Member Info for HawaiifiveO

I am starting to see a slight change in sentiment across the junior mining/exploration sector, maybe Paul Johnson (and others) are correct in suggesting we are on the cusp of a weight of cash hitting this area of the market.

A number of stocks have already doubled (PREM comes to mind) and there have been some volume spikes in others that offer trading opportunity.

The best way to make money on AIM is to time your entry point into a stock and sector, the thesis about buying unloved companies to gain the best returns makes a great deal of sense.

Without doubt Red Rock could be classed in the above category, unloved it most certainly is, sub £5m m/cap for a company pursuing potentially short term cash of approximately double that number - makes you think does it not !

Wishbone seems to be getting more media interest of late, Zak Mir covered the company again over the weekend offering a near term target price of 14p, a Telegram group has also been formed recently and already has over 250 members and there has been more activity about WSBN on Twitter.

One suspects the share price will start to move up, historically the up moves have been pretty dramatic due to the low free float.

A recent Tweet.

https://twitter.com/Oilplayer2009/status/1521386127688613888?s=20&t=bUIaZQf25FIqttVFQAyk7w

Spec

Bell himself said last week he expects to receive some near term cash from the Congo, he would not say that without reasonable ground of success, what I cannot understand is Bell's obsession for more ground instead of full cash, cash is king on AIM, what a different proposition RRR would be with a immediate injection of £7m-£10m into the company.

As News has said I suspect the major shareholders are more aware of the position than others, the fact they have supported Bell (despite being heavily down financially) implies they know good things are just around the corner.

Worth recalling the last para from the FY report.....

'We expect investors to be materially rewarded for their support over the course of 2022'

News

For me and most other shareholders the only thing that matters is receiving material cash from the Congo in the near term, this would eliminate the need for equity placement, ask, why did the major shareholders block RRR issuing shares at the 2021 AGM but allow the motion to pass this year? The answer to that is, IMO, they are aware that RRR are not going to issue shares because of the Congo cash and Elephant Oil liquidity events.

The most interesting aspect about the Congo is, during a Stockbox interview soon after the RNS concerning the underhand activity of the JV partner, Andrew Bell said that RRR via the court had the bank account of the buyer frozen, one assumes this is the account containing the $15m remaining to be paid of which RRR is due $7.5m, that to me is material, in last weeks interview Bell said the buyer has the cash sitting there but wants confirmation about who to pay.

I therefore conclude that Red Rock will receive at least $7.5m either in cash, part cash/new licences from the buyer AND pursue the other $2.5m + $2m costs from the JV partner who took the buyers money in the 1st instance.

So there are TWO routes to receiving material cash, the JV partner $4.5m and the buyer who hold $15m to disperse. That to me is VERY material and no wonder Bell is going to the Congo to get this sorted.

As RRR has been neglected by the market these matters are hardly known by many and therefore (IMO) the company is badly mispriced and represents a amazing opportunity, it is interesting you (News) have appeared right when things could hot up.

Recent interview link

https://www.youtube.com/watch?v=vRBQXGl2Kvs&ab_channel=Proactive

News

I seem to recall you posting a stream of information on the XTR thread in late 2020 when the share price was around 1p - a month or so later the shares hit 9p.

At that time no-one was interested in XTR a bit like RRR now, your information and research seems very precise, do you see a similar % rise here?

I thought the recent interview with Andrew Bell was more detailed than ever before, the fact he is going to the Congo to sort out the litigation shortly seems very positive - he seems very upbeat in collecting cash which could amount to circa $13m for Red Rock or a % of cash & new licences to compensate.

Some quotes of interest...

'the litigation in Congo was essential to progress'
'initial $20m sum involved (of which RRR is entitled to 50.1%)
'the project was the flipped for $250m, we consider a large part of that value belongs to us'
'we will address the $250m outside the Congo later'
'we have won all cases in the Congo'
'50.1% of $5m + $2m in damages due to RRR ($4.5m)
'another $15m being held by buyer until they know who to pay'

Bell also clarifies Elephant Oil, places a value of $2m & possibly more in after market - discusses IPO of gold project in Australia - lots of news due.

Everyone keeps forgetting the sector is on it's knees and has been in monthly decline since March 2021, the commentary here is replicated on just about every junior AIM listed explorer - even companies that are producing (even profitable) have had their share prices trashed.

