Member Info for MrMagic

My thoughts exactly Colin. Have seen so many rampers come and go over the years and every one of them trotted out the same old carp. Sum of parts valuations, ignoring the history, sweep dilution under the carpet, claim it's all magically different now, re-rate imminent blah blah blah.

Every such ramper has either left with their tail between their legs or simply conveniently disappeared when the dilution or other bad news dropped.

Helpful is hugely invested here and owns some of the CLNs. Good luck to him. One can only wonder why, if he is confident of his decisions, he is spending day after day promoting the share on multiple chat boards. One would think if he were confident he would just sit back and wait for RRR to deliver shareholder value and watch the money roll in. Hey ho.

Personally I am not swayed for an instant by the same old rhetoric I read on the boards constantly. I have gained immunity to it after seeing it so many times. As you say Colin, we have the same BoD running the show. They have a proven track record of massive dilution, presiding over SP destruction and of delivering little shareholder value imo. They continue to expend (imo) inordinate amounts of money on Admin and other expenses (£600k annually) and every year at the AGM put up a resolution asking for authority to issue millions more shares. This year its authority to issue up to 500m more. It may never get used, but every year that begging bowl comes out regardless. After so many years the company really ought to be more self-sufficient from good projects delivering good revenue but perhaps it's simply easier creating money out of thin air with the various equity issues.

Helpful: "BSc Hons Quantitative Business Analysis, two fund management qualifications and I do deals all day long. lol, we have a Colonel Jessup in our midst "I eat breakfast 300 yards from 4000 Cubans who are trained to kill me, so don't think for one second that you can come down here, flash a badge, and make me nervous." I seem to remember one Daniel Sklan, a man who actually struck a deal with RRR with its Ivory Coast project and who held at least 11% of the shares, way more than you hold. I guess you know how that panned out.

Helpful - " I will personally arrange for it to be taken private" lol Professional ramper, promoted Mayan for years whilst they utterly destroyed its SP with mega dilution. Good for entertainment value if nothing else.

The "sum of the part" sleight of hand trick has been played on this board countless times by countless rampsters. To the naive it looks great, solid, common sense. To the savvy it looks weak, misleading and woefully short of information. Just about every broker report I have seen here in past years has consitently failed to include in it's "sum of the parts" the part that has mattered the most to investors, the DILUTION. They fail to mention it with monotonous regularity just as they equally fail to mention the authority that the company sought and was granted at the last AGM to issue tons more shares (500m of them). Real factual RNS'd information that the broker reports conveniently leave out. Sum of the parts is a sleight of hand in AIM diluters imo. Kidology of the worst kind.

Stephen: "RGM didn't create the misinformation, they we're fed it by SM." For me personally Stephen that is no excuse and serves only to engender mistrust and keep savvy investors away. After a while I personally learned to ignore any such statements that are passed on by the company. Comments from 3rd parties are utterly meaningless and have no accountability and as such I personally always treat them with the utmost scepticism. Many may recall the RRR Greenland sale debacle which dragged on through 2013/2014. At one point AB stated in an interview "the lawyers, they tell us, have received their completion bonus". The unwary might take that as confirmation of sale completion and doubtless many did because the SP spiked at the time. Nevertheless the information proved unreliable and the sale did not go through. Since RRR was merely "passing on" info from this 3rd party one can not assert that RRR ever stated that the sale had actually completed. For me personally, two things come out of such a PR strategy and from a BOD's willingness to engage in it: 1. I ignore totally ANY such "passed on" statements from 3rd parties. They appear not to be accountable for anything they say and thus investors are at significant risk when attributing credibility to their statements imo. If the company itself is not willing to make the same clear statement in an RNS and be accountable for it then the info is, for me, wholly unreliable. If the company isn't willing to put in the time and effort to be able to make those clear statements themselves and be accountable for them, then, imo, they are not acting diligently on behalf of the shareholders. 2. I personally find any CEO willing to trade in such 3rd party information, exceedingly poor and distrustful. As a CEO I expect any such information to be absolutely ratified and proven beyond doubt BEFORE it is "passed on" to the wider markets. Thus in the above example I would expect AB to have gone to Greenland or wherever, established that completion bonuses had indeed been paid, seen proof of it and equally ascertained whether that meant the deal had or had not completed. Having done that I would then expect him to formally RNS the info. A statement that some 3rd party dogsbody said they'd been paid a completion bonus is utter nonsense imo. Shareholders should expect the BoD and management to do the appropriate due diligence to be able to ascertain the facts such that they can then state those facts in an RNS rather that "pass on" 3rd party comments. Bottom line, whenever I now read some similar 3rd party comment included in an RNS, I run a mile.

