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"Story overnight out in OZ backstopping our research on Red Rock Resources and anticipated value of Jupiter Mines. Imputed value circa �5m to RRR - more than current market cap. BUY" https://twitter.com/AlignResearch/status/950756405031694336
Jupiter Mines appoints 3 brokers to sort out a $1bn listing: $750mil pre-money and $150mil fund raise. So that is $9mil to RRR. Australian Financial Review Street Talk section 09/01/2018
First off, did he sell them off at a sensible price even when they were listed? As good as cash? Nonsense. Bell is the practically the only director on aim who can decimate a companys sp while having the largest cash balance in the company's recent history (rgm) An illiquid investment that bell can't sell is funnily enough rrr's strongest asset! Of course he continues as a ned. 4 junkets and 50k a year average. Only a mad man would give that up.
News on Steelmin's re-financing and repayment plan for RRR's loan is the news I would really like to see, followed by production news. This will de-risk RRR's position and must surely add perceived value in terms of an asset on RRR's books, however, until we get some figures and eventually sight of Steelmin's accounts, it will be difficult to establish the true value for this we'll need revenue, cost, pricing, profit and financing figures at least to make real sense of the value to RRR. The first clue will be any dividend received from Steelmin after production starts. At least the cooling towers going on provide some tangible evidence that the programme is moving forward.
Mr Magic, three points really: Bell can't sell the shares at a sensible value until they are relisted, at which point they become as good as cash. RRR may have to give up part of its holding when the Jupiter shares are relisted. Once Jupiter relists - does Bell need to continue as a non-executive at Jupiter, he might like to personally but is it in the best interests of RRR to have Bell traipsing out to Australia periodically. I see his role at the moment as encouraging the relisting of Jupiter or in the interim decent dividends to improve RRR's cash flow and liquidity of assets, so that market can appreciate RRR's underlying value which should support a higher share price..
About time! Cooling towers being installed today..........https://twitter.com/AndrewBRRR?lang=en
lol colin Thing is, it would be 31% of a company that has borrowed Euro 7m from various parties that must be paid back at some point.
It is a well known concept in mathematics that 31% of F... all is F... All.
In regards to the JMS potential listing I don't personally put much sway in that outcome. LTHs here have seen how JMS shares have been "managed" in the past. At one stage a few years back the RRR shares were worth over 25m and yet the BODs failed to sell them all for that lucrative price. They would have had 25m+ cash in the bank and thus funding for all manner of projects. Instead AB mostly sat on those shares whilst their value plummeted. Shareholders were then subjected to years of intensive dilution with the likes of Yorkville, Cornhill and Magna. I guess it's perhaps more lucrative inventing money out of thin air through the endless issuing of confetti ! My key point here though is that in reality, those few remaining JMS shares are, imo, the foundational core asset of the company. The MCAP is where it is because of those shares. Indeed, the MCAP imo pretty much IS those JMS shares. If you took the shares away today what would be left? Mugpunters imo just wouldn't be interested in the rag tag collection of failed, stalled, legally tied up projects here. So with that in mind, and also bearing in mind that AB is an Exec Director of Jupiter, how likely is it that he would sell those shares anyway? Personally I don't think for a second he would sell them. Those shares are imo constantly needed to act as the backbone for mugpunter speculation here. So whatever notional value people put on those shares, and there have imo been some shamefully overstated valuations bandied about this year by unscrupulous rampsters, that value will remain notional rather than actual. The value will go up and down with the JMS share price whatever that turns out to be but unless the shares are actually sold, that value doesn't turn into cash. To view this situation more simply. If AB, who has recently bought a few RRR shares here, were to tomorrow announce that he had sold them all (or even half of them) then one could reasonably expect the markets to react quite vehemently saying "Oh dear, the CEO clearly doesn't have confidence in his own company). The SP would be trashed fairly quickly. How then would markets react if AB, as a director of Jupiter, decided to pull out all his RRR shares? That would surely reflect very badly in the markets for Jupiter. One might also reasonably think that if he did sell those JMS shares, that his continuation as a board member might then come into question. With all this in mind, I persoanally can't see him ever selling those shares unless he is forced to give them up by Jupiter. These are simply my personal speculations and opinions. DYOR as always.
