Member Info for MrMagic

Helpful - "Why would any sane person holding a CLN convert at 0.6p when the price is 0.6p in the market and take the risk of getting out at a loss?"

My personal opinion. Because the Loan Notes have been rolled over for a 3rd consecutive year and thus holders have their cash locked in with them when it could be being used almost anywhere else in the stock markets earning good money. Also because If the SP were to reach say 0.65p CLN holders might be of the opinion that the SP might drop again below the conversion price leaving them locked in again and so converting to prevent that at least gives them the option what to do. They can convert and hold the shares to see if the SP rises or convert and sell for break even and put the cash into far more lucrative shares elsewhere.

Helpful - " Why would we give up the 1% pm interest when we don't have to?"

Because you can make 100% elsewhere in the markets. People don't invest long term in AIM for a paltry 12% per year return imo. It's rather like the mentality of people who buy Premium Bonds who say they can't lose because they can pull their cash out at any time but they don't realise that their cash could and should be making good interest and returns elsewhere and so they are actually losing money.

In the current volatile markets across the stock market I'd say if your money is only making 12% you're losing overall. It should be making far more return elsewhere.

DYOR

A reminder for anyone new here:

A load of Convertible Loan Notes are outstanding here and have been rolled over for the 3rd consecutive year.
Those notes will be free to be converted into many millions of shares if the SP reaches the 0.6p conversion price.
Also a bunch of warrants at 0.9p. Both will imo serve to hold the SP back.

RNS'd here:

"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. "

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

Ramper Helpful here owns a load of those CLNs. I therefore personally ignore his desperate pumping attempts to get the SP to that conversion price. Each to their own.

DYOR

Also worth researching the new Mining Act that came into force in 2016

https://www.dlapiper.com/en/uk/insights/publications/2017/02/new-kenyan-mining-act-a-big-step-forward/

"Government participation

The newly introduced "free carry" provision has perhaps attracted the most industry attention. It will entitle the State to a free ten per cent interest in large scale mining projects. . . Kenya has gone further and introduced a new concept which requires investors, involved in mining projects with capital expenditures over a certain threshold, to offer a minimum of 20 per cent of their shares to the public on a local stock exchange (likely to be the Nairobi Securities Exchange)."

"Environment and social protections

Applicants for mining licences must provide an environmental protection bond or similar security, sufficient to cover the costs associated with the implementation of their environmental and rehabilitation obligations.

The Act also requires miners to invest in and facilitate social responsibility activities with local communities, which includes capacity building, skills transfer, and giving priority to Kenyans when employing staff for mining projects."

"Transparency

As part of a strong commitment to transparency, the Act requires a range of mining industry information to be made available online which includes mining revenues paid to Government, production volumes of mining operations and copies of signed mineral agreements"

Mining Royalties

Alongside the introduction of the Act, Kenya may also make changes to the fiscal framework of its mining sector. This is provided for under section 183 of the Act which states that the Cabinet Secretary "shall prescribe" the royalty rates payable by holders of mineral rights. In the meantime, the royalty rates set out in the Mining (Prescription of Royalties on Minerals) Regulations of 2013 will apply which include rates on extraction of 5% for gold and silver").

Further royalties may apply, including the current 'exportation royalty' on gold at 2% of the gross value to be exported"

"The Act itself requires that the mining royalties will be split as follows: 70 per cent to the National Government, 20 per cent to the County Governments and 10 per cent to the community where the mining operations occur."

Another reporting of the situation at the time here:

"Balala explains why Migori gold miner’s permit was revoked"

https://www.businessdailyafrica.com/Balala-explains-why-Migori-gold-miner-s-permit-was-revoked/539546-2731766-item-1-l8eblo/index.html

Helpful - "You keep stating that RRR had its licences revoked, it did not. "

It very much did. Reported here:

"Red Rock's local partner in Kenya, Mid Migori Mining Ltd ("MMM"), has today been advised by the Ministry of Mining of the termination of its Special Licenses numbers 122 and 202 ("the SLs")."
https://www.lse.co.uk/rns/RRR/kenya-update-yyd6cs2gs9khgd0.html

Whether the revoking of the licence was lawful or not is somewhat immaterial imo. It happened. They clearly wanted to revoke and did. RRR took legal action because of the way in which the licence had been revoked and won their case. This in no way changes the fact that the Mining ministry and the county government were clearly not at all happy and wanted to revoke the license and that's the more salient point in all this.

