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Read the Align Research report on their website, it gives a pretty detailed overview of RRR. Colin, I said, "it will be". I fully expect Steelmin to have repaid by COB Wednesday and if they don't it costs them another 1% of the equity and another month's interest at 13% pa. Unlike the Trolls on here who refuse to accept any evidence whatsoever that things might be on the up: I think the Steelmin team know what they are doing and will repay. Only a few days to go: what will the complaint be then? Probably, "oh they repaid us in Dollars and it will cost us to convert it to Sterling." Except RRR needs dollars to execute the DRC deal, so they don't need to convert it all. DYOR
Helpful...thanks and what is the cotingency plan if they dont decide to use the loan to settle it but use or development funds ?
Coffee cups Rrr, receives £500K per annum dividends from Jupiter, they will get 364K in share buy back from Jupiter so they have no issues. This one is cheap...
maestro - " they will get 364K in share buy back from Jupiter so they have no issues" As per last Annual Report, RRR burns through �686k alone in Admin and Exploration expenses so that �364k isn't going far is it?! The huge $4.4m loan they took out with YA still needs to be paid down. According to the RNS 18th Jan there remains $2,865,004 of this debt outstanding including fees and accrued interest. That's approx. �2m in real money. So RRR need �2m for this loan plus the usual �686k odd for various expenses plus any other on-going project costs. RRR is due to receive �364k in mid-March from the Jupiter buy-back and circa �550k ($783k) on 1st April from the remainder of the Colombia sale promissory note. Whether Steelmin are able to complete their refinancing and/or whether they repay the money to RRR remains to be seen. My personal guess is (and always has been) that Steelmin will elect to extend their loan with RRR by a further 8 months. We can but wait to see what happens. Similarly we must wait to see if Jupiter does relist on the ASX and if so what happens to RRR's shareholding. I maintain my personal view that regardless, AB would not sell down the shares but would rather keep them as the "crown jewels". For me, their value is purely notional. I find it difficult therefore not to expect a shed load more CLNs/confetti issues in the short term.
Why would rrr rns steelmin have signed note with Luxemburg company on 18th Jan if they were not confident of the payment... Even though they don't pay them it's an asset which is expected to commence production in mid March.. Get to keep 22% of steelmin and over £1.8m in interest, great deal...
If you read the last financial results they said they may sell up Jupiter mining share and the steelmin... Certainly should be valued over 4.5m...
maestro - "Why would rrr rns steelmin have signed note with Luxemburg company on 18th Jan if they were not confident of the payment... " The language of the RNS 18th Jan highlights that nothing is guaranteed : "to be placed with investing funds on a best efforts basis" "is subject to some rights of withdrawal by the lender" LTHs here have seen similar language on other projects. Cyprus banks, Lawyers paid completion bonuses etc etc Imo believe nothing until it actually happens. How many years did it take to complete the El Limon sale? Lots of target dates but dragged on for years. maestro - "it's an asset which is expected to commence production in mid March" Yep. Did you note the slippage there? Previously (RNS 10th Nov) RRR said production was expected Jan 2018. Now they are saying Mar 2018. Again LTHs here are very familiar with such target slippages/extensions. Very much same old. Roll on the confetti
maestro - "If you read the last financial results they said they may sell up Jupiter mining share" I don't believe that for a second. The JMS shares are the core asset underpinning the tiny MCAP, considered the "crown jewels" by most PIs. I don't believe AB would sell them at all. He needs those shares in order to attract mugpunters imo.
MrMagic No offense, i'm just following the company recently and i see value here, lets say they go into admin now and sell their assets individually, we will get +150% gain, company has value. I dont really care what happened in past, sp use to be alot higher, if you lost money in past i feel for you i have too in other companies such is investing in small caps.. Its not the end of the world if steelmin dont repay loan, they had the option to extend anyway, no big deal, our interest payments get higher. Our share in the steelmin will also increase to 22%... im happy at these levels...
