The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Jupiter's Annual Report 2018 - 31 May 2018
=================================
"With iron ore prices remaining unstable and access to infrastructure to be investigated, both the Mount Ida Magnetite Project and Mount Mason Hematite Project remain on care and maintenance."
"These projects will remain on care and maintenance until economic conditions improve and access to infrastructure is available."
Jupiter's Quarterly report (ending 31 May 2018):
=====================================
"No exploration or development activities were undertaken at the Mount Ida Magnetite or Mount Mason Hematite
projects during the quarter. The Company does not plan to undertake any activities in the next quarter. Jupiter has
noted the recent purchase of the Cliffs Asia Pacific assets by Mineral Resources and will explore options to crystallise value from its own Central Yilgarn iron ore assets."
Here are two articles published in The West Australian
Directors confirm they have no plans to do anything with the Central Yilgarn projects
18th April 2018
============
https://thewest.com.au/business/markets/no-return-to-yilgarn-as-manganese-focused-jupiter-rejoins-asx-ng-b88809362z
Brian Gilbertson said:
"confirmed Jupiter had no plans to develop its $1 billion Central Yilgarn iron ore project 110km north-west of Menzies, but was open to offers from third parties."
19 April 2018
===========
https://thewest.com.au/business/mining/jupiter-boss-priyank-thapliyal-scornful-of-wa-mine-reputation-ng-b88810527z
chief executive Priyank Thapliyal said:
"WA had missed out on a potential 40-year mine, delivering millions in royalties.
"Jupiter had no plans to revisit its WA iron ore project."
Annual Report 2017 - 27 June
=======================
"the Board reviewed both the Mount Ida Magnetite and Mount Mason Hematite Projects during
the year. With the iron ore market still unstable, both projects remain on care and maintenance"
http://www.jupitermines.com/images/jupiter---eiwohzaexu.pdf
Interim Report - 6th Dec 2017
=======================
"The Mount Ida Magnetite and Mount Mason DSO Hematite projects remain under care and maintenance."
http://www.jupitermines.com/images/jupiter---hiyaijicoh.pdf
Sad to see that shameless rampers are still trying to pull the wool of readers eyes here in regards to Mt Ida. The project has been mothballed since 2012 and remains so. Investors should most certainly read the plethora of releases from Jupiter themselves in regards to the project. I shall provide a few FYI:
2012 Original Mothballing
====================
Jupiter's original announcement
https://www.jupitermines.com/cproot/175/3/jupiter---quaeh.pdf
"Jupiter Mines Limited (Jupiter) (ASX: JMS) has just received the preliminary estimates of
the Mount Ida Feasibility Study. These indicate higher capital and operating costs than
those contained in the 2011 Scoping Study. In light of these estimates, taken together
with the currently depressed iron ore and strong exchange rate environment, the Jupiter
Board has concluded that it is in the best interest of the Company and its shareholders to
freeze expenditure on the Mount Ida project until market conditions improve."
Investors should note that the iron ore price at the time, described by Jupiter as "currently depressed" was around $120
It is not unreasonable therefore, imo, to surmise that unless and until the iron ore price recovers to at least that kind of level, the Mt Ida project is going to remain mothballed and thus the perceived value of RRR's royalty there remains imo, highly questionable.
https://twitter.com/BusInsiderSSA/status/1106501415285989376?s=19
https://twitter.com/DavidLenigas/status/1106816797532147712?s=19
The same considerations apply to Mt Mason and Mt Ida.
1.2bn tonnes of iron ore. RRR has a 0.75% royalty valued at zero.
DYOR
As I said
https://twitter.com/DavidLenigas/status/1106822458991091712?s=19
https://twitter.com/kirillklip/status/1106694352418603011?s=19
Nice example of playing the man rather than the ball. And yet more of the same old "jam tomorrow" drivel from you. I guess we've learned not to expect anything less TBH.
Steelmin appears to me personally to be totally Daffy Ducked. It was last Sept when they announced that they couldn't operate profitably due to high electricity prices. It most certainly doesn't take 5 months to go out and negotiate a new energy contract with a supplier and particularly when your plant has been shuttered in the meantime. Unfortunately energy prices are predicted to rise 15% this year in Bosnia so things are only getting worse
Even if they could get a new contract one can't really envisage now that there is going to be any decent profit margin to be had. So your "jam tomorrow" crapola really doesn't gel with the reality we are seeing.
Steelmin took on lots of debt to get running. Borrowed EUR 3.8m with RRR which they refinanced with a "Luxembourg Investment Vehicle" and another EUR 3m from another group of lenders. They probably have other debts too. Sitting there unable to produce profitably, plant shuttered, well it looks rather grim doesn't it?!!
