Member Info for HawaiifiveO

Mining News

Ivanhoe, Gécamines ink new agreement to develop high-grade Kipushi copper-zinc mine in DR Congo

https://www.kitco.com/news/2022-02-14/Ivanhoe-G-camines-ink-new-agreement-to-develop-high-grade-Kipushi-copper-zinc-mine-in-DR-Congo.html

As I mentioned in yesterday's post Bell said in the most current interview local staff in the Congo had been working on the legal case over recent days , he added "to ensure we get paid"

The initial pursuit is for $4.5m , that would do very nicely indeed to be getting on with.

If a dog like PREM can double in a few days, they have 19 billion shares in issue, I am sure, with the right news, RRR could double or even treble in equal time.

Just released,

One point of note, he says the Congo team have been working on litigation matters "making sure we get paid on that" the claim is for $4.5m but could be a great deal more in due course.

https://youtu.be/zpZSnmhao-s

Good summery here, looks cheap

https://twitter.com/Oilplayer2009/status/1491686198787592197?s=20&t=iPYaUNhj8COh84jEQrPdNg

Bells style at interviews is to waffle on, he never ever seems to talk about delivering meaningful shareholder value, I think if Red Rock won £20m on the lottery Bell would find some way of making it sound uncertain or with caveats.

So the latest 'episode' is to chase lithium targets here there or anywhere, he mentions Zimbabwe and Congo, well how many projects does Red Rock need ? A cash strapped junior company continually adding new projects without delivering any meaningful shareholder value from the plethora of existing projects, its truly pathetic.

Whilst it is true that Bell needs shareholder authority to issue shares to raise cash one suspects he is still free to issue shares to vendors or via CLN's, the issue is one of trust and the market simply does not trust him. Most vendors are quick to sell stock despite assurances.

Bell will never change, he will continues the status quo until he is removed from office, it has to be at the next AGM.

Link to Q&A details

https://tinyurl.com/2p9d73yr

Due this week.

They are requesting questions, email address in link below

https://twitter.com/**********/status/1490595296325386243?s=20&t=P16KV0630rkSfY-nk2EglQ

It seems obvious to me that Oriole will need a JV partner for Cameroon at some point, it was interesting that another AIM company with a largish project admitted that their financial resources are not strong enough to develop their project quickly and would therefore seek a JV partner or look to sell it and retain a royalty, a minor position or both. It makes perfect sense.

I think the shenanigans at Iamgold could ultimately prove beneficial to Oriole, Iamgold management have come under pressure from a major shareholder, it looks like they are demanding cost cutting and a growth policy to restore their failing share price, what better than selling one of their existing expensive to operate producing mines and concentrate on a relatively low cost mine build in Senegal.

I think Iamgold will extend the JV with Oriole, due to be announced this quarter, or will they offer to buy out ORR's remaining circa 50% stake so they can secure all of the Senala licence. I think it is inconceivable Iamgold will ditch Senegal so it is a positive either/or situation for Oriole shareholders.

I am surprised the market has not latched on to this potentially very positive situation, yet !!

Bell is totally correct in one aspect, he needs to deliver, prove value by monetising a project, nothing else will suffice.

I am not totally convinced a JV is the answer in Kenya unless it involves some form of up front cash payment to Red Rock, one example of a poor JV was that of Oriole Resources who entered into a 6 year JV with Iamgold at a Senegal gold project, there was no up front cash payment and 6 years is a very long time. The terms were a $4m spend over 4 years and then $4m over 2 years for 70%. Oriole share price failed to respond to this deal as Iamgold were very slow in reporting results and took ages to complete the drilling, at the same time nearby licences were changing hands for $100's of millions because of a major discovery close by, Oriole are locked in to the JV and could not monetise their large licence area however, they now wait to see if the partner will enter into year 5 or pull out.

Any JV needs to be very well structured, almost certainly would need a significant up front cash payment to Red Rock, can Bell deliver such a deal, unlikely IMO, a outright project sale would deliver the value that every Red Rock shareholder deserves. It is VERY interesting that Bell has historically suggested that if a windfall came Red Rock's way he would prefer NOT to pay a special dividend to shareholders, that attitude is totally unacceptable.

So the ball is in Bell's court, I remain of the opinion that he is a liability to shareholders and Red Rock will always sell at a significant 'Bell discount' to true value, the clock is ticking down, he needs to get the share price far higher before the AGM, even if the major shareholders foolishly (IMO) vote to keep him in office others will have a very different opinion.

Yes he is in last chance saloon !

It is interesting that the post from Longterm has received 12 recommendations, it shows that there are many disgruntled investors holding Red Rock shares and will act against Andrew Bell at the soon to be announced AGM .

IF the major shareholders support Bell then they really do need to have their heads examined, they are significantly under water themselves and need to use their holdings to ensure he is moved aside and replaced as CEO and Chairman, the last Annual Report stated Bell being CEO and Chairman is poor governance and would be addressed, it has not happened.