Clearly those who bought the sector in Q1 2021 are out of pocket, probably down 50%/75% right now, historically when a sector like this turns up the moves can be fast and furious - in my view we are probably at the bottom of the cycle so perhaps just perhaps now is the time to buy RRR and other minnows.

Here are a list of 50 juniors, the average fall from the highs reached in 2021 is circa 50%, some are down 80%

https://twitter.com/Oilplayer2009/status/1494991613654884354?s=20&t=-RaFG6gkWBO0XlyEVSacAA

DYOR etc

WSBN is on the radar of many traders, the stock has been quiet of late but it looks primed to move, the share price will move quickly when it starts it's upside run, with only 173m shares in issue it might pay to build a position before the herd arrives (which it will) or buy when the market offers you a online quote (stocks like this often go 'at best' on modest volume days)

It seems the floor is in, shares are currently trading 60% below their June 2021 peak price of 20p.

Buy low sell high !

One wonders how many shares RRR now hold in POW, their share price seems to be showing signs of life now the massive .75p warrant overhang is now down to a trickle.

Bell last declared 37m in late October taking the position below 3%, there is no clarity on this issue but if I recall correctly Bell rebuffed market rumours that RRR were dumping POW shares so one wonders if RRR do indeed have a reasonable position still.

POW is the kind of stock that has the potential to move quickly but Johnson in a recent interview has confirmed they have overstretched themselves intentionally as he purports to want to build them to mid cap status, one does wonder about that given funding will be needed and how much dilution is ahead.

Maybe a rally in the POW share price will add some value to RRR, in the meantime Johnson seems to have been far less generous over his warrant handouts, the next ones being priced at 3p and the last placing takers only received 1 for 2 as opposed to 1 for 1 in the past.

Momentum seems to be building ahead of what appears to be some upcoming news-flow, from a technical perspective the share price is turning up from a 50% drop, the high point being .53p on the 15th Feb, the RSI has gone from a hideously overbought 93 to 36 and is now turning positive - all the indicators are primed for a up move IMO.

Unfortunately the sector is still in the doldrums, as mentioned in a previous post even Power Metals (POW) with their almost daily RNS stream, media interviews, posse of HNW and loyal shareholders, a popular and well followed CEO in Paul Jonhson + continued ramping by Twitter influencers their share price remains in the gutter from last years high of 3.5p, some other peers are down even higher percentages.

I have been ultra critical of Bell and wanted him gone but the plain fact remains, as we all know, all boats rise when the sector becomes fashionable, some seem to think, after a near 18 month demise, the sector is close to becoming fashionable again, only time will tell but Red Rock are not the only company whose share price is in the gutter.

Maybe just maybe one of the strings of the portfolio will deliver value well beyond the current market cap, hopefully starting with Elephant Oil.

For next Thursday 28th - looks like news may be forthcoming beforehand - team on site at Zula as confirmed by recent tweets.

https://stockboxmedia.com/interviews/registration-form/

Recent PREM tweets

https://twitter.com/Premafrimin/status/1517114954045919233?s=20&t=JmHLXv82yAVnC9cI11pVYA

https://twitter.com/Premafrimin/status/1516706252482654215?s=20&t=JmHLXv82yAVnC9cI11pVYA

Here is a link to the commentary that was posted yesterday, the fellow seems well supported and has made some very good calls over recent times - he seems to think the next move will exceed the recent high of .53p reached in February.

https://twitter.com/SwazersC/status/1516728818773413889?s=20&t=SIy9fRUvxGmxzRcDzx2rww

I remain convinced there will be some form of JV, merger, project sale or even takeover of ODX in the near term, the silence from certain entities who were part of the action group is also interesting, one of the aims of the AG was to work with the BOD to restore shareholder value.

My view is entities are quietly taking positions ahead of news and the valuation of ODX, compared to peers, seems very low indeed, AIM is notorious for wide valuation anomalies, at circa £1 a share ODX was clearly overvalued and overhyped but at circa 5p it is most certainly not.

Buy low sell high !

