Member Info for MrMagic

At the UK Investor Show a few years ago Richard Poulden and others gave their advice on how to pick good mining stocks from bad ones. He stated the following 29mins into the clip:

https://www.youtube.com/watch?v=fam0-SHrDDY

"You should look at how much management own of the company, it's very important.
If they only own 3%, they'll go out and raise money to pay themselves as day follows night.
The next thing is you should look at the G and A (General and Admin) costs, tremendously important.
How much money is actually going into the ground ?
Are they paying themselves stupid salaries ?
How much skin do they have in the game
And that really . . . will give you the best stock picks."

With this in mind the recent RNS here entitled "Director/PDMR Shareholding" was of note imo

https://www.lse.co.uk/rns/RGM/director-pdmr-shareholding-iqgiakhykf5jelp.html

Exec Chairman Parsons has bought just 0.84% of the issue and even that was bought at the discounted price
of 0.0275p (pre-consolidation 100-1)

DYOR

Share prices inevitably fall down to placing prices. I see no reason why that won't happen here.

With so many shares issued at the 2.75p (post consol) price then that for me is the maximum the shares are worth.

I wouldn't personally pay more than that for shares as I would deem this giving free easy money to placees

The LSE Chart system sadly only goes to a max 5yr time period. If one looks at the 10yr chart from say Hargreaves or any other provider you will see the catastrophic SP destruction here that has imo been caused by endless dilution.

Each to their own as always and DYOR

A single buy has flooded in today valued at £19

A single sell at £2.22 also

Heady volume indeed !

Facts remain the same. Pre-consolidation, the company stated intention to flood the share issue with over 7 billion more shares issued at 0.0275p. That imo nullifies all the existing shares (and thus holders), making them utterly irrelevant and means over 80% of resulting shares were issued at 2.75p (post consol).

Why on earth would anyone pay over 2.75p for shares when placees have been issued so many at that price? Just a total nonsense imo.

In the end one only needs to look at the statement in the recent RNS which said (pre-consolidation):

"The Transaction Shares as a whole would, if the required resolutions are approved at the GM, result in the issuance of 7,170,440,985 Ordinary Shares, representing, in aggregate, 82.54% of the newly enlarged share capital of the Company"

With just 1.5 billion shares in issue at that point the addition of over 7 billion more at 0.0275p is clearly a devastating level of dilution.

The net result for me personally is the simple fact that these shares are NOT worth anything about that placing price of (post consol) 2.75p

I'd consider myself stupid to buy any shares above 2.75p because that would just be giving crony placees free easy money at my expense. If they believed in the company they would buy shares at market value rather than take discounted shares simple as.

DYOR

SP - " Do you lot think when someone buys shares on market, that the money goes to the company??"

For me you lost your remaining shred of respect with such a comment. When industrial levels of dilution are involved then of course the money goes to the company. They get the cash from the lenders, the lenders get cheap discounted shares which are then invariably palmed off onto unsuspecting mugpunters in the markets helped by copious amounts of baseless "Jam tomorrow" ramping. Shareholders only worsen their holdings imo by continuing that cycle. The more they are able to get dilutive placings away the more they will keep doing it. One only has to look at the 10yr chart of both this share and RRR to see the devastating impact to the SP.

Worth also noting . . .

Half Year Report stated Total Current Liabilities as £2.7m as at end Dec 2018
With cash in the bank just £27K at that time.

Full Year Report now tells us Current Liabilities are £2.8m as at end June 2019
And that cash in the bank was just £64K

So liabilities are not reducing but of course director salaries and lots of expenses are being paid regardless. That's where the lion's share of any monies go. They can't pay down the £1m outstanding Convertible Loan Notes but if it comes to the BOD's salaries and expenses, no problems at all.

Anyone who thinks that's a business model worth investing in frankly needs a "check up from the neck up" imo.

