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Wholeheartedly agree Seingred. DS previously had a holding here in excess of 10% but saw it diluted to oblivion along with many others. He has far more respect and knowledge here than the feckless rampers desperately trying to pump any angle they can for their own ends whilst continually trying to brush all the coming dilution under the carpet.. Throughout 2017 Jupiter shares were available to buy privately on a certain website and that website stated that they were on sale at $0.35. There were clearly no takers as that offer sat open for months on end on that website. It has only recently now been removed/closed. That fact doesn't lend itself to the notion that the markets value JMS shares at 40c imo. It was equally very telling that the numerous rampers here telling us how many �millions Jupiter is worth, didn't snap up those private Jupiter shares instantly. Whilst an IPO means the JMS shares can be traded, the problem imo is that AB is highly unlikely to ever sell them as they represent the "crown jewels" here. They have for some time been the asset that underpins the MCAP. My opinion here is based on the readily gleaned history of how JMS shares were previously managed by this BOD. There were over 74m shares back then and if they had all been sold at a high price they would have been worth �25m to �30m. Unfortunately for shareholders AB was obviously reluctant to sell them, a possible factor being that AB has a seat on the board of Jupiter. This is how the JMS shares back then were managed: 5m were sold at the high price of 55c a share 14m were sold at 11c a share 40.5m were sold at 7c a share A pretty disastrous result for shareholders imo. There is nothing that has changed here that would lead me to believe that AB would act any differently. He will always, imo, favour issuing more shares to raise cash from thin air rather than sell those Jupiter shares. Hence whatever value people perceive the shares have is entirely notional imo. There will always be dilution here imo until and unless decent recurring revenue streams are established that exceed the ongoing running costs as DS rightly describes.
To listen to a significant holder of jms and formerly of rrr before dilution,than ill informed faceless rampers.cheers ds.bet you wish you had just bought jms shares and given rrr the body swerve.which is what all the rampers here should do.that way any windfalls from jms are greatfully recieved instead of watching mcchubb use it up. Time will tell with steelmin,but forcasts for el limon production and the pittiful ensueing production should make people wary of any predictions.Also of course the pathetic situation over at rgm with the coal that should have been produced by now.nothing is a given here.
Well Jupiter will ipo next month we will see where it goes. You should be happy with your JMS holding considering they were low 7c when they were delisted. Tidy profit
More for you to say is made up! https://twitter.com/armcmb/status/976033759479902208?s=19
Not quite sure how it is a positive RNS. RRR has received �1,128,523 in 12 months from Jupiter. Will share holders see any of this? Nope. It will all disappear paying "ongoing operating costs" Jupiter share price - think it will rise slightly. Within the next two years dont see it exceeding $0.70 USD. This opinion is as of a shareholder of Jupiter holding just under 2m shares.
Great RNS. Lays out timescales for the JMS IPO and how much that means to Red Rock. Problem for the bears is that as time goes by their case diminishes: Directors have skin in the game, commodity prices rebounding and bull super cycle under way, Jupiter floating means Red Rock's holding can be traded and a meaningful valuation can be put on it, cash coming in from a number of sources, Steelmin coming online in the next couple of months etc. etc. Prospects look better than they have ever been.
RNS. So we know that when the IPO happens on 18th april, red rock will recieve £1m or thereabouts from the sale of 20% of the jupiter holding. It will retain 18, 524, 914 shares at aud 0.40 which equals £4m or so. The market will define it goes from there. Mr magic unsuprisingly thinks the jupiter price will tank, based on nothing other than total negativity on everything. I think the opposite, bearing in mind jupitet have committed to pay out 70% of profits as a dividend.
Exactly. Steelmin will be valued on a multiple of the earnings it is able to make once fully operational.
No idea what relevance the last Steelmin results hold. Using historic financial statements to deramp an entity that at the time was not producing and was refurbishing spending capex on their facility is meaningless.
https://www.share-talk.com/share-news/red-rock-resources-aimrrr-video-presentation/ great presentation, really excited about jms ipo, at 40c jupiter is valued less than 50% compared to its nearest peer. Great chance our share in JMS will be valued at Aus$20m. Steelmin was producing prior to the war which crippled the Bosnian economy, no one wanted to invest there, thus we got fantastic opportunity. Its a great story, a refugee from Bosnia was working in ferrosilicon mill abroad he managed to convince investors to recondition this plant, he use to be the manager at the plant. One really has to ask were this plant built from scratch how much would it have cost? RRR came in just at the right time. Ferrosilicon is sold for $1650 per ton, the reconditioned furnace is capable of producing 29000 tonnes per annum
Maestro: [Steelmin] "If one reads the last set of results . . . ." lol yep and it really is well worth people reading Steelmin's last posted set of results which were for the period to 30 Dec 2016. You can read them here: https://beta.companieshouse.gov.uk/company/07734349/filing-history/MzE3Mzk2Njg4OWFkaXF6a2N4/document?format=pdf&download=0 Cash at bank: EUR 17,137 Already 1.2 BILLION shares in issue !!
Jupiter Mines target 80c per share within a month of listing.
