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https://twitter.com/RRR_RedRock/status/1345908163434872832?s=19
Interesting, a little cryptic.
How many share consolidations has RRR been through? Mr Bell is brilliant at his job. This whole company just keeps turning over more investors cash to keep him in his luxurious lifestyle. And he always has a perfect excuse for any difficult questions.
tshipi/JMS investment has been one of the only decent investments in the company history. Too many white elephants to recall
PS I don't know but I take that "major" to be Glencore..
https://www.northernminer.com/editorial/demand-for-energy-metals-will-be-massive-glencore-ceo-says/1003826505/
Doing a deal with Glencore will be very difficult. AB does know them because they have the two mines next Musonoi (which used to be part of Musonoi) and they had dealings via JMS and the potential sale of Tshipi about three years ago.
DYOR
The mismatch is between what the market wants and what the assets are;
Mining assets typically take a long time to bring into production but the market wants quick hits or near term income. He has to keep doing deals to give the market what it wants.
In the past, this was relatively easy: a mining junior would do a bit of work on an asset and then sell it on to someone larger. They would bank some cash, keep a position and retain a royalty. That model has been more difficult in recent years but looks to have changed in the last six months or so.
Another issue is what AB sees as his and RRR's strengths, which he calls putting the jigsaw together. What that means is that he gets involved in complicated situations where he thinks he has a competitive advantage. He thinks his advantages are his legal background, his deal structuring and his ability to speak French.
To be fair to him he has delivered in 2020 but there is still a lot to be done. There is no doubt that RRR is undervalued and in my view that is down to two things: AB's and RRR's track record and the complexity of the RRR asset portfolio.
RRR currently has five deals that will deliver potentially upside near term: Musonoi, Migori, RRAL, Adidi Kanga and the JMS Iron ore spin out.
In my view the one that will likely give us a left field upside is Musonoi. Musonoi is a mining license rather than an exploration license. AB has confirmed that a major is talking to RRR re a "DRC asset", I take that to be Musonoi. The key is the JORC: he has said that he has commissioned the JORC but we don't know what work is outstanding and time scale to complete the JORC. About 18 months ago, he said he was on with the JORC and needed to send quarter core samples away for analysis by labs outside DRC but then the VUP issues put everything on hold. So..... do we still need the quarter cores analysing, have they been sent for analysis etc.
The analogue for Musonoi is the Nzuri Copper deal: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/chengtun-mining-subsidiary-s-takeover-of-congo-focused-nzuri-copper-takes-effect-57528590
DYOR
Spot on aim. And a few of us have fell for his charms unfortunately.
I think that Bell is one of these people where money in the pocket burns a hole. He is a medicine man selling a story, the trouble is that good salesmen/story tellers are also susceptible to a good story themselves. He has repeatedly kept RRR going with other people's money and each time the story is great but I question Bell's financial/strategic/due diligence abilities and he does have a habit of leaving things out or should say forgets to RNS and keep shareholders informed. On the other hand if he had been timely and open with information to shareholders, I have no doubt RRR would have gone bust long ago. I am now waiting for the mother of all placings to pay his salary and get rrr through 2021 - Happy New Year.
I don't believe he is unlucky at all. His life style over the last 10 years will be at a far higher level than that of most of his investors.
We knew why they had to do a fund raise, they had to make payments to Kansai and potentially redeem the CLNs.
DYOR
Now we know why there was a fundraise. Jupiter and POW shares have both been put up as security for loans and there is no more family silver to sell.
Unlucky is part of it but Steelmin was a risk he didn’t need to take. After the refinancing and share consolidation we were all given the impression that the dividends would keep the company going until the Kenya issues were sorted. Instead he flung the money in there, gave a second huge loan that was not RNS’d and then did dead end deals like Amulet diamonds. Then one has to ask the question, would he have been able to draw the salary he takes if we were just sitting on Jupiter dividends, waiting for the Kenya outcome? Is that why he keeps doing deals, no matter how sketchy?
Bought 2.5 millions of shares here at 0.8 average. When do you think we will hit 0.6? You been telling us same old for a while.
By the way TW thinks we are worth 5p. He raised his target from 1.26 to 2p to sell.
Life is too short. Don’t waste it in negativity. Sell and move on. Buy ECR/GLR/KAT/BMV or anything else. GLA
Yep, very much same old same old
Total current liabilities now £4.4m
Admin running at circa £600k pa
Other Project Costs £319k
Cash in the bank just £53k
Jupiter holding now confirmed to be just 13.5m shares , down from 17m at the start of the year
Also sold 4,280,180 shares in Corcel Plc (Regency Mines)
Red Rock has also decided to impair its investment in Elephant Oil by 50%, to £137,500.
Millions of the Jupiter shares are now security against loans/debts
From Report:
"After the year-end, on 6 November 2020, the Company’s 100% owned subsidiary, RRR Coal Ltd, refinanced its existing loan facility with Riverfort Global Opportunities PCC Ltd and YA II PN Ltd, increasing the total amount available for draw-down to US$2.0 million, and drawing down an initial gross amount of US$1.0 million with additional tranches available at the lenders’ absolute discretion. The notes are secured on 6,302,000 shares in Jupiter Mines Ltd as well as 20,000,000 shares in Power Metal Resources Plc, which were transferred from the Company to an escrow account for the duration of the loan, as well as by a corporate guarantee executed by Red Rock Resources Plc"
Lots of the CLNs have just been converted at the price of 0.6p
I remain of the opinion that I would deem myself a fool to buy shares here at any price above that 0.6p CLN conversion price but each to their own as always.