Former 13% holder Daniel Sklan dumped his remaining shares last year and left rather damning comments on LSE here, have a read:

https://www.lse.co.uk/profiles/d_s_/

Another former 13% holder, Peter Gyllenhammar began dumping his holding this time last year and sold chunks throughout 2019. Last reported I think he was down to just over 3%.

But hey if you want to believe the "jam tomorrow" twaddle of the tiny contingent of ramping posters here then fill your boots.

£2.8m liabilities
£64K cash
£600K a year on Admin Expenses
Same BOD in place since the devastation began

What's not to like . . . . . . ?!

Just laughable TBH

Dec 2015 RGM had a share consolidation on a 1 to 20 basis

Dec 2019 RGM now does a consolidation on a 1 to 100 basis

No question for me that the people ramping this nonsense are just wanting to dump their confetti placing shares onto the naive and unsavvy at premium prices.

The company announced that 7 BILLION shares are coming at the issue price of 0.0275p
(or 2.75p in today's post consolidated terms)

I'd consider myself to be a complete moron to buy shares today at 4p or indeed any price North of that 2.75p price for those 7 billion shares. It's just a nonsense.
Glad I don't fall for all the "jam tomorrow", "don't miss out", "multibag coming" nonsense from the pump merchants looking to shift their useless confetti. DYOR

placing

Final Results out

Laughable as always. Significant loss, all the usual gumpf.

Admin Expenses approx £600K
Business Development £302K
Other Project Costs £158K

Cash in the bank just £63K as at end June.
Small wonder the CLNs had to be rolled on for a 3rd year. lol at Helpful suggesting they had a choice.

Colombia royalties remain utterly paltry and will take years upon years to recoup the first $2m. It will never happen in our lifetimes imo.

Then this pearler slipped in to boot:

"On 11 April 2019 The Company's 100% owned subsidiary, RRR Coal Limited, agreed a loan facility of up to US$1,000,000 with Riverfort Global Opportunities PCC Limited and YA II PN Limited. The terms of the loan call for US$400,000 to be transferred to the borrower, with additional tranches available to the lenders at their absolute discretion. The notes are secured by 5,500,000 shares in Jupiter Mines Limited, which were transferred from the Company to the borrowers as well as by a corporate guarantee executed by Red Rock Resources plc. The notes carry an interest rate of 10% and come with a 7.5% implementation fee and are repayable over a period ending in April 2020. A total of US$200,000 has been drawn down on the facility to date."

So Jupiter shares as ever used as security and the only currency of value here. The company cashed in 1.5m of them this year raising I assume about £300k. Now 5.5m of them have been transferred to borrowers. In no time at all the only asset of any real value here, the JMS shares, will have been frittered away.

Same old same old

It's an empty cup. Just a lifestyle venture for the personal enrichment of the BOD.

Why haven't the larger holders ousted the useless BOD here?
Why haven't director salaries been curtailed?
Why isn't there an embargo on expenses?

SP only going south, as always and with posters like Helpful stating that a large investor called for the company to be put into liquidation, the future looks bleak for ordinary PIs imo.

DYOR

Captainslapper: "hoping against hope for it to fail"

That you can't see that it has already long since failed and remained a faliure for many years is testimony to your naivety imo. The losses are staggering and have ammassed in their millions.
So laughable in fact that they now cite those horrendous losses as a benefit that can be used to avoid taxation of any future profit. You couldn't make it up really.

I have been confidently predicting these past few months that the SP here would be in the 0.3p levels by end of the year. Today we can see the sells below 0.4p so as ever my take on this POS is spot on. They have clearly been unable to repay the £1m outstanding CLNs, any available cash tends to get squandered on director salaries and preposterous amounts of expenses.
It will only ever go one way, Southward and the 10yr chart demonstrates this more than adequately.

