Member Info for Banburyboy

Speculative Greenland payments has been going on for the last 5 years plus.

Nothing in the accounts [ SOFP - Helpful will expand as the expert !] re it other than the I&E entry ( no mention of liability).

The educated guess is commitment to cover environmental make good costs for the area RRR mined in 2010.

Let's hope the fully impaired Lithium does not come with the sting in the tale of environmental make good costs :)

Dissapointing the accounts does not have more disclosure on Greenland as it feels like a remediation provision to me !

What do you think of Helpfuls [ sorry HNW individuals ] loans 0.5% interest per day plus 25% arrangement fees ?

Eye-watering stuff.

Surprised he was only on curry and chips yesterday :)

Dogs the cynic in me suspects the full impairment of Tin Hill and all ALR activity was the method of closing down the debate and covering backsides.

They were torn between a rock and a hard place and the line now will i suspect be it was all impaired including the 200 tonnes.

DYOR but I'm not sure I buy that and find Bells words in the Chairmans statement on how smart the company were on ALR hollow and diengenuous. Given all the hyperbole and five Chinese buyers it was an unmitigated disaster.

Note 6 itemises 433k of project development expenditure.

FASO is include in other - total spend 129k.

RRR spent more on Greenland year to 30th June 2024 [ 135k] than FASO.

Long term holders will see the irony given the incredible journey that was Greenland.

The carrying value of Kenya in the accounts at 30th June 2024 is £12.9m plus representing the most significant item on the balance sheet.

There is no impairment. The Directors adopt an area of interest approach where they alone determine an impairment.

From the accounts

“The Group adopts the "area of interest" method of accounting, whereby all exploration and development costs relating to an area of interest, are capitalised and carried forward until abandoned. In the event that an area of interest is abandoned, or if the Directors consider the expenditure to be of no value, accumulated exploration costs are written off in the financial year in which the decision is made.”

The following Notes to the accounts indicate (1) the licence has expired (2) £2.8m would need to be paid before the asset was saleable (756k of £2.8m recognised in loans)

Please do your own research but that is my understanding from the accounts data below

“We note that the licenses PL 2018-0202 and PL 2018-0203 held by Mid Migori Mining Company Ltd in respect of the Migori gold project, with capitalised exploration assets of £12.9m as at 30 June 2024, expired in August 2023. Relevant renewals have been submitted and this process remains ongoing. The Directors have confirmed they do not have any reason to believe the renewals will not be forthcoming”

“Under a 2018 agreement with MMM partner Kansai Mining Corporation Ltd, in the event of a renewal or reissue of licenses, covering the relevant assets, the Company had within three months to make further payment of US$2.5 million (£2.028 million) to Kansai Mining Corporation Ltd. For further details of the payments see note 26.”

“A $925,000 loan note (£756,000), recognised in non-current borrowings, remains payable to Kansai Ltd, which would complete the acquisition of the Mid Migori Gold project. Payment of this loan has been mutually agreed with Kansai to be delayed until the pending Democratic Republic of Congo legal claim has been resolved.”

The spin in AB’s Chairman’s statement

"After starting a lithium export product pipeline from Zimbabwe in late 2023, the sudden and rapid decline in the lithium price at the end of that year, which continued at various points in 2024, caused us to halt further sales. Although we could source material cheaper than it could be produced, costs including the royalty level which had been set at a fixed price when prices of the commodity were higher, and price softness in the destination market, meant that operations could not be profitable. Fortunately, by starting with a trading operation we had avoided stranding capital and had the flexibility to respond swiftly to these changing economic conditions."

The reality in the accounts

"For the African Lithium Resources Limited project, all amounts relate to the acquisition of mineral rights in Zimbabwe. This includes the purchase of the Tin Hill project on 2 February 2022. Amounts incurred on this project to date have been fully impaired in the current year following uncertainty over ultimate commercialisation of the asset."

"Total Lithium impairment in year to 30th June 2024. 201k exploration assets 184k licences = 385k. " Balance sheet value of Tin Hill = Nil.

Despite ALR being a 64.5% subsidiary (that’s what the accounts say), there is no sign of any recoded asset or sale of all or part of the 200 tonnes of Lithium. Its as if it never existed. If it did where is it ?

Helpful - this is one we argued about for six months with you telling me i was a Thicko do the maths its worth tens of millions (we have the posts) . You also said it was in storage - cant see it in the accounts

In the same way you got Bell to answer Zumore’s suggestion re Child Labour – could he clarify have RRR got 200 tonnes of Lithium and where in the companies books and records is it.

Fantastically easy way to silence the doubters ? What's he got to lose ?

Does a company borrowing at 0.5% interest per DAY plus a 25% borrowing charge sound like its in a good place ?

