Member Info for HawaiifiveO

I think what has pricked every-ones ears is the statement made at Master Investor that PALM will not dilute via equity and they are seeking alternative routes to funding which includes the Canadian Government.

I have noticed a number of different funding routes being taken by the juniors recently, including project level finance and bringing in a strategic investor.

Panther stock looks cheap, still sub £4m m/cap and only circa 90m shares in issue.

I remain pretty confident WBI will secure non dilutive funding, there are still no leaks of a placing being planned by the usual suspects/locations, as I have posted historically if WBI can secure new debt or even proceed with the sale and leaseback of the Gabon property for $15m it will be very happy days for buyers at current levels.

Maybe, just maybe they have managed to get the bank that withdrew the facility back on-side, there are a number of scenarios.

Risk yes but the reward could be significant, if funding is secured 1p a share is nailed on IMO.

DYOR

It looks to me that Bell and his Helpful chums (major shareholders) are banking on a number of scenarios

1, The Congo cash
2, Revenues from Lithium (which could be significant)
3, Sale of a project (still think New Ballarat is possible)
4, A corporate deal, bringing in a JV partner/investor etc.
5, Elephant Oil IPO

Obviously if any of these happen the concern over the cash position subsides.

The AIM market seems to be in self destruct mode with many casualties directly caused the lustful ability of market makers to destroy shareholder value at the stroke of pen, all across this sector you see markdowns as much as 90% from Q1 2021 highs on tiny volume, in most cases the projects are the same and the respective companies have done little wrong.

Everyone believed the sector would turn this year, so far there are no real signs of recovery, Red Rock are not alone in the battle, in fact RRR have the above 5 options to restore value which is a far better place than many peers.

Define rocket, well being realistic the share price was trading above 4p for a very long time before Pelham & Co started dumping 40% of the issued capital.

The last placing was at 1.2p - if WBI complete a sale and lease back of their Gabon property for $15m they will immediately address the $2.9m bank repayment matter, there will be no need for placings for a very long time, if ever again plus the financial position will be clear.

In the above scenario I see the share price hitting 1p and possibly onto 2p, that is my view - equates to a nice return from current levels.

DYOR etc.

At the risk of repeating there is still nothing from the usual suspects or blog sites that leaked the last placing.

It is now two weeks on from 'that' RNS and the company remains quiet, it takes some time to organise a placing so I would have thought if one was planned the process would be ongoing and leaks would have appeared by now. I am of the opinion there will not be a placing.

I cannot see WBI being allowed to go under for a mere £2.5m - Miles Pelham still has an economic interest here via his non voting stock, he is personally worth $150m+ The BOD are very well connected, which is also a bonus.

My bet is they are trying to secure the sale and leaseback of the Gabon property for circa $15m as per the update RNS, if they achieve this the share price will rocket.

DYOR etc

Would have thought the average sale price MTL receives for Q2 produced gold will be circa $100oz more than the Q1 $1877oz.

If the above is correct a further $2m will fall into the bottom line making it possible to pay down even more debt - I am staggered that the share price remains at this low level therefore, I can only put this down to market apathy and the under radar status of MTL.

As per my previous post this £40m market valuation/rating cannot last, the shares will re-rate and I expect it to happen quickly when the penny drops.

I took some more yesterday - the market makers are running a flat book it seems given the wide spread, that is a positive !

Plain fact is there is no other 70,000oz/80,000oz pa gold producer (especially in this high gold price environment) valued at a mere £40m on LSE - with debt likely to be down to circa £37m end Q2 the EV is sub £80m - AAZ, debt free had a market cap of £165m at one point with slightly lower gold production.

On a like for like basis MTL should be valued around 4p a share (£80m m/cap) as a bare minimum right now - there has been no recognition for significant debt reduction or massively improved production/financial performance.

This has to be the cheapest gold producer on LSE currently - that cannot last, the market makers can play their games but ultimately value will out.

Nothing available online currently, a premium being asked for just 50,000 with IG, most online brokers are 'at best' only, the shares are bargain basement - most holders see value way beyond 5p (£100m m/cap) so very little stock around makes it increasingly harder to get a decent buy order filled.

The worm has finally turned here, equity holders should be handsomely rewarded in due course.

Well done to all those that followed me in to ORR around .12p, the share price was hideously oversold and undervalued - the change of policy concerning dilution was the key, I have taken profit here only because technically the stock is now overbought (but most definitely not overvalued) and there is a small matter of 188m .25p warrants sitting in the background that need to flush.

My view is ORR will be a major winner for holders, you can see how fast the stock moves, there is every chance of1p+ buyers seeing your money back IMO. Still think a Cameroon JV or sale of Senala is on.