El Limon royalty is another classic. Last revenue reported via RNS was a paltry $13,658 for the quarter. As simple math shows that means it will take 37 years to recoup the first $2m of that royalty (at that paltry rate). So when you say "at some point" you are using the phrase extremely loosely. I confidently predict RRR will not be around in 37 years !!! lol
Readers will have noticed I'm sure that you neglected to make any mention of the utterly catastrophic SP devastation that this BOD have perpetrated and presided over as pictorially evident from the charts I provided links to. Hard to ramp and defend that one of course so you remain silent. Readers of course are more astute and unlikely to be swayed by your "jam tomorrow" hopes and dreams ramping. They can surely see what the BOD did to both the RRR and RGM share price.
In the end shameless rampers are always very easily identified because about all they can do is provide links and direct people towards paid for PR stock promotion material, interviews and paid articles and febrile Twitter commentary. They steer well away from facts and the historic actions and performance of the BODs.
You own some of the CLNs here so readers will note you have vested interest in ramping the share. Nuff said really.
You were the investment genius that was betting the house and your pension on RRR when they were making those losses not me. What you are demonstrating is that you didn't know what you were doing then and you don't know what you are talking about now.
For the technical, some of those losses are assets written down in the books and the write down is taken to the revenue account. Some of those losses get written back into the account such as JMS and, when the licenses are confirmed as being issued, Migori. The write back on Migori is about £8.5mil, as I posted yesterday. So when Migori is written back up it will result in a positive P&L account but have no effect on the cash position; the same but inverse was the case when it was written down.
At some point JMS will be fully written back, Elephant Oil will be written back, as will the El Limon Royalty. Once Steelmin is sorted then its true position will be reflected in the books.
About the only thing that is in write offs that will stay written off is Greenland ( your favourite investment of all time and they one that you told everyone would make them a fortune): shoats creek has been written off but that was only about £170k.
Now presumably when DRC, JMS, Elephant Oil, Migori and Steelmin are all written back up and it results in a large declared profit you will be applauding as loud as anyone? Won't you?
Elephant Oil looks like it might be a bit of a monster in the making. People should really listen to the Brian Larkin interview and take on board what he said about other oil & gas companies being in for taking a piece of the action with Elephant Oil.
As always listen to nothing said on here but do go and do your own research.
DYOR
PS I have only ever made money out of RRR so maybe I am a bit better at this game than you are.
How's our investment in RGM doing?
Helpful - "as always do some research"
I did, I did ! I posted it earlier, perhaps you missed it.
Performance of this BOD to date from Annual Reports:
2012 - Loss of £1,962,882 - raised £4,441,844
2013 - Loss of £22,105,562 - raised £4,103,795
2014 - Loss of £4,113,460 - raised £2,723,861
2015 - Loss of £8,411,541 - raised £2,327,377
2016 - Loss of £283,280 - raised £1,155,323
2017 - Loss of £1,114,213 - raised £300,000
And here's some other great research. The historic long term charts of both RRR and RGM. They show a consistent trend of dire performance and SP destruction.
RRR Historical Chart:
http://oi66.tinypic.com/166izgp
RGM Historical Chart:
http://oi65.tinypic.com/119mow1.jpg
Thanks for the advice.
https://seekingalpha.com/article/4249019-dr-copper-bull-phase-now
"Elephant Oil are preparing to drill the Allada Structure and seeking farm-in partners to support their efforts"
So the volumetric analysis for Allada says 115 million barrels of oil in place. It looks like the seismic will be to firm up on Allada and then make a drill decision. If NUOG take up their option then the drill is happening. The money from UOG will help them but won't fund 80% of say a £3mil drill. Either Elephant lists and raises some money or it farms its position down further.
DYOR
DYOR
Investor conference call on Monday. They will probably touch on Benin/Elephant Oil: it might be worth listening.
Note that the January 2018 report from Align indicated that there was a possible IPO being lined up for Elephant Oil. Once the seismic is out of the way and UOG have exercised their option it looks likely that Elephant Oil will look to IPO.
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/UOG/13996455.html
At this point, the Block B licence data is limited to a single seismic line and a CGG-acquired airborne Falcon Gravity Gradiometer survey. This data suggests the presence of numerous large structures in the licence, with the potential to hold >200mmbbls. The Allada structure has already been identified by Elephant Oil as a prospect.
If United chooses to exercise the option, then the Company will farm into the PSC for a 20% interest and will be responsible to fund 30% of the non-drilling and 20% of the drilling costs in the Phase 1 work programme as approved under the PSC. United would also pay Elephant the sum of US$260,000, representing one quarter of the pro rata (20%) past costs expended by Elephant on the prospect, with the remaining US$780,000 paid in three equal six monthly instalments
Try doing the look through analysis on what is said in that RNS. They already know that there is oil in block because to the North there is Mamu oil tar sands. This where the reservoir rock comes to surface and the volatile hydrocarbons have evaporated off.
http://www.pveconsulting.co.uk/images/Benin%20Block%20B%20flier%20Aug2017.pdf
As always do some research.