Dukey they got the accounts out so they are now free to make undisclosed arrangements.

- can't beleive a £1m loan did not warrent an RNS.

- Zumore is right the 200k that was 60 days late has not been paid. Its either waived, renegotiated of converted into something we are not party to. Clear as mud !!

Blue - he's doing all right ! He said he oftern loaned RRR money.

Looks like he asked for 0.5% a day plus a 25% fee.

He clearly justified it as RRR is high risk and not in a good place.

RRRs other lenders are probably all his clients to !!

Run by the few for the few !!

Https://www.lse.co.uk/rns/RRR/lithium-update-exports-4d3l4ugo6mrue3g.html

That's my reading Dogs it's not in these accounts even though it was allegedly acquired in the year.

The company needs to urgently clarify where this asset is ? Or come clean on mis representation.

And guess what all the hype and five Chinese buyers and photos and the accounts say

" For the African Lithium Resources project all amounts relate to the aquisition of mineral rights in Zimbabwe. This includes the purchase of Tin Hill on 2nd February 22. Amounts incurred on this project to date have been fully impaired in the current year following uncertainty over the ultimate commercialisation of the asset"

So the asset Helpful tells us was worth tens of millions is worthless.

I don't think there was ever 200 tonnes and no evidence to suggest that's an unfair statement. Grateful if othe posters could suggest where it is in these accounts.

150k at 0.5% a day with 25% redemption fee. Gulp.

I was wondering if Helpful in his connected party status had dug deep !.

Other loans are £1.15m at 20% per annum with 20% redemption fee.

Presumably more loans of a similer nature from 1st July to now.

Takes the interest bill to over £1m a year.

Never mind RRR in a good place !

Will conduct a full review tommorrow AM.

Snippets

- ALR a subsidiary. Zero sign of 200 tonnes

- Greenland costing a lot

- Current debt estimate of £7m at 31st Dec look light to me.

- Some eye watering loans from HNW individuals. End of Note 18. One is 0.5% A DAY. 20 /25% redemption fees as standard.

Looks a car crash to me - but look in detail tommorrow.

Nike you missed Helpfuls 7.06 post to reccomend.

Your standards are slipping !

You do sound grumpy.

Good job I didn't act on your FASO this year comment. Was it a Kilo ? Still if Mike digs say 10 tonnes an hour, processes it through his expensive 2.5kg gun [ the kit] at a similar rate we might just be OK.

Do the maths as you allways say !!

Throw the insults around all you want but theres only one laughing stock here.

Enjoy your day.

Https://www.lse.co.uk/rns/RRR/update-of-major-interests-x6vwi5066qf9fka.html

Thanks Helpful

How are we doing against the targets set on 7th October RNS ?

- Arbitration concluded.

- New DRC opportunities ?

- Production in both jurisdictions FASO and COTE by the end of 2024 ?

Probably more relevant to Shareholders on here and your Investment Management Clients

On the money as normal Spec

There are rwo questions :

1 - to what extent are Littlejohns obligated to report events from 1st July to the date Bell signs the accounts. That will depend on a host of things.

2. There is potentially if RRR want to avoid public disclosure a case for delying actions until after the balance sheet date.

Half year accounts are not audited so it's a years grace.

As ever with RRR compelling and fascinating viewing and I am gripping the sides of my armchair :)

Yes Dogs and all of it with that faint aroma of 200 tonnes of Lithium.

Fascinating on his CLNs - no prospect of repayment so renewal by default ?

Don't know where CLNs rank pari passu with the loans major PIs have been providing ?

It will certainly keep our very favourite Xmas pantomime villain on his toes :)

Thanks Dogs

There is nothing more just and satisfying than seeing SPL on those ropes.

Looks like Felix is pre-occupied with changing the DRC constitution !

RRR arbitration, TV appearances and State banquets on the back burner ?

Faso looking problematic

I'm still expecting Termites to play a pivotal role. Just need the pesky payment to clear.

JFK is that right ! Re get the deal done. Don't do X

Any further detail ?

Fair point Orslega and I retract that.

I was referring to your observation

" it is clear major SHs support current activities. Are they stupid ?. I don't doubt it for one minute".

I meant to reference them being in it for them not you.

I just don't get all the cloak and dagger on Finance it means you expect skulduggery !!

Excellent post Zumore - as ever a hint of Lithium about each and every RRR action.

For balance they have satisfied POW.

The key question is why are major S Hs funding all this ? And why the secrecy ?

The Orslega theory is its a good investment so SHs should be delighted.

The Banbury theory its potentially a decent investment but Bells inept stewardship means they have him over a barrel and can take control [ hence secrecy ]leaving nothing but crumbs or wipeout for the small guys.

Either way Helpful will be fine.

Run by the few for the few IMO but DYOR !!