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Helpful - "DRC: why would that be a big diluter?" Lol what are you smoking. "�490,000 payable in RRR shares ("Shares") at 0.65 pence a share, with attached 5 for 3 three year warrants to subscribe for new Shares at 1p" 490m shares in issue. You can figure it out. DYOR.
Ok DRC: why would that be a big diluter? If RRR decides to proceed then it needs to stump up $1mil and fund the PFS. It has the cash to do that now (or at least will very shortly). We would only get diluted if RRR has to issue shares; on the DRC deal it will have to issue shares initially but we are getting an asset worth a multiple of the capital value of the shares issued. AB negotiated the deal when the price of Cobalt and Copper was much lower than it is now. No one knows for certain but Cobalt and Copper look to be heading higher in the near term. Once the PFS is done RRR has the option to increase its stake; this would normally be done by farming down. RRR's market capitalisation is miniscule compared to the value at Kolwezi. Even with a farmed down position it would mean a huge hike in market capitalisation. The other deals look good but DRC/Kolwezi is the big one. As to selling, at some point I will. I am not going to hold for income; RRR is the wrong share for that at least for the next year or two. In three years it might be an excellent income stock but a lot would have to go right for that to happen. In any case I am not an income investor. RRR doesn't need �5mil of cash to do the DRC deal, so what is wrong with giving some of it back to investors? Even if he gave �500k back he would still have enough cash to do another deal. Ideally, he would pick up some more tailings deals; nickel looks okay at the moment. The model would be the same as the DRC deal; small fee for exclusivity, a DD period, decision to proceed and some cash up front and then seek to exploit via a farm down. DYOR
Get a mention. https://guerillainvesting.co.uk/2018/01/18/mayan-energy-absolute-fking-aim-swindle-scandal/
It's good to see some real investors in RRR these days - I have had only about 10 derampers, ex angry wives club members to speak to so gave up a while ago. Lol at the post earlier about dropping a gold bar to some of their doors and they would still give a face. Helpful has pointed out RRR will have more cash than the current market cap in the next 2-3 months. Jupiter IPO (selling 20% shares for around �1.5-�2m) Steelmin Repayment (giving �1.8m) Jupiter divi (�300k?) Colombia bond (�600k) Cash will be around 1p/share within about 10 weeks, then you will have huge solid holdings left in Jupiter and steelmin which arguably are worth a very conservative �10-20m combined + a load of other little assets I can't be bothered to mention but are still very valuable. With the risk of sounding like a cheap salesman, this price in RRR won't be around for very long! That is why we are having real investors turning up now and AB has just chucked in �175k It is obvious but some will just not see as they've been hurt too much previously in the bear market. Never mind. More for the rest of us! :-) I said a long time ago, MrMagic averaged down in a bear market and lost his shirt 5 or so years ago. He was wrong all of the way down (ramping it too). People like him will get it wrong all of the way up too. So far i've been right and unfortunately he will still be throwing dirt at 1.5p, 2p, 3p and so on.
They had a great stake in a great asset in tshipi. Andrew sold that down for a shitty price and is now left with a shitty stake in an asset that he will probably flog soon. The Congo, that hasn't passed DD yet. Another big diluter in any event. Your pinning your hopes on Kenya and elephant oil!? Throw shoats creek in the mix too while your at it. The one thing rrr haven't had is money. IF he gets a windfall soon he should do what any investment company is supposed to do and invest in in something substantial. But you don't care about too long into the future. Your timeframe is the expiry date on your warrants.
I suggest that you do some proper research. Steelmin is going to a great little asset: EBITDA of circa Euro 10mil on the first phase is not t be sniffed at. Tshipi: even if RRR sells its position down at the IPO it will still have a substantial residual holding and decent cashflow from it Migori: I expect progress on this sooner rather than later. See the photo of the Kenyan mining minister and AB looking very happy with each other after a meeting last Monday. The big one is Kolwezi; if AB decides to keep all of that (which with his cash flow he might) then that will be a big number. They are still at the DD and site sampling stage. It suits RRR not to have to make a commitment until it knows that the money is coming back from Steelmin. AB has said he will look at other tailings projects. Now that WTI is at $64 I expect Elephant Oil to get dusted off. DYOR
Tragic, you always say the same whinging stuff whilst the stock price continues to rise. It must be painful for you sitting there throwing your poison tipped darts and none of them having any effect.
Helpful, your rose-tinted view of the world doesn't work for me personally. Fact is RRR have just requested and been granted authority to issue up to 500m more shares (at the recent AGM). If they were going to be sat flush with �4m by April then there is no reason at all to request share issuing authority is there?
They must be short of stock.
You're even worse if you can't find a proper use for that money. Do you want rrr to remain a waste of space with shitty assets or would you like it grow into something substantial. All you care about is your cln. Shorts? Lol. Snap out of it man.
Magic, you/they can wait and pay 40% or more, thats the choice people make, at least you acknowledge that the smart money should be eyeing this share, thats quite a positive sentiment from you, well done.
