Member Info for chattty

Reducing cash runway;- The co., has stated its on a cost saving mission by stream lining their business
Yet their will be an increased deployment of capital expenditure to meet their expected success in signed contracts despite savings by closure of Canadian offices which in turn means for example their UK offices and elsewhere have to increase their resources to meet the additional Canadian work load
The cost of delivering and servicing new equipment also creating supply chains to enable the start of income generation will also substantially increase costs over and above any inauguration of internal saving schemes therefore the cash runway will be reduced faster than announced expectations.
Basically success will come at high cost before a decent return is established, break even is some 2 years minimum distant.
Immediate investor enthusiasm for a great product wanes when their wallets are hit hard.There will be at least one more cash call .

From the RNs ;-In other positive news we can announce the grant of 3 further licence applications as well as rock sampling results from the Dereel project which returned extensive gold mineralisation with a highlight result of 229g/t Au.

If that number is backed up by further exploration results then we could have a multi million ounce reserve announcement which would galvanise the sp .

Investors vote with their wallets hence the sp collapse from 150p+ .Those who thought anything below 30p was a bargain not to be overlooked thinking that it would never be seen again are now looking at the 25p range.There is nothing new to suggest the sp will not be in the 20p area.
Whilst the business problems are extant the cash outflow will be higher than announced therefore shortening the cash runway by a considerable amount of time the sooner this is realised and dealt with the better for the sp.

There is doubt the company will be able to raise funds.
The problem is at what price and at what discount?
The product has huge known market potential.
High cash burn (1.7 mill)is continuous so it will be some time before scaleable income builds which limits the companies options as to when it raises cash as does its reducing cash runway
So will they strike for a fund raise within a few weeks whilst the sp is in the 20p/30p range rather than later when the sp has the potential to drift further ?

In a nutshell the company will have to make a judgment call on when to raise funds, taking into account the current market conditions, their cash burn rate, and the potential for the stock price to drift lower. They will also need to consider the terms of any capital raise, as in the discount and the amount of dilution that would be involved. Ultimately, the timing of the raise will depend on the company's needs and the options available.
A warning might be a booster RNS followed by terms of a cash raise.

If I remember correctly earlier in the year the silly person in charge stated he was already wealthy and not interested in PI short term investors preferring long term HNW or II interest.
This demonstration of arrogance is rare bearing in mind that it is the BOD who lead this company using shareholders funds and to whom investors rely on for good results.
What we have is the destruction of company value by an over ambitious BOD led by a man hell bent on world wide product domination who have failed to deliver any serious revenue through the rapid growth and uptake they expected which has failed to deliver whilst at the same time overseeing the the failure of the sp by from circa 150p to the level it now resides .It is up to the BOD to take control and ensure delivery of business to a sustainable level.

This BOD should take responsibility for their actions and provide clear direction and strategy to take the company forward. This should include an open and honest dialogue with shareholders, listening to concerns and taking on board their views. They should also protect shareholder interests whilst focusing on improving the company’s performance and delivering value to shareholders in the short and long term.

This last RNS states the actions the BOD are taking but is really demonstrating its failure to deliver on its previous promises which sucked in investment interest,at the very least the BOD should take steps to ensure that the company is being transparent and accountable to shareholders. This includes providing timely and accurate information to shareholders and engaging in regular communication with them.
I doubt their communications will improve so until a decent news flow is established the sp will languish without any catalysts to incentivise decent interest.

Thrown under a bus ?
Untrue .There are no friends in business.
As I now understand :-
DM knew they had a contract which had an extension clause, yet he carried on spending time and money as if their was no extension clause and he had all but a contract .Further confirming he did not have a solid back up plan in place to cover the then potential of an MOU failure.

DM states they did not have notice before they were informed of contract extension. On those words alone he must have known about the possibility of the extension but not expected it to happen.
He also stated He "did not comment on pricing" when asked about the sp ,then promptly did so.
Appalling excuses showing a failure of DD

On the 24th of May 2022 RNS gave the following information;-· Due diligence and contract negotiations ongoing for a drilling rig located in East Africa.That was seven and a half months ago.
Now DM has stated their will be little information coming from the BOD over the coming months until they have a rig sorted.
In a nutshell that comment shows his contempt for PIs as he is restricting news flow which in turn kills interest in the sp.