DYOR
How's our investment in RGM doing?
https://www.bbc.co.uk/news
Some general stuf
The only people to have made money from this outfit are its directors and loan sharks, this will no doubt continue ad infinitum unless people wake up to the duplicitous nature of those controlling your investment, do not trust this lot with one penny of it. Be warned, take your money and run.
The feckless rampers keep going on about what might or might not happen in the future, peddling the same old "jam tomorrow" BS they have posted for years here whilst the dilution continued and the SP was decimated. They have no shame, don't care about PIs and are here only to enrich their own positions at other's expense.
What matters is how this company operates, its historical performance and lack of ability to deliver shareholder value whilst expending £millions upon £millions on Admin Expenses and lucrative salaries for this BOD.
Helpful's "sum of the parts" valuation is utter tripe and nothing but a sleight of hand. ALL feckless rampers use this same tactic to dupe readers. You can not honestly and genuinely present a "sum of parts" valuation without including ALL THE PARTS and ALL THE DETAIL concerning each part.
Where was mention of the £2.6m of Current Liabilities in Helpful's post?
Where was mention of the £910,000 worth of Convertible Loan Notes still outstanding?
Totally disingenuous
In terms of detail where was the factual detail about the last reported El Limon royalty revenue?
It was last reported as $13,658 for a quarter. At that rate it would take 37 years to recoup $2m !!! Just laughable.
Jupiter shares are locked away in escrow. Helpful knows this. The chances those shares will ever be sold to realise their cash value is practically nil imo. AB sits on the board of Jupiter so is highly unlikely to ever sell the shares, how would it look to Jupiter markets if their own director sold all his shares ??
What has happened over the past 5+ years is HIGHLY RELEVANT here because that history establishes what this BOD do and how they operate. Here's the factual results of past Annual Reports:
2012 - Loss of £1,962,882 - raised £4,441,844
2013 - Loss of £22,105,562 - raised £4,103,795
2014 - Loss of £4,113,460 - raised £2,723,861
2015 - Loss of £8,411,541 - raised £2,327,377
2016 - Loss of £283,280 - raised £1,155,323
2017 - Loss of £1,114,213 - raised £300,000
A colossal £15,052,200 raised via confetti issues over that period !!!!
Yet today the company still languishes with a £3m to £4m MCAP. Where does all the money go? WHat shareholder value delivered?
The Trolls keep going on about what might or might not have happened 5, 6, 7 years ago. What matters is what is happening now and likely to happen in the future.
The reason for posting the links about Migori is to show what the carrying value was in the books at the time the legal bust up started and what a 3rd party thought that it might be worth. The carry cost was about £8.5mil and the 3rd party thought that it might be worth £8.9mil ie., not significantly out of line which each other. RRR now owns 100% and my view is that Migori is worth about £10mil once we get the license back.
The legal settlement as agreed on the basis that a new license would be issued. The old licenses could not be issued because the Mining Act 2016 in Kenya superceded all previous legislation: all extant mining licenses have had to be reissued under the Mining Act 2016.
Those licenses coming should be procedural; check out the Mining Act for further information (I think it is section 56 that applies).
Para Resources
Gold Road is up and running, it has produced its first gold dore, its target is 3,000 of gold per month and expects to be at capacity Q3 19. El Limon is up and running, it has been delayed.Consequently, tle local small producers that were going to put their output through the mill have gone elsewhere. Para is now securing alternative supplies to meet its throughput targets.
We have CAD$500k in Para shares plus warrants plus about US$3mil outstanding in a royalty on El Limon.
Elephant Oil is now live and has a value again: see the UOG announcement. If you listen to the CEO of UOG he says they will be proceeding with taking up their option in due course. That will mean that Elephant Oil can proceed with it's work programme.
JMS covers the market capitalisation of RRR
Then we have the DRC, the diamond deal in Botswana, Steelmin and the royalty on Mount Ida and Mount Mason.
All of that for circa £4mil.
PS don't forget the counter argument,,,, bbbbbbuuuttt Andrew Bell.
In due course the value will come through.
DYOR
Unhelpful does in-depth research for his clients. I wonder what they have to say?
Truly LOLs.
Another? Oh go on then, just for entertainment value.
Align's comments on Shoats Creek and RRR's partner Mayan Energy:
"News that a new management team has taken over at Northcote Energy was well received. Under the new name of Mayan Energy, the team look like they are making a renewed effort with the development of Shoats Creek. Moving ahead, plans include moving to full production on the LM19 as well as multiple additional workovers where Red Rock may choose to participate as well as the spud of the new LM21"
The reality . . .
Mayan pulled out of the field back in May 2018 and RRR is now writing the Shoats Creek venture off.