Member Info for Helpful

I agree that RRR needs cash. It is the same for RRR as for all other exploration companies: they either farm out or sell assets; bring an asset into production; rely on the capital markets.

The El Limon mill will be back in production shortly and that will provide some revenue. RRR has a number of assets it can and should sell/farm out. As I have said repeatedly, Kenya and Victoria should go. ALR I expect that they will do a JV and then revenue will start. DRC, who knows? It could be any day.

DYOR

Https://www.newswire.ca/news-releases/soma-gold-reports-2nd-quarter-2023-financial-results-844139811.html

"Continue the process of formalizing the small miners working on the Company's concessions to result in 10% of the ounces produced be from these small miners.

Determine whether to restart the el Limon Mill where it is or to move the mill to the El Bagre Gold Complex. This decision will be driven by a combination of initial capital cost and long-term operating costs."

"Javier Cordova, Soma's President and CEO, states, "Our team has delivered another strong quarter, and we continue to perform in line with our 2023 plan and guidance. We anticipate a strong finish to the year as we continue to ramp up production to meet our aggressive growth objectives for the year. Our plan to expand milling capacity by re-starting the el Limon Mill will position us to meet the growth plan for 2024 and beyond."

So no doubt that they will restart the El Limon mill: the decision is whether to operate it on the current site or to move it to El Bagre.

DYOR

Well the problem with that Banboring is that you take your view and present it as fact.

You are assuming that your comment "slippage" means no or little value. The biggest problem I have is that I know stuff which while it might not be price sensitive, it might be commercially or regulatory sensitive. This relates to lots of companies I am invested in. For instance Elephant is going through a listing process (yes I know, again) and that restricts what management can say or publish. For instance, Elephant has a CPR for Benin: it can't include it in the S1 (SEC rules). The S1 refers to it but gives no detail: I have the CPR.

1. Elephant; not under AB's or RRR's control.

2. ALR not started sales but is much further along with a much bigger project now.

3. NBGC, my view is that the joint ownership is a problem. I have told AB that either the ownership needs to be sorted or the whole thing sold. Why it cannot be listed is beyond me: some complete dross has been listed over the last 12 months. I suspect that the ownership structure is the problem.

4. News on Kenya renewal is due and then they can make progress. Nothing can be done until the renewal is sorted.

5. DRC It is either done or not done. It is close and has been close for a while but close is not done.

6. Soma should confirm its plans for El Limon mill this week.

And so on. On some of the assets, my view is that the value is too high and on others too low. ALR is well wrong, for instance.

DYOR

Https://www.rrrplc.com/wp-content/uploads/2023/01/FEQ-Red-Rock-Resources-19-01-23-Buy-Note.pdf

DYOR

so you constantly **** off ab and rrr because your problem is me?

the reality is that you have nothing useful or interesting to say about rrr or its assets and you don't like someone who understands what is happening showing you up. all of the trolls on here (the majority of which are either non-shareholders who have a gripe against ab from long ago or are traders looking to get lower buy price, as in lowlife's case) have nothing substantive to say except that their thoughts, suppositions, feelings, anticipations outweigh facts on the ground. none of that affects the fact that rrr has a holding in an asset, alr, that is worth serious money.

get back to hugging your losses from ten years ago. how many times do we have to through your pet falsehoods?

dyor

Non-shareholders hoping to drive the price down.

Read the earlier posts about Risk On and a metals rally.

It seems that the market and the metals market in particular are headed for an upswing. It will affect RRR but more important is the awaited news on DRC, ALR and one or two others. And always, there is the possibility of something left field.

DYOR

Https://twitter.com/TheMarketBullAU/status/1696355283344499067?s=20

Sell in May and go away is nearly over. More signs that risk on is back?

DYOR

Https://twitter.com/saxomarketcall/status/1696434762737430938?s=20

If this is right then metals are heading higher.

DYOR

Dukey, forward looking statements by their nature are; likely, probably, possibly, perhaps.

Certainty is only appropriate when something has already happened and even then there can be doubt.

The FEQ model said 300,000 tonnes of 2% lithium sold over 5 years. Models aren't reality otherwise they wouldn't be called models, they would be called reality. That is why the FEQ model includes a reduction in the NPV10 to address uncertainty.