So we might be lucky and get notice of RIG mobilisation some time at end of Q2 into Q3 .My view is the sp as nothing to speculate about over the next 6 months or so it will fade to well below 5pps and further weakening with no catalyst in sight.

At the end of the day DM has thrown himself under the bus by not taking the necessary steps to ensure the company was adequately protected. His failure to act has resulted in the current situation and it is up to the Board of Directors to take the necessary steps to ensure the company can move forward.

It is the BODs ability to translate his geological understanding into a good working reality that is at fault.

Mr. David Minchin is a Non-Executive Director at East Star Resources Plc. He serves as Chief Executive Officer and Director of Helium One Global Ltd. Mr. Minchin serves as a Senior Geologist at African Minerals Exploration & Development Fund SICAR and is involved with the assessment of potential opportunities that may be of interest.
He served as an Executive Director of Province Resources Limited since August 3, 2020 until November9, 2020 and served as its Director since November 13, 2018 until August 3, 2020 and served as its CEO & Managing Director until August 3, 2020. Mr. Minchin has considerable experience in the resources sector as both an academic, having lectured at the Universities of Free State and Natal and through his tenure as a geologist working for Anglo American. From 2013 to 2018, he worked as Director of Geology for AMED Funds, a Private Equity group that focuses on exploration projects in Africa. He has been involved in a senior capacity in many of the companies including Platmin, Asian Precious Minerals, Sephaku Cement, African Nickel and Taung Gold.
Mr. Minchin worked for Anglo American between 1990 and 2003, where he gained experience from various roles including being a divisional geologist and exploration manager. Besides the 32 Anglo American reports that he participated in during his time with the company, he has also been involved in 18 national / international publications and has been a regular expert speaker at mining conferences. He has experience as geologist (Rio Tinto, British Geological Survey, Cleveland Potash Limited/ICL-Boulby) and as exploration director for Mining PE firm. He was Managing Director and Executive Director of ScandiVanadium Ltd.
Mr. Minchin holds a Master’s degree in Geology from University of Southampton in 2004.

No offence but i do not use expressions Fraud liar or similar
I communicate and meet in person members of BODs of shares of interested where such expression would meet a brick wall in response.
If BOD member won't spare me the time for a meeting or reply to initial Email enquires I will not invest.

Mr Minchin certainly has failed in his ambitions because he firmly believed his infallibility so allowed no room for error .
I recollect he even extrapolated his pricing structure which gave competitors advance warning of his pricing.
intentions.
Unfortunately the expression all mouth and trousers came to mind at that time.

Mr Minchin's CV indicates that he has extensive experience in geology and has the ability to analyze and interpret geological reports. He also has the technical knowledge and expertise to deliver accurate analysis and reports. However, what his CV does not demonstrate is his ability to turn the data and analysis into an effective and efficient production model that will generate profits. Therefore, he should seek out the advice and guidance of others in order to develop this skill set and ensure the success of his production model

Should he have the staff on board to advise him why has there been such a show of incompetence in delivering an efficient result be it successful or otherwise?

It is difficult to answer this question without further information. However, it is possible that Mr Minchin's staff (totalling 7) may lack the technical knowledge and experience to properly advise him, or they may not have adequate resources to provide him with the guidance he needs. It is also possible that his staff are not adequately trained to understand the complexities of the production model, or they may not have the necessary leadership and management skills to be able to guide Mr Minchin in the right direction. Ultimately, it is up to Mr Minchin to assess his staff and the resources available to him to determine the best course of action.

From the Dec.,13th RNS -"Helium One are poised for growth as we prepare to commence Phase II exploration drilling at Tai. With a drilling rig and related services under MOU for mobilisation in Q1 2023, Helium One offers a fantastic opportunity for investors to gain exposure to the helium sector with a high-grade, exploration prospect ready for drilling.

The MOU turned out valueless (Mr Minchins credulous judgement) so it will be at least another 6 months in time before any drill rig is found,. contracted and mobilised to site drill ready during that time the cash runway reduces and another serious discounted fund raise will be on the cards.
Any raise will probably be announce just after a Rig mobilisation or similar announcement is RNS'd
So on the watch list - too many errors of judgement - until the BOD have got their act together.

Exceptionally poor judgement and about zero DD, contracting a rig that is already under contract to another company with options to extend their existing contract is stupidity itself and a complete waste of time and money.

