Member Info for Helpful

Next door neighbours

https://twitter.com/theminingmaven/status/1279657524497649674?s=19

As I said...

https://twitter.com/TereaAfrica007/status/1279701717232300034?s=19

Things going well for RRR at the moment. Lots of news on the way.

DYOR

Looking pretty good to me.....

What do you reckon Tragic? News on Migori, news on DRC, news on Victoria or news on JMS?

I reckon I will be taking you off filter pretty soon.

DYOR

Maybe but TOMCO has not been able to make it work. For the moment oil sands and the PQE tech is and should be front and centre. With a bit of luck and a following wind TOMCO might have its first 10k bopd plant producing towards the end of 2021,

Turbo shale is waste of money.

They have plenty to do. They need to survey their acreage and establish how much of their acreage has oil sands rather than oil shale. They need to sample it to identify where the areas of high hydrocarbon content are. They need to develop a mining plan. They need to select the site for their own 10,000 bopd plant. They need to put the mining plan and the development plan into Utah and the county to get business approval and a license for hydrocarbon extraction. They need to line up the debt funding, they need to line up the offtake agreements, they need their distribution plan (do they sell locally or in LA).

On the debt side they will need to develop a banking feasibility study which will contains all the elements above. The Petroteq plant will producing circa 500 bopd and an offtake agreement is easier but if TOMCO is going to produce 10k bopd on each plant and intends to develop multiple plants it will need robust long term offtake agreements.

DYOR

Still nibbling.....

What do you reckon Tragic? News incoming?

Ah well.

The object of owning a share is to make money. The way to do it is either buy low and sell high or hold it for dividends. Are you telling me you have been holding NTOG for several years because you expect dividends and you think I and others should wait on your investment advice?

Funny guy.

Very few companies on AIM pay dividends and partly that is because AIM doesn't see itself as buy and hold market. AIM judges itself on how much capital is raised. You might get dividends out of NTOG but I would suggest that is at least 12 months off. The first objective for NTOG is to get to break even, then to fund capex out of income and then fund dividends.

In my view , I have told ML this directly, NTOG needs to bolt on two or three smaller deals that each give it 25/40 bopd and then look for larger deals. The Cypress deal is a nice one, I expect that the first well will be producing say October. I expect 100bopd to 150bopd. NTOG has other acreage that are potential farm ins: it could potentially get to break even via farm ins without funding anything substantial itself and then look to pick up other deals. If it can add 100 bopd via funded farm ins then it will be in a very good position for 2021.

DYOR

Listen Titan I couldn't give a monkeys about what you think or not. I was responding to the question about the WI position. If you understood the question and knew the answer why didn't you respond? I look in periodically, someone asked a question and I answered it. What is your problem? Perhaps you should swap information with posters a bit more often and cut down on the bile?

And PS, yes I have repeatedly made money on NTOG, how about you?

DYOR

Yep.

NTOG was 100% WI on Pine Mills on 80 acres Cypress has farmed in. The intention is to drill a number of wells but on the first one Cypress was going to pay 100% of the WI but actual WI split on the well was 75% to Cypress and 25% to NTOG. NTOG has said that Cypress will spend $800k on the first well and so NTOG's carried WI of 25% is worth $200k to NTOG.

NTOG would then have 25% of the production after the mineral rights holder got paid out. The mineral rights holder takes 25% and so NTOG's NRI (Net Revenue Interest) would be 75% x 25% so 18.75%. So if the well produced 150 bopd then NTOG's share would be 28.125 bopd and the cost would have a few dollars on legals.

Separately, NTOG has elected to farm back in for 10% WI and so its NRI increases by 7.5%.

On any other wells drilled NTOG will need to come up with 25% of the drill and connection costs.

DYOR

Still nibbling.

https://www.bloomberg.com/amp/news/articles/2020-06-29/copper-heads-for-best-quarter-since-2010-as-supply-worries-mount?__twitter_impression=true

Looks like our buyer is still nibbling.

https://www.bbc.com/news/amp/uk-england-cornwall-47041314?__twitter_impression=true

Yawn...

