Member Info for HawaiifiveO

This has appeared on Twitter -

KEY TAKEAWAY. All projects on course.
DRC - still expect positive outcome soon ??
EOC - still expect imminent listing ??
Australia - still plan RNS of drill results when samples all back ??
ZIM - lithium Environmental Impact Assessment ??
No change. Set fair.

A lot of companies out there have poor prospects. Ours are much superior, across the board. We are working hard to accelerate delivery.

Quite a lengthy tweet 6 parts in total

https://twitter.com/RRR_RedRock/status/1633458203869724673

Let's face it the sector is atrocious, just about every sector minnows share prices are in the gutter, bulletin boards are awash with criticisms of management, the average fall from the highs of Q1 2021 is approaching 80% for most, some are even down 90%.

The one lifeline here is, as Bell explained in the interview, is the Congo cash, the state company has $15m sitting there ready to distribute once the court procedures are finalised, RRR are owed $7.5m - Bell is, once again heading for the Congo, he is also visiting Kenya and Zimbabwe also, between the waffle some nuggets of hope came through.

Bell also said upcoming news concerning New Ballarat would please the market, at current levels RRR is probably worthy of a punt, there are many sector juniors where there is no hope at all in current market conditions.

DYOR etc

I'm sorry but getting into this Discord set up is more challenging as trying to work out the situation at Rambler - not prepared or able to understand the process, having to set up an account, provide DOB, email addy and password, then trying to find the RMM group, send another email address and then confirmation of holding, then receive an invite etc etc, sheer lunacy if the group is really serious in attracting new shareholders.

A more simple procedure is required.

The RIG need to be more accessible if they want growing membership, no doubt there are many smaller shareholders who may consider their holdings insignificant but if they all combine it could easily add a few percentage points to the RIG holding.

I have seen links to this 'Discord Group' others have suggested they do not work and the process seems onerous to the less savvy, I personally have tried and am getting no-where, I have no understanding of Discord and as such have no real interest in joining - I have been involved in a couple of shareholder actions involving AIM companies (albeit in a minor capacity) in every case a email account was set up and holders could email their positions and regular email updates were forthcoming.

Clearly joining Discord is not plain sailing, as such a second line of membership is required in my considered opinion.

One wonders why a quite well known mining correspondent and 'information analyst' is currently in Nicaragua, again more speculation, news of some kind has to be forthcoming shortly.

https://twitter.com/PaulHarrisGold/status/1631798399937675264?s=20

It is worth noting that companies often comment on bulletin board rumours, as I said book5 does seem to have local contacts, he says representatives of Zhaojin Mining have been on the ground so make of it what you will, in this instance I do accept it as more than likely.

It would make perfect sense to sell the project to the Chinese as they are relatively immune from the political scene in country, one thing is very clear Zhaojin has a balance sheet strong enough to make a $100m+ offer almost out of petty cash.

I suspect an update is not far away.

It is fair to say that I do not have much time for Book5 over on A@VFN, he has been bashing Condor ever since they put the project up for sale, he does however have contacts on the ground in Nicaragua.

He has now suggested that Zhaojin Mining has been on site recently and has previously implied the project will be sold to the Chinese, this makes a great deal of sense.

In the absence of news speculation is all one can comment over, IMO there may be some substance in this.

https://en.zhaojin.com.cn/

Below is Bradbury's comment on the financials in July, the article itself (link below) was exceptionally bullish and no doubt led to many retail investors buying the stock.

' I should emphasize that we are comfortable with our capital structure for the current operations. Any future capital requirements would be for expansion opportunities only'

Reading the Court Notes this evening the financial situation was anything but comfortable - I cannot recall such events before involving a CEO - comments seemed so far away from the actual reality of the position.

I only have a small position here (thankfully!) but was hoodwinked (like others) thinking RMM was a recovery play based on the suggestions of the CEO who implied the financials were of good standing at the time. Not so at all.

This article needs storing as I expect it will shortly disappear off the RMM website.

https://ramblermines.com/storage/properties/rmm-metals-news-july-2022-1657288277.pdf

For those interested I was informed a few years ago that a outlet like Proactive would charge a company circa £30k a year for their 'services' this would include media interviews, written coverage and 2 presentation events (usually in London)

Every now and then you will see an AIM company issue shares to what they describe as ' a service provided' often to the value IRO of £30k.

Over recent times I have noticed companies prefer to spread the PR across a number of providers, Stockbox, Crux, Sharetalk and Roast come to mind - my bet is a company will budget £30k-£40k for PR.

Cost for a stand at the UK Investor Show as an example was IRO £5k for the day a couple of years ago, more prestigious events over 2 or 3 days like Mines and Money were circa £20k.

I would imagine a 30 minute interview by Roast or Zak would cost a relatively modest sum therefore.

Someone bought 2m at .38p towards the close.

You get the feeling something is brewing, checked online today and it was very hard to buy in any size, they were NT only for a very small quantity of stock this morning.

Add to the mix those 1m+ buys that have been printed late it does seem, yesterday there was a 1.75m buy towards the close.

With so much going on it makes you wonder if there is going to be some material news announced finally, it was interesting that Bell did not mention the Congo cash in the Vox podcast, maybe those wriggly entities are now out of wriggle room and finally RRR will get the money.

Only time will tell.

Bought in yesterday, the stock is materially oversold, end September they had cash and receivables of $6.5m against liabilities of just $2m - so the stock is trading around cash currently.

