Member Info for Helpful

1. You are assuming that I am assuming
2. AB has already put in the public domain that NDAs have been signed in respect of ALR
3. As usual swamped by experts who have little or no knowledge
4. What is that? Not a shareholder and never has been but still an expert?
5. Get back to your knitting

DYOR

It would have to go bust and its assets be worth less than the claims against it. The equity holders might have an issue but the CLNs rank ahead of them. Of course you know that, so why ask?

The claims against RRR would be fairly small and the proceeds from selling ALR would likely cover them.

DYOR

So how far were you into your bottle of gin at 21.41?

You either didn't read my earlier explainer on CLNs or you did but didn't understand.

There is no downside to the CLNs.

Posting information is not ramping. On the other hand if you are so certain that RRR is a crock why do you need to try to run AB, RRR and anyone who is not in the troll gang down so much?

If you are so right, just sit back, watch and smile in due course.

DYOR

The appeal is on the costs award, not the damages and compensation.

https://youtu.be/EVF0ojfhSrE

Dukey, and you have just revealed why your analysis is poor. Never let feelings get in the way when making investment decisions.

The tailings are not the family jewels, they are just another asset in the portfolio and are currently valued at zero. There are actually two sets of tailings at Migori: Macalder and An Other.

It just business. The Macalder tailings are on land owned by the local government; hence why we need their agreement and permission. The last election changed matters on the ground.

Ideally Macalder gets flipped and that can fund the Kenya overhead and a drill programme to get Migori ready for a decent JV.

DYOR

No just as I nearly always do, posting facts.

The licence renewal application should have gone in now. The licence should be renewed before August. The big issue was that we had to give up part of the land area that was subject to the licence (standard on renewal). They had to agree amongst themselves which bits to give up. Then the reason nothing happened on the tailings was that we needed the national permit plus the local govt permit. In the absence of the local govt permit, nothing could be done. Now that the election is out of the way that is a different matter.

If we can get the renewal done and then the local govt permit, the tailings can be flipped. Probably not for a huge amount but maybe $2/$4mil. The people who would take it would a Chinese company and we so we wouldn't want to JV or take a profit share or a large royalty. As a few companies have found being in a JV with a Chinese company can be fraught: so it would be cash upfront and no returns. Sold as seen etc.

The metal in place on the tailings is probably around $220/$230mil ish but putting it in to production would cost us too much much and we don't have the management bandwidth to do it successfully. Much better to flip it and move on.

DYOR

Two things: the license needs to be renewed and the local govt permit has to be issued. We already have the national permit.

Then it can be flipped.

DYOR

Indeedy.

We are not there yet but the fat lady is getting ready. It turns out yesterday was National Independence Day in Zimbabwe and it is a national holiday. Another small delay.

Fingers crossed.

DYOR

Oh I see you have put your logical head back and resorted to rational argument...

Thanks for proving that I was right, you do zero research. Peter Elliott is very important going forward.

More than zero, which is effectively what it is worth to RRR right now. Is that clear enough for you?

There is no downside to Elephant listing from RRR's point of view, only upside. No one, not even someone as educated, informed and insightful as you, knows what RRR's position will be worth in 6 months. The only thing any of us know is, if Elephant lists, RRR will be in a better position than now. Hence, why I said between $1mil and $2mil.

To know what it might be worth in 6 months time anyone would have to know a lot more than is in the public domain right now and know what is going to happen over the next 6 months. We don't even know what what the long term oil price will look like in 6 months. We don't know what the USD/GBP exchange rate will be and so on.

One of the directors of Elephant is a chap called Peter Elliott: an interesting chap. It might be that he has some ideas on how to create value in Elephant post listing.

DYOR (even though you obviously don't)

Winnie,

It is one less issue for management to deal with.
One dispute has been resolved to AST's advantage
The other side was adamant that there was no deal to be done but hey presto!
This bodes well for the other dispute, maybe a deal can be done there too
AST should now have monthly recognition and receipt of income (not huge amounts, true)
Whatever downside you attempt to create, it is better than not having the money

What management does with the money is a separate issue. Overhead should now be covered from here until December and that is materially better than having to raise to cover overheads. It means that any fund raise can go into a deal or deals.

DYOR

As I said, you get the wrong end of the stick on everything.

https://www.sec.gov/Archives/edgar/data/1898766/000149315223008934/forms-1a.htm

If you read the Trio S1 its proposition is materially less attractive than Elephant's, yet Spartan got it away.

At the moment Elephant is a private company with no funds and with no production but it has assets and it is not operating in a politically difficult jurisdiction such as California. So for RRR Elephant will be in the books at zero or not far from it until such time as it lists.

Once Elephant is funded and listed then it can be revalued not withstanding the lock in. Suddenly, RRR has an asset on its balance sheet that might be valued anywhere between say $1mil and $2mil. That is materially better for RRR than the current situations. Everyone will know once the lock is released that RRR can trade the shares.

When these companies list, they have a three week SEC imposed quiet period. So everyone knows that not much is going to happen for three weeks: anything that is going to happen in that first three week period is supposed to be in the S1.

The SEC rules about what can go in the S1 are fairly strict and there may be information that the company would like to put in the public domain but the SEC rules do not permit it. Once the quiet period is up then the companies have more slack about what they can put in the public domain.

There is no downside to the Elephant listing from RRR's point of view. The main thing is, can Spartan get it listed? The track record and the Trio listing suggests it can.

FYI I was offered Trio at an early stage and said no, precisely because it was in California.

Elephant's current assets are in Benin and Namibia both jurisdictions that want and support O&G investment and development.

Hopefully, they should get the nod from the SEC shortly and then they can start the fund raise.

BTW Recon Africa should be restarting operations in Namibia shortly, which will be good for Elephant.

DYOR

https://twitter.com/Amena__Bakr/status/1648561260345081857?t=nudn6Z3wd0Ue4c-PeBw17g&s=19

https://twitter.com/JohnLeePettim13/status/1648398812271067136?t=0g0SFCe0qYCcfZKXUmxVqg&s=19

Another example of how you unfailing miss the point.

You were stating that Spartan had no book-building power and would not be able to get Trio or Elephant funded. Well, events have proved you wrong in the case of the former and we will see in the case of the latter.

Your views don't change reality. Spartan did the job, regardless of what you think.

I expect that Spartan will get Elephant away too. We just need the nod from the SEC and then they can get on with it.

DYOR

https://www.nyse.com/quote/XASE:TPET

https://www.sec.gov/Archives/edgar/data/1898766/999999999523000953/xslEFFECTX01/primary_doc.xml

So that is the last bit. It should be trading today.

https://www.globenewswire.com/news-release/2023/04/18/2648566/0/en/Trio-Petroleum-Corp-Announces-Pricing-of-Initial-Public-Offering-and-Listing-on-NYSE-American.html

Exactly the same team that Elephant is using.

DYOR

https://twitter.com/RRR_RedRock/status/1648240451193917441?t=UFhuhTh8jdowxGGdZyV9aA&s=19

https://twitter.com/Lazerblue/status/1648070346417885185?t=V6LB5Hwwlmegfz8XUZPqQw&s=19