Over £100k of shares at 0.875 today ! Buys or Sells?

As far as I can remember Didge made some silly posts that went beyond the boundaries of expressing view points and commentary. I'd have to go back through my archive of posts to remind myself what he said but I see no reason too. It's frankly just stupid to libel yourself on chat boards imo. I remember cringing when I read some of Didge's later posts. The same goes for you Booboo. I've noticed that you too keep straying from simple commentary and keep crossing the line into defamation and the like which is just stupid. No surprise at all then that AB eventually came on the board the other day to ask you to retract your statements. Just don't go there imo. Stay objective, stay factual, back up your views with source material wherever possible and stay civil. That way constructive discourse can ensue.

Zumore - " The warrant price would be determined by taking the average closing price over 3 trading days prior to issue, then adding 20% on top of that 3 day average price. That is how the Kansai "warrant strike price" would be determined. " What's a "warrant price" zumore? Here's how I see it. When reporting the issue of warrants we need 3 pieces of information. We need to know: 1. How many warrants are being issued? 2. What is the Exercise Price of the warrants? 3. When do the warrants expire? In this instance the RNS is talking about a future event when warrants will be issued. No warrants are being issued right now. How many warrants will be issued at that future event? My interpretation is that it will be £500,000 worth of warrants and the specific number will depend on the SP at the time they are issued. What will their Exercise Price be? The RNS says it will be 20% on top of the average SP at the time they are issued. When will they expire? The RNS doesn't say, which is why I asked Andrew and got no specific date back from him.

Make that 8yrs Here's a chart https://chart.hl.co.uk/charts/chart.jsproto_large.chart?ID_SEDOL=BYWKBV3&WIDTH=581&HEIGHT=267&TIME_SPAN=10Y&SUBSAMPLINGGRANULARITY=MONTH&XAXISCLOSECOL=0&LINE_WIDTH=1&MOUNTAIN_COLOR1=a5b9d8&MOUNTAIN_COLOR2=c1cfe5&MOUNTAIN_COLOR3=c1cfe5&MOUNTAIN_COLOR4=ffffff&ID_NOTATION_COLOR1=25456b Eddie the Eagle would surely love to have a crack at those slopes !

Helpful: "what matters at the end of the day is what the value of the underlying assets are" Hahaha you are a one Helpful This is AIM. It's got nothing to do with the age old rampers trick of citing "sum of the parts/assets". It's about what the BoD do, how they behave, what their track record is of delivering shareholder value, how much of shareholders cash they expend in Admin and Expenses (£600k+), how much they dilute existing shareholders, the extent to which they are willing to dilute and sacrifice existing shareholders to keep the gravy train going, how the markets respect or shun the BoD and so on, You hold CLNs here and are in deep by your own admission. Your ramps should be taken and read with that in mind. This company/BoD somehow got through over £9m in 2013, 2014 and 2015, cash raised via various issues and yet sits today with a MCAP much less than that. This company/BoD needed to perform 2 capital reorganisations within the space of just 12 months ! A lowering of the nominal share value and a share conlsolidation. This company/BoD have presided over utter SP destruction over the past 5 years as the chart plainly shows. The same BoD are still running the show. Jupiter turned out pretty well but as we all know, one swallow does not a summer make ! Most of the rest of the projects and ventures have been damp squibs. Greenland, Colombia, Ivory Coast, Shoats Creek oil, Cloud Computing, Candy Sweets etc etc It's truly amazing how the ramping pundits keep springing up to promote their trading positions in this share. The Modus Operandi never changes. Sweep the history under the carpet and claim it's not relevant, ignore the dilution, ignore the liabilities, overhype every project esp any project where news is due, throw out as many fantastical predictions as possible and claim re rates every 5 minutes. The 5 yr chart does not lie.

