Member Info for MrMagic

lol another shameless ramper turns stale bull. The cycle continues. The RRR Gravy Train rumbles on.

I note over on the Mayan board, (another share you have pumped endlessly despite the SP there being utterly devastated), you've been identified and also the company you work for/operate. I wonder how your clients are doing?

"Since the year end RRR has had the JMS dividend and Para has started royalty payments."

Para have been paying dividends for quite some time. RRR last reported their royalty revenue payments for quarter ending March 2018. They haven't done so since and we must draw our conclusions accordingly.
The royalty is pitiful. Reported as USD $13,658 for that March quarter which equates to $54,632 per year.

It doesn't take a genius to do the math there. To reoup the first $2m of that royalty is going to take :

2,000,000 / 54632 = 37 YEARS !!!!

just laughable.

Once that $2m is achieved the royalty drops from being 3% NSR to just 0.5% NSR and thus at the same royalty rate it will then take about another 100 years to recoup the final $1m.

All you shameless rampsters can do is harp on about Para's forecasts for better production, the usual hopes, dreams, jam tomorrow rhetoric you've been peddling for so long both here and at Mayan.

Come back when that actually happens eh?. Meanwhile the savvy here will ignore the "jam tomorrow" rhetoric that has plagued this share for years and will keep their eyes firmly focussed on the actuals, the reality.

That reality sees the failed Greenland project where millions were spent, sold for just £1
Sees the failed Shoats Creek project written off by this BOD
Sees the failed Steelmin project unable to operate at a profit due to high electricity prices
Sees the value of our Jupiter shares having lost over £1m since they relisted. JMS SP still falling.

tick tock

So a "bury the bad news Friday night" RNS seems to have slipped by. No takers today looking at the sparse trade list.

Shocking numbers imo.

Cash and cash equivalents - £2,263,288

but

Total current liabilities - £2,653,992

Not great

Admin and other Expenses are a horrific - £863,736

plus

Other project costs - £306,666

Bugger all meaningful income except the Jupiter Dividend which as can be seen above gets leached away in those horrific costs. This is an outfit with just 4 exec directors and 1 admin staff. How the hell do they burn through circa £850,000 a year on Admin ??

Really what is there here for shareholders? This BOD are imo haemorrhaging money in Admin and expenses and delivering little shareholder value. Dividends from Jupiter are not passed onto shareholders and every year this BOD holds out the begging cap at every AGM asking for authority to issue more shares in the coming year. This time they're asking for authority to issue up to 400m more shares (there are 536m currently in issue).

Were all that not bad enough we now learn via this Annual Report that way back in July the company started up a new project/investment with Amulet Diamonds and failed to put out any RNS of such, not even out of basic courtesy to its shareholders. RRR subscribed for "35,519 common shares in Amulet Diamond Corporation at a subscription price of USD2.76 per common share" and also "subscribed to USD401,961 of shareholder loans" which are "unsecured, non-interest bearing and have no fixed maturity or repayment date."

All of this without a single RNS informing shareholders. Quite unbelievable !

Struggling to see how anyone can trust this BOD personally.

Saw this too, absolutely unf***ingbelievable.!!

New investment/project and this BOD doesn't deem its shareholders worthy of notification.

Awful account numbers and this kind of arrogance from the BOD will surely see this test 0.4p support imo

No idea, but how simple this would all be if the BOD were to simply provide a regular update of these quarterly royalty revenues and any other regular figures !

It surely can't be difficult and after all they are managing to expend over £800,000 !!!!!! a year on Admin ! !

Seems to me that they want to cherry pick the quarters that they provide the information for which does nothing to engender any trust in this BOD. And if the cherry picked quarter of March is the one they were happy to go with (which means it will take 37 years at that published rate to recoup the first $2m) then how bad must the June and Sept quarters be?! I could be wrong, over-cynical, the recent quarters may have been higher than March quarter, but unless the BOD come clean and provide the figures to all shareholders, I guess some will naturally assume the worst.

"Estimates" do not equate to actuals Joebop. Hopes, dreams, anticipations, expectations and estimates do not pay the bills.

Stick to actuals. The last actuals the BOD deigned to give to shareholders were for the quarter ending March 2018, the amount being a mere $13,658 (equiv to $54,632 per year). At that rate it would take about 37 years to recoup the first $2m of that royalty (2,000,000 / 54632 = 37)

That return is for the 3% NSR royalty up to that $2m. Then it changes to a 0.5% NSR royalty for a further $1m.

Do the math on that and you see that it will take a ridiculous number of years to reach that final $1m.

I hope Para do manage to increase production and throughput, but until they do, the royalty is pretty negligible to shareholders here imo.

Note that the company has refrained from providing the royalty revenue amounts for quarters ending June and Sept which are well beyond us now. I'm guessing the numbers aren't good personally. DYOR.

Continuing Trail of Failed Ventures
==========================

Greenland - On which RRR expended a great deal of shareholder money

"The entire interest in Melville Bay was sold on 29 June 2018 for £1, and an additional liability of £183,100 was accrued at 30June 2018 to reflect the Company’s obligation to clear the site of the previous exploration camp and to remove residual drilling equipment and supplies."