This is how the termination of the license was covered in the local news:

"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

"the Mining ministry and the county government which complain that 26 years that the firms have held on to the land is a long time and the land needs to be used for development projects that benefit locals."

"Among the grounds for the revocation was that Mid Migori has held the areas for over 26 years without concluding the exploration programme. "

"Further, that the firm had never done any exploration work since it was granted the licences and that “it has only been getting into joint ventures. It has all along been an intermediary.” "

"The company had been obtaining renewals of licences through promises of heavy investment in exploration work but which have never been honoured, the court heard. The ministry also blames Red Rock for the alleged non-performance by its partner, on account of its shareholding in the latter."

Whether or not the termination of the license was legal or not doesn't change the fact that people were clearly very unhappy with Migori and RRR. That's the backdrop against which this project must imo be viewed.

The license termination occurred in 2015. 5 years later and RRR still have not managed to secure another license. I'm personally not at all surprised.

I appreciate that Migori is probably your last remaining snippet of anything to try and ramp here but your fervour in trying to get the SP over 0.6p so that the convertible loan notes you hold can be converted is just desperate now.

DYOR

Helpful - "according to you all these people have been selling"

Err no According to the publicly released Holding RNSs these people have been selling. It's fact.

Helpful - "Those sellers had their shares bought by someone..."

There's a huge difference between speculative mugpunters buying shares on the market (often after falling for lame Twitter ramping ) and long term 13% holders selling who have been on the inside, in communication with the BOD here.
HUGE difference. Gosh you really do try to pull the wool over people's eyes don't you?!

Note there have been no holding RNSs during this time showing any significant holder increasing their position nor anyone new achieving a notifiable position. Speaks volumes imo. So obvious something bad is coming down the line imo.

DYOR

Talking to the wrong person Stephen. It's the large holders you need to beg to hang around, they're dropping like flies !

13 % holder Peter Gyllenhammer just reduced holding to less than 3%

James Asquith just reduced his holding to less than 3%

Briarbank, long term AB buddy just sold out

Zumore highlights that he can't see 1620 Capital's shareholding any more on the RRR website

13% holder Dan Sklan dumped his shares over a year ago and left damning comments here on LSE about the company

How many more will there be?

Thought you chaps were going to take this private?

Ah but then you don't even hold 3% here do you ?!! Hmmmm

DYOR

Of course it's extremely unlikely that the company will still be here in 8 years time imo

BTW how's the crude petroleum extraction business going? Much crude being extracted in Manchester these days?

Bell's total emoluments (salary, pension etc) at RRR each year:

2012 - £221,729
2013 - £154,746
2014 - £139,008
2015 - £91,495
2016 - £126,661
2017 - £155,243
2018 - £142,965
2019 - £119,406

Also worth noting the amounts frittered on Admin

Amounts frittered away on Admin Expenses each year:

2012 - £2,275,786
2013 - £4,751,948
2014 - £1,563,808
2015 - £1,334,404
2016 - £758,351
2017 - £644,688
2018 - £849,518
2019 - £591,777

As at 31st Dec, according to the Half Year Report the company only had £139k cash and cash equivalents

https://www.lse.co.uk/rns/RRR/half-year-report-zbttjxc2vt6yzro.html

That was 7 months ago !

DYOR

Colin - "Wouldn't that be a serious breach of the rules?"

What is defined as a serious breach?

