Member Info for MrMagic

Tick Tock

After today there are just 9 working days until the £1m of outstanding Convertible Loan Notes are due for repayment.

What will they do?

A dilutive placing seems most likely to me personally. The company just changed it's broker back to old friends Cornhill Capital, the placing gurus, seems highly indicative TBH.

They could sell more Jupiter shares to raise cash but that would be appalling now that the JMS share price has crashed to AUD 0.25 levels. Would be an awful kick to shareholders imo.

Or the poor old CLN holders like Helpful will have to accept them being rolled over for a 3rd year.

All options look fairly poor to me. As a result I expect the SP here to drop into the 0.3p levels soon enough.

I'll personally watch and wait for wordy Update RNSs which for me will indicate an incoming placing.

Either way I can't see any point buying shares here at least until that 19th Dec deadline for CLN repayment has passed.
Might as well see how they propose to resolve that little conundrum before taking any risk.

DYOR

lol helpful

Truly desperate stuff

When things are bad just wheel out the old "Mt Ida might be a goer" fantasy yet again . . .

How many times now? Lost count

Mt Ida is mothballed indefinitely. The feasibility study highlighted it would cost over £1billion to develop.

Not gonna happen but by all means keep trying to sell the dream to mugpunters.

From RGM RNS:

"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"

7 billion shares !!

And then a share consolidation. RGM has already had a share consolidation. What a joke.

Just lol

"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"

Mass share issue, then a share consolidation to hide the embarrassment.

RGM already had a share consolidation, now it needs yet another. Just laughable

Dougal your number there for JMS value seems to be off to me. JMS shares are currently 0.25 AUD I believe which would value the 17m shares at just over £2m. Regardless it's been a huge drop in value from the former highs of 0.40 AUD and has seen a massive amount of underpinning asset value disappear imo. Only 4 months ago the RRR RNSs were waxing lyrical that their holding was worth over £4m. Today it's approx. £2m. That's £2m of value wiped out here in the past 4 months.

This of course makes it an absolutely dire choice to cash in Jupiter shares to pay down the £1m Convertible Loan Notes that are due for repayment on 19th Dec in 11 working days time. I can't see that being a viable option as it would just strip away the only decent asset that exists here. All of which makes a placing all the more likely imo. Either that or the CLN holders will be effectively forced to roll them on for a 3rd year. All options seem poor TBH and I personally can only see the SP here dropping into the 0.3p levels as a result. Believe what you will of course and always DYOR.

Getting just 10% via investing in AIM is frankly pathetic. You can get 5% at the banks with absolutely no risk whatsoever.

The CLN holders are simply locked in imo and agreed last year to kick the CLNs down the road for a further year hoping that there would be some miracle announcement on one of the projects which of course didn't appear. This time last year the SP was over 0.6p and rampers were shouting that this was a good price to get in and that it wouldn't last long. They were of course horribly wrong and badly misleading investors. Today the Bid Price shows at 0.40p above so anyone foolish enough to fall for the endless "jam tomorrow" spiel would have lost a packet.

CLN holders should have insisted on being repaid imo. They didn't and were probably horrified to find in the published Half Year Report that as at end Dec the company only had £27k in the bank and total current liabilities of £2.7m.

Then in February Steelmin went into Administration, yet another failed venture and then it would later come to light that Bell had loaned Steelmin a further £1.1m and had not RNS'd that to shareholders/markets. Money gone down the pan.

Nothing will ever change here unless/until that BOD are removed. Helpful & Co are imo totally wasting their time and money trying to make cash here without removing the BOD. What they should be doing is holding General Meetings and voting to stop director salaries and curb Admin and other expenses until such time as the company becomes income generative.

Helpful - "Me and my clients hold over 20% of the company and we hold pretty much all the CLNs"

They must be pretty livid if you led them into this share ! Stuck holding CLNs they will never be able convert imo and so sat with that cash locked in and only earning a paltry 10% interest. Who gambles with hugely risky endless dilution stocks like RRR for a measly 10% ??? It's really quite laughable.

Worse still we are now just 12 working days from the 19th Dec deadline when those £1m worth of CLNs are due for repayment. Are they going to be kicked down the road for yet another year thus incurring shareholders here another year of 10% interest? Or is it going to be more horrific dilution via a placing with newly appointed old chums Cornhill Capital the placing specialists? Or more asset stripping of the Jupiter shares?

Either way SP here is only going South from here imo.

DYOR

After today there's just 12 working days left before the deadline for repayment of the £1m Convertible Loan Notes/

Where will the cash come from?

A dilutive placing? (likely imo)

Selling more Jupiter shares to fund it? (i.e. asset stripping)

Or kicking the can down the road for a 3rd year?

Either way it's all bad and I predict the SP will be in the 0.3p levels pretty soon as a result.

The problem with the endless "jam tomorrow" rhetoric of the desperate locked in rampers is . . . it doesn't pay the bills !!

Cash is king and this BOD spend most of it on salaries and Admin and other expenses thus stripping all value from the share. RRR just changed its broker back to Cornhill Capital, the placing experts so for me the placing option seems most likely. Watching for Update RNSs to confirm it for me personally.