Nothing will change unless and until the BOD are removed imo. The larger investors who together hold close to 40% of the shares have so far failed to remove the BOD. That means imo they are either stupid or that they can't remove the BOD. Their cash is now locked in here and imo will steadily lose value. DYOR

Helpful: "Some trades going through"

lol, and doubtless tomorrow we'll see a late reported large sell. The mugpuntery doesn't seem to fall for this stuff any more. Volume is essentially non existent. Can't bl;ame you for getting the conversion price lowered on your useless CLNs. As I told you before your chance of ever converting them at 0.8p was totally zero. Even at 0.6p I suspect you'll struggle unless you can drum up the pump and dump of the century. Good luck with that.

Bit of a nothing RNS and accordingly the markets (the fish) don't appear to be taking the bait.

Far too much history with both RRR and RGM to be able to get away with the tired old cycle of industrial levels of dilution and wordsmithed RNSs anymore.

RGM has already RNS'd that it intends to issue over 7 BILLION (yes billion!) shares at the bargain basement price of just 0.0275p.

I would consider myself mentally unsound therefore to even consider for a second buying any shares here at prices above that placing price. Only 3 trades are showing here despite today's RNS which is in many ways comforting to see. Means mugpunters are far wiser today than they used to be and don't fall for the pump and dump nonsense.

Why give placees an easy flip profiyt at your expense? All that happens if you do is those sharks will keep coming back for another bite of the cherry and so the company will keep issuing shares all day long. The SP will thus get decimated as has been the history both here and at RRR for the past 10 years. Just check those 10yr charts to see the devastation.

RGM has already performed a 1 to 20 share consolidation in 2015. Now it is about to do another consolidation on a 1 to 100 basis.

That tells you all you need to know about what happens to dilution pits like this.

Thanks placees but no thanks, I don't want to buy any of your worthless bits of confetti at stupid prices. Kind of you to offer of course but no thanks!

DYOR

lol slapper

I made 20% on a blue chip FTSE share in the past 3 months. Only a total idiot would stick hard earned cash in this POS hoping for nothign but a laughable 10% ! My god it's been one of the worst industrial dilution lifestyle companies on AIM and the same old BOD ar estill in place !!

CLN holders are surely quite frustrated. Cash locked in now for the third year running and the only way to get it back out is more dilution, asset stripping of the "family silver" Jupiter shares or winding the company up and again asset stripping. Small wonder they had to sit on their backsides for a 3rd year running and got the company to lower the conversion price and increase the interest rate. This time next year expect a rinse repeat.

The whole situation is laughable imo. Bell went and wasted £1.1m of valuable shareholder cash by loaning it to the failing Steelmin venture. He didn't RNS that loan either which imo was absolute shocking arrogance and disdain for shareholders. Had he not made that wreckless loan there would be £1m to pay off these stupid CLNs. As it is, the Half Year Report revealed that the company only had £27k in the bank at end Dec 2018. Nothing ever changes here. There is no investment proposition that I can see because the BOD sap away all teh value in silly salaries and admin and other expenses. Spent approx £850,000 just on admin last year alone, this for an AIM tiddler with £3m MCAP. Too many people now wise to the share imo and the total lack of volume . . . . well , speaks volumes ! DYOR

So . . .

Dec 2015 the company consolidates the shares on a 1 to 20 basis

Dec 2019 the company consolidates the shares on a 1 to 100 basis !

Rinse repeat

What a tale of utter incompetance. Barge pole imo.

DYOR

Another point worth making is that if they can't afford to pay back £1m of CLNs then where will they get any cash to develop projects?

At end Dec 2018 the company only had £27k in the bank and had Total Current Liabilities of £2.7m.

They raised £323k since via a placing, received approx £250k from a Jupiter divi and raised approx £300k from the sale of 1.5m "family silver" Jupiter shares. That pretty much accounts for the Admin expenses of £850k a year so where will cash come from for any major project spend?

One can predict that the BOD will keep dipping into those "family silver" Jupiter shares and squandering the dividends in order to keep paying themselves silly salaries and expenses.
Where is the shareholder value in such a business model?

This share for me personally, remains a totally uninvestable lifestyle outfit for the personal enrichment of the BOD.

DYOR

Helpful: "It is not possible to lose money on the CLNs."

