Member Info for MrMagic

LMAO shareguru

PJ ramping is no basis for investing !!

As I predicted a few days ago, there is the Update RNS. Next stop, confetti issue imo. Same old, same old.

And again this "sum of the parts" valuation nonsense is getting desperate. Nothing here has actual face value because of the preposterous sums of cash this BOD expend in Admin and other expenses.

I iterate for the umpteenth time. Between 2012 and 2017 this BOD raised over £15m cash from dilutive placings. In that same period over £11m of it went to Admin and other expenses. Simply farcical imo. THAT is why the SP is on its knees and why it has been utterly destroyed over the past 7+ years. Nothing will ever change unless the BOD are removed.

There can be no more telling evidence of this situation than the final comments on this very board by former 13%+ holder Daniel Sklan who not only invested tons of cash but also had a personal royalty deal with RRR for its Ivory Coast venture (which went nowhere!). These were his parting words:

"After holding RRR shares for a considerable number of years and seeing my holding drop from over 13% to under 2% and value drop by over 90% due to the constant “fund raising” and issuing of new shares; I have finally had enough and sold all my shares.
Let’s be honest - doesn’t matter how much money RRR receives it will always disappear paying "misc. expenses", directors salaries and investing in white elephants; sorry I meant Elephant Oil and various other ridiculous investments. I simply can’t understand how a business manages to plough through so much money with so little to show for it."

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

The rampers try over and over and over to present this lame "sum of the parts/assets" billy BS nonsense and I have thankfully learned to ignore it and see it for the total sleight of hand con trick that it is.

Last year this BOD expended approx £850,000 just on Admin Expenses.
As at 31st Dec RRR had only £27k cash in the bank (see Half Year Report) and it also had Total Liabilities of £2.7m

Most certainly some significant finding challenges there.

Given a choice between selling down some of the "crown jewels" JMS shares and diluting shareholders with a placing or more CLN's . . . which do you think Bell will choose ???!!

There is form to go by . . . . . a lot of it !

The answer should be obvious imo. DYOR

Correct Porridge.
3 separate share buy backs conducted by Jupiter which netted RRR £1m, then a number of dividends paid out netting RRR another £750k+. The crucial part . . . .

NOT A SINGLE PENNY OF ANY OF THAT MONEY WAS PASSED ONTO SHAREHOLDERS HERE !

Tshipi shared its profits with its shareholders (inc Jupiter)
Jupiter shared the profits with its shareholders (inc RRR)
RRR . . . didn't share the profits with anyone and the money was exposed to admin expenses and working cap.

Rampers are as usual desperately trying to pull the "sum of the parts" con trick here imo. The problem with that is that it simply doesn't work because any available monies here get gobbled up by the (imo) outrageous expenditure on Admin Expenses and salaries. Last year this BOD got through approx £850,000 just on Admin Expenses alone !!!

Between 2012 and 2017 they raised over £15m via dilutive placings and the like. In that same time period they also expended over £11m of it on Admin and other expenses. It's plain to see where the money goes and that is why the Jupiter share value is a red herring. If they cashed in any of those shares the cash imo would simply get exposed to that horrific expenditure on Admin Expenses. Hence the value of any cash or asset here is NOT face value and never will be. The value is far far less because of how the BOD operate. That, in turn, is why the SP here has been utterly destroyed and why the "sum of the parts" idea is nothing but a sleight of hand con trick used by rampers.

The BOD must be removed here for anything to happen, otherwise the same old MO will continue: jam tomorrow nonsense, dilution, salaries and high admin expenses. No value there for shareholders imo.

DYOR

Pretty lame ramping there shareguru imo

Try as you might to bury it under the carpet, the chairman here is Andrew Bell. Promoters seem keen to try and present this as a Paul Johnson company but Bell is teh chairman just as he is with RRR and RGM.

There is a very rich history with Bell's other companies Red Rock Resources (RRR) and Regency Mines (RGM). A history of industrial scale dilution, preposterous expenditure on Admin expenses, a long trail of failed ventures and more recently a string of loans, transactions and events that he has chosen not to RNS to the markets which personally I deem utterly appalling behaviour.

