Member Info for Fukurokuju79

I don't agree Antharry. The Company has signed a binding term sheet for a 3-year senior secured loan in the amount of US$20 million subject to customary conditions with Newgen.
NewGen and Rambler have signed against 'binding' terms. That is a legal term as opposed to 'non-binding'.
They have also completed technical due diligence.
While I can accept nothing is guaranteed until the money is in the bank, RMM would have access to recourse should NewGen not finalise this loan now.

Let's not forget the loan is
a) legally binding
B) has had technical due diligence completed.
c) 'they are simply working to finalise the legal documents including the loan agreement and ancillary documents, and to complete the standard closing process'

So firstly it's not a case of if the loan completes, but when IMO.

However clearly no one wants the deadline of end Sept to be missed. They are obviously pushing to wire and I'd imagine trying to complete asap. It like closing a house and exchanging that seems too never end......

If they miss the deadline I'm not concerned that it suggests a fundamental loan issue.
The short term risk is that a delay may introduce interim financial requirements which they would clearly either use the CLN for or a placing if it works out to be better terms. But even that would be short term pain IMO.

I'm personally happy to hold it out still either way. That's not blind faith, it's simply viewing this with a longer lens and having confidence the debt loan will complete as soon as they can do it.
In the meantime it sounds and appears they are managing the covid situation with as little disruption to the timeline as possible ATM. Nothing materially changed is still my view.

Atb

Ella what you actually said was....

'I did engage with the company at the time and was assured that it was part of the licence reorganisation and nothing to be concerned about. It now appears from wjat has come to light via the press in Zambia that it was related to the court case, plant lease and an injunction that was placed on Zamsort.'

Key bit for me was your use of 'It now appears'.....hence I asked if you've asked the company about this observation. As it seems to me that you've already been given assurances directly from the company and then speculatively interpreted something from a news article.

All I've heard is that the licences were being reorganised ahead of a potential commercial transaction and when asked they confirmed the assets are in good standing order.

Have you asked the company about this observation?

Ella.
Why do you think we have lost a licence. That's not my understanding. I'm informed the licences are in good standing. The court cases are a) a Bogus debt claim by MM and b) a case against to get rid of him leasing the plant. Where do you get the understanding that a licence is lost..

Regarding a post period update. Like I say given 'post period' interim statement isn't now due until. End Oct I wouldn't expect they will include. Based on the fact they will a) will have RNS'd anything they deem they need to and b) they will issue the half yearly only q month after last year's annual accounts

It may include some content on some of those things.

Personally I feel I've a fairly good handle on the position as I've engaged directly with the company on the matters they havent felt they needed to release to market about, but where I have had any level of doubt or confusion.

Atb

Ella...regarding your post is on your expectations of the annual accounts due end month I think your expectations on forward looking detail are unlikely.

Specifically your point 'The report should be interesting reading and hopefully include a post period end update and cover the following...'.

Firstly regarding a forward looking financial position, the position as at end May was already included in the RNS around the notice in delay of publication of the Annuals.

Secondly, I'd personally be surprised if the annual accounts included much (if any significant new detail) on a forward looking statement beyond the reporting period of end Dec 2020. Beyond what they already felt needed to be released via RNS to the market.

I say this as if they intended to include significant 'new' information they would not just have delayed the interim results to period end June 2021, to the end of October IMO.

So we will get the accounts, and these will probably include a form of forward looking statement, however I'm not convinced they will include anything beyond what we know and little extra detail (if any) of the information Ella wants.

On the flip side I hope I'm wrong so you can't keep banging the same beat on the drum another month.

Yeah nice to see a rise. Atb

CaneToad. I disagree entirely.
I'll make my own assessment of risk though to be fair. Rather than judge by 'stockrank'' or whatever Lol
You're welcome to a different view but going on stockrank doesn't equate to research!
As I've said plenty other companies without what RMM have and a darn site larger valuations. Not even producing or proven resource, no infrastructure, permits, high risk juristictions and nauseum. So your attribution of pe ratios and such don't hold water.
Markets I'm afraid don't work that way.
Besides, I'm sure many have lost a lot of cash in very low risk stocks! Nothing is a sure thing so I'll happily stick to higher risk, higher rewards where I've personally assessed the chances of success are greater than the current value being attributed by the market. Rather than the other way around

Atb

Different strokes for different folks and all that I guess CaneToad.
Clearly RMM is a high risk / reward stock. I wont add more capital here as I have more than sufficient exposure but RMM has lots of positives to support the view of it being a successful turnaround.
I think labelling it as 'ultra-high-risk penny-stock gamble' is a bit strong to be fair!
I can think of many companies still in exploration, without any infrastructure, or proven resources, in high risk jurisdictions, and no financial certainty etc etc that are valued higher!
Each to their own though.

