RE: RNS29 Dec 2021 17:46
You need your head examined not the major shareholders.
NBGC/RRAL is about to list. That needs doing; AB will be an NED. Nothing must get in the way of that being completed. He is the one that is pushing it through the system not Paul Johnson.
Migori is getting to the stage where we have a decent amount of drilling done and we should end up with an upgraded JORC. Migori is looking better for some corporate action: either selling it, JVing it or spinning it out. Again, AB is critical to that process. Whether AB likes it or not Migori is getting to the stage that it is too big for RRR to progress on its own. He thinks that there is up to 10mil ounces of gold at Migori: that will cost more than RRR can afford now or in the future. And that is regardless of Elephant Oil and NBGC/RRAL listing. Even if he sold the whole holding in Elephant and NBGC it still wouldn't fund the work at Migori. On top of that he has other stuff that needs funding.
But most important are the legals in DRC. AB has to stay in place to guide that through the DRC court system in respect of the VUP case and then deal with the Glencore case in due course. IMHO the likely outcome from these two cases for Red Rock is a multiple of the current market capitalisation. The next hearing in the VUP case is not far off. At the very least RRR should be due 50.1% of $20mil. However......
Is that the $20mil the full amount paid over by Glencore? Why would Gecamines get involved with a backdoor deal for VUP to benefit by $20mil? If Glencore was willing to pay $20mil via the backdoor what would they have been willing to pay via the front door?
Getting rid of AB now or in the short term is a recipe for the destruction of RRR's value. If we binned AB, who else is going to pick it up and make sure we come up with a decent result in DRC? AB is the one who has all the relationships, speaks French, knows all the parties involved, including the advisers, and was intimately involved with the JV discussions: the other are NEDs. What being an NED means, is that they pretty much don't get involved.
DYOR
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