Company throwing out cash, debt free, they have said they will give divi on 70% of profits. Wont be surprised if the SP doubles within a month. Our share increases Aus $20m.
Prior to our involvement, there are rumours offers were made for steelmin they deemed them too low, if they offer around 50m they can have it. If one reads the last set of results you can see this "There is a strong probability of a liquidity event at Jupiter during the year, and a liquidity event could also occur at Steelmin."
Okenia: "just like a dividend" How many years has RRR had its JMS shares and how long has it taken for Jupiter (actually Tshipi) to get to the position of throwing off cash? Many many years. And yet here we have rampsters trying to big up Steelmin, a private company in which we similarly have a % share but which isn't even producing yet!!! It's laughable.
Bless him. Still trying to pull the "sum of the assets" routine yet banging his head against the wall trying to figure why the markets don't agree with his figures. The "sum of the parts" approach just doesn't work for such shares imo. Too many other factors to take into consideration, and the markets are obviously doing just that imo. Maestro: "Steelmin . . . what does one value our share?" Unfortunately old son, an asset is worth only what someone will pay for it. Nothing more, nothing less. We had an object lesson in this truth with the (imo) giveaway sale of El Limon. Steelmin is a private entity. Who will buy RRR's share of the company ? This is a company remember that clearly couldn't get finance from mainstream lenders and instead came to RRR to borrow EUR 3.8m when RRR didn't even have that money to lend and who in turn went and borrowed money off Yorkville to be able to lend it to them ! Steelmin now owes a lot of money to different lenders having borrowed at the least, that EUR 3.8m from RRR (now repaid via refinancing with some Luxembourg Investment vehicle) and a further EUR 3m from other lenders. WHo knows what other debts they may have? There's no royalty involved here so all RRR has is a 22% share in a private company with a lot of debt and which is not even in production yet. All this MCAP A+B+C nonsense is just smoke and mirrors for me. What investors need to see here is significant recurring revenue streams. Unfortunately El Limon failed to provide this as did Shoats Creek.
It's not a royalty from JMS. It's a dividend (executed by the tax-efficient method of an equal-access share buyback, the result of which is that RRR retains exactly the same percent ownership after the buyback that it did before - you know, just like a dividend - plus a massive wad of tenners - you know, just like a dividend). I had thought we'd gone thru this issue with you before, hey ho.
Pinman They can just sour cos they lost in the past. Steelmin is a gem and a no brainer, has been producing prolifically prior to the war, but now they are nearly ready for it to be up and running... Steelmin projected ebitda eur10m per annum, once other furnace up and running near eur15m per annum. 22% belongs to is, what does one value our share, �12m? Migori �10m Steelmin �12m Jupiter �6m-�12m �3.5m cash in bank by end of april mkt cap of 30m justified.... yet only 6m. Hopefully some action tomorrow, rns confirming jupiter ipo and divi repaid today..
Clarification before the old crones start bleating: "RRR own a share of a private company but with no royalty. " By which I mean royalty in the currently producing asset (Tshipi) as opposed to the mothballed Mt Ida asset.
Ritchie: "Steelmin production is imminent. Having been there it really is an excellent asset. The story there is just beginning." Nice . . . but is there any royalty involved for RRR? It has a similar feel to the Jupiter situation for me. i.e. RRR own a share of a private company but with no royalty. Where will RRR generate cash from in this situation? They would have to find a buyer for their shares in the company, a private company, a private company that borrowed EUR 3.8m from RRR (now refinanced with some Luxembourg Investment Vehicle at god knows what cost), and who also borrowed EUR 3m from another group of investors. Any revenue from production is surely going to go towards paying off these considerable debts. As and when we get an RNS stating that production has started I suspect the novelty factor will quickly wear off.
Maestro some people on here are as thick as sh@t and can�t add up....
Maestro: "25m Jupiter shares" Why do you keep harping on about these shares. We already own them. RRR have had them for a long time, nothing new. It's not like there are suddenly going to be a load more of them. They are a known asset and their value pretty much underpins the MCAP here. I guess the discrepency between what YOU think they are worth and what the markets clearly think they are worth is the problem for you. Must be frustrating. Either way it's matterless because imo there is no way AB is ever going to sell those shares to liquidate their value (excepting any required IPO buyback shares). I have little doubt personally that at relisting the shares will start off way overpriced and will then quickly drop back to settle at the true value. It will be interesting to see where it does settle. If there had been some royalty involved with the Tshipi project then things might have been more interesting. As it is, it's just shares.
25m Jupiter shares × 40c= aus$10m. Thats almost more than current mkt cap. On top of that they have £2.5m in bank. Currently in arbitration for migori gold project of 1.2Moz jorc resource. We own 75%, analyst valie the resource ar c£10m. Andrew Bell has on numerous occasion said migori is next. Watch this space..
Jms is listing next month on 18 April, the prospectus is out. Will list on mkt at 40c per share but i believe on opening day will be trading near 60c.
Seingred If you follow the el limon project you will see that production has significantly increased. 750K repayment of loan will come just as the steelmin loan came in. Watch out for rns first thing about jms ipo, as we own 25m shares in them. Current mkt cap just 6m here bargain...