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https://twitter.com/kjawoogie/status/1189057602497449985?s=19
I’m thinking if the CLN is cashed in then it’s pretty much all over and because of this I have no doubt it’ll be rolled over another year, the holders are drunk on the Red Rock Kool Aid and will do anything their master suggests
https://www.jupitermines.com/projects/tshipi/manganese-price-information
The price was $3.30 last week. It was $3.59 before that. It was around $7.50 per dmtu in early 2018. So absolutely no surprises that the Jupiter share price has also been tanking lately.
If the £1 million cln RRR lenders roll it over for yet another year then that in my opinion would be plain reckless. In my opinion they should make RRR cash in some Jupiter shares and pay them back while they can. Just plain stupid to roll it over for another year.
Short term is more worrying imo.
The deadline for the £1m or so outstanding Convertible Loan Notes is fast aproaching (19th Dec)
Where will the cash come from to pay those off??? Or are they going to kick the can down the road for a 3rd year? I rather suspect Bell will pawn off more Jupiter shares to raise the cash.
This is an empty cup for ordinary holders imo. Most of the available cash goes to salaries and expenses thus stripping the value from the share constantly. This, imo, is why the fantasy "sum of the parts" valuations of shameless stock pumpers like Helpful are utterly misleading and worthless. DYOR well.
3 years ago the price was 0.4p and this company was going nowhere. News came in of the surge in the manganese price and the dividends from Jupiter, so metal tiger refinanced the company, allowing the directors salaries to keep being paid while we waited for the dividend and relisting. The company went on to receive millions from the Jupiter asset, which was all spent on going nowhere investments and directors salaries. We also received a long awaited payment from Para Resources. None of this was enough to maintain the combination of AB's terrible management and expensive lifestyle and so the company took on even more debt and diluted even more.
With the fall in manganese we are back where we started. How can we trust that, even if the Migori gold project does come off, we won't see AB cream off all the money again and leave the shareholders with nothing?
What do they do best other than spend a fortune each year on salaries and "expenses"?
> We have to keep the business running, keep doing what we do best, and continue to improve the quality of our portfolio.
I wonder whether he really believes his own rhetoric.
https://twitter.com/DavidLenigas/status/1187315183179456517?s=19
https://twitter.com/ParaResources/status/1187376602247761921?s=19
For me personally the game was up a long time ago.
The more recent actions of this BOD in failing to RNS loans and transactions with Amulet Diamonds, failing to RNS a £1.1m loan to Steelmin before it went into Administration, even failing to RNS that Steelmin DID go into Administration, are all testaments to an arrogant BOD who simply can not be trusted. Shareholders are imo treated with contempt.
You'd be investing totally blind here, not know what other loans have been agreed behind closed doors !
The lion's share of available monies goes to salaries and expenses which imo destroys all value here.
This can only mean one of two things. Either AB is a conman who is knowingly fleecing investors in a legal manner or he is severely stupid and incompetent. I will let this board be the jury on how the last 5 plus years have panned out.
and this is the reply i got back on 17/04/2014
Thank you for your email.
I cannot comment on your note regarding the Greenland deal, as that would be price sensitive. However we would not have held back any relevant information, so you can be sure that we announced instantly. It is not correct that the investors ‘would not be able’ to complete the transaction. It may very well occur. Of course we have been talking to other parties, and this effort has naturally stepped up a gear.
Regarding the Ivory Coast…What Red Rock does best is add value to assets via exploration. We need new projects for our pipeline………….and it is 3 or 4 years since we had one. We are aware of course that shareholder sentiment hasn’t always been good during the last year or so due to the lower share price, and we have tried our hardest to improve this. Unfortunately many things are out of our control. We had a well-founded expectation that the Greenland deal would complete. And of course it still might. But in the absence of an assurance on this, we cannot stop all activity and wait for a deal to complete – particularly in a market such as this which can see transactions move extremely slowly.
We have to keep the business running, keep doing what we do best, and continue to improve the quality of our portfolio. Colombia is in good shape, with further exploration work planned. Kenya is in the latter stages of exploration. Adding further value to these assets is a slower and more capital-hungry process than taking on something new where we can add value relatively quickly. I guess you could say it’s like insurance for the future. People are anxious to see the share price to go up in a hurry – I’m not sure when or whether that will happen, but by increasing the number of ways in which our share price could possibly be given cause to go up, then that is in the interests of our shareholders.
As to the issue price of shares, all is relative. Before Jupiter delisted we issued shares – at 0.66p – for nearly 8m Jupiter shares at 5.6c. The RRR price has halved. The JMS price rose 45% before delisting. And the published NAV is 21.3c now. so was it good to issue RRR shares so cheap? It seems so.
Likewise, if the assets we pick up are really cheap – because of the market – then it is all right to issue shares at today’s market price. There is no dilution in asset backing.
I hope this helps to answer some of your concerns over the Ivory Coast project.
Kind regards,
Natasha
this is the email i sent on 08/08/2013
I hold just over a million shares in your Red Rock after buying in on 06/08/13. Can someone please explain why more shares were issued despite a deal being only a few days away which could lead to the share price going over 1p. Surely it would make more sense to place more shares then. As one investor on a BB board put it :-
"Like I said, it's going to cut no ice at all with genuine investors here. They've just been mugged. Why would we need to raise funds if either of the deals were really about to happen. Lost count of how many times we've been in this situation."