Atb

Leathal, regarding your questions 'Fuk, you still remain confident? Surely its obvious we are goin to get some kind of issue with regards to finance deal?'

I'm afraid I can offer only my opinions, not certainty. Yes I'm still confident in my investment atm however we may have different price and time expectations.
The covid issue is currently low impact but has the 'potential' to be more material in the short term.
As for finance. Several opinions here.
1. Do I think this RNS may impact finance - No as covid existed when the binding loan was entered and if the current issue had a material impact on the loan they would have had to include in RNS today.
2. Do I think the loan may be delayed further - Hopeful it won't but it is a possible outcome ATM yes. This may require more CLN capital being drawn but that's not due to current covid impacts before moon does the I told you so if that does happen.
3. Do I still think loan will complete (even if delayed) - personally yes as it's binding. I'm expecting this to complete even if delayed further.

Leathal, regarding your questions 'Fuk, you still remain confident? Surely its obvious we are goin to get some kind of issue with regards to finance deal?'

I'm afraid I can offer only my opinions, not certainty. Yes I'm still confident in my investment atm however we may have different price and time expectations.
The covid issue is currently low impact but has the 'potential' to be more material in the short term.
As for finance. Several opinions here.
1. Do I think this RNS may impact finance - No as covid existed when the binding loan was entered and if the current issue had a material impact on the loan they would have had to include in RNS today.
2. Do I think the loan may be delayed further - Hopeful it won't but it is a possible outcome ATM yes. This may require more CLN capital being drawn but that's not due to current covid impacts before moon does the I told you so if that does happen.
3. Do I still think loan will complete (even if delayed) - personally yes as it's binding. I'm expecting this to complete even if delayed further.

Lethal. Thanks.
However to clarify I've not said it won't pact us short or medium term.
I've referenced the RNS and stated at present the impacts are low, but it's clearly an issue that could evolve. Obviously the fact it's only 7% of workforce is reassuring as the isolation policy is fairly encompassing.

I'm just saying its not black Monday just because of the RNS, and pointing out the contradiction in people (stope Vs covid).

Im sure the market won't like it much but it hasn't materially impacted my investment case ATM so I'll do nothing. Just have to accept the short term dip.

Personally AntH no I wouldn't find it interesting if other listed companies in the same area RNS it or not.

Of course they are damned if they do or don't. Last issue was store collapse they didn't RNS it and they were criticised (and rightly so), this time covid and they update it's having minor impacts. (criticised for releasing).

If it were the other way around and someone here saw the local area was increasing the alert level but we had no RNs then people would moan about no update and refer back to the stope Comms.

They are simply keeping informed of an issue, with risk of potentially more material impacts. But currently saying it's minor impact.

I'm sure the market will overreact as always lol.

Why would it matter if another company has RNS'd or not AntHarry?

People moan if they don't RNS issues and then moan if they do. Lol. Damned if they do, damned if they don't.

They are making people aware that yes there is a problem locally, yes it's having an impact, but currently this impact is limited to 7% of the workforce and having minor production and dev delays. NOT major or material impacts
It could be much worse! Albeit rather it wasn't a problem at all.

Moon.
Regarding your comment..'who paying 14 days self isolation. Rmm. Cost are gonna double.'

They are existing staff their wages will already be built into their operational expenditure.

You best sell up and move on them moon.

Currently minor impacts, so while it's certainly an issue, I'm not sure why they would now have to borrow lots more.

'To date, the impact to the operation has been confined to minor production and development delays due to the non-availability of workers on certain shifts. Further impacts are expected for the next few weeks during the mandatory isolation period but are not expected to be long term.'

As I was curious and browsing anyway, here is a link if anyone wanted to understand the meaning of the alert levels in the area etc. Always helps rather than guesswork etc etc

https://www.gov.nl.ca/covid-19/alert-levels/about-the-alert-level-system/

Very interesting PGE, thanks.
Do you have a rolled up high level view on the core images they have shared and are you encouraged by the find and hopeful of ARCMs licences generally from the data you've seen to date?
Atb

OK, campers, rise and shine, and don't forget your booties cause it's cold out there. It's cold out there every day