Q&A online now, the BOD seem very transfixed on their plans which clearly include more dilution ahead, there appears to be little on the horizon in the way of asset sales or corporate activity, in essence it appears the best hope for a re-rate is improving market sentiment, clearly they are focussed on delivering value from Cameroon but they suggest they do not want to do any deal or JV at this early stage.

https://www.investormeetcompany.com/investor/meeting/pre-agm-statement-and-qa

HSBC have stopped trading in POG shares so cannot buy/sell via their Invest Direct platform, must have happened quite recently - message below when you try to trade...


'Sorry, the security selected is not available for investment via this service. If you require further information please call us on 03 456 080 848 and quote help code (51014)'

Now is not the time to be out of ODX for a number of reasons, the wise have been buying the dip, the purpose of the Action Group was to engage with management to restore shareholder value, the silence from the main participants in that AG is for a reason IMO.

I still believe some form of corporate action may be forthcoming, the company is materially undervalued IMO.

DYOR etc.

In all seriousness the only thing that will move the shares from the abyss are the following...

The floatation of Elephant Oil with a market value exceeding expectations - could RRR stake be worth £1.5m to £2m or more ?

Getting decent cash out of the Congo legal situation (£2m+)

The floatation of the Aussie licences (NBGC) on AIM with a decent valuation

A JV or some other 'interesting' project related development concerning a third party, corporate activity.

Bell stepping aside and a new CEO or COO of repute joining the company.

All the above could occur near term, the projects themselves are unlikely to generate excitement the market desires, can Bell deliver any of the above who knows.

The sector is still battered, despite all of Paul Johnsons efforts at POW & being a 'popular' CEO, daily aggressively written RNS's, weekly podcasts & media, director share buying, a loyal shareholder base with some 'big hitting Twitter handles supporting him - the share price has fallen from 2.95p to 1.35p in 12 months and cannot rise from the basement currently.

Helpful you will not enter into discussion on the salient points raised because you know Bell said them and you know he has not delivered in timeframes he himself made, in fact he has not delivered at all.

The strangest matter is the major investors stopping Bell from raising cash without approval at the AGM last year but now allow him to do it without permission when the share price is 70% lower at this years AGM - it simply makes no sense, but no explanation Helpful ?

As for being "happy for how thing are going" you could not make it up, how can anyone be happy when the share price has fallen from 1.3p twelve months ago to the current .37p bid - but Bell 'promised' 2021 would be the year of a 'material re-valuation' of the company, his words during that Stockbox interview early last year.

As for links to articles concerning other companies & projects, totally worthless - no-one is interested, you see Helpful you have been found out , value creation is the last thing that bothers you, in fact the further RRR share price declines the more you seem to like it - very strange indeed.

It's gone VERY quiet concerning the cash compensation in the Congo, what do you say Helpful ?

Helpful why don't you give it a miss, it matters not what you post, it is evident that Red Rock is a busted flush until Bell delivers something meaningful. We are stuck with him, he belittles those who voted against him and seemingly has the support of supposed major shareholders who clearly like loosing their money.

What is the point of the major shareholders blocking Bell's ability to issue shares at will at the AGM last year but now allow him to do it this year - do the major shareholders have a explanation to that question ?

In the meantime...

Let us have the IPO of NBGC (which he said would be in Q4 last year)

Let us have the IPO of Elephant Oil (outside his control but late like everything associated with Red Rock)

Let us see the cash from the Congo, in a interview on Stockbox Bell said they have staff working the legals to ensure we (RRR) get paid, weeks later he said that we may not get paid but get other licences in compensation - no thanks !

Let us see a JV or deal with a major or mid cap in Kenya - Bell seems to think there are 2m ounces of gold on the licences - the market thinks not

Let us have a JV with a US entity concerning the lithium licences as Bell suggested - will it happen, given Bell's form not likely

Let us have the material re-rate of Red Rock equity that Bell 'promised' in H1 last year

Let us have new management that Bell 'promised' would be appointed to market the company and deliver value - never happened did it, what about corporate governance issues as mentioned in the last two RRR Annual Reports

Let us see whether Bell keeps his word when he suggested in a Stockbox interview in Q2 that RRR would only raise cash via equity at a price considerably higher than the .95p at that time. What do you think Helpful ?

The list goes on, Bell belittles his own shareholders who have lost fortunes and even ones who have bought what Bell said are the lows are now loosing money, is Bell heading to First Equity to see Mr Robertson shortly Helpful ?

In the meantime we wait in the promised land for a material event via RNS - like a mirage in the desert !