As a new investor who is willing to hold onto shares for the medium to long term i would be very grateful if you could reassure me that this is not another attempt to get money from private investors to pay executive wages aka working capital. I really would like a reply as I am beginning to think it was a grave mistake in investing here.
cannot use the word i wish i could to describe this so called company but how can anyone justify buying shares in this. What has AB ever achieved other than pulling the wool over peoples eyes. i can remember years ago when i believed in the Greenland hype and was under the impression that the Migori mine was this huge opoortunity that RRR were desperate to develop. Then all of a sudden AB announced a huge placement for the ivory coast permits.
I kept thinking why would AB heavily dilute just to start a new project. Surely it made sense to focus your energy on existing assets, get them proved and development initiated which would then lead to mcap increasing. And then when the mcap was in the tens of millions then do a fundraise so the dilution is only a few % instead of raising half a million when the mcap is £2M.
I actually sent an email to RRR to voice my concerns. if i still have it i will post it here for people to make their own judgement on if this is a company with wants to look after its shareholders or if its just a lifestyle company for AB
whoever bought the half a million yesterday is gonna be here a very very long time , lifestyle company going nowhere
0.3`s coming !!!!!!!!!!!!
With an average of 7p I am just looking to see if I can get 10% back of my total loss at best
Almost given up on this share and forgotten what positive outcomes might happen - if any?
> Hard to believe anyone falls for it any more but if they do they thoroughly deserve to lose their money.
Judging by the number and size of the trades over recent days and weeks, and the declining sp, it would appear that they do not.
I see Helpful is still peddling the "jam tomorrow" nonsense. Hard to believe anyone falls for it any more but if they do they thoroughly deserve to lose their money.
Migori sat doing naff all for years which I believe is why they had the license revoked in the first place. The Kenyan news reported it thus:
https://mobile.nation.co.ke/business/Row-over-permits-robs-Migori-gold-of-its-glitter/1950106-3829916-v3b95i/index.html
"Among the grounds for the revocation was that Mid Migori has held the areas for over 26 years without concluding the exploration programme. Further, that the firm had never done any exploration work since it was granted the licences and that “it has only been getting into joint ventures. It has all along been an intermediary.”
"The company had been obtaining renewals of licences through promises of heavy investment in exploration work but which have never been honoured, the court heard. The ministry also blames Red Rock for the alleged non-performance by its partner, on account of its shareholding in the latter."
If a new license is granted then so what? Nothing particularly happened before the license was revoked so why should
anything different happen if they get it back? Where is there any cash to fund any development?
The former criticism of Migori/Red Rock as highlghted above was that :
"it has only been getting into joint ventures. It has all along been an intermediary."
So drumming up a JV is hardly going to impress the locals is it?!
Just the same old "jam tomorrow" hot air from the fervant rampster here who remains locked in and stuck with a useless bunch of Convertible Loan Notes which imo he will never be able to convert. DYOR.
Won't RRR have to prove to the Kenyan Government that they have sufficient financial resources to carry out mining processes before any licence is issued? I understood they were practically broke.
How about they sell do a JV on Migori once they have the license back? That will release cash.
How about the bring in a partner to monetise DRC?
How about the share price rises and the CLNs convert?
We are on the last leg of getting the license(s) back on Migori. If any of you ever did any research you would understand what the MRB recommendation means.....
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/RRR/14232628.html
Red Rock is pleased to note the approval for the grant of licenses by the Mining Rights Board (MRB) on the mining cadastre website. Upon receipt of official confirmation of intended grant, the Company will be invited to fulfil fee payment and registration requirements. The grant of the licences remains subject to the approval of the Cabinet Secretary and a further announcement will be made as and when the licences are confirmed.
That the MRB has made the recommendation is the big step forward. We could have the licenses back any day.
DYOR
History has also proven RRR always follows/mirrors RGM SP performance eventually .
In all cases......
I understand what you are saying Magic ,but what other options do RRR have to pay off their £2.7M liabilities other than selling all of JMP or mass dilution followed by 20:1 consolidation?
Booboo : "Less or no further dividends from JMP next year as a result of lower Mg prices will mean normal service dilution now resumes ."
In truth the Jupiter divi's never covered even the overheads here imo. Admin expenses alone last year were an utterly
preposterous c£850,000. For a failed AIM tiddler with £3m MCAP that's a ridiculous wastage imo.
Cash in the bank as at end Dec was just £27k
Total Current Liabilities at that time were £2.7m
Since then they've only raised £323k from a dilutive placing
Received approx £250k from a Jupiter divi
And now they have resorted to selling down the "family silver" Jupiter shares selling 1.5m of them for around £300k
When the company has naff all assets of any value (imo) then that's pretty much like asset stripping.
I don't see the investment proposition here at all. It's either going to be more dilution or continual pawning off
of the Jupiter shares which are the only thing with value imo.
The BOD saps all value from shareholders imo through ridiculous expenditure on salaries, Admin and other expenses.
Between 2012 and 2017 they raised over £15m from dilutive placings
In the same period they expended over £11m in admin and other expenses.
That's close to 75% of available cash being lost to expenses. Just farcical.
It's for this reason that fantasy valuations by rampers like Helpful are just misleading drivel.
The "sum of the parts" nonsense just doesn't apply here because this BOD soak up the value in salaries and expenses.
It is for me just a lifestyle venture for the personal enrichment of the BOD
DYOR and do it well.
Less or no further dividends from JMP next year as a result of lower Mg prices will mean normal service dilution now resumes .