The SP's of both companies have been utterly destroyed, both have had nominal share value reduced from 0.1p to 0.01p so dilution could continue, and both have had share consolidations to boot. Despite consolidations the SPs have still been decimated further, RRR now just 0.47p and RGM just 0.05p.

Johnson does himself absolutely no favours with this association imo. I wouldn't personally touch anything Bell has his fingers in and I'm pretty sure I'm not alone in this stance. This share (as ABM) has been on the LSE Share Fallers board at least 7 or 8 times since PJ and Bell took over.

GL but DYOR obviously

So new posters arrive, or old ones crawling out from the past. Helpful starts ramping boardman and a bit of land and Share Talk are joining the stock promoting.

Can only mean the inevitable fundraise is imminent imo. I would expect an "update" RNS from the company next and then BAM with the confetti. Just my opinion.

Former large 13% holder Peter Gyllenhammar has been selling his holding down since Christmas. Last 3 of his holdings RNSs were 28th, 29th May and 3rd June. He was down to just 4.77% at that point so still 32m shares to dump somehow if he's selling the lot.

Cash in the bank was just £27k as at 31st Dec (see Half Year Report)
Liabilities then were a significant £2.7m (see Half Year Report)
Admin Expenses last year were approx £850k (see Annual Year Report)
Other Project Costs £306k (see Annual Year Report)

Since Dec the company raised £323k via a placing at 0.51p of 63m shares
They also received approx £250k from the Jupiter dividend.

Not much income income there imo vs the funding requirements for all those liabilities, salaries, admin expenses, project costs and so on. Hence I personally suspect the next confetti issue is coming. Eyes peeled for more new aliases arriving.

Buy, hold or sell but most definitely DYOR.

mercedesman: "and now its 0.475p,"

Don't forget there was a 20 to 1 consolidation too !

Bell and co have simply used this share imo as a personal lifestyle venture. Nothing but endless "jam tomorrow" BS rhetoric and dubious projects in corrupt places that mostly fail miserably. Devastating dilution along the way has destroyed all value and the SP with it.
Nothing will ever change unless the BOD are removed, until then I personal expect them to keep using the company for their personal enrichment.

Between 2012 and 2017 this company raised over £15m from dilution placings and the like.

In the same time period they expended over £11m on Admin and other expenses.

Just utterly laughable. Salaries and expenses is where the money goes. It's a total sucker play imo. Glad I no longer fall for the ramping BS from the usual suspects here.

Greenland project . . . now sold off for just £1
Ivory Coast project . . . went nowhere
Shoats Creek project . . . now written off
Steelmin project . . . now in administration

Failure after failure but the BPD care as they continue raking in the salaries and expenses.

Large 13% holder Peter Gyllenhammar has been steadily selling down his many millions of shares since Christmas and still has plenty to go if he's dumping the lot.

DYOR

Helpful is clearly desperate to lay the ramping ground just in case RRR actually do get their license back. He is after all a holder of some of the £900k ish outstanding Convertible Loan Notes, exercisable at 0.8p.

The thing is, even when they did have that license there was nothing happening and markets weren't imo interested. This is how one news article reported the revocation :

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

"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."

Not encouraging words TBH. Those of us who have been around this share a few years remember vividly the last public conference call that Mr Bell convened. It was an incredible embarrassment as, out of the blue, a Migori director hopped on the call to ask what the heck was happening with the project. It was at that point that I realised that the so called "partnership" was clearly rather tenuous.

Even if the license is gained back what difference does it tangibly make here? It made naff all difference before the license was revoked, it will make naff all difference if they get it back, imo. DYOR.

Para Resources: "There are no assurances that the El Limon mine will be found to be economic"

No comments from the shameless company apologist here then . . . . just more lame twitter links. Nuff said. DYOR

Para's previopus update stated:
"• El Limon mine production is on plan and will grow by 50% by the end of June to over 300 ounces per month.
• Cash flow break-even occurs at production of 300 ounces per month representing 25% of capacity."