I rarely talk about other outfits on this BB or any other come to that but it seems a whole host of well connected individuals are buying KEN (Kendrick Resources) - they are Main Market listed - currently have £2m cash raised at 3.5p last year - m/cap £3m - are now trading at a mere 1.1p - might be worth a look for those who have punt money available - many believe 3p-4p is nailed on due to news/recovery play/momentum is all it takes !

DYOR etc

Still no leaks from the usual suspects concerning a placing so good news indeed, if they announce alternative finance the shares will recover strongly, if they secure the sale and leaseback of the Gabon property for $15m the share price will rocket from current levels.

Not for widows or orphans, there is risk but there may be a decent money making opportunity from current levels.

I see this low volume as a very positive sign, I remain convinced there will be no placing and they will secure alternative finance, maybe the sale and leaseback of the Gabon property, could they achieve $15m as suggested in the recent RNS.

' Company exploring sale and leaseback of its two unencumbered real-estate production sites in Gabon valued at $15m in 2021'

'Company currently expects to deliver further growth in profitability and to achieve positive operational cash flow during 2023'

Net debt now down to circa £50m and the equity valued at just £36m this company is materially undervalued, the market has not reflected the ever improving operational performance, improved financials - the debt is dropping around £10m each quarter.

At 3p a share the company would be valued at a mere £60m - that is where the SP should be now IMO, it will get there, the current price is bargain basement.

I still maintain this will be 5p by year end.

I can confirm that the larger trade published late on Thursday was almost certainly a buy, it was possible to buy decent size at .41p for most of the afternoon - the penny may be dropping for any entity short that they need to close, the risk is simply too high for them, IF WBI secure non equity finance the share price will almost certainly return to 1p+ IMO.

Checking around last night I see no signs of anyone suggesting a placing is coming, remember the last one was leaked well in advance, in my view WBI is looking good for a decent bounce - again not for widows or orphans but there is a real chance of a very decent trading gain ahead from current levels IMO.

Expect to see more large trades as short positions close out.

DYOR etc

A lot of effort is being put into bashing WBI on this site, may I suggest it is being done for a reason - commercial gain. I remain convinced there is a naked short position here - IF WBI deliver non equity related finance these short positions will have to buy back in the market or get seriously burnt.

Still checking various 'names' and locations who leaked the last placing at 1.2p - stony silence, by now one would have thought the placing hats would have gone around - there are strong grounds that WBI may secure alternative finance - if so it will be happy days for buyers at current levels.

DYOR etc

POW have just announced some indifferent drilling results from Botswana, it was a project Paul Johnson was ramping aggressively last year, their need for cash is far more desperate than at Red Rock, this IMO adds further weight to the potential of a sale of the New Ballarat Gold licences.

If RRR can get their act together in Zimbabwe re lithium production, sell New Ballarat and then pursue $10m Congo cash the company will be viewed entirely differently.

There is nothing in the share price for any of these events, RRR is basically valued as a shell, that is bordering on crazy IMO.

Someone is buying largish lines of RRR stock under the radar and Bell is very quiet !

A great deal of effort is being put into bashing WBI, one wonders what the naked short position is here, still no leaks or evidence of forward selling so I still rule out a placing - that may be very detriment to the short positions who will then have no option but close in the market.

Bear squeeze comes to mind.

DYOR etc

The tight free float is the key here, the SP will recover quickly on modest volume, news cannot be far away, I have been adding whilst it is quiet, the drop from the recent 44p to current is totally unwarranted IMO.

This is starting to play out as I expected, I do not see a placing ahead, Doc Holiday was one of the folks that leaked the WBI placing at 1.2p last time but this time Doc has taken a position in WBI.

https://twitter.com/DDS_DocHoliday/status/1648988698233430018?s=20

I can see WBI securing non dilutive funding - the BOD are very well connected, if this happens the share price could easily recover back to the circa 1p range PDQ

DYOR & no advice intended

I expect

Update today from Power Metals (RRR JV partner in New Ballarat Gold) they mention in the IPO section upcoming IPO's and disposals in the same light - I do wonder if RRR's licences in this very gold endowed area could be sold for a decent price, they are surrounded by companies with deep pockets, clearly, to date, there is no value attributed to them in the stock price of Red Rock or Power. A sale, as opposed to an IPO would make perfect sense therefore.

Could the licences fetch a number in excess of £10m - maybe a mixture of cash/shares/royalty to RRR/POW

Speculation of course but POW is under new management and RRR would most certainly appreciate the cash whilst the company pursues the Congo $10m settlement.

There is very little in the RRR share price given various possibilities across numerous projects in the near term.

Someone asked about the SP drop from 22p right at the end of Q&A and further asked about funding, the question was not really answered by the CEO.