Member Info for Helpful

https://twitter.com/AmberMining/status/1159721089439809536?s=19

Your view on how close they are to starting the deepening?

It sounds to me that AB thinks Migori is nearly sorted.. It has been a bit of wait.

Your view on how close the are to starting? It looks to me that they are working through and testing the subsystems and so must be close.

In case, anyone missed the update.. https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/ADL/14178997.html
It is worth looking at the presentation: it indicates that this is a several step work programme and this is the first step.

AOGL has the right to participate in any O&G deal that ADL does in Indo: we can take 12.5% on a non-promoted basis. ADL hasn't done anything yet that would require AOGL to make a decision whether to participate or not and probably won't before the end of September.

DYOR

https://twitter.com/theminingmaven/status/1159081843905482752?s=19

https://twitter.com/TereaAfrica007/status/1159105012527763457?s=19

https://markets.ft.com/data/announce/detail?dockey=1323-13273626-7VRBPKROKUAA1V5SBMMGSG3GOH

https://www.proactiveinvestors.co.uk/companies/news/52035/update-northcote-energy-eyes-high-impact-from-first-horizontal-well-at-mathis-61827.html

https://twitter.com/RRR_RedRock/status/1159083522084212736?s=19

https://www.ft.com/content/8cd1fd7a-b86c-11e9-96bd-8e884d3ea203

I saw it. Not hugely relevant: mainly cobalt whereas Musonoi is mainly copper. 27,000 tonnes pa production Vs maybe 20,000 tonnes in place at Musonoi. Glencore's cost structures are different from RRR's. See Angus's Saltfleetby deal as a comparator.

People need to reread the RNS.

To address challenges such as leaks in the production strings, the tubing has been replaced in three wells (BTN01, 04 and 14). As a result, there has been an increase in the barrels of oil lifted and so under the operating services and option agreement ("Services Agreement") announced on 21 June 2019 , this small increment to production means the first income for the Company

So if 14 was doing 20bopd before and is now doing 4.5bopd then it means replacing the production tubing has increased production by at least 15.5bopd. If the increase was less than 15.5bopd then we wouldn't be receiving revenue.

They have put a scraper down 14, reperforated it and acidized it. They now need the well to clean up. If they were getting 20bopd out of it before and it had scaled up unless they have made a mess of it, you would expect it to produce more. The confirmation that the volume is greater shows that the workover has at least had a partial effect. It will probably take 14 days before they have a good idea about the new production levels.

01 looks hopeful. If they are going to the trouble and expense of replacing the pump with a larger one they must be pretty sure that they can get a significantly higher production level out of it.

All in all, it looks good. They haven't shot the lights out but it is a steady start. By the end of August they should be getting decent cash flow out of this gig.

DYOR

Yep. Reported as part of the ZR field.

Sounds like the well is still cleaning up and flowing back the workover fluids.

https://twitter.com/HedgehogTrader/status/1158741613860065280?s=19

Well I just logged out to catch up on your wisdom Tragic: you are still on filter.

I note that you have no comment whatsoever on Migori and can point to no mistake or discrepancy. On the cash flow, you missed out that the JMS dividend and the El Limon royalties. You also can't differentiate between capital and income.

Anyway, fingers crossed for getting the Migori license back soon and then executing on the JV that AB has mentioned several times. Given the current gold price, we should be able to get a decent deal on a JV for Migori.

DYOR

https://www.proactiveinvestors.co.uk/companies/news/5485/red-rock-resources-in-deal-to-acquire-60-pct-of-migori-gold-project-in-kenya-7341.html
There is potential upside over and above the 1.2mil oz of JORC. It also seems that there is a copper-zinc deposit on the licenses.

DYOR

https://goldprice.org/

$1,461 today. 90% x 1.2mil ounces x $800 = $864mil or £708mil. Be conservative and half it: still a big number for a company valued at £3mil where its JMS holding is valued at about £4.2mil.
DYOR

https://www.bowmanslaw.com/insights/mining/kenyas-new-mining-act-modern-piece-legislation-issues-iron/

"Another issue relates to securing land rights. In the Mining Act, landowner consent is required even when applying for a license. This is extremely arduous. Considering the huge areas over which exploration licences may be granted, there may be 200,000 or more individual landowners and it is simply not possible to get consent from all of them in writing. We will hopefully see this provision reviewed and revised in due course."
We are not applying for a license to be reissued, we are in effect applying for a new license but on a priority basis: ie., we get first dibs. See section 56...
http://kenyalaw.org/kl/fileadmin/pdfdownloads/Acts/MiningAct_No12of2016.pdf

The legal settlement was last October https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/RRR/13836460.html

"Section 225(6) of the Mining Act 2016 reads: "A mineral right for prospecting, mining or dealing in minerals granted prior to this Act shall not be extended or renewed but where the granted Mineral Right provided a right to apply for a renewal or extension of the right, the holder of that mineral right may apply, subject to this Act for a similar type of licence or permit as provided for under this Act on a priority basis"."

So the big question is, where is RRR up to with the landholder consents? Does it have enough for the license to be issued yet?

Only a matter of time.

DYOR

Seems to be doing okay. SP above the placing price, it will be nice to get out with some sort of profit for RRR.