Member Info for MrMagic

Notable that Helpful is still not mentioning the cash situation and funding requirements.

From Half Year Report (to 31st Dec):

Cash in bank - just £27k
Total Current Liabilities - £2.7m

From Annual Report:

Admin Expenses - £849k
Other Project Expenses - £306k

It appears that at some point in February Charles Topham loaned some cash which was secured on building and other assets as stated in the Outstanding Charge on Companies House here:

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

Amount of loan unknown. It wasn't RNS'd AFAIK

Since Dec RRR has raised £323k via a placing of 63m shares at 0.51p
It has received a Jupiter dividend of circa £250k and may get a further £300k bonus divi

I'm personally seeing therefore a gap between available cash and all those liabilities.

Where will the cash come from? I can only assume more dilution.

Any comments on cash vs liabilities Helpful . . . . .?

DYOR

This is not Metal Tiger and the Chairman here is Andrew Bell, not Paul Johnson.

That being the case I personally deem it prudent to understand his track record, what he has done to RRR and RGM and how he tends to operate. That will give you some idea of how things might play out here. Up to you whether to DYOR or not.

burningspear: "'to really optimise the balance sheet' = mass dilution"

There can be absolutely no question imo. The BOD convened a General Meeting specifically to get authority to be able to issue shed loads more shares here. In fact they requested, and were granted authority to issue up to 2 B I L L I O N more shares. Not 2 million, but 2 BILLION.

Anyone who punts this POS therefore can have no excuses if they subsequently get diluted to oblivion. There will have to be a serious amount of shameless ramping to get that kind of confetti away imo so when it inevitably comes I will simply ignore it.

DYOR

That's an old dissolved company Cgull. Not important imo

Helpful: "Steelmin was a thing not the next big thing: two things went wrong, electricity prices went through the roof (and are still high) and AB made an unsecured loan to Steelmin"

Laughable, I mean really laughable.

Would you expect someone going into say gold mining to not be aware of the gold prices and their forecasted future prices? Can you imagine say a cruise line trying to operate WITHOUT understanding the price of fuel and the likely direction fuel prices will take in the future?! No of course not. Such businesses will trip up very easily and be out of business in no time.
Further still, can you imagine a cruise line NOT having some kind of contingency plan in place for the eventuality of sudden high fuel prices? Nope. Just unthinkable to operate without such basic risk management.

So what we have seen here with RRR and Steelmin imo is naff all due diligence, really really poor management of a project obviously without looking at electricty price forecasts and worse still, having no contingency plan or backup in place for when/if electricity prices rise sharply. There is no excuse here. Bell has a seat on the board. RRR owned 22% of the project which is significant. The "management" of the project appears to be appalling imo.

To then lend a further £1.1m unsecured is not simply ridiculous, it goes far beyond that imo.

There is form here. It seemed to me personally during the last public conference call that RRR held that they weren't at all in control of the Migori project. A Migori director jumped on the call to ask what was going on which shattered any illusions for me of there being any kind of meaningful working relationship. Then there was the Greenland sale debacle with the lawyers and so on.

It's failure after failure here. The fact that Bell is choosing NOT to RNS key events like that Steelmin £1.1m loan adds more concern as to what is going on and where all the money is going.

As I said, for me, it's totally uninvestable.

DYOR

shareguru: "come back to me in six months "

Thanks but I've already followed Bell's management of RRR and RGM for the past 5+ years. I don't personally need to wait six months here to know what will happen. Trying to focus on PJ as the main man here is a nonsense imo when Bell is the Chairman but I can see why you would wish to do so.

Helpful: "I know nothing. First I have heard of it. This sort of nonsense will be stopping shortly."

lol Stephen. This sort of nonsense is why the share is, imo, uninvestable. PI's have no idea what is going on at RRR central. Loans with Amulet Diamonds are made without being RNS'd, loans with Steelmin similarly, projects go into Administration and that's not RNS'd, now a new company has been formed and RRR is a subscriber and Relevant Legal Entity and that too is not RNS'd.

You'd be investing blind imo. When there are 100's of other AIM companies to go at with better BODs without the horrific track record that this lot have, why would anyone dwell here?

You will never imo get to exercise your outstanding CLNs but at least they are earning you 10% interest !

Definitely a share to DYOR

You appear to be correct TDT
https://beta.companieshouse.gov.uk/company/11857467/filing-history

RRR PLC is listed as the Relevant Legal Entity and a subscriber of 1000 shares

This happened on 4th March which is 4 months go.

Once again no RNS here. Is that because it's Red Rock PLC ?

There can be no question of it Zumore. They put out an RNS stating that the current business model is to issue shares to raise money for working cap and projects. They then convenened a General Meeting to request authority to issue up to 2 BILLION more shares here.

