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Maggie you should contact the RRR chairman. It could be Mr Bell's next big investment for RRR.
Good luck.
Oh dear. I give it an hour before this is gone.
He does seem to be a reckless gambler. I've said this many times before but if he had never found the easy life of AIM, and was instead getting money from his relations for his harebrained investments, then no doubt he would have made them all broke years ago.
Though luckily he found AIM, he has no shame
Endless gambles, endless rambles
many excuses, total shambles
Sack him!
It is worse than that. Bell borrowed the money to lend to Steelmin.
Although RRR didn’t lose anything on Steelmin it was an unacceptably high risk. The fact that Steelmin had to give so much away in exchange for a fully repayable loan shows that nobody else in the world was willing to lend to them. Andrew Bell, on the other hand, was willing to risk the companies only real asset for this loan, making it a make or break deal for the entire company. RRR were lucky to come off unscathed. Next time we might not be so lucky.
In the meantime, we were negotiating with suppliers for the supply of electricity, where we encountered certain problems. Since May, when we started manufacturing and since we had short-term contracts, electricity prices rose drastically. We have planned with the best bidder to conclude the quarterly agreement, ie by the end of this year. But the problem is that the current from 57 euros per MWh (megawatt hour) on the market today has risen to almost 77 euros per MWh, which can be seen on the stock exchange and the internet site: HUDEX - Price Movements - Steelmina BH "Dževad Delić.
This is a drastic increase in prices, and this new situation, as the director said, has led the company to an uncomfortable position and in a situation where there is an uncertain continuation of production by the end of September or the beginning of October.
Delić: It's not about the problems we can influence
Delić: It's not about the problems we can influence
"We consider it important to inform the public that it is not about the issues we can influence. It would simply produce at a cost of 77 euros per MWh of electricity, with loss, which is unacceptable. We spend almost 20,000 MWh of electricity on a monthly basis, so the difference of some 20 euros per MWh is big compared to the start of FeSi (ferrosilicon) production in May, when the electricity price was 57 € / MWh. It is important to emphasize that we are still in constant negotiations with the suppliers of electricity and will contract with those who offer us the best and most favorable offer - Delić emphasized.
Due to excessive current prices, some plants in BiH have stopped production, such as the Aluminijske kombinat Mostar. Companies that deal with similar activity and continue to work, unlike "Steelmina" BH is a different situation because they have long-term contracts, so price changes do not affect them.
- In the future, "Steelmin BH" will enter into longer-term contracts for the supply of electricity over the current year because we were not sure when we would start producing FeSi so we could not make such contracts. The reason is simple, you make a contract and fix the date of the takeover of electricity, and in the event of any problems at the start and the inability to take over the contracted amount of electricity, huge penalties are being paid so that this is a two-blade sword and risk in the world of business and such production where the current participates more than 50 percent in the FeSi product price - Delić emphasized.
The chart doesn't lie. Everything you need to know about this BOD and the dire performance in one graph:
http://oi67.tinypic.com/15k6kh.jpg
Anyone interested in more on the Steemin disaster can read it here. This was published 14th Sept by Jajce Online.
https://jajce-online.com/2018/09/14/steelmin-zbog-poskupljenja-elektricne-energije-tesko-je-nastaviti-proizvodnju/
Copy/paste into Google translate which will detect Bosnian.
Helpful - "in fact they made a profit on the transaction"
Would you care to provide your basic figures in support of that statement?
Helpful you are so flip floppy because when Steelmin owed RRR the huge loan you would've been saying "don't worry If Steelmin don't repay RRR then RRR will get the ferrosilicon plant". You know what, it will be exactly the same outcome if Steelmin don't repay the huge loan to these Luxembourg lenders. So you are talking ridiculous!
Again, I see some people don't understand commerce.
Steelmin has a value, it cost RRR nothing (in fact they made a profit on the transaction when the loan was repaid). If it gets sold and the return is say £2mil net of debt then RRR gets £440k. Unless Steelmin is worth nothing net of debt then RRR will have made a profit. It would be better if they sort out their issues but nonetheless there is upside there for RRR.
