Member Info for MrMagic

Reminder for any newbies

Loads of CLNs here have now reached their conversion price of 0.6p. When they are converted many millions of shares will be generated. The holders of them also have warrants at 0.9p. Poster Helpful here holds many of the CLNs so has a vested interest in ramping the share.

RNS:
"Holders of £830,000 principal value of Notes have to date applied to renew the Notes for twelve months to a new final redemption date of 19 December 2020, with an adjusted interest rate of 12% and an adjusted conversion price of 0.6p per Share. The Warrants of renewing Noteholders have been extended to expire on 19 December 2022, with an adjusted exercise price of 0.9p per Share.

The Notes were issued at par and are convertible into Shares at a price of 0.6 pence per Share. Each Note has a denomination of £1,000 and is thus convertible into 166,666 new Shares in the Company. Conversion may take place at any time up to the final redemption date."

https://www.lse.co.uk/rns/RRR/renewal-of-convertible-loan-notes-0cgrfgdovblyfmk.html

DYOR

Helpful - "What happened before on licenses is now in the past: the licenses have been reissued under the Mining Act 2016. What happened with Kansai and Mid Migori Mining in the past is in the past."

Laughable. The "past" repeats here with monotonous regularity. It's the purview of every unscrupulous rampster to constantly try to bury the dire "past" which in reality simply refers to the regular operating Modus Operandi of the directors. The "past" is the past, present and future. Always has been, always will be. Bell and Co have a singular way of working. They've done the same thing with RRR and RGM for the past 10 years. Now he's doing the same at POW. Lot's of "jam tomorrow" hopes and dreams and continual issue of confetti shares and/or CLNs. Nothing ever changes. These are imo lifestyle ventures for the personal enrichment of the BOD at the expense of naïve punters. What I would call a sucker share.

As for Migori, it's still the same bit of land, renewed licenses or not. The same bit of land they've been sitting on for countless years and haven't gotten a mining license for. There must be a reason for that. Either the land is just not worth it or there's some problem in them getting a mining license for it (such as demonstrating the financial capability or problems with the locals).

Helpful - "What RRR had in the bank 8 months ago is not relevant to a mining application in a few months time."

Again laughable. Of course the financial situation is absolutely crucial to being able to get any Mining License. The company HAS to demonstrate financial capability to get a license. If the company only had £139k in the bank 7/8 months ago then how worse must be things now given there's so little income here and given that the directors here fritter away £47,000 a MONTH on Admin !!! Not to mention the huge amounts they now need to find now that the licenses have been renewed. Where's it all going to come from ?? You say JV. I say, why has no-one wanted to JV in the past 26 years? It's a pipe dream. Bell will drop placings imo and they will be brutal.

If he starts cashing in the "crown jewel" Jupiter shares to fund the Migori stuff the markets will react badly imo. So it won't happen. Bell has always diluted shareholders to oblivion even when there were loads of JMS shares worth £millions. The leopard will never change his spots. That's why he and the BOD have to go here. Until they do, nothing will change.

Helpful - "Why do you think that I would be keen on AB/RRR doing a placing at a discount? "

Because you and your cronies will be first in line to receive the discounted shares whilst all the other shareholders get royally diluted imo.

Now why don't you come clean and tell readers here whether you've already requested to have your CLNs converted or not???

I know you won't of course

DYOR

Helpful spiel:

[1. The licenses were always going to be exploration licenses: that is what RRR had before and it was merely renewing them]

They've had the licenses for countless years, the news articles said 26yrs and in all this time they've gone nowhere. Why did they never apply for mining licenses in 26 yrs?!!! It's a pipe dream for ramping.

[4. The conversion to mining licenses is covered by the Mining Act 2016 section 101 onwards.]