Yesterday's announcement of a likely JMS dividend doesn't seem to have impressed the markets any. What is it they know? JMS Bid price fell back to 0.355 last night and only 2.5m shares traded for a company with circa 2 billion in issue (though some of those are held in escrow). Rampers lame predictions of 70c, 80c SPs are repeatedly proven to be utter delusion. https://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=JMS&Search.x=4&Search.y=4

Stephen - "You don't have to like the RGM management, you don't have to like RGM's other assets." No but you DO have to understand how much money the BoD of both RRR and RGM manage to spend available monies and see so much precious cash end up in Admin and Expenses.

Zu I really do still think you're not understanding the warrants in that RNS. I feel sure that it's the EXERCISE PRICE that is determined as the Issue SP plus 20%.

How many JMS shares do you think RRR has there?

Morning Riche I suspect, like I did, you forgot that Jupiter only own 49.9% of Tshipi. So Jupiter get half of that ZAR 1.5bn and then distribute that between their own shareholders. Check again.

Ok I make it about £388k less currency exchange costs etc. Anyone concur?

Correction. I'm in error there. It's nowhere near £755k. Will go check again

Rough calculation suggests to me that the distribution to RRR will be around £755k, anyone care to check and confirm? Nice bit of income. That said, the recent Half Year Report stated that Admin and Exploration Expenses are running at the equiv of £603,508 per year. As they say . . . Easy come . . . Easy go

Zumore - "then that part 3 which contained no full stops instantly read to me, that RRR would be instantly turning £500,000 in warrants into Red Rock shares " I concur with you that the RNS was poorly worded (as ever). I strongly suspect a word was missing from the RNS line. I think it probably should have said: "( 3) £500,000 of warrants EXERCISABLE into Red Rock shares at a price 20% above their average closing price on the three trading days prior to issue" As I see it the RNS is saying that WITHIN 3 MONTHS of any license renewal RRR will issue a number of warrants to Kansai. That's warrants not shares. We don't know how many millions of warrants that will be but we do know it will be £500,000's worth of them so it depends on the SP at the time they are issued. So as you say, it's part of the payment programme. No money changing hands, no shares being created, just a load of warrants being issued to Kansai at that point. As Okenia says this gives them the option, but not the obligation to exercise those warrants at a future date. Should they want to exercise them, the exercise price will be whatever the average 3 day SP was before the date the warrants were issued plus 20%. Obviously then Kansai aren't going to exercise them until and unless the SP rises above that exercise price. To be honest the finer details are matterless imo. It is simply going to be just another instance of millions of warrants being issued which in the fullness of time, if the SP rises above their exercise price, will mean warrant holders will sell into any rise. When they are exercised the corresponding RRR shares will be created at that exercise price which will be lower than the prevailing SP so it will be just like a discounted placing. All these many millions of warrants are just another way to raise cash, a way that doesn't immediately scream "dilution" and "placing" to the mugpunters out there but which nevertheless amounts to the same thing imo. There are already many millions of warrants that have been issued and have not yet been exercised. There are 75,000,000 of them exercisable at 0.80 pence which will expire on the 22nd Aug 2018. The current SP is 0.925p so if those warrants are exercised now, how is that any different to AB doing a discounted placing to raise the same amount of money? More shares created at a price lower than the prevailing SP. Looks the same to me. As well as the 75m warrants above there are also about 96m exercisable at 0.84p that will expire on 13th Nov and some others too. There are also 119m convertible loan notes convertible at 0.8p outstanding. All just serves to hold back any SP rise as holders sell into news.

Only thing unusual about the Kansai warrants imo is that no expiry date was mentioned. Naturally one can not set a specific date before we know if the licenses are going to be restored but it would be easy to set an expiry date 12 months or 18 months after the date of issue. At present it would appear the warrants will have unlimited expiry.