Bell is the Boris Johnson of AIM, he will not resign, he needs removing by shareholders, the one and only chance is coming shortly, to think Red Rock could not survive without Bell (as implied by Helpful) is sheer nonsense, one of the more ludicrous reasons suggested is that Bell speaks French .

If Bell was removed and a more dynamic/trusted CEO with a new team Red Rock PLC would become a entirely different investment proposition, a company name change would not go amiss either to compliment the new personnel

Bell really is in the last chance saloon, he urgently needs to deliver a significant and sustainable value event to save his own skin, will it happen ??

The question is how much is the 'Bell discount' costing Red Rock shareholders, if RRR was run by a more market friendly CEO you would expect the share price to be multiples higher, it is for this reason I have no understanding why (according to Helpful) the major shareholder does not demand change.

Still no AGM date where Bell is up for re-election, once again Tom Winnifrith is slating AB via Sh@reprophets, suggesting it is last chance salon etc, we have heard this before of course but the crux is Winnifrith (who can drive sentiment) implies Bell will struggle to retain his position unless the share price is materially higher ahead of the AGM.

It is no longer good enough to offer fig leafs of hope, everyone has had enough of promises of significant shareholder value events in XY & Z months down the line, Bell has been claiming a shareholder value event is just around the corner for ever and an age.

Standing back and looking across the portfolio RRR have a number of very good projects and assets that would ordinarily attain a market value north of £25m (see Caracal Gold, their one project in Kenya valued at £26m recently) the market simply does not trust Bell, his previous suggestions of bringing in new management at PLC level to drive value have come to nothing.

The clock is ticking down for Andrew Bell, he needs to deliver something material other than fog, wind and promises.

Javier Blas

@JavierBlas

Coal is neither out nor down. It's actually booming.

https://twitter.com/JavierBlas/status/1486990463651438592?s=20&t=LKbIVI359-AKSYw5nvPADQ

https://www.bloomberg.com/opinion/articles/2022-01-28/the-coal-industry-is-losing-market-share-but-not-polluting-power?sref=5dj0X2VO

Surely the point is not entirely about VUP but who they sold the licence too, namely a subsidiary of Glencore, this subsidiary 'only' paid VUP $5m but the total sale price was apparently $20m, this leaves $15m outstanding which RRR should receive half, the ability of the Glencore subsidiary to pay this $15m is not in question.

Red Rock have strong claims and it looks like money will be received in dur course, the question is how much ??

Re a prospective JV

At the presentation event in London George Roach seemed more concerned about how much money and what % would be acceptable to PREM shareholders as opposed to inability to find a meaningful JV partner.

It is clear there have been 'talks' some probably more serious than others, my feeling is Roach did not want to give away a meaningful % at a time when project related commodity prices were ripping higher.

The recent $450m deal proves he is correct to be cautious, PREM is barely valued at 10% of that number and most probably has a larger resource.

PREM looks far too cheap based on peers therefore, seems to be attracting a wider investing audience than historically, the share price should start to appreciate accordingly.

Onsite video from Australia - drilling ongoing - New Ballarat Gold where RRR hold a 51% stake and will IPO shortly

https://twitter.com/andrew_neal7/status/1481319579406245888?s=20

Interview now out

https://youtu.be/bZ27bwP0uq0

https://twitter.com/MarkEJFairbairn/status/1480589273606897667?s=20

There is no doubt Bell is trying to get the message out and well done for that but I think market participants are so sceptical of the man no-one believes a word of it despite the fact the projects/investments have significant value.

Bell needs to deliver something meaningful beyond long term aspirations and near term possibilities, let us have a JV, a IPO a monetary court win, a project sale actually happen, just about anything to demonstrate Red Rock has turned a corner, the bears continue to suggest Bell is all talk and waffle, heard it all before etc etc.

The bulls point to the obvious value that lies ahead but it needs more than a handful of bulls to get the market valuation to a level that truly reflects the value Red Rock has way beyond peers that are selling on 3 to 4 times multiples.

Come on Mr Bell !

This was posted 15 mins ago, Mark says he has interviewed George Roach - one wonders what about ?

https://twitter.com/MarkEJFairbairn/status/1480510135671918593?s=20

They are pursuing between $2.5m and $11m but it could be more as the RNS states the 'loss of opportunity for profit'

More news on this is imminent as per this podcast

https://www.youtube.com/watch?time_continue=3&v=b7NhtSppRe8&feature=emb_logo&ab_channel=Proactive

It is rather interesting that Outback Gold have a market cap of £33m, they are currently a pure exploration play in the same location as the Red Rock/Power Metals JV, in their presentation you can clearly see that the RRR/POW JV (marked in yellow) has a larger licence area than Outback in the Ballarat gold 'hot spot'

https://outbackgoldfields.com/projects/overview/

So it is not without foundation that New Ballarat Gold could easily attain a £20m m/cap in due course as Andrew Bell has suggested, RRR own 51%.