ceases to amaze me that supposed sophisticated investors/businessmen don't comprehend how commercial lending functions - its not like regulated lending where you are protected.. The judge has to explain the realities.
The best solution for all parties would be a reasonable take-over (not a fire sale) so I would expect the lenders to extend credit whilst they explore the options. Meanwhile the Cooper price seems to be increasing and they have a a few months ore to mill so they should get over this hump.
Having worked at a commercial lender that put many companies into bankruptcy, I'd say that working with a company to pull it through would not involve suspending the shares they day before payment is due.
The only concern of the lender is how much of the loan (and all costs such as lost interest, penalty fees, professional fees) can be recovered by selling the asset, if it decides on that route. Survival of the company and shareholders is not a consideration at all.
Im currently selling a company (with 2 bidders) that has never made a profit and only ever made $500k of sales, that all employees have been laid off, the cash balance is zero and other assets are very small, that the landlord has kicked them out and the CEO is working FOC to assist the deal for more money that many here suggest Rambler could get!
So many clueless people on these BBs is unbelievable
GLA
Hi LL2, I appreciate your incisive comments on this board, keep them coming. Thanks
Actually LL2 is wrong about the stage of appointment of liquidator.
It would be appointing an administrator
Last stage is appointment of liquidator.
RMM is nowhere near administration
Blue - just read your post (2nd in this chain)
You missed the most obvious which is a share sale.
The only asset sale would be LD/WB certainly wouldn’t be MM
This isn’t a corner shop.
A sale would be for the shares. Anything under 75p thé PE firm or other buyer has had a good deal.
Anything over a £ the BOD have done well
Small dilution we are expecting. Large dilution would be rejected IMO
We continue with FCF and delay payments to creditors
DYOR
>>Im currently selling a company (with 2 bidders) that has never made a profit and only ever made $500k of sales, that all employees have been laid off, the cash balance is zero and other assets are very small, that the landlord has kicked them out and the CEO is working FOC to assist the deal for more money that many here suggest Rambler could get!
So many clueless people on these BBs is unbelievable
RMM has a lender that expects payment on Monday, failure to do that allows them to ask a judge to appoint an administrator.
Unless a white knight appears, everything else is irrelevant.
Smart Punter - you prove that people on here are clueless!
NewGen will be fully aware and OK with the payment not being made - and no, they cannot go to a judge on Tuesday
Clueless
Who are you trying to convince? The share is suspended.