As with all these things, the question is what are the assets valued at now? I think it is quite obvious that Migori and Victoria are valued at nil or near nil in the share price). Any uplift in share price can be deconstructed into its various elements. So there are some other gold companies out there that have decent assets, decent management and are fairly valued: any uplift in value there is relates solely to the change in the gold price. That is not the case here.

Not that you would know this because you already know everything and therefore have no need to check anything but AB has said publicly multiple times over the last year that he has a JV agreed for Migori.

POW and RRR have also said publicly that they intend to seek a separate listing for the RRAL assets: what? So they intend to seek a listing for a bunch of assets that will have no value? To list on the TSX, they need to procure a NC 43-101 (the TSX version of a JORC report). If the NC 43-101 is going to show that the assets are worth nothing, how can they possibly list?

I have plenty of oilers, including oilfields in the US that I hold directly. This is not about which companies one should invest in or which one is better, this is solely about what RRR's assets are and are they valued correctly?

DYOR

Very much going in RRR's direction at the moment....

https://www.forbes.com/sites/naeemaslam/2020/06/25/gold-prices-trump-and-covid-19/

If nothing else, the royalties from El Limon will be going up.

The value on Migori has been steadily rising: a geologist contact reckons that the value of Migori should be circa $25 per oz in the ground. What does that make the licenses in Victoria worth once they have produced a JORC or NC 43 101?https://en.wikipedia.org/wiki/National_Instrument_43-101

Blue Ribbon looks very, very good I am told.

DYOR

https://www.zerohedge.com/commodities/why-gold-will-hit-record-high-second-half-2020

Dukey, I don't need to get the CLNs away. The company owes us the money: we either covert, rollover or they pay us back. If they can't pay us back then we take the company.

DYOR

Little Dukey, do you not read anything?

There has been a Covid Pandemic; most countries in Africa have shut down just like the UK, Europe and the US. https://www.gov.uk/foreign-travel-advice/democratic-republic-of-the-congo/entry-requirements

And you shouldn't do yourself down, there is nothing merely cynical about you.

DRC will be fine but not much can be done until the country is fully open. As I have said in the past, in order of priority it was Migori and DRC. It is now Migori with Victoria and DRC level pegging. If Victoria gets spun out then RRR will concentrate on Migori and DRC. If you read today's RNSs and the comments made on Twitter you would know this.

https://twitter.com/RRR_RedRock/status/1275735433519955968?s=20

https://twitter.com/ABell2019/status/1275729147617259523?s=20

"And if you were a rational being with Australian assets of merit in a JV you would be considering merits of a separate listing with specialist management and the kind of capital access that could accelerate growth. You'd have to. To minimise new capital issuance at RRR."

So RRR is looking to spin out RRAL with a separate listing and its own specialist management and its own capital raising based on Fosterville South. If you can connect the dots: its own (ie not RRR) specialist (people experienced in developing Australian gold assets) With its own capital raising (ie., not RRR).

So if it is being spun out of RRR what will RRR be spending its time on? Finishing off the license issuance at Migori, finishing off the JV at Migori and the DRC. Suddenly, RRR has the Migori JV on its balance sheet with a capital value of maybe $20mil, the diluted 50% in RRAL/Fosterville South III at maybe $15mil, the DRC assets, the JMS holding, the El Limon position, the POW holding, the outstanding royalty payments re Mt Ida and the Mt Ida royalty payments worth about $9mil pa based on current prices and the previous business plan. There is a lot happening in the Yilgarn.

This changes the game plan. RRR has a transformed balance sheet, it has cash from the Migori JV, the RRAL spin out, the JMS dividends, the El Limon Royalties and the Mt Ida royalties. RRR would be in a position to go hell for leather in DRC.

RRAL I suggest that the deal looks something like this: RRR/POW keep a royalty, they get some cash on the spin out and they keep their diluted equity position.

If you ever did any research or reading then you would already know this. The JV is going to update progress on RRAL as it goes along. I suspect that advisers for the separate listing will be appointed over the Summer to go for the listing in October. Well before then we should access to information that will give a valuation read across on RRAL.

We are very close and the timing could not be better: the prices for gold, manganese, copper and cobalt are all looking good.

DYOR

https://twitter.com/PowerMetRes/status/1275715319697457155?s=19

https://twitter.com/Fosterville_FSX/status/1275469076052103168?s=19