All looking good but not quite there yet.

Well done on the not posting at 1am over the weekend.

xx

Https://twitter.com/KitcoNewsNOW/status/1696205390529302540?s=20

Quelle surprise! The information is out there

Trade/Spec,

RRR has already put out a volumetric analysis: the First Equity report from January. In practice the only source of data for FEQ was RRR: they put in provision for uncertainty by reducing the NPV10 by 35%. If the FEQ report is misleading, why does RRR have it on its website?

The above was based on the stated plan at the time: top ten metres, 5,000 tonnes pm at 2% grade sold locally.

Well we now know more and we can do an order of magnitude comparative analysis.

1. We now know that at least some of the material is 3%+

2. We know that material at surface tends to be lower grade than deeper down because of "weathering": lithium is volatile.

3. We now know that the pegmatite PEG 1 continues to depth and is not solely at surface.

4. We now know that the geologists have identified three pegmatites on site and suspect that there is a 4th that they have missed and that all continue into the hill and at depth.

5. Each of the above is a multiplicative factor.

True it is not possible to say with certainty what is there without drilling. Drilling presents a number of issues; it probably puts any revenue into next year and it costs a lot of money. The original plan was based on that what we could see at surface was what we had and the Zim rules at the time.

So whether Tin Hill is now 5x or 10x or 30x it is now a lot bigger than thought a few weeks ago and so is the project.

The FEQ report on Tin Hill said $39.2mil for the NPV10 and that was without; the grade being 3%, the product being sold for export, PEG1 continuing to depth and the discovery of the other pegmatites.

DYOR

Maybe, maybe not. They are just as likely to get a bid from the parties they are talking to; look at Prem and Prospect. In effect Canmax farmed in using the offtake agreement and funding as leverage.

The question is, at what price is AB likely to sell?

I have been looking at earlier offtake agreements agreed since 2019; most were done at much lower lithium prices. When the Prospect deal was agreed the lithium price was much lower and they used a much lower price for the modelling the DCF.

My view is that he would want to sell if anything between $50m and $100mil was on the table. The reality is that any deal would be at a huge discount to the DCF: no idea where the line should be drawn for fair value.

If what ALR says about Tin Hill is true then there is possibly 12+ times lithium in place compared to the model prepared by First Equity. Marginality means that the extra volume is more profitable because the fixed costs of preparing the site already in for the first First Equity calculations. Possibly more CAPEX would be required whether we mine in-house or appoint a contract miner.

IMHO with hindsight both Prem and Prospect did their deals too cheaply. But......timing, we can't control timing.

Brian Gilbertson who AB lurves, used to say to him, "in mining, if you want to be become more profitable, you get bigger" what that is referring to is the marginality of production. The fixed costs and the capex is spread over more units of production and so the marginal profits are greater. Tin Hill is a lot bigger than AB and ALR/RRR thought a few weeks ago.

DYOR

Https://www.reuters.com/markets/commodities/chinas-canmax-resolves-lithium-offtake-dispute-with-premier-african-minerals-2023-08-15/

Sampling. Some people will say anything to make it look like RRR has a problem.

Three types of samping really, used for different purposes.

ALR has already sampled the outcrops in Peg 1, has sampled the stockpile at surface so why sample again? Well an off taker wants bulk samples taken at intervals and wants it done under supervision. Sending the samples to two labs ensures a degree of confirmation. What should happen is that both labs come back with broadly similar results.

Grade, we already know that at least some of the grades are in excess of 3% from previous sampling.

The new sampling will involve trenching at intervals. So it is a much bigger job with a greater volume of material sent for sampling.

I don't know this but the testing of the samples might be more detailed in that it wants to confirm metallurgy and contaminants.

But nonetheless, everyone should take our resident "experts" at face value.

DYOR

Https://twitter.com/robert_ivanhoe/status/1695815973952221594?s=20

DYOR

Http://www.scielo.org.za/pdf/jsaimm/v115n11/14.pdf

DYOR

Https://www.semafor.com/article/08/26/2023/zimbabwe-election-won-by-president-mnangagwa

DYOR

Get back to your Buckfast Breakfast.

I am not from Salford you socialist plonker.