So not even at break even point as at June 20th !

I guess that's why we've not seen any RNS's from RRR stating the royalty revenue for quarter ending March 2019 and June 2019. Can't believe people still buy into the great El Limon gold unicorn story personally.

Oh dear . . . . "

http://pararesourcesinc.com/para-resources-clarifies-corporate-update-news-release-june-20-2019/

"The El Limon disclosure in the June 20, 2019 news release that referred to proposed production figures (and contained gold) and any economic analysis of production is retracted. The El Limon disclosure that described contained gold is retracted. Such gold content disclosure is not permitted unless an issuer is able to include grade and metal content for each contained metal as part of a deposit that has been categorized as an inferred, indicated or measured mineral resource or proven or probable mineral reserve as defined by CIM definition standards have been established on the El Limon property. The El Limon project does not have any mineral resources or mineral reserves as categorized by NI 43-101."

"The Company’s decision to mine and its work and plans at El Limon are not supported by a preliminary economic assessment, preliminary feasibility study or feasibility study. The technical report entitled “El Limon Project Technical Report Zaragoza, Antioquia, Colombia” dated September 15, 2015 does not satisfy the requirements to be considered a preliminary economic assessment, preliminary feasibility study or feasibility study. If the Company were to bring the El Limon mine into production without first establishing mineral reserves supported by a feasibility study, the Company cautions that this could result in higher risk of economic or technical failure of the operation than if a feasibility study had been prepared demonstrating economic and technical viability. There are no assurances that the El Limon mine will be found to be economic."

zumore : "in today's rns it's back up to $1,254,000"

Yep but it's now spread over 5 years at 10% interest per year plus a further 2% fee with nothing to pay until Jan 2020. It reads like some DFS sofa loan !

5 years @ 10% pa is another 50% in interest so the total to be repayed is around $1,906,080 or £1.5m in real money by my reckoning.

The more worrying aspect is that, as per an earlier RNS, this news simply promises shareholders a shed load of placings to keep the company running. Anyone putting their hard earned in here can be under absolutely no allusion about the coming dilution. The company has been as open about its intentions as it can be. Confetti is coming, lots of it.

If they could place shares at todays 0.055p I make it about 2.7 BILLION more shares. That of course would be unrealistic imo as with every placing there is usually a discount and with each successive placing I would personally expect the SP to fall lower so progressive placings will be done at ever lower prices. The finally tally could be 3 to 4 billion more shares imo.

There are currently 1.5 billion in issue.

Why would I invest money here to just get diluted and esp when the money raised is in part just going to be used to pay off loans as well as likely contribute to working cap (director salaries and admin expenses etc) ???

What is needed is an RNS stating that the greedy BOD will cease this lifestyle gravy train and take all salary in the form of shares and curtail admin expenses and options ?? Unless they do I don't see any investment opportunity here. SP only going one way.

All imo and as always DYOR

Posted by Noirua on ADVFN (19th Jul)

"Some might think about going for a punt here but maybe a placing at 0.45p is being lined up."

Anyone think similar? DYOR

Long time pumper of RRR, Noirua, on his ADVFN thread states in his thread header:

"Cash Raising a certainty in the very short term"

https://uk.advfn.com/cmn/fbb/thread.php3?id=41561690

Hard not to agree TBH

RRR had only £27k in the bank as at 31st Dec according to the Half Year Report

They since raised £323k via a dilutive placing of 63m shares at 0.51p and received approx. £250k from the Jupiter dividend.

The Half Year Report also stated Total Current Liabilities as £2.7m
The Annual Report stated Admin Expenses as a whopping £849k for the year
Plus "Other" Project Expenses as £306k

Companies House also shows an outstanding Charge dated 15th Feb stating that Charles Topham loaned the company an undisclosed sum secured on all freehold and leasehold property of the company and more.

https://beta.companieshouse.gov.uk/company/05225394/charges/ZSUzLZH0vK3NqO3rx5CDZx7kwoQ

There are presumably project costs to be funded also.