Unbelievable really !

Shoats Creek - which rampers over-hyped massively claiming it would be a game changer

"On 8 May 2018 the Company’s partner in the field, Mayan Energy, announced its intention to relinquish its 50% working interest in Shoats Creek and as such the Company intends to write-off its interest in the project."

Another fine mess then !

Shareholder Dividend
================

Rampers were insisting that RRR would agree to pay a dividend and be the only AIM company doing so.

RNS - "The Directors do not recommend the payment of a dividend"

Other Stuff
========

Lots of warrants still in place and also £1m of Convertible Loan Notes. £575,000 of those have now been extended for a further year thus kicking the can down the road.

Icing On The Cake
==============

Despite the best efforts of unscrupulous rampers trying to tell us that there are pots of cash, and that life is all rosy, the BOD have once again (as predicted) tabled a resolution for the AGM asking for authority to issue lots of shares in 2019. This time it is for 400m more shares. I draw conclusions accordingly.

Enjoy tomorrow's jam !

Yes, laughable as others have pointed out and have proven conclusively that rampers over on ADVFN have lied and engaged in outright market abuse for some time, telling people for example that there were no liabilities.

Some key (very admittedly) cherry picked snippets:

Liabilities
=======

Total current liabilities - £2,653,992

This has been obvious throughout to anyone casting an unbiased eye over RNSs. The Half Year report stated liabilities as £5.3m since when Steelmin repaid about £2.2m so some £3.1m was left. No surprise at all to learn that there was £2.6m liabilities remaining as at end of year. Bragging about "lots of cash in the bank" is puerile when the company has significant liabilities. Remember, MCAP here is about £3m so £2.6m of liabilities is significant.

Admin Expenses
=============

Admin and Exploration Expenses for the year - £863,736

In my opinion, ridiculous for a company comprising 4 executives and 1 Admin person.

We also have in the accounts an entry this years for :

Other project costs - £306,666

This didn't appear in last year's report as far as I can see. What are these?

Add these to the Expenses above and this BOD have expended £1,170,402 of shareholder cash on these elements

Why the large shareholders/Investors continue to put up with that situation is beyond me. Poor value.

Cash
====

Rampers have been waxing lyrical about cash being £3m-£4m.

Cash and cash equivalents - £2,263,288

typo you're

Sorry Stephen but your not going to get anywhere with the usual "jam tomorrow" what a great project it might, could, should be, we hope, anticipate, expect it will be a game changer. Cry wolf much?!

How many damp squibs have we seen? Only actuals count not rhetoric.

Looks like complete market apathy is the response today. Hardly surprising. Only a handful of the usual suspect rampers still trying to flog this and they are way down on their "investments" imo. Wonder how your clients are doing Helpful?!

Annual Report coming any time so we'll get the full scoop on the salient detail.

Then it's AGM time where I confidently predict that old Mr bell will once again table a resolution requesting authority to issue a shed load more shares in 2019. Ah but isn't the company supposed to be flush with cash and have lots of good dividend money coming in I hear you ask?

Well, wait for those AGM resolutions which are usually tagged to the back of the Annual Report and then draw your conclusions imo. Nothing changes.

"1. There is value in Steelmin "

Really? A plant that can not currently operate at a profit, who have huge debts to pay off having borrowed EUR 3.8m from RRR (now refinanced with a Luxembourg Investment vehicle) and a further EUR 3m from another group of lenders plus a management team who clearly failed to do basic forecasts of electricity prices (surely a primary concern) to ensure their business model was sound. Sorry I just don't see the value.
If they do manage to get a cheaper long term energy deal I'm guessing profit margins will still be pretty thin. Seems actually more likely to me they will be forced sell up but who would buy a non-profit making venture with debts? Your usual "jam tomorrow" spin here doesn't really gel with reality at this point.

"2.. Shoats Creek was a minimal investment."

It's still yet another damp squib venture imo. A waste of time and money. Now partner Mayan Energy has pulled out and it's not clear (to me) where exactly that has left RRR. Are we still paying management/operator fees for example? What were the "Plug & Abandonment ('P&A') liabilities" that Mayan referred to in their RNS (8th May)? Do you not think the company should have provided some kind of update to shareholders by now rather than just go silent? Do you think that engenders trust in the BOD?

"3. A few thousand from royalties is now small beer and not notifiable."

So why did they notify the revenue figure for quarters ending March 2018 and March 2017?
Poor come back indeed. It's the simplest thing to do, to provide a regular update on project incomes and royalties. really no effort at all for the "Admin" team ! RRR do after all expend the equiv of about £600,000 a year on Admin so if we can't get a simple royalty update, really what the hell is all that money being spent on ?!!
My personal guess is the numbers are dire and they'd rather not publish them but that's just me.

"4. Accounts will be out soon".

Yep and should be a good read.

Meanwhile, the Jupiter share price has steadily tanked since they relisted. It was 40c at the IPO and has now gone sub 30c. That means over £1m of value has been wiped off RRR's holding (and thus MCAP) since the relist. The shares do of course provide a useful dividend (£500k recently received) but as just highlighted this BOD burn through £600k+ per year on Admin and other expenses so really what value is there for shareholders in that situation? In your twisted rose-tinted world you would doubtless say that shareholders should be thankful that the (imo) crazy Admin and other expenses expenditure is covered by JMS dividends.
Just think what might be achieved if that kind of money wasn't frittered away on Admin !