I was hoping that they could sell it in better circumstances but there is no downside here for RRR only upside.
£440k profit on a 12 month trade costing nothing would be pretty good in most people's books.
Hopefully, they sort it out and get it going properly again. Fingers crossed.
DYOR
Won't be long before RRR has to pay back the loan notes. I wonder how the company will get the cash to pay them back?
Will Peter Gyllenhammar dump his entire holding here like he did recently at Stratex (now Oriole) he has 66m shares, at Oriole retail took the stock in 2 weeks but cannot see that happening here.
He will not be impressed with this update.
MrMagic: "Wonder what that Luxembourg investment Vehicle is now thinking ?!"
Probably "omfg what have we done?"
It seems certain Steelmin won't be able to repay back the huge loan to these Luxembourg lenders and so these Luxembourg lenders will get Steemin's only asset the Ferrosilicon plant. Though because with present electricity costs it would be loss making if it tried to operate then you would think it would be pretty impossible to sell (unless Bell tried to buy it) and so an absolute nightmare and pretty worthless to these Luxembourg lenders. So it seems a nightmare situation for them.
Though of course my greater sympathies lie with the Bosnian Ferrosilicon plant workers who probably thought they had found a long term job. So i do feel sorry for them.
Doesn't look like the Cockrane family were too impressed with the update LOL
Wonder what that Luxembourg investment Vehicle is now thinking ?!
Really grim update. I'd be surprised if we don't see it drop below .6p from here. I reckon that Steelmin project will turn into a money pit.
Applying that logic why aren't all shares that drop in the morning zero by the end of the day? Face it Helpful, you've been had over. You are definitely not the first but, with any luck, nearly the last.
maybe 600k man from yesterday will have a top up and get some of the £700 he's lost in a day ... steer clear here for sure you will lose
Standard stop loss action: price drops, triggers the stop loss, that moves the price down, that then triggers the next stop loss and so on.
On the way back up now.
Currently 9th on the Share Fallers list here, up from 15th 10 mins ago
said:
"Depends how much value AB delivers on his deals. Hypothetically lets suppose:
1. Gets the Migori licenses back on less than onerous terms. He then executes a JV with cash up front and carried on costs for a while: lets say RRR goes down to 35%, gets $5mil up front and carried for $2mil. He has to make payments to Kansai, he must know the money is coming from somewhere and he has repeatedly referred to a JV.
2.DRC goes ahead with the right to 56% of something like $6bn/$7bn metal in place and he then farms down to say 40% with cash upfront of say $2mil and carried for $2mil.
3. Steelmin confirms commercial production in June and sales contracts
4. Following his last dollar in/last dollar out philosophy as per Steelmin, he executes one or more similar deals in mining finance in Africa.
5. Steelmin was a classic finance deal that has worked out well for RRR and should by the end of June look very good. AB can get more of these types of deals.
6. AB has said he will look to distribute funds: that is down to what the figures look like for this year and what value he can write back into the books"
...............................
Wow Helpful your accuracy of predicting the future is amazing: :)))))))) :PPPPPPP
Talk of getting rid of the BoD is pointless. The only reason the company(ies) exist is as a gravy train. The shareholdings are structured to make sure they stay. Lifestyle, nothing more, nothing less. I am of the opinion that they would have a Musk style issue were they in the US.
If Bell + Kaintz had been sacked four years ago Red Rock Resources would still have got the Jupiter dividend and buyback payments; likewise if they were sacked today Red Rock Resources would still get any future Jupiter dividend payments: in other words they are both totally irrelevant and of zero importance to these Jupiter payments.
These days Bell does interviews and the price dips, even positive RNSes (like Jupiter payment) and the price dips. So i agree what is the point of keeping someone like him in charge when it's obvious he's totally ineffective and of no use to RRR shareholders? My theory is, he's been here 13 years, over the years an huge number of PIs have lost tons of money and he simply doesn't have many investors who will invest in his companies these days. So in my opinion zero point in keeping him.