Given the liabilities and loan and huge Admin Expenses and project costs where is the money going to materialise from to pay for it all???

Noirua would appear to have identified the most likely outcome imo. More dilution ! DYOR

Key words in the RNS:
potential , indications, may be , expects to

Yawn. Same old imo

Your numbers are wrong there Zu. You mean a placing of 400m shares not 400,000.

So with share authority in place to issue up to 2 BILLION shares this year that leaves room for another 1.2bn shares (1,200,000,000). As you suggest if that's done with 1 for 1 warrants that could be 600m shares and 600m warrants.

Helpful - " I expect that the holding in Elephant Oil will be worth more than the current market capitalisation by the end of Q1 20."

Let's be fair, your track record of expectations and predictions is pretty crud. Some of your past comments:

"The people behind Steelmin had put Euro 11mil into it at 31/01/2017. The investors include Stonehage Fleming, Quilvest, Copulos Group. The Chairman is a former director of the EBRD. These people are not complete and utter idiots contrary to what the troll on here say."

"You try working out what 20% of Steelmin is worth on EBITDA of Euro 10mil and a multiple of 13: it is not zero."

"I also think that Steelmin will get sold sooner rather than later."

Comedy gold really. Steelmin went into Administration in Feb and the assets went to Thalos, the secured creditor, leaving a £1.1m debt to RRR which won't imo be recoverable..

Then you bragged about the Convertible Loan Notes you hold saying;

"I will not be converting any at this price [SP was 1.17p]. Take some time to do some research: why convert now, when I can hold for pretty much no risk and convert later at a higher price. Every month I wait gives me more shares at the conversion price."

Conversion price is 0.8p. SP today 0.47p. Oooops ! Great decision there Helpful . . . !

"Don't worry when I convert and sell, I will let you know exactly how much I have made."

I won't hold my breath. You'll never get to convert them now imo.

GL to you, but I personally don't buy into your jam tomorrow flannel. Bell's antics here make this uninvestable imo.

DYOR

Helpful: "On Steelmin and Amulet I have made it clear here what my thoughts were and I have made it very clear to AB to his face"

Nice rhetoric but Bell did what he did all the same. On the basis that he isn't RNSing certain loans and transactions with 3rd party companies, nor RNSing when one of the company project companies goes into Administration, how can anyone have any confidence in their understanding of where the company currently is? You have no idea what other loans and transactions might have been made, and thus no idea how indebetted the company is.

The Half Year report said that the Total Current Liabilities were £2.7m

If Topham has since loaned an undisclosed amount of money to RRR then that's an additional amount to be repaid. How much was it? £10k? £100k? £500k?
Has anyone else also loaned monies to RRR? Who knows?!

Without such salient transactions being RNS'd shareholders and prospective investors alike are groping in the dark. How can that possibly be a basis for investment here?

It has become a total nonsense imho.

DYOR

Oh dear !

https://www.lse.co.uk/rns/RGM/regency-mines-plc-update-on-metallurgical-coal-interests-jrk4pcu43hy7deh.html

Project share reduced to just 25%, Cyprus lender now in to prop up the funding, still more funding needed, investment only worth $430k

Can't imagine the company apologists can polish that one ! But watch them try !

Helpful still keeping well schtumm about the cash situation. Still posting silly twitter links to push realistic or contrarian posts off the top. Speaks volumes.

DYOR

Apologetic: "How about AB has simply forgotten to remove the charge?"

Did he also forget to RNS the loan in the first place to inform shareholders what was going on?

Did he also just forget to RNS the loans and transactions with Amulet Diamonds?

Did he also just forget to RNS the additional £1.1m loan to Steelmin?

Did he also just forget to RNS shareholder to inform that that Steelmin had gone into Administration?

Your persistence in desperately trying to be a company apologetic is simply embarrassing now.

If the BOD don't RNS the kind of loans and transactions listed above, then what else are they not RNS'ing??? That situation makes the investing proposition a complete non starter imo. If shareholders are not going to be openly and honestly kept informed then the share is uninvestable. Simple as.

DYOR