The problem is, any money that comes into this company seems to disappear. Where could it be going? Surely not into Bell�s back pocket? 9mill in dilution the last few years, where is it? Where�s the money from Jupiter gone so far? See above.... But more mugs keep coming along so what does he care? I see Cityfan has reappeared, when that idiot turns up you should all know it�s best to leave!
Well leave then you bunch of saddos. Move on let the shrewd who have been buying since 0.7 area reap the rewards and stop moaning about your poorly timed position that led to a loss. All of you lot have sold long since but still have a morbid fascination of this company. Let it go.
maestro "lets say they go into admin now and sell their assets individually, we will get +150% gain" lol. What assets do you perceive there is a market for? Let's hear it, and also tell us how much cash you think they'd get for them. maestro "Its not the end of the world if steelmin dont repay loan" lol again! The deal was presented to shareholders as a simple back to back deal so no one could lose. What has actually happened? Steelmin haven't repaid their part but RRR have to repay their loan to YA and so have issued loads of shares and warrants, CLNs etc to raise the money to pay down that colossal YA loan. So ultimately shareholders lose again. The BOD get cash from the raisings and then also ultimately get cash from Steelmin if they do repay. Note that I don't share your rose tinted view of owning 22% of Steelmin. If Steelmin don't/can't repay their loan or if Steelmin production turns out to be useless (like say Shoats Creek's did imo) then what use is owning 22% of that company? How would you ever liquidate the value of that share? Steelmin took out near 7m of debt with RRR and others for this production start up. That all has to be paid back somehow. Given the history of past deals here I'd consider myself foolish to speculate on what may or may not happen. The smart money imo will wait to see if Steelmin actually do repay their loan and if they actually do start production in March and wait to see what that production level looks like. Each to their own of course and always DYOR.
Magic, each to their own, you have your opinion I have mine. I do see value here. The loan we have given out is secured against the steelmin asset, it was only given 7 months ago and there was option for steelmin to delay payment by another 8 months, I don't see the issue. Anyway next week we will know whether they will repay or extend loan. I'm sorry if you list in the past but current value looks cheap, it's not only to me...
Magic please go and take your meds and sit down somewhere nice and quiet. Good man. That’s better.
Magic You need to read rns of 23rd June, the stealmin deal on top of repayment of loan we can receive up-to 30% of company, at the moment we have 21%. In that deal it said they can extend for another 8 months, we owe lenders £2m which is guaranteed by our Jupiter shares. The current furnace which is being reconditioned is expected to make ebitda $7m and once the smaller one in line it will be total of $10m.. You make it sound like company going bust, which isn't the case, this should be worth over 3p a share, as Jupiter shares have quadrupled... I think it maybe better for rrr that steelmin extends the loan agreement as this can increase our share in steelmin by upto 30%.
Maestro, what use is 22% or 30% of a company that isn't producing yet and that has debts of at least 6.8m? It would be a totally illiquid asset. Who would buy that share from us if Steelmin didn't manage any decent production? I'm not saying they won't get to production stage, only that currently they are not producing and the RRR slippage on this is imo telling. RNS 10th Nov stated that production was expected Jan 2018. RNS 18th Jan now states Steelmin forecasts first production in March 2018. Clearly all is not going to plan. What are the chances that March arrives and still no production? Like I said, with the history here, savvy investors will wait until production actually does start and when there are some actual production figures published by Steelmin/RRR. Until then I can personally only expect more share issues/CLNs.
Mr magic If you read the rns of when the loan was agreed it stated production expected in q1 2018... I'm happy..
Read the RNSs. What is the point of speculation if you haven't even got your head around the basic information in the RNSs.