That authority was granted.

Anyone who invests and subsequently gets diluted has only themselves to blame. Personally I don't think there are many such mugpunters left who fall for the "jam tomorrow" dangling carrots. Bell & Co's modus operandi is far too well established now, both here and at RRR.

Each to their own though. Just be sure to DYOR well and get ALL the salient facts.

shareguru: "The reason I didn't comment on Andrew bell i don't know him"

Right, so you are pumping a share and you don't even know who the Executive Chairman is !!! Laughable.

Bell is the chairman of RRR and RGM, a pair of companies whose SP's have been utterly devastated by endless death spiral dilution. You might want to read the boards of both those shares to read various posts/views on this chairman and his track record. DYOR

The usual "jam tomorrow" nonsense from certain parties here. Same poster who has ramped Mayan Energy relentlessly through years of dilution and SP destruction. I learned long ago to pay such shameless stock promoters no heed whatsoever.

The important facts here are the track record and established MO of the BOD and the cash situation. They have spent years diluting shareholders, spent £millions and £millions on Admin and other expenses and have a long trail of failed ventures behind them. Poster Helpful wouldn't need to be promoting this if it were a decent share.

Reality here is that cash in the bank was just £27k as at 31st Dec
Total Current Liabilities were stated as £2.7m
Last year the BOD spent approx £850,000 on Admin Expenses
Plus £306,666 on "Other Project Costs"

Since Dec they raised a mere £323k via a confetti issue of 63m shares at 0.51p
Plus they received £250k ish from the Jupiter dividend and they may get a further £300k bonus divi. All peanuts compared to liabilities, salaries, expenses and project costs.

Bell loaned a further £1.1m to Steelmin that wasn't RNS'd to shareholders. Steelmin then went into Administration and all assets were transferred to Thalos, the secured creditor so that money has been squandered imo. Bell previously made loans and transactions with Amulet Diamonds and also failed to RNS those. He still hasn't RNS'd the fact that one of their projects has gone into Administration which is imo despicable. I can't see how anyone could now invest here because if they are not RNSing such loans and transactions then what else is also happening that is not being RNS'd???

So where is the money going to come from?

Believe what you will but the track record is there for all to see. I don't see Bell cashing in assets when he can simply tap the markets as he has always done with confetti placings and CLNs. Note that poster Helpful holds some of the £900k+ outstanding CLNs that failed to get exercised last year and were rolled on for a further year. I ask myself where are the holding RNSs of these posters pumping the stock? Surely at these prices they feel it is a bargain?!!! Yet no, they don't appear to be lapping the shares up. Nuff said really.

Large investor Peter Gyllenhammar has been steadily dumping his 13% holding since Christmas and still has many millions to go if he's dumping the lot. He clearly doesn't believe Helpful's pithy rhetoric imo.

Company has already established authority to issue up to 400m more shares here. No doubt in my mind then where cash is going to come from. The usual dilution imo.

Each to their own. DYOR and do it well.

shareguru - "whatever you think of Paul Johnson is your prerogative"

lol. No mention there of Andrew Bell then. Pretty shameless. No-one is fooled imo.

As TDT says, same old, same old.

DYOR

Sizable sells there. Is it PG? Or others bailing for some reason?

Odd that stock promoter Helpful isn't buying these in the millions don't you think? SP is much much lower than the 0.8p exercise price of the CLNs he holds. Yet no holding RNSs from him or from the other usual suspects that pump this POS. Telling really.
DYOR

Looks bleak. I said many weeks ago that since the support at 0.6p had been well and truly broken the next support was at 0.4p. The usual suspects of course said that was nonsense. Now here we are, heading rapidly towards 0.4p, showing 9.5% down above and on the share fallers board. I'm not actually convinced there will be support at 0.4p. Time will tell.

Perhaps Gyllenhammar is dumping more of his holding.

Desperate times. BOD here have to go imo. DYOR

Dreaming Hawaii and you know it.

As stated before, it doesn't matter who is at the reins now imo the issue is the lack of cash and how many £100,000s they have to pay. Read the RNSs which stated the commitments. e.g.

https://www.lse.co.uk/rns/RGM/regency-mines-plc-corporate-update-y89bap8zbuj7876.html

"Regency has been made aware by its JV partners that an immediate requirement for additional working capital of approximately $400,000-500,000 currently exists, and that additional sums may be required over the next six months in order to complete the full purchase of Omega as well as to replenish depleted working capital"

"The Company currently estimates that a deficit funding situation with its JV partners of approximately $565,000 thus currently exists"

Half Year report recently issued stated Current Liabilities as £1.7m

Despite cash challenges the BOD still managed to get through £266,873 in Admin Expenses for the 6 months (so equiv to 1/2 million a year!)