Bliarbank: "one must forget that as each month passes RRR have a bigger ownership of whole plant infrastructure" What use is ownership (even the full 31%) of Steelmin's infrasteructure if they don't get to production or if they do but production is pitiful (like Shoats Creek)? It would be a totally illiquid asset which imo would be extremely hard to sell. Steelmin has had to borrow a ton of money to try and get production going. The way they had to finance this tells its own story imo. They borrowed Euro3.8m from RRR, a company that didn't have that kind of loose cash to lend and who themselves had to arrange a huge $4.4m loan with YA,Yorkville in order to be able to lend to Steelmin. Personally I've never heard anything so ridiculous ! Steelmin also had to borrow a further Euro 3m from Christof Industries and OeKb, Osterreicheische Kontrollbank AG, to complete funding required to bring furnace V back into production. So that's near Euro 7m of funding that Steelmin took out. I think it's fair to suggest that they probably aren't going to be reaping Euro 7m of clear profit to pay these loans down any time soon. The most likely outcome to my mind is that this clause of the deal will come into action: "Steelmin to be able to refinance the Loan for an additional 8 month term by paying a 5 % fee, outstanding amounts to then be amortized monthly" If so, PIs will have a long wait while all of this is settled and the SP will likely drift as a result. If Steelmin were in any sense a "good bet" then how is it that they couldn't arrange funding with more conventional/mainstream lenders? It makes no sense whatsoever. Meanwhile of course RRR needs to keep paying down its own $4.4m loan with Yorkville and as Zumore has highlighted, that is being done through the issuing of confetti, i.e. Convertible Loan Notes which come with a 10% interest rate per annum, accruing monthly and with warrants thrown in to boot ! It's difficult to not to have some sympathy with iRick's suggestion imo. The gravy train rolls on.
Added RRR recently, undervalued on cash and soon to be tradeable main asset. Cash this year underestimated, plus several potentially transforming prospects. Chairman has bought into story with increased holding.
"But the reality is that this YA loan is being slowly shifted onto the RRR shareholders so they can pay it back through RRR dilution. That was NOT how it was supposed to be." I think that's exactly how it was meant to play out, I think RRR are having to be more inventive with the dilutions now, this way they can shift the blame (IMO)
Zumore, You make sense wrt YA being repaid by Steelmin as a back to back loan. Yet. one must forget that as each month passes RRR have a bigger ownership of whole plant infrastructure. And in addition JMS have announced that they are going to relist on ASX. This will immediately put a liquid value on RRR's stake. Which at mo looks to be considerably higher than YA loan still outstanding. (2 x $0.5m instalments paid to date). As price of Mn is now on a upward trend.http://www.jupitermines.com/
is not panning out like this RRR chairman predicted all those months ago. Back then he was saying because the YA loan and the Steelmin loan were almost identical then if Steelmin quickly paid RRR back their loan then RRR could repay back YA their loan: he made it seem so straightforward. But the reality is that this YA loan is being slowly shifted onto the RRR shareholders so they can pay it back through RRR dilution. That was NOT how it was supposed to be. If Steelmin haven't repaid RRR by the beginning of February then no doubt this chairman will be raising even more money through dilutive means which will of course will mean RRR shareholders will be expected to pay even more of Red Rock's huge YA loan: like i say that was NOT how this chairman first said YA's huge loan would be repaid back.
I hope you are not referring to Robins as a troll because he's not. Why on earth should Robins be happy? From my recollection he sunk around �40,000 into RRR, beginning at around 1.30p and he's averaged down on multiple ocassions but time and time again this disastrous chairman has not delivered. And bear in mind a 25-1 RRR share consolidation happened in December 2015 and so todays 1p price would've been equivalent to 0.04p pre consolidation . So Robins has every reason to be unimpressed with this RRR chairman.
So hilarious. The SP is up from circa 0.6p to circa 0.95p over a couple of months mainly down to buying by AB and all you is whinge about what happened years ago. Wake up and smell the coffee. You could all have topped up earlier last year when the SP was around 0.2p. As previously pointed out I am well up here and expect the SP to run further by the end of the month. Put your emotions to one side and do some rational analysis. We should hear on Steelmin shortly and that will unlock lots of possibilities. DYOR
Ha ha,it could have been worse ,could have been when they were at .35.at least they are moving upwards presently.just need to avoid wanting to reclaim too much losses with them lol
Seingred what an awful start to your year finding you have more shares here. I hope I don't find any more shares here as my loss if large enough as it stands. About 90%. Cheers AB.
When do you think the RNS confirming the issuance of new shares will appear?
Of management here but happy to see a decent rise.found out I have more shares here in another account .doubt I will be adding though.but a thr style recovery would be much appreciated but not expected.thr has been a bright spot for me as I had given them up for dead.good luck all for this new year.
I saw align do this before Jeffry on different companies too.
align is paid for, so the report is biased. also, should RRR later in future stop paying them, they will deramp massively with sell note. see what happened with align buy note on MRS and then once contract terminated, Align issued sell note. funny that one, placing due i guess in here soon
Ignoring and misrepresenting the dilution on the congo deal is the SNEAKIEST, MOST DEVIOUS AND UNDERHAND thing that any research note can do. Shame on Align for that. As magic said, for a summary of the assets in red rock it is a good overview. But what i said above just proves that they are only in this for themselves and to talk their book, so to speak. Not independent. Not unbiased. Riddled with conflicts. Not worth much then really.
Personally I treat Align's PR piece with a generous pinch of salt. I find it high on cherry picked sound bites and lacking in much of the salient detail that is needed to make an informed decision. Still it is imo useful as an at-a-glance high level view of the company's assets and ventures, but not something that would in any sense sway me to make an investment decision.
Arguably, it could be suitable to report this in an RNS: it is a new expense for RRR; and it useful for transparency to know about which organisations/brokers are covering a company, and on what basis.