OK so new to this stock..looking at buying in for next week's news .. from reading this board it appears to be a 50/50 recovery play. Ab is not generally liked or trusted .. previous poor record of generating profits..... Cash burn is high for running a small office and fat Directors and takes care of most of the income to date ? Fair assessment? Any new points I've missed not covered in the last 15 pages on here ?
coffeecups - "looking at buying in for next week's news " Not sure what news you are hoping for but I'm personally under no allusions as to what "news" is likely to appear. RRR often states its hopes, anticipations and expectations but they seldom come about imo. For instance as recently as 20th Sept RRR made its first payment of the $4.4m YA loan saying: "We EXPECT significant dividend and royalty inflows in the remainder of calendar 2017 to enable us to continue paying down our loan after this first substantial payment" (my caps) I guess those dividends/royalties didn't make the cut because just a few weeks later we got . . . 10th Nov - RRR raises �495k via CLNs with warrants to pay down the loan (tranche 1) 12th Dec - RRR raises �215k via CLNs with warrants to pay down the loan (tranche 2) 14th Dec - RRR raises �290k via CLNs with warrants to pay down the loan (tranche 3) 21st Dec - RRR raises �125k via a placing of 15.6m shares with 1 for 2 warrants So much for expectations then ! Another example of hopes and expectations is the change in target dates for Steelmin production which I highlighted earlier: RNS 10th Nov stated that production was expected Jan 2018. RNS 18th Jan now states Steelmin forecasts first production in March 2018 Like I said, there's really only one kind of news I am expecting but happy for others to hold contrary view points.
Points you have not covered are; Significant directors buys in the market at and around this level. Significant stakes being taken by major investors who have an history of success. Stealmin progress in both the development of their plant and the likely return of cash from the loan next week with a significant net cash upside to RRR. 22% of Stealmin that is likely to produce e$7-10m EBITDA in the coming years. 24m Jupiter MInes shares which when the IPO completes will be worth liquid c�10m. Dividend coming from Jupiter. Royalties from El-Limon. Cobalt play in the DRC that is at advanced DD stage with the above cash influx likely to fund and develop. Meeting with Kenyan mines minister the other week. The list goes on. So no you haven't missed anything if you concentrate on the bile and hatred the 'ex-wives' club who frequent this board bang on about 24/7. Not bad for sub �5m mcap. I expect �20m in 2018 at least. Magic shove that somewhere the sun sun doesn't shine which I guess is everywhere you are......
GT - "The list goes on" Sadly it's 99% a totally speculative list rather than actual, and that's why the SP is where It is, that's why the markets seldom value the company as a sum of its parts, imo. Steelmin ISN'T producing at this point so of little use and it owes Euro6.8m to RRR and other funders. RRR's target for production start has moved now from Jan to March. I'd happily put a pair of old underpants on standby and wager that come March production won't have started or if it does there won't be any decent production figures reported until months after. If I'm wrong I'll eat them. Like Shoats Creek I reckon the Steelmin project will drag on and on. The Jupiter shares will imo always be there as a core enticing asset. AB will not imo sell those shares, so their value, whilst real won't be realised as cash imo. Happy for you to believe otherwise but history tends to support my viewpoint here. Hand-out from Jupiter is circa �364k yep. Sadly the Admin and Exploration Expenses run at �686k per annum according to last Annual Report. El Limon royalties have been meaningless. Last reported ACTUAL quarterly figure was just over $5k which at that rate means it will take near 100 years to recoup just the first $2m of that $3m royalty. Not worth your time and effort trying to ramp TBH. Cobalt project would require a cash payment of $700,000 and �490,000 payable in RRR shares ("Shares") at 0.65 pence a share, with attached 5 for 3 three year warrants plus commitment by RRR to fund $1.2m of exploration expenditure over 18 months. That's dilution and a lot of cash required. And like all company apologists and rampers you conveniently neglect to highlight that RRR requested and was granted authority to issue up to 500m more shares here this year (as per last AGM resolutions). Smart approach would be to see if Steelmin actually do repay the loan and go from there.
Roll on Wednesday then......
i think GraphiteTech has got it right, quite a few purchased over 10p a share and are disappointed with the board. The value of Jupiter Mines has 4 folded as a result of commodity prices increasing, currently jupiter are buying back shares at 44c a share.. At 1p there is value, certainly 4p is achievable in 2018.
Sorry Magic all I can suggest in reply like I mentioned earlier is to please ring nursey, tell her you are ranting against RRR and she may find you some Carbamazepine tablets. Good lad, don't worry she will be there soon.