Chairman Bell here conducted loans and transactions with Amulet Diamonds and didn't RNS it

Bell loaned Steelmin a further £1.1m and didn't RNS this to the markets

Steelmin went bust Feb 2019. Bell did not RNS this to the market despite RRR having a 22% stake there

The RNSing of the failure of the Greenland sale was practically forced out by an LSE poster showing that NAMA had the land up for sale.

On the Shoats Creek project RRR went silent on production for months after the initial testing. Eventually they
admitted production was shyte, around 100bpd which then dropped to 70bpd. The project has since been written off.

I have found the entire thing utterly farcical and I am staggered that such significant loans and events were not RNS'd to shareholders and markets. I'm no expert on AIM rules so it falls to others to determine whether rules were broken but regardless these kind of despicable antics serve only to show that the BOD here is wholly untrustworthy imo.

If they don't RNS such loans and events then one is left to wonder what other loans or events have occurred that have not been RNS'd.

I can't personally see how such a company is investable. It would be like investing blind.

DYOR

zumore - "I can now no longer see any 1620 Capital shareholding in RRR"

Interesting. I don't recall any holding RNS for that, was there one?

lol. 3m sell £15,900 just before the bell at 0.53p.

Looks to me like the unscrupulous rampers are still busily shifting their shares whilst ramping.

Can only mean bad news coming imo

13% holder Peter Gyllenhammer dumped shares 14th July, no longer in a notifiable position

Another significant holder sold shares on 6th August, no longer in a notifiable position

Another long term holder here announced he's sold out on these boards.

Something simply does not add up.

Large holders just don't sell their shares if they believe the share price is going to move upward.

Looks to me like the savvy are dumping their shares onto unsuspecting punters.

Half Year Report said that at 31st Dec there was only £139k in the bank

Total Current Liabilities were £2.36 million

Admin burn rate was £47,000 a month equiv to £564,000 a year

That was 7 months ago

Everything I am seeing suggests to me personally a major fundraise is coming. I could be wrong but it's what I believe.

Large holders selling, and ramping whilst selling, lots of round trades for the past 1-2 weeks . . .

Believe what you will just DYOR

Changing the company name will not imo change the fortunes of Regency Mines, any more than it could by swapping out the Chairman. The MO is too well established imo and original board member Scott Kaintz is still in position here.

ANNUAL REPORT RESULTS
=======================

Losses incurred each year, amounts frittered on Admin and amounts of cash raised via confetti issues and the like

2012 - Loss of £2,112,350 - Admin £1,091,108 - Cash raised £907,090
2013 - Loss of £5,166,017 - Admin £1,224,013 - Cash raised £3,327,678
2014 - Loss of £1,508,812 - Admin £881,947 - Cash raised £1,212,805
2015 - Loss of £5,888,742 - Admin £964,761 - Cash raised £1,049,765
2016 - Loss of £1,965,722 - Admin £594,733 - Cash raised £781,595
2017 - Loss of £534,267 - Admin £414,943 - Cash raised £1,576,701
2018 - Loss of £1,549,619 - Admin £735,697 - Cash raised £1,150,000
2019 - Loss of £2,607,978 - Admin £652,918 - Cash raised £240,000

Total Losses above - £21,333,507
Total cash raised above - £10,245,634
Total Admin above - £6,560,120

Share price was decimated so much by dilution that the nominal share value had to be lowered from 0.1p to 0.01p in 2015

Shares were also consolidated on a 1-20 basis in 2015

Shares were consolidated again on a 1-100 basis last autumn

When Parsons arrived last autumn there were 1.5 billion shares in issue. He issued the equivalent of over 7 billion more shares and consolidated the shares 1-100.

At that point the SP was 3.5p and the shares in issue were 86m

Today just a few months later the SP is 1p, a loss of over 71% since Parsons consolidated

The number of shares in issue now is 190m, more than double since Parsons consolidated

Each to their own but this for me is what I think people call a "sucker share"

Total avoid for me, but each to their own

DYOR

Will be watching for late reported sells later on. Trade list here can not be taken at face value imo.