Like RGM, this is a dead duck imo. Bell already lowered the nominal share value from 0.1p to 0.01p to keep diluting. He has also already done a share consolidation here. As can be seen from the 7yr+ chart the SP just continued to be decimated by dilution and imo by the BOD continuing to suck out £millions in expenses.

Until the BOD are removed, nothing will ever change imo

DYOR

Helpful - "The only things that people can really throw at AB are going back into Steelmin and wasting money on the diamond deal."

Laughable !

What about the Greenland "debacle" (I won't use the word I would like to use there!). Greenland lawyers paid their completion bonus etc.

What about practically giving away the El Limon gold mine? A shareholder asset.

What about Migori having had a license for 26 years and failing to complete exploration resulting in license being revoked?

What about the failure of Ivory Coast, Shoats Creek, Steelmin etc etc Where was the due diligence or risk management ?

What about the many "millions expended on Admin and other expenses?

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

TOTAL there is £12,178,503

This is a POS company with a £3m MCAP ! The reason is right there. Most of the available money is frittered away in expenses.

Nothing will change here unless/until the BOD are removed. It's that simple.

Meanwhile, increased ramping underpins for me an imminent placing.

Just waiting for the Update RNS to confirm it

DYOR

As predicted here come the ramping aliases. What a pile of nonsense Winteris. This company has been (cough) "exploring" for 14 years and still hasn't been able to make itself an income generative business. That's because the BOD spend so much on expenses, and FYI you are wrong, those expenses have been going back up.

2016 - Admin £758,351
2017 - Admin £644,688
2018 - Admin £849,518 plus "Other" Project costs of £306k

Let's also have the facts about cash..

Cash in bank at end Dec was £27k

Total Current Liabilities at that time were a significant £2.7m (remember MCAP here is just £3m)

Since then they raised £323k from a dilutive placing
Received approx. £250k from a Jupiter dividend
Received approx. £300k by selling down 1.5m of the "family silver" Jupiter shares

The Admin Expenses (last year £approx. £850,000) pretty much accounts for the above income so where is the cash to pay down those £2.7m current liabilities and any project costs ???

Between 2012 and 2017 this BOD raised over £15m cash from dilution/placings
In the same period they spent over £11m on Admin and other expenses. That's where the money goes.

Where is the shareholder value? None. And now the company has a MCAP of just £3m.

Nothing will change here imo until Bell & Co leave the company and a decent management team come in that don't run the company as a lifestyle venture for their personal enrichment.

Apart from that, grateful to you Winteris for suddenly creating an account here on LSE to ramp this POS thereby confirming to me personally that a placing is coming. I certainly won't be falling for the ramping spiel on the run up to that.

No point buying here until after the 19th Dec CLN repayment date imo. I'll wait to see if the placing drops or they pawn off more Jupiter shares or roll the CLNs over for yet another year. Either way SP only going south imo.

DYOR

Helpful - "You never know, we might agree to roll the CLNs. 10% is a decent interest rate."

Just laughable. That would be nothing short of admission of defeat and failure on your part.
So-called High Net Worth investors hanging around a POS AIM stock for 3 years just looking for 10% !!!
Do your clients really sign up for a measly 10% and put their cash into an AIM shares with one of teh worst track records and BOD out there?

Any way you cut it, all options look pitiful here

If a placing drops (which I predict) then the SP plummets into the 0.3p levels
If Jupiter shares are sold to pay off CLNs then again SP plummets to 0.3p levels
If the CLNs are kicked down the road for a 3rd year it's simply admission that the company can't afford to repay them indicating dire financial situation, so again the SP will suffer.

The truth is if the BOD here didn't fritter away the lion's share of available cash on salaries and expenses there might be some value but as it is there is none whatsoever imo. Last year they expended approx. £850,000 just on Admin Expenses alone. Small wonder they rolled the CLNs on for a 2nd year back then !! As at end Dec 2018 they only had £27k in the bank according to the Half Year Report. Pretty dire.

Things have even gotten so bad that the BOD no longer bother keeping markets and shareholders aware of loans and transactions.

They did transactions and loans with Amulet Diamonds and failed to RNS that to markets

They loaned Steelmin a further £1.1m and failed to RNS that to the markets

Pretty despicable and arrogant behaviour imo and means that anyone investing is doing so blind as how can you know what other loans and transactions have been done that you are not aware of??

The company subsequently said the Amulet loans will be written off and as we know Steelmin went into Administration last Feb so that £1.1m is gone too and RRR still haven't even RNS'd that Steelmin went into Administration all these months later, surely an SP affecting event !!!

I'm not fooled by the pathetic lickspittle rampers here. They are holding CLNs which they will never be able to convert imo and doubtless simply want to get their money back as soon as possible and are clinging their hopes on the next update RNS.

Regardless my point remains that there is absolutely no point buying before 19th Dec deadline. Might as well see if they
do a horrifically discounted placing with new broker Cornhill Capital (now renamed Pello) or if they pawn off more Jupiter shares. SP will be in the 0.3p levels before end of the year imo.

