Kenya Gold7 Jan 2023 09:14
The increasing gold price should draw some attention back to Kenya, the project itself is a bit like the antics of Bell, very confusing.
Having looked at historic presentations the focus appeared to be on near term cash generation from old tailings dumps and near surface alluvial mining, all would have been low cost, it never happened. Bell was challenged last year he suggested although viable the intent was on securing a JV partner as the project was too large for Red Rock to handle on it's own. It never happened - nothing new of course.
Bell was tackled on why there was not some co-operation with Caracal Gold who had recently listed on AIM and has a mine nearby, it seemed to make some sense, something rather than nothing you may suggest. At the time they were looking for new ground and being LSE listed some tie up would have been logical.
Bell was asked about Caracal mid year, rather than look at this as an opportunity he decided to attack Caracal by implying their governance was questionable and pointed to them being Main Market listed (less regulation) and their mine whilst producing was running at a loss, he also said he would not want their paper (shares) as he considered them to be overvalued, well there you have it.
During a Caracal podcast Red Rock were mentioned as neighbours in Kenya, the director stated he felt RRR ground in Kenya had low grades, they did not seem too interested and eventually acquired another project in Tanzania, maybe their hostility was caused by Bell berating them - who knows, an opportunity missed IMO.
Having listened to the Christmas chat with Bell and the geologist from Zimbabwe Kenya was mentioned at the end, Bell seems to be a a loss to know how to move things forward (no surprise there) he asked listeners if there was anyone interested in the Kenya ground to contact him? Well let me assure you no mid cap or major would be listening to a podcast from Bell ahead of the Xmas break, or at any time of the year come to that.
The next matter concerning Kenya is the licences are up for renewal, very little work has occurred, one would hope they will be renewed however. The obvious issue with all things Red Rock is the company has too many projects and is hopelessly undercapitalised - something the 'major shareholders' seem to forget (what's in it for them) however they continue to support Bell and his flipping of news-flow, project to project.
Whilst Kenya probably has value, does anyone here really think flip flop Andrew Bell has the ability to either find a meaningful JV partner or complete any corporate deal at all? I doubt it.
Bell has ongoing illusions of grandeur, the thinks all his projects are worth hundreds of millions of dollars, the truth is Red Rock is valued at sub £4m, until he goes it will remain a £3m to sub £10m company, like it has over the last 10 years.