What we are seeing now is the end result of a BOD running a compnay via death spiral financing, making losses whilst still paying themselves lucrative salaries and expending £millions on Admin Expenses over the years.

However creative the rampers get from this point will not detract from the fact that the company has now requested and been granted authority to issue up to 2 BILLION more shares here. Can't imagine there are many mugpunters out there with the appetite for such levels of dilution TBH.

So no, I don't agree that this is a "good" punt at all. Only lots of confetti to come as far as I can see.

DYOR

Themis is having a laugh imo.
It doesn't matter who is running the show now imo, the fact is the company has already requested and been granted authority to issue massive amounts of shares and Themis surely knows that so is being wholly disingenuous imo.

Here's the RNS
https://www.lse.co.uk/rns/RGM/regency-mines-plc-notice-of-gm-dwomlnvkhizxfwc.html

The company sought and was granted authority to issue up to 2 BILLION more shares here. That's a colossal share issuing authority by any standard imo. There are currently 1.5bn shares in issue and the MCAP is just £1m.

What will that kind of confetti do to the MCAP and SP ?!!!

DYOR as always

Helpful: "who for whatever reason want RRR to fail but it is not going to happen."

Funniest staement you've made for ages. In what possible sense has RRR not already failed?

Losses posted year on year except a tiny profit last year. £millions raised via confetti issues, £millions expended on Admin and other expenses. What has been achieved ?

2012 - Loss of £1,962,882
2013 - Loss of £22,105,562
2014 - Loss of £4,113,460
2015 - Loss of £8,411,541
2016 - Loss of £283,280
2017 - Loss of £1,114,213
2018 - Profit of £78,120

Could have had over £25m if they'd sold the Jupiter shares when their PS was high. Failed to do so.

Share price has been brutally trashed by death spiral financing

The BOD had to lower the nominal share price from 0.1p to 0.01p
They also did a 20 to 1 consolidation

There is a string of failed ventures in its wake inc imo, Greenland, Shoats Creek, El Limon, Steelmin, Ivory Coast etc etc

Large investors have come and gone with their tail between their legs.

All in all pretty much a complete failure imo but you obviously have some wacky definition of the word fail. Presumably you feel that if a company hasn't delisted it hasn't failed.

Regardless I don't agree for a second with your opening gambit. There are no trolls here, just people who are prepared to challenge the ramping nonsense so many spew out here and to provide the salient details that these unscrupulous individuals refuse to post.

Ah, you mean like the 3 licenses they applied for in Ivory Coast but never managed to get some years ago . . . . .

lol Helpful. Keep working it old son.

Meanwhile everyone knows the real score here. All looks pretty bleak to me.
Lots of liabilities (£2.7m at 31st Dec), high expenditure on Admin Expenses (£850k last year), naff all income coming in except Jupiter dividends.

Dilution already begun this year with 63m recently issued at 0.51p. More will come imo. Where else will cash materialise from?! Authority already granted to issue up to 400m more shares in 2019.

Greenland sold off for £1
Shoats Creek written off
El Limon royalties laughable
Steelmin in Administration

Nothing changes, nor will it ever unless and until this BOD are removed. DYOR

You're right Ludeck. The shameless rampsters love to try to mislead mugpunters with their "sum of parts" valuations which are always horribly bereft of facts and laughably never include all the parts !! They never stop trying that one.

They cite $3m El Limon royalties as if the cash were already in the bank, when the truth is that at the last reported revenue rate of $13,658 a quarter it will take 134 years to recoup ! Para forecast, hope, dream, expect, anticipate all manner of increased production, of course they do (!) but the reality is the BOD here have not RNS'd any subsequent royalty revenue figure so we can imo be pretty confident the revenues have been no better.

Mt ida is a carrot they love to dangle to the mugpunters whilst disingenuously never mentioning that the project has been mothballed by Jupiter since 2012. But hey, maybe, perhaps, possibly, one day, they might decide to do something with it.

And so it goes on.

Meanwhile cash in the bank at 31st Dec was just £27k

That's the dire reality

They since raised £323k from a dilutive placing at 0.51p
and received approx £250k from the Jupiter dividend and may receive a further £300k bonus divi

Against that there were £2.7m of Current Liabilities at 31st Dec
and the BOD spent circa £850,000 on Admin Expenses last year
plus a further £306k on Other Project Costs
plus actual project costs

Looks like a sizeable cash challenge there to me personally which is doubltless why the BOD has already sought and established authority to issue up to 400m more share here this year.

I don't believe for a second that Bell will start cashing in Jupiter shares so I can only see more confetti being issued.

DYOR