This is the kind of nonsense that people who dump their cash into Premium Bonds spout.
They too claim that they can't lose money because they can always pull put their original stake and while ever it sits in the government coffers it has the tiny slim chance of winning money.

Of course the reality is that while ever the money is sitting there earning nothing it ISN'T therefore sat somewhere else where it could earn a great deal more money. Therefore they ARE losing money having their cash sat in Premium Bonds.

Similarly, Helpful and Co are here having to sit with their cash locked in for yet another year. They have had to endure 2 full years so far at the interest rate of 10%. Helpful says they can't lose money, yet what this actually means is that these high net worth investors then are totally incapable of earning more than 10% via their stock market tradings. For if they did have the nouse to invest and make say 30% to 50% returns on the markets then they most assuredly wouldn't be sat here making 10% !! So the truth is that Yes, they are effectively losing money which they could be making elsewhere with the cash, or they really are just not good investors and making 10% is the limit of their abililty. You decide. DYOR

Just utterly laughable !!

The so called (cough) high net worth investors obviously forced to sit on their backsides for yet another year, their cash still locked in here. There can be no stronger indication for me personally that this means the company just can't afford to pay the CLN's without serious asset stripping. CLN holders clearly had no choice at all as all other options would further decimate the share price (i.e. more dilution or sale of Jupiter Shares).

For ordinary shareholders this is dire. Already 2 years of interest on these CLNs at 10% has been incurred which I presume is over £200,000. Now a third year of interest will be incurred at 12% !! It's just valuable cash seeping out of the business.

Couple that with the preposterous amounts expended on Admin and other expenses here (last year approx £850,000 on admin alone!) and you see why the SP only drops further and further into oblivion.

Of course none of this would have been necessary had Bell not (imo) foolishly loaned the failing Steelmin business a further £1.1m behind closed doors, failing to RNS that loan to the markets.
Surely paying outstanding debts should have been the priority. Steelmin subsequently went into Administration last Feb and that cash is now gone.

As others have pointed out, if these clowns actually believed any of the ramping nonsense they spout here then they would be buying the shares at current price in their droves. They have instead insisted on the CLN conversion price being dropped and the interest rate being increased. That tells you all you need to know imo about their frustration and lack of confidence imo. Nothing changes. Current BOD must be removed imo.

DYOR

and the round sells just keep a comin'

Surely the placing cat is out of the bag now or do people see some other explanation for these sells?

Sells at 0.40p, it's clinging on by its fingertips but totally inevitable that this is going to drop into the 0.3p levels imo. The weather forecast suggested there might be snow in some areas but I'm wondering if he was confused and it was actually just a storm of Christmas confetti !

Naive mugpunters imo who don't know the score here.

That or Helpful & Co, the larger holders who threaten to take this private.

Either way it's a huge avoid for me. SP is only going south from here imo.

DYOR

Hope people have clocked the flurry of nice round sell trades these past 5 days.

Sells of 100,000, 200,000, 300,000, 500,000 etc etc

Where have we seen this before? Of course, prior to dilutive placings over the course of the past 7+ years.
All those sells are at 0.41p or thereabouts. Many people used to say that such trades were forward selling of placing shares. I couldn't say myself as I have no way of knowing. The presence of lots of round sells for me however flashes that red light.

I personally believe any placing will be at 0.3p levels.

The £1m of outstanding CLNs are due for repayment in just 3 days time on 19th Dec. So RRR need to find £1m from somewhere so a placing is a definite possibility imo given they just changed their broker back to Cornhill Capital (Pello) the placing experts who were previously fined over £200k for forward selling placing shares with a New World Oil placing.

If so then any shares bought now are just giving placees a quick easy profit at your expense.

Each to their own but I most certainly won't be buying any shares here before they announce what they are doing with those £1m CLNs. Nor for that matter before the Annual Report is published which is due any time.

I personally believe the SP here is heading into the 0.3p levels because of that CLN repayment issue but that's just my opinion. Believe what you will and always DYOR.