Anyway, its surely about time that the next great carrot dangling "new kid on the block" project was announced don't you think . . .

Yep not looking good. Share has lost some 50% of its value in just 6 months here. The fervent ramping by some has failed miserably. Rampers are understandably frustrated at seeing the SP tank, today's new stale bulls perhaps?

It's been a few months since the disastrous news that Steelmin can't actually operate at a profit with the current electricity prices. It surely doesn't take months to agree an electricity contract so I'm guessing things aren't sweet in Steelmin land. Another "great" project ramped to high heaven and back by the usual suspects that has turned out to be a dud.

Shoats Creek another disaster, gone all quiet since partners Mayan Energy pulled out last May. Poor show to not provide an update RNS on that venture imo.

No word on El Limon royalty revenue figures since quarter ending March 2018. June and Sept quarters are long done with so where are the figures for those??? Have to assume that they are poor.

Nothing changes here it seems. Project after project ends up in AB's oubliette and the same tired old rampers continue to peddle their "jam tomorrow" rhetoric.

Meanwhile as stated above, the SP has lost some 50% of value in 6 months despite all the fervent ramping. Seems people don't fall for the rhetoric any more. Too much history, company MO too well established, too little income, too much expended in Admin Expenses etc etc

End Of Year Report coming soon. Should be revealing. Then its AGM time and doubtless again there will be a resolution thrown in there requesting authority to issue tons more shares next year despite the current cash in the bank, Jupiter divi and so on. Go figure ! It does get old.

For anyone interested, accounts up to 30th Dec 2017

https://beta.companieshouse.gov.uk/company/07734349/filing-history/MzIxNTc1OTI2MWFkaXF6a2N4/document?format=pdf&download=0

Termination Of A Director Appointment

Andrija Kojakovic

https://beta.companieshouse.gov.uk/company/07734349/filing-history/MzIxODc5ODY1M2FkaXF6a2N4/document?format=pdf&download=0

Once again Maestro, the CLN holders are clearly extremely happy to get a 10% interest rate on their money. Where else can you get that ? Conversion is not on their minds unless by some freak happenstance the SP shot up enough to make them think again. The larger question to be asked is this:

If the company is as rosy as you like to make out, then why does it need to offer 10% interest rates?????

On £1m that's a lot of money wasted. Now they've signed up for another year of that interest. That's good shareholder money disappearing down the drain imo.

One wonders whether the CLN holders were interesting in having the shares at all. The CLNs were issued in Nov/Dec 2017. In the first months of 2018 the SP was over 1p and those holders could have converted at 0.8p.
There was one tiny conversion of £50k worth (creating 6.4m shares) but other than that the CLN holders didn't convert. Could have made a nice quick profit but they didn't. Presumably they weren't very confident in the SP continuing to climb from that point, and of course they were proved right as the SP has tanked ever since and lost 40% of it's value in 6 months or so.

The reality I think is that the 10% interest the CLNs earn is the attraction there. AIM is replete with traders trying to constantly scalp 5% or 10% profits on day trades. Here you have a proposition that guarantees 10% without doing a thing. It's easy money.

Meanwhile, as I said, already 40% SP value has been lost since the early months of 2018. Doubtless the result of the Shoats Creek venture going bad with partner Mayan Energy bailing out, and equally the result of the Steelmin venture going bad, with their management saying that they can't now operate at a profit due to high electricity prices.
Previous support at 0.6p levels appears to have gone imo and next support line looks to be at 0.4p looking at the chart. It is what it is.

Annual Report coming in next 2-3 weeks should reveal the true financial situation. No point doing anything until then imo.

Helpful - "The CLNs being renewed is good news for the CLN holders and RRR. "

Unquestionably. CLN holders like yourself are "quids in" as you'll now get another year of 10% interest. That will of course be at the expense of existing shareholders because it will be company cash being expended to pay for it which imo is a total waste of funds. Kicking the can down the road simply leaves cash in the bank exposed to the regular drain of Admin and Other Expenses which the half year report put at the equiv of £600k per year.

So yeah, CLN holders and RRR themselves win, RRR shareholders imo lose out, as always.

Hard to get excited about the decision to effectively "kick the can down the road" with the £1m CLNs. As Zumore highlights it surely means more money wasted in paying another year's 10% interest on them and equally means the threat of dilution from those CLNs will hang like a black cloud over everything all throughout 2019. If the company was flush with cash why not just pay down the CLNs and be done with them?

I agree with you Zumore. I highlighted that $100K RNS clause many times before but the rampers stay silent about it.

You are also quite correct that most (if not all) the CLN monies were used to pay down the Steelmin financing as stated clearly in the RNSs. e.g. RNS 10 Nov 2017:

"We shall use the proceeds primarily to reduce our exposure under the back to back financing facilities we took out to enable our investment in the Steelmin ferrosilicon plant at Jajce "