Dipstick yourself. The company doesn't currently have the powers to buy back. When the Steelmin repayment hits, the company will need to call an EGM so it has the necessary powers. So it will be in the public domain at that time. Try working through the cashflow that RRR has coming before the end of April. As things stand it has no use for all of that money. Cash coming (expected) February �1.8mil March �400k Jupiter Late March/April �1.5mil sale of part of JMS via the IPO April $750k Para loan note plus say $80k royalty Some cash is needed for the DRC deal but it looks like something is happening on Migori. What does RRR need in excess of �4mil for? The answer is nothing. There is certainly �500k that can be returned to investors. How is the short looking? DYOR
What a dipstick. Buyback? What planet is the lad on? Pure rampy shite. Get off social media and get some assets Andrew. You've a 4 million mcap not 400 million. If and when you get this cash put it to some proper use. Wouldn't you like another paid directorship in exotic lands?
Didn't see that coming, not! https://twitter.com/armcmb/status/953915044923834368 If you want share buybacks you had better tell him. DYOR
I think PorridgeOats post was probably the most accurate this morning. Despite all the usual chirpy rhetoric from the company apologists here, there was little that was concrete in that RNS. Steelmin borrowed Euro 3m from Christof Industries and OeKb, Osterreicheische Kontrollbank AG and then also borrowed Euro 3.8m from RRRR so circa Euro 7m in all. That's a sizeable debt for a company that isn't producing yet. This agreement with a "Luxembourg investment vehicle" is subject to some rights of withdrawal by the lender so is not yet complete. The fact that it is a "Structuring and Placing" agreement is also interesting. As PorridgeOats says, that presumably means Steelmin will dilute. I also ask myself, how many pounds of flesh would this Luxembourg vehicle demand from Steelmin to help dig them out of their finance situation? It would be interesting to know the terms of that particular deal I suspect. Surely they will want some significant benefits to provide finance which is to be used to pay off existing financial debt?? Phrases like "intends to repay" and "best efforts basis" don't exude the greatest confidence to me as PorridgeOats highlighted and finally the confirmation that production isn't expected until March 2018 will surely dampen the fervour of some rampsters who have waxed lyrically for weeks about the British Ambassador saying that production would be in December ! lols All in all this is for me, somewhat of a damp squib RNS. It was always the case that Steelmin intended to refinance its debts, that hasn't changed. What we have today is a first step towards that, an agreement subject to certain rights of withdrawal. Let's hope that completes. If it doesn't complete . . . . well . . . you can guess how markets will react to that imo. The smart money I suspect will wait to see if that Luxembourg agreement does complete and if Steelmin actually do get into production in March.
might see some big money start to come into this now, as we progress forward with news. Exciting times.
Steelmin is the best deal AB has done in years. We�re basically going to end up with 21% of an early stage company for free. What an amazing deal. Ferrosilicon prices have gone through the roof since the ebitda was estimated at 10m. If this financing deal gets done in the next 2 weeks, red rocks share will be worth around �10m and they will have the thick end of �2m in cash. Market cap now �5m. News incoming from Kenya and Jupiter and perhaps another amazing deal by AB in something new? � An enormous amount of cash will be coming in from all fronts this year so AB will be once again a big player on the scene in a bull market. Zumore and mrmagic/torp(on advfn) are like a couple of drunken bums hanging around outside a Rolls Royce dealership every day, shouting that they won�t be buying any of their cars because they are not fast enough or reliable etc. Erm�yeah ok! � It really is best not to argue with them!
GT, again you are missing the point. I made the decision to purchase based on those two RNS's. It is the incorrect information contained in those RNS's that I object to.
Did not realise a company needed to apologise if the share price went down? But if you have not sold out and just posting here to troll the company and AB maybe you might get your money back in q1 this year? So not all is bad.
Hardly GT. Re-read my posting. As it happens I based an investment decision on the content of the two RNS's regarding the bank account payment and the completion bonus. That poor decision cost me thousands but no retraction or apology was ever made to shareholders by RRR. Unbelivable.
Yes a discussion board is somewhere one can post ex cathedra statements and other people just quietly nod and keep quiet. I'll drop a line to LSE admin and ask them to rename this thread "Zumore's thought for today"
I honestly believe if people like you didn't enjoy arguing then i would only have posted around 1000 times on lse. I only meant to make one post this morning but then i fall into the trap of the arguing posters which lures me in to make more posts. So no more posts from me today.
For me.. On the basis that the Agreement, which is subject to some rights of withdrawal by the lender, completes, and on the basis of current exchange rates, we would be left with a net positive balance of some �1.8m on the back to back facility after repayment of all amounts due to and from Red Rock. We would also have a 21-22% shareholding in Steelmin. Seven months after the initial investment by us in Steelmin, this would be a positive outcome. Is the good news here..
It's not really helpful for you to air your mis-reading of RNSes (some might view this as a way of making a subtle jibe at the company - "gosh I thought we were all going to get a case of champagne, looks like that isn't going to happen" style.
This sounds like price-sensitive information that hasn't been released before: "("Steelmin"), a company Red Rock financed so that it could complete the refurbishment and recommissioning of a ferrosilicon smelter in Jajce, Bosnia, has signed a Structuring and Placing Agreement ("Agreement") with a Luxembourg investment vehicle under which Steelmin intends to repay in full the amounts outstanding to Red Rock ("Loan"). " And zumore, to go from a position of saying that Steelmin won't get repaid and RRR will have to issue confetti to now saying (in effect) "yeah we always knew Steelmin loan would be repaid, nothing to see here" is rich, to put it mildly! The bridging loan is on track to be repaid as expected (by everyone except yourself it seems) and RRR will own 22% of Steelmin and have a wad of cash from the transaction. You know, just every now and again Andrew DOES pull a decent deal off (most recently the HHDL / UKOG killing that Regency made)!