Member Info for MrMagic

"Thank Magic, how much has to be paid back by May then?" As you posted yourself, 75% of the loan is to be repaid in those 8 months, then the final 25%. The loan was $4.4m. It has interest but ignoring that you can work out what 75% of that is and divide by 8 to see what kind of cash RRR has to fork out each month.

Not very encouraging Maestro. They hoped/expected production to start in Jan 2018 Now they hope production will start in March 2018 Now your article hopes they will start production sometime "this year" !! Not very encouraging TBH.

Booboo you missed the 3 month payment holiday from those original terms. Deal was struck in June, so July.Aug. Sept were payment holiday months, then RRR gets 8 months to repay 75%. The first repayment was announced in the RNS 20th Sept. 8 months takes us to May. The 5% you refer to only applies if RRR decide to extend the loan for 8 months.

Maestro, you need to understand the difference between deramping and simply stating facts. That you are uncomfortable with facts being highlighted is understandable but you should not refer to it as deramping. Most here will understand your nervousness given that things are not panning out here as you had hoped. Steelmin failed to repay their debt to RRR by end Jan as hoped/expected, and now they have failed to repay by early Feb as hoped/expected. They didn't manage to get production going by Jan either and now that target has moved to March. Meanwhile RRR still owes $2.8m on its loan with Yorkville. . . . . tick tock.

Maestro, if you do like the investment . . then move along, sit back and watch it prosper. No need to be ramping on BBs relentlessly is there? The number of posts you've made here and on ADVFN ramping the stock is huge. You show no confidence, absolutely no confidence at all by having to ramp this 24x7. It just comes across as desperate. You believed that Steelmin would pay by early Feb as per the RNS. They haven't done so and that highlights your naivety imo. Read Steelmin's last posted Accounts, to 31st Dec 2016. It highlights what their financial situation was like before they borrowed EUR 3.8m from RRR and a further EUR 3m from other lenders. https://beta.companieshouse.gov.uk/company/07734349/filing-history/MzE3Mzk2Njg4OWFkaXF6a2N4/document?format=pdf&download=0

Well the deadline is up. Early Feb has come and gone and Qu'ell surprise, we have had no RNS stating that Steelmin has repaid their debt to RRR. Under the original terms of the deal from 23rd June they had 8 months to repay in full. That time will expire on 23rd Feb. At that point, I personally expect Steelmin to extend the loan for a further 8 months to kick the can down the road as I have always believed they would. The last set of accounts they posted were those up to 31st Dec 2016, a year ago. You can see those accounts and the financial state of Steelmin at that time on various websites and they make for interesting reading imo. Here is one: Accounts to 31st Dec 2016 https://beta.companieshouse.gov.uk/company/07734349/filing-history/MzE3Mzk2Njg4OWFkaXF6a2N4/document?format=pdf&download=0 Another site showing key financials: https://companycheck.co.uk/company/07734349/STEELMIN-LIMITED/companies-house-data I noted from those accounts the lack of cash in the bank, the significant liabilities and the following statements made: "Steelmin Limited has an agreement