DYOR

Only 14 working days now before the deadline for repayment of the £1m Convertible Loan Notes arrives.

I note that the Ask above has risen to 0.50p but the Bid remains at 0.40p. Same old same old. Not fooled.
More indication for me of an imminent placing.

My guess is that any placing would be done at 0.35p or worse.
If a placing is imminent then expect a flurry of increased ramping and at least one Update RNS full of forward looking
"jam tomorrow" statements.

The SP will plummet into 0.3 levels on any placing or pawning off of Jupiter shares imo.

Hence, for me, absolutely no point buying before that 19th Dec deadline imo. Might as well wait the 14 days and see if a placing does appear.

DYOR

lol Dougal. Only interesting if you're a participant in the likely placing. Would that be you?

DYOR

Tick tock, 4 weeks before the £1m worth of CLNs need to be repaid somehow unless the holders are happy to have them rolled forward for yet another (3rd) year ! Confetti O'clock? You decide.

Ah, Helpful is back ! Hasn't posted here since 11th Nov, over 2 weeks ! I assume because you have been "inside".

Will you be participating in a placing by any chance? Just a guess . . .

You have to feel for poor Helpful, having to post scattergun random Twitter links and other stuff to push contrarian (realistic) posts down the page. 6/7 silly little posts made where one would have done. Helpful is clearly well under here and owns some of the £1m outstanding Convertible Loan Notes which he will never get to convert. Those notes are due for repayment this 19th Dec.

As at end Dec 2018 the company only had £27k in the bank (see Half Year Report)
They also had Total Current Liabilities of £2.7m

Since then they:

- raised £323k from a dilutive placing at 0.50p (look how the SP has tanked since)
- rec'd approx. £250k from a Jupiter dividend
- Sold 1.5m of the "family silver" Jupiter shares to get I guess about £300k
- Another Jupiter dividend is due

Against that are those £2.7m liabilities and the fact that this BOD got through approx. £850,000 last year just on Admin Expenses alone and of course any actual project costs.

Those £1m worth of CLNs have already been kicked down the road from last December, extending their term for a further 12 months and thus incurring shareholders another year of 10% interest on them. They are due to be repaid this 19th Dec.

Where will the money come from for that?
and for the preposterous amounts frittered on Admin and other expenses?
and the remaining liabilities?

It is surely either more dilution with confetti placings or more pawning off of the "family silver" Jupiter shares.

The company has just changed its broker back to Cornhill Capital. I think we can therefore guess which route
Bell will opt for !!

I predict there will be plenty of opportunity to buy these shares in the 0.3p levels before the year is out. All imho.

DYOR

So long Madpat.
Nothing changes here, nor will it ever imo while ever the existing BOD remain in position.

Just waiting myself for the inevitable confetti dilution that I believe will come in order to pay down the £1m Convertible Loan Notes whose deadline is 19th Dec. I fully expect a little flurry of pithy Update RNS before that happens to "tickle the fish" so that's what I personally will be looking out for. The fact they just hooked back up with Cornhill as their broker underpins this for me. If I'm right I reckon the SP here will fall into the 0.3p's in no time at all.

As you say, Bell already did a share consolidation here when the SP was at embarrassing levels. Since then the continual dilution has simply continued to decimate the SP. Just take a look at the 7yr+ chart, it's abysmal and demonstrates perfectly the result of a company run as a lifestyle venture. Where does all the money go? Most of it goes to Admin and other expenses. Admin alone ran at approx. £850,000 last year. Between 2012 and 2017 over £11m was expended on Admin and other expenses. Just preposterous. DYOR

Keep plugging Solomon Grundy . . . .

How much are you participating for when the inevitable Cornhill placing drops?

Helpful: "As I said no need for a placing. £363k is decent"

Thank goodness I'm immune to ramper nonsense !

Admin Expenses alone here were approx £850,000 last year.

How does £363k come close to those expenses AND be able to contribute to the £1m+ or so CLNs that will need paying off on 19th Dec?

RRR hooking back up with Cornhill Capital is in most people's eyes here a guarantee of impending dilution. The history of RRR/Cornhill placings is there for all to see.

The only other option is selling down a shed load of the "family silver" Jupiter shares which will go down with investors like a lead balloon and with it will go the SP.

DYOR

BTW Don't be fooled by today's change of broker to Pello Capital

https://www.pellocapital.com/

"Cornhill Capital has rebranded to Pello Capital"

Yes it's RRR's old friends Cornhill Capital who have facilitated numerous placings
in the past here.

Cornhill were fined £210,000 by the LSE for forward selling a 2bn placing to private clients for New World Oil & Gas. But the placing required a vote of shareholders and they voted against it. As a result Cornhill was unable to settle the sales with the result that there was extreme volatility in the share price and the listing was suspended by AIM. The company has subsequently delisted.

https://www.sharesoc.org/blog/regulations-and-law/cornhill-capital-fined-over-aim-placing/

Today's RNS is fair warning imo

If you buy shares here and find yourself suddenly facing a dilutive placing then you deserve to lose your money imo. The signs are all there imo. The £1m CLNs are due for repayment 19th Dec. Where else is the cash coming from?

DYOR and do it well.