I seriously doubt whether RRR will get any mining license granted for the PL areas. The legal stuff mentioned ancestral ground and either way RRR would have to demonstrate financial ability as Briar stated. This is the Mining Act req't:

"a statement of the financial and technical resources available to the applicant to carry out the proposed mining operations and to comply with the conditions of the licence;"

Given the company only had £139k in the bank at 31st Dec over 7 months ago it seems likely that it isn't going to be able to demonstrate financial capability without industrial levels of confetti shares being issued.

[5. AB/RRR has said several times that it has a JV for Migori lined up]

Bell has said all manner of things over the past 10 years and has gained a reputation for being, let's just say untrustworthy to remain polite. El Limon producing 400tpd, Greenland sale nonsense, Shoats Creek oil gushing etc etc No-one believes a word of the spiel any more. There's no JV for Migori unless and until there's a signed piece of paper. Everything else is just the usual Bell nonsense to paint a story imo.

[6. The interest on the CLNs is rolled up not paid. On conversion it is the capital and interest that is converted. ]

Which is going to result in the creation of around 150m more shares imminently imo. That's on top of any mega dilution placings that Bell drops. Dilution.

[7. RRR has holdings in JMS, POW, CRCL and SOM]

And Bell will squander them all imo. He has board position on Jupiter and POW and he's already pawned off 1.5m of the Jupiter shares without RNSing the fact. Presumably the cash went to salaries and Admin as usual. Since 2012 some 75% of cash raised got frittered on Admin. Over £16m cash raised and over £12m spent on Admin/expenses. A total joke.
Sum of the parts valuations simply don't apply to RRR despite your continual attempts to peddle them.

In the end Briar is correct in that Bell will likely dilute holders here to oblivion again with huge placings at discount.
It will need the cash. It always does, not least to pay his handsome salary and utterly ridiculous/preposterous amounts for Admin and expenses.

Briarbank is correct. RRR only has Prosepecting Licenses which is pretty useless given they've already established the field. Migori is a pipe dream imo, just the usual material for carrot dangling to get the punters to believe in fairy story "jam tomorrow" nonsense. 3 years is all they have. The licenses can only be renewed twice according to what I read on the Kenya Mining Act. I personally doubt whether they would get any Mining License if they applied for one given the various things mentioned in news articles back in 2015 when they had the licenses terminated which stated that the plot was on ancestral land and so on.

This company just seems to jump from one pipe dream to the next with just about every project being an abject failure but what that does is allow the greedy BOD to keep taking lucrative salaries and keep frittering £millions away on Admin and expenses, whilst constantly increasing the shares in issue via placings or CLNs to keep the cash coming in.

Greenland project - abject failure, sold off for just £1
Ivory Coast project - went nowhere, never got the 3 licenses they applied for
El Limon project - abject failure, sold off for a song and a useless royalty
Shoats Creek project - abject failure, now written off
Steelmin project - abject failure, company went bust Feb 2019

and so on and so forth

Project after project, each one ramped shamelessly by the same people who are still ramping whatever they can now, Migori being the current flavour of the month, but they will soon switch to the next 'new kid on the block' thing. Remember they've had the Migori licenses for years and years and years even before they were terminated in 2015, yet it never went anywhere.

Meanwhile, as I said Thursday, we are headed to 0.70p and doubtless down to 0.60p after that.

CLN holders will convert if they haven't already requested it and then millions of shares will be created as a result of those conversions. £830,000 worth of CLNs, with each block of £1000 notes converting into 166,666 shares. Do the math.
Conversion price is 0.6p so they can be converted at any time now.

DYOR

playtime - " but the CLN holders provided capital when required"

Right but in respect of RRR the cash provided by CLN holders was given years ago, the CLNs have now been rolled forward for their 3rd consecutive year !! And the BOD here fritters approx. £564,000 a year just on Admin or £47,000 every month so the cash loaned is long gone. So shareholders here are now left to suffer the dilutive effect of £830,000 worth of CLNs being converted at 0.6p which will result in many millions of shares being created and which is imo likely to happen very soon now that the SP has suddenly reached that 0.6p conversion price.

