The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Elephant Oil anybody?
Must not forget the investment in ascot either.
Lol.forget rgm,do you remember the pittiful attempt at running a gold mine in colombia.hopeless attempt at ramping up production to stated projections.woeful lack of production updates while losing circa 500 usd per ounce while gold was at its historic high.if not best to go through the relevant rns.makes grim reading.
http://pararesourcesinc.com/para-announces-update-production-el-limon-mine/
No I don't remember because I was never an investor in RGM and I doubt that I will be. I have looked at it and it is not for me. Investors have to take responsibility for their own decisions. I have only ever made money on RRR and will again this time around. It will either be a decent amount, a lot or seriously disgustingly large amount depending on how the cards fall and how long I hold on for. Steelmin is not an Andrew Bell or RRR company, he has little or no involvement. The Steelmin team are responsible for bringing the plant online not AB or RRR. One of the directors of Steelmin used to be a director of the EBRD. When Steelmin repays the loan, it frees up RRR from making the stage payments on the YHA loan and gives RRR free cash that it can use to fund the early stages of the DRC deal (assuming it goes ahead). As you say, we will see but there are a number of stages on the Steelmin deal that are value inflection points: A date for completion of the reassembly Completion of the reassembly Sign off for the contractors that the plant is accepted as contracted (there will probably be some debugging) Sign off from H&S Start of production Announcement of offtake contracts Signed offer and terms sheet for the refinance Completion and drawdown of the refinance It won't be that one day every is not done and the next day everything is done. DRC looks to be a monster deal if AB can pull it off: Steelmin means he can keep more of the deal for RRR. DYOR
Of course I noticed this is the RRR board, but there is a common denominator that makes me question start up dates. (Do you remember the installation of the high waller at Rosa Mine?) We will see in due course if production actually starts in February.
You may not have noticed but this is the RRR BB not the RGM BB. Regardless Steelmin should be close to finishing the reassembly of the plant. The cooling system was one of the long lead items that they needed and they were on with that last week. So the completion of the reassembly will be in sight. After that is done, they will need to test each of the subsystems and have them signed off as safe. The operational team will need to get their training double checked and go through the various Standard Operation Procedures so that they can get signed off as competent. Once they have the systems and staff signed off from H&S then they can start running their start up routines etc. They should be ready to try a proper start up sometime in early February (IMHO). I used to be a Chemical Plant Process Operator a long time ago and have taken part in the safe start ups and shut downs of large plant systems; you don't just press a start button and hope it works out. A start up might take a few days depending on the systems involved. One plant used to use Kerosene as the coolant under pressure at a couple of hundred degrees Centigrade. Anyway, bottom line is, they are close but not quite there yet. The finance from RRR/YHA is costing them an arm and a leg at 13% pa plus 1% of the equity per month. Steelmin will want to pay that loan or part of the loan back asap. I expect that they would sort out a facility with conditions precedent so that it is lined up to draw down as and when the conditions are met. Once that facility is in place, it becomes a box ticking exercise. RRR should net back around �2mil ish from repaying the loan to YHA and end up with 20% of Steelmin. The Steelmin Business Plan from January 2017 was talking about an EBITDA of Euro 7.5mil. With current prices, I would expect that to be closer to 10mil. The key will be an offtake contract; if Steelmin have lined up a 100% offtake contract on pre-agree prices then the plant becomes a license to print money. You try working out what 20% of Steelmin is worth on EBITDA of Euro 10mil and a multiple of 13: it is not zero. IMHO DYOR PS Speak back end of next week re this subject matter.
Where have I heard similar claims? Oh, I remember over on RGM. Something to do with coal.
We should be hearing soon!! Fingers crossed.
There are lots of warrants and convertible loan notes at 0.8p which could mean significant resistance as holders sell shares
Would this sum be greater than their current liablities cf?
"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)