Not touching this with a barge pole

DYOR

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

"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. "

Loan note conversion price 0.6p

Main ramper here is a holder of those loan notes

DYOR

Jonno41 - "it would be nice to receive a holdings email saying someone has taken a position rather than the opposite"

Yeh wouldn't it. How about uber rampster Helpful for a start !!! All that fluff and bluster for years and he doesn't even hold 3% here ! You couldn't make it up !

RNS today shows another significant holder has dumped reducing his shares below the 3% threshold

https://www.lse.co.uk/rns/RRR/holdings-in-company-lilnfds8k3pekqd.html

This comes after former 13% holder Peter Gyllenhammer did the same, reported 14th July here:

https://www.lse.co.uk/rns/RRR/holdings-in-company-4uj7219w6j9ycmu.html

Doesn't bode well imo. I guess they must either believe something bad is coming down the line like a mega placing or the company being taken private etc or they simply don't believe in the ramped prospects here.

My earlier prediction that the SP here was heading back to the 0.4p levels has already come true !

DYOR

Good grief Helpful how much longer will you persist with this lame ramping of the pathetic Limon royalty?

It's been known since the deal was signed in Apr 2015 that the royalty is for all gold processed at the plant whether it was dug up from El Limon or else where but despite this the royalty revenue has been abysmally small and it will take a ridiculous number of years to recoup that $3m. It will not happen in your lifetime imo.

This is not the first time the mine has stopped production. It happened before and was not RNS'd, the El Limon news simply dried up and the quarterly royalty figures just stopped being published. I personally found out that production had stopped from a Para Resources RNS which stated the fact. Limon is a complete red herring. It's a tiny trickle of cash nothing more. The notion of $3m cash is imo just fantasy and every year the company puts out the same chirpy statements that loads of production is forecast, hoped for, anticipated, expected in the coming year. It never does come. Same with everything else that gets pumped here.

The predicted tons of oil never did come from Shoats Creek, which has now been now written off.
The predicted tons of steel never did come from Steelmin, which has now gone bust.
The predicted gold never came from Ivory Coast
The predicted minerals never came from Greenland, which was subsequently sold off for just £1
Project after project after project. Same results. Failure.

The only thing one can accurately predict here is that Bell & Co will keep taking lucrative salaries despite abject failure to deliver anything and will keep wasting £millions on admin and expenses. Until that problem is removed, this share will go nowhere imo.

DYOR

The plethora of sells last week suggest to me that this is headed back to the 0.4p levels and maybe further and no amount of silly Twitter links posted to try and keep the share towards the top of the Recent Chat List is going to prevent it. What was the recent rise predicated on if not hot air and the usual pump and dump ramping as the SP rebalanced due to the covid situation like so many other shares ? I feel sorry for those that were, as always, left holding the baby.

As at 31st Dec RRR only had £139k in the bank and was burning cash for Admin at the rate of £47,000 a month. That was 7 months ago. It had total current liabilities of £2.36m. See the Half Year Report:

https://www.lse.co.uk/rns/RRR/half-year-report-zbttjxc2vt6yzro.html

You have to think that there's a very good chance Bell will be dropping a fundraise soon unless he starts cashing in assets to fund his ridiculous salary and admin here. He cashed in 1.5 million of the Jupiter shares in Aug/Sep 2019.

13% holder Peter Gyllenhammar just dumped his shares too. Must be a good reason why he did that.
https://www.lse.co.uk/rns/RRR/holdings-in-company-4uj7219w6j9ycmu.html

DYOR

Briar - "El Limon owners since RRR , Para, now Soma.
" The Company (Soma) is expecting to commence production at its underground gold mine El Limon and mill in Q4 2020."

Yes this situation has happened before. The implication of course is that El Limon hasn't been producing and that of course is why RRR no longer give us the quarterly royalty revenue figures imo. Yet the unscrupulous ramper here keeps trying to ramp the El Limon angle and price of gold. What a deceptive person he is. So glad I no longer get sucked in by the lame "jam tomorrow" spiel spouted.

DYOR