So the board of directors should take responsibility for this decision and take all necessary steps to ensure that a similar situation does not occur again in the future. This should involve conducting due diligence in advance of contracting any services, and implementing more thorough procedures for evaluating and approving any potential contracts. The board should also ensure that any contracts are reviewed regularly and that the terms of the contract are clear and understood by all parties. Additionally, the board should consider implementing a system of checks and balances to ensure that all contracts are properly managed and monitored. Finally, the board should consider engaging independent experts or consultants to review any contracts before they are signed. In this way, the board can ensure that any contracts are in the best interest of the company and its shareholders and that any potential risks are minimized.

TSA are owed 55million rand. (£2.7 million) at the moment the company has little spare cash to resume payments whilst it carries out expansion program and maintains itself as a going concern.
I cant see TSM putting much more finance in for the moment
So it will have to have a heavily discounted placing against todays close of 4.5p plus the longer it waits to raise the money the lower the sp.
Now on my watch list again .
Disruptor ,Did you visit the mine a few years ago, invested further, then get caught out by an unexpected placing as I did.

From todays RNS ;-It is the prime responsibility of the Board to ensure the Company and the Group remains a going concern. At 30 June 2022, the Group had cash and cash equivalents of £0.066 million and £1.864 million of borrowings and, as at 22 December 2022, the cash balance was c£400,000. The Directors anticipate having to raise additional funding over the course of the financial year.
The above statement uses the word 'Anticipate' which is indicative that despite the stated expectations of payment to be received RRR will be raising funds. So more dilution to be expected and expensive because of Mr Bells consistent track record over an astonishing period of time, at least 20 years zero returns to shareholders has created a serious amount of push back negativity
Full of optimism and unrealised expectations, also risky in operation otherwise how come the amount of litigation in progress
Recently Bell even stated RRR shares were basically not worth buying.

2021 AB income was £144.000 out of total directors costs £312,000;-Note the staff costs recorded as £436,000 for total including directors of 6 staff.
2022 AB income was £164,000 out of total directors cost of £302,000;-Note staff costs £657,000 for total including directors of 14 staff
Bell recently boasted he had visited 30 countries presumably first class all the way?
Investments in unsafe jurisdictions, that is where the home office advise against travel. Those investments have created legal arguments where RRR has been apparently been cheated .The question is how was that allowed to happen?
He has been there too long and his presence is now a hindrance and a liability to the company and shareholders. The board must take action and remove him or at the very least reduce his salary by at least 60% and base any bonus on actual returns to shareholders.
As to investments, RRR should focus on investing in assts in companies that have a proven track record and are in stable jurisdictions. That way the company can reduce their risk and ensure a return for shareholders.
The company should also focus on cost control and efficiency improvements to ensure that their profits are maximised. The board should ensure that all investments are scrutinised thoroughly and that the company is not taking undue risks.
Finally, the board should be transparent and accountable to shareholders by providing regular updates on the progress of the company and its investments.
Basic premise is any investment is high risk of zero returns and loss especially as the BOD anticipates raising additional funding over the year . Take it as before April just 3 months away.

Hello again Trek !
Have you looked at POLB ? A strong term buy.

Chancers buying.If No news by end of next week I would sell out before suspension on the 10th otherwise the chances of recovery are remote.
Miracles do happen but whether or not you believe one will happen here is up to you.

A figure mentioned elsewhere, confirmed by research puts a potential value on Pilot Mountain of $1.5billion,I first thought nuts until I researched the reasons why they expect further exploration paid for by the US to produce that billion plus value.

GMR and POW both know what the are talking about.Always a risk in exploration ,here they are halfway to the jackpot.
Looking at everything else POW are doing its certainly risk on for me.

POW have completed a most successful spin out listing of FCM, sp up 70% .
They have GMR,FDR,NGBC, and UEE up for listing in 2023. With GMR being the closest to listing by the end of Jan.,2023.
Being heavily invested in POW I'm biased because I am confident with my research.

The Nomad has given notice to quit and does so on the 10th JAN 23 if KAT have not found a replacement by then they are automatically suspended from 11th Jan with 4 weeks in which to find and sign up a replacement Nomad.
They need to raise funds and will be lucky to do so as the sp is at par and they cannot raise at a discount to par.
So as has been said not investible .