Enjoy the "jam tomorrow" tales from the river bank and Happy New Year to all
DYOR
I think AB is just an unlucky person. The Chinese deal fell through under extraordinary conditions and I recall us losing the Greenland sale as money was locked up in Cyprus. And Steelmin failed due to an unexpected electric price hike. Yes he is just unlucky with his timings. Wonder when he reaches retirement date?
Because Red Rock made a $0.5 million payment to Kansai mining on 24th December you would now think most of September's £1 million fundraise money would now be pretty low.
I wondered why Red Rock hadn't yet paid Kansai $2.5 million because when they got Kenyan licenses renewed in August they were meant to pay Kansai $2.5 million in cash within 3 months.
Today's final results RNS gives an important update. From the extract from the final results RNS you can see that it's coming.
RNS says:
"On 21 December 2020 the Company agreed to restructure payments due to Kansai Mining following renewal of the Company's exploration licenses held over the Migori Gold Project in Kenya. Of the US$2.5m cash payment due under the original agreement executed on 15 June 2018 within three months of license renewal
The Company agreed to pay $1m in cash immediately, US$0.5 million of which was paid on 24 December 2020, with a further $1.5m to be paid in cash or stock at Kansai's discretion, by 29 January 2021. Any shares issued under this second payment were to be priced at the closing price of the Company's shares on the date of issue"
For example so far RRR have drawn down $1.4 million on a $2 million YA + Riverfort loan facility debt. Of course no prior RNS from Andrew Bell to inform RRR shareholders that he had been wracking up huge RRR debt.
From RNS:
29. Assets Pledged as Collateral
"On 11 April 2019, RRR Coal Ltd, a company 100% owned by Red Rock Resources Plc, agreed to a standby Loan Facility of up to US$1.0 million. The maximum amount drawn down under this facility has been US$0.200 million. As security for any funds drawn down, RRR Coal Ltd agreed to maintain a value of shares in Jupiter Mines Ltd equal to three times the amount outstanding on the loan facility as calculated by the value weighted average price for the proceeding five days prior. At the time of completion 5,500,000 shares of Jupiter Mines were pledged to the noteholders and a Corporate Guarantee was also executed.
After the year-end, On 6 November 2020, RRR Coal Ltd, a company 100% owned by Red Rock Resources Plc, extended and amended its standby Loan Facility with a maximum drawdown amount of US$2.0 million. The maximum amount drawn down and refinanced under this facility has been US$1.4 million, leaving a balance of US$0.600 million available for drawdown. As security for any funds drawn down, RRR Coal Ltd has agreed to maintaining a value of all the shares in pledged to be equal to one time the amount outstanding on the loan facility as calculated by the value weighted average price for the proceeding five days prior. At the time of completion 6,302,000 shares of Jupiter Mines Ltd and 20,000,000 shares of Power Metal Resources Plc were pledged to the noteholders and a Corporate Guarantee was also executed"
"A further DRC copper project with a good address and with a producing neighbour from the same structure, where we have applied for a direct grant, awaits finalisation" Obviously forgot to mention that though he has referred to it in interviews. "Finalisation" sounds like he thinks we have got it subject paperwork.
DYOR
Forget my last post. They were released when I was typing my last post.:)
Yes shareholders should not be happy if he's going for a delay. Last year's annual results revealed various loans that RRR had made (that amounted to near £2 million) that in the small print had been written off. Plus buried away in last year's annual results it revealed Bell had set up a subsidiary company and then through that RRR subsidiary he had set up a $1 million loan facility with YA and Riverfort. Plus like you say numerous other important things are revealed in the annual results. So the annual results are absolutely vital for PIs.
Like you say normally they would have to be released at the latest by today. I see Lekoil in June gave an RNS to say they were seeking extension https://www.investegate.co.uk/lekoil-limited--lek-/rns/extension-of-annual-results-and-trading-update/202006260700061975R/ . Though if the RRR annual results aren't released by today then Bell is not guaranteed to release such an RNS because on numerous occasions he just doesn't RNS information that you think he should.
"So what is the cash burn....." A lot.
".....what assets have been sold....." Many
"..... and when is the placement coming?" Soon
That's just a guess mind you.
TDT
Bell must be going for a delay because surely not only should the accounts be published by end of today but AGM should also be notified and held before year end.
So what is the cash burn, what assets have been sold and when is the placement coming?
Just seen this link https://mccarthydenning.com/covid-19-listed-companies-the-fca-response/ . It says because of the Coronavirus AIM companies can apply for a 3 month extension to report their annual accounts.
It says:
"As anticipated, following the FCA announcement, the London Stock Exchange published an issue of its Inside AIM newsletter on 26 March which set out temporary changes to the AIM Rules concerning the publication of annual accounts by companies admitted to that market. AIM companies with a financial year ending between 30 September 2019 and June 2020 can apply, via their Nominated Adviser, to AIM Regulation for a 3-month extension to the deadline for the publication of their annual audited accounts, which currently have to be published within 6 months after the end of a company’s financial year in accordance with AIM Rule 19. The application must be made before the current filing deadline"
That's sounds familiar ...waited years for this to come back and still he does the same old thing .
Mt Ida royalty is not related to RRR JMS holdings Colin...
Red Rock's annual results must be bad because CEO Andrew Bell still hasn't released them.
He either releases the RNS today after hours or on half day trading tomorrow. Either way both sneaky and you could only conclude that he would be trying slip out an awful annual results RNS. No doubt lots of hidden nasties in it.