Put bluntly it is too cheap and due a significant bounce, the drop in December due to the auditor resignation has not been recovered either, there were many auditor resignations on AIM around the same time and GST acted quickly to appoint Shipleys.

I have traded GST before and made decent returns, timing is key, the RSI is a bombed out 28, it has bounced hard from this level historically.

1.5b shares in issue, m/cap only £4.5m, it was £40m this time last year !

Link to interview, 2nd attempt.

https://tinyurl.com/5n94urp8

Here is the link to the Vox podcast

https://tinyurl.com/yhj4fkcs

I noticed that Panther Metals managed to IPO on the ASX back in December 2021 on the back of their gold, nickel tenements in country - they raised $5m and attained a market value of $11m, this IPO was carried out in far worse market conditions than current.

The question is why Bell has not managed to IPO New Ballarat therefore, one actually wonders if all of Red Rocks projects are restrained due to lack of cash - this lack of cash is entirely due to Bell being unable to deliver a sustainable market capitalisation north of £10m for over 10 years, for most of the time it has not exceeded £5m.

Due to Bell's inability and lust for dilution a share price of 1p would now deliver a market cap of £14m - such a valuation has not occurred since 2011 when the main value driver was the stake in Jupiter Mines and hopes of imminent Columbian gold production.

Someone posted earlier that Red Rock was a one man band, it is, the man in question is VERY clever, he has created a situation when failure is the norm but his position in the company is as solid as a rock (no pun intended), he has in place a small group of 'supportive' major shareholders, why do they support him? - no wonder a few voices have suggested a forensic audit should be carried out.

On paper one major shareholder who owns circa 15% must be down over £500k on his initial investment but he continues to support Bell.

So what is to come, well my predictions last September that Bell would not list New Ballarat, no JV in Kenya, get the Congo cash or Elephant Oil listing by year end proved correct, I was chastised at the time - I now put it on record that I fully expect none of the above will happen this year either.

We await the Lithium project which is supposed to deliver revenue, it seems too good to be true, what could possibly go wrong with Bell in tow.

The Elephant in the room (and this is not the listing of Elephant Oil) is the fact Bell has put in place a death spiral facility for 24 months, clearly the hope is that Red Rock will receive Congo cash and pay back the lender to get shot of the facility however without that cash we will suffer the consequences - one thing for sure you will not get Helpful boast about how wonderful the finance package is.

The recent broker note never even mentioned the death spiral such is the quality of their research, they knew it was there and the consequences it will have on the share price but hey ho let's forget it and hope the uninitiated retail punter will buy the stock anyway with their ridiculous target price of 2p.

It is interesting that Paul Johnson over at POW can still get placings away at mid market price but Bell has to go the route of a death spiral - you could put it down to his underperformance over 18 years and market reticence towards the fellow.

Bell has gone totally silent on the Congo situation, that is not good, the man has an ego as wide as the Dartford Tunnel and would be shouting from the rooftops if he felt the money was inbound so the silence is certainly not golden.

Make no mistake Bell has no interest in the share price so long as the BOD get their £300k pa + expenses.

Am I disappointed about lack of progress over the last 18 months, you bet !

For what it is worth I fully believe there will be a JV announcement in the relative near term, the reason being ORR have openly admitted for the first time they are seeking one for Cameroon. Clearly if they announce a JV it will be a game changer for the shareholders as it will end the dilution spiral.

I also expect ORR to sell their remaining stake in Senegal/Senala, the JV ends in March next year, by then the new owners Managem will own circa 70%, the minority position held by Oriole would be a nuisance to the major - I expect a deal where Managem will buy ORR out, historic spend by Stratex/Oriole is circa £7m - ORR would then retain a NSR interest. This potential scenario has been discussed in historic presentations by Tim Livesey (the CEO) - it is not without foundation.

In between these potential deals the Muratdere EIA will be announced, this will enable a sale of their royalty for $1.5m-$2m - the expected £400k tax rebate should come in April, or sooner !

In conclusion I see significant upside ahead, this is probably why the BOD have been happy to be paid a portion of salary in shares, I do not expect to see any more dilution if the above pans out - there is nothing in the valuation to account for corporate action at all.

With 2.7b shares in issue Oriole are valued at a mere £3.7m - if they can sell 30% of Senala for £6m-£7m (recover historic spend) + recover spend in Cameroon (circa £4m) cash inflow over the next 12-18 months could amount to circa £10m alone.

I have been building a position accordingly, the shares are in the gutter, but not for much longer.

DYOR etc.

Never mind you can meet Condor at Master Investor on 18th March, you know the show where Jim Mellon gets on stage and preaches all things Condor - the last time he was suggesting, when the share price was circa 45p, that the company was one of the best gold stock opportunities on AIM.

Little did we know he demanded warrants and conversion of a £1m loan both at 15p a share 12/18 months later - talk about shafting his flock.

Taken a few here on the basis the stock is materially oversold, the RSI is the lowest it has been since Q3 2021 - it has fallen from 81 in early January to 28 today.

Time will tell.

I think it is pretty clear now that getting the money out of the Congo is going to be a long winded process, I had hoped Bell would conclude the matter at his 3rd attempt but it seems that is not the case.

The next item on the agenda is the listing of Elephant Oil, it was supposed to IPO today but that is not the case according to the Nasdaq website

https://www.nasdaq.com/market-activity/stocks/elep

So in all a rather fruitless week, full of hope and expectation but, as usual, like all things Red Rock/Andrew Bell a major disappointment.

Very surprised there has been no update nonetheless.