We know the money is long gone because the Half Year Report at end of March told us that at 31st Dec 2019 the company only had £139k cash. That was 7 months ago. Goodness knows where they are getting the £47,000 a month for the Admin presently? Perhaps Bell has cashed in more JMS shares or some other shares and not RNS'd the fact as he did last Aug/Sep 2019 when he sold 1.5m JMS shares without directly RNSing it. Either way, not good. Just more value seeping away.

DYOR

Briar -"why SP has gone up 5x since march?"

Because the COVID situation dropped lots of shares and then as time went on they all recovered back to where they were months ago. As they say a rising tide lifts all boats, even dilapidated no hopers like this one that will never go to sea. It's been ramped up on the usual fantasy stories from the usual suspects here, the same stories they've been peddling for years and what goes up must assuredly go back down. The SP was around 0.45p before the COVID situation took hold and that's where I expect it will end up once the pump and dumping is done with.

First the holders of the £830,000 Convertible Loan Notes will convert at 0.6p, and thereby unlock the cash that they've had locked-in there for nearly 3 years now.

The trick is to not be left holding the baby.

DYOR

More sells at 0.75p, but small fry really.

Presumably people sensibly banking profit whilst they can. Always wise to bank profit imo.

With so many good shares out there to punt with great potential returns I can't understand the rationale of punting this age lifestyle outfit when it has £830,000 of CLNs sitting at 0.6p and warrants sat at 0.9p imo. But each to their own as always.

DYOR

Good article Zumore

This part especially:

"However, many of these companies are not growth companies, but lifestyle vehicles for the directors. What may start out as an exciting dream to build a business eventually ends up in failure, but the directors have then become accustomed to increasingly higher salaries despite the share price going increasingly lower. A turkey doesn’t vote for Christmas – and so they hold on to their positions as long as they can. All of this, of course, is funded by the retail investor.

The company is a vehicle that pays the directors' salaries. It also pays the Nomad. It pays the broker (which may also be the Nomad), and it pays the PR agency. All of these parties, including the directors, have an interest in the company continuing, because without it they are all out of jobs. Therefore, there is always a new story or a new project to invest in – so long as retail investors continue to fund story stocks then the company will continue. If you are going to invest, it’s worth checking how much the directors have taken out of the business and how much of their own capital they’ve put in. Nil-cost options do not count – this is simply transferring shareholder cash into the directors’ pockets."

SP dropped to 0.8p pretty quickly. Now there's a bevvy of sells in at 0.75p. Guessing 0.70p can't be far away.
Still there was a 9k buy at 0.78p earlier. However the problem remains the CLNs.

Just a case of when the CLNs get converted now imo and then whether or not Bell then drops a placing for a double whammy.

"Holders of £830,000 principal value of Notes have to date applied to renew the Notes for twelve months to a new final redemption date of 19 December 2020, with an adjusted interest rate of 12% and an adjusted conversion price of 0.6p per Share. . . The Notes were issued at par and are convertible into Shares at a price of 0.6 pence per Share. Each Note has a denomination of £1,000 and is thus convertible into 166,666 new Shares in the Company"
https://www.lse.co.uk/rns/RRR/renewal-of-convertible-loan-notes-0cgrfgdovblyfmk.html

DYOR

The QFI RNS today is stating that their CLN shares have been issued. It didn't state the date on which the holders actually requested to convert. Pretty much as expected TBH. So if the RNS comes at the point the plethora of new shares are actually issued, it's pretty much too late then for poor unsuspecting mugpunters to sell their shares before the impact of those issued shares takes effect.

I personally tend to look at the CLNs like a placing with discounted shares at 0.6p just waiting to be dropped. i.e. dilution

Can't understand why anyone wouldn't take any recent profit they have made here and get out before all those shares
get issued and the SP drops. That's just me though, each to their own.

DYOR

Helpful - "RNS on conversion would normally be the next day. See the RNS from QFI today"

That's vague. Next day from what? Next day after you log your request to convert the CLNs or next day after the CLNs are actually converted?

Either way there is unfortunately little "normal" with Bell and RRR in terms of RNSs is there given :

- he failed to RNS loans and transaction with Amulet Diamonds
- he failed to RNS a £1.1m loan to Steelmin
- he failed to RNS Steelmin going into Administration despite having a 22% stake
- he went quiet on Shoats Creek oil production when it was dire

and so on

There can be absolutely no trust with the current BOD as a result. If he gets away with not RNSing such things then I personally would put no faith in waiting to see a timely CLN conversion RNS.

DYOR

Never claimed to be an expert on anything. I say what I see.

I've just seen another late reported sell pop up. £9.5k at 0.75p

So tell me please at what point does RRR put out an RNS stating that CLN holders have converted? As soon as they log the request or when the conversion actually happens. Given the track record of the chairman here in not RNSing things I don't put too much faith in RNSs anymore.

Was unaware however of Helpful's info that they have to give 5 days notice

That said, when would the company RNS the conversion, at the outset of those 5 days or some time after or when the shares are actually created?

No-one mentioned any shorting afaik

Rug being pulled under naïve punters feet here imo

Sells at 0.76p and 0.75p now

The closer it gets to 0.6p the more likely the CLN holders will convert whilst they can and sell for profit imo

DYOR

Desperate stuff, trotting out a "nothing RNS" about RRL

Meanwhile I note the flurry of round sells:

180,000 @ 0.78p
160,000 @ 0.78p
150,000 @ 0.78p
140,000 @ 0.78p
530,000 @ 0.77p

Have the CLN holders begun to convert and sell for a tidy profit at other's expense? Daft not to I would think.

https://www.lse.co.uk/rns/RRR/renewal-of-convertible-loan-notes-0cgrfgdovblyfmk.html
"The Notes were issued at par and are convertible into Shares at a price of 0.6 pence per Share. Each Note has a denomination of £1,000 and is thus convertible into 166,666 new Shares in the Company"

DYOR

CLN Holder - "The licenses had to get reissued as prospecting licenses: they never were mining licenses."

I never said they were Mining licenses. I said they were Prospecting licenses which they are, which means no gold is coming from there any time soon.

CLN Holder - "AB has said that there is at least 3mil oz of gold at Migori and maybe 4mil oz."

Lols. AB also said that El Limon would churn out gold at 400tpd !!

The savvy pay no attention to Bell's chirpy statements any more and instead just wait for actual facts.

In respect of the Greenland sale Bell waxed lyrical that the lawyers had been paid their completion bonuses.
Sale never happened and Greenland was eventually sold off for £1 !

Same pretty much for every project here

Shoats Creek oil, Bell waxed lyrical about 300+bpd test results, went quite for months when actual production happened and eventually RNS'd that production was only 100 which then dropped to 70 and then stopped altogether. Project has since been written off.

Steelmin similarly. Bell waxed lyrical about the success or re-establishing this old Steel plant (tears of joy etc) but it seems the basic risk management wasn't done in terms of understanding the impact of electricity prices to the plant's operation and Steelmin had to shut down and subsequently went into administration. RRR held a 22% stake there and Bell stupidly (imo) loaned Steelmin a further £1.1m without RNSing the fact to markets which was both underhand and disgusting imo. That money was of course lost.

Project after project after project. Abject failures and nothing but pump material. Greenland, Shoats Creek, El Limon gold mine, Ivory Coast, Steelmin etc etc

Nothing will ever change here whilst the BOD remain imo, simple as

DYOR

Bid above now under 0.8p as predicted and trades at 0.78p to boot
https://www.londonstockexchange.com/stock/RRR/red-rock-resources-plc/company-page?lang=en

The share is now sat on £830,000 worth of Convertible Loan Notes which can now be converted at any time, the conversion price being 0.6p. So holders can convert their notes and sell the shares at 0.78p for a tidy 30% insta-profit. Conversion would add some 150m shares to the pot here by my calcs (do check yourself) so it may as well be taken for granted that the real number of shares in issue here is 697m plus that addition CLN amount.

The pump has run out of legs imo and for me it's now a case of who can get out with their profits and who will be left holding the baby.

DYOR

Glad Helpful has come clean there.

The 2 licenses mentioned in the RNS on Monday, PL/2018/0202 and PL/2018/0203 are just PROSPECTING licenses not MINING licenses so there will be no gold coming from there any time soon. A prospecting license allows the holder to carry out prospecting operations in the area covered by the licence as defined in that Mining Act 2016 which states:

"“prospecting operations” means operations carried out offshore and on land to search for and define the extent of a
mineral deposit and to determine its economic value"

It goes on to state that :

"Any mineral acquired in the course of prospecting operations under a prospecting licence -
(a) is the property of the National Government; and
(b) shall not be disposed of or removed from Kenya without the written consent of the Cabinet Secretary."
(excepting the prescribed quantity required for sampling, assaying, analysis or other similar examination.)

(https://portal.miningcadastre.go.ke/Downloads/Mining_Act_2016_Full.pdf - section 72 onwards)

Migori have had these licenses for countless years and done little with them. LTHs here will remember vividly a public conference call that Bell held in which a Migori director jumped on the call unannounced and proceeded to ask what the hell was going on. Quite an embarrassment at the time.

A news article in 2015 at the time the licenses were terminated stated that Migori had held the licenses for 26 years !! Here's the link:

"Row over permits robs Migori gold of its glitter"
https://www.nation.co.ke/business/Row-over-permits-robs-Migori-gold-of-its-glitter/996-3829916-5t3ec6z/index.html

Against the backdrop of local feelings stated in that article and statements that the licenses are on "ancestral community land" I personally find it hard to believe it will be easy to obtain any actual Mining License.

The ramping of these licenses is simply a lame attempt to pump the share on hot air and "jam tomorrow" rhetoric as always imo

DYOR

Forgive me Jonno but "genuine investors" don't make their investment decisions based on chat board posting.
They look at the fundamentals, the annual reports, the charts and so on. The endless stream of unscrupulous stock pumpers that this share attracts equally present no rounded or indeed factual material, it's mostly "jam tomorrow" drivel and "10p by Friday" BS with multiple aliases pretending to have conversations with each other. It is what it is, a total cesspit of P&D merchants who always flock to high dilution shares that are typically AIM lifestyle outfits imo.

What you call "negatives" are merely the company facts.

The facts that they have posted losses of over £40m since 2012
The facts that they raised over £16m cash since 2012 from brutally diluting shareholders
The facts that they spent over £12m cash since 2012 just on Admin and expenses
The facts that just about every project they are involved with goes nowhere, e.g.:
Greenland, being sold off for just £1
Ivory Coast project gone nowhere
El Limon mine practically given away and left with a paltry royalty that will take countless years to recoup the money
Shoats Creek oil project an abject failure, now written off
Steelmin project gone into administration, another abject failure
etc etc

Nothing ever changes. The pump squads routinely appear to pump the share
The company keeps issuing shares and/or CLNs and shed loads of warrants
The BOD keep frittering preposterous amounts of cash on Admin and expenses
The income is paltry save for Jupiter dividends which have recently been greatly reduced
The BOD fail to RNS key loans, transactions and SP affecting events (which is imo despicable)

If these are negatives then it behoves the BOD to do something about them. Ideally by stepping down having run the company as a lifestyle venture for countless years and gotten nowhere with it and presided over utter SP decimation which has subsequently required that the nominal share price be lowered from 0.1p to 0.01p and the shares to be consolidated.
But they never will as this is a gravy train.

Nothing will ever change here while ever the BOD remain. They will keep issuing shares and CLNs, keep taking lucrative salaries despite abject failure, and will keep frittering huge amounts of cash on Admin and expenses.

Meanwhile the usual suspects (some of who own the CLNs here) will keep pumping it for their own benefit whilst the more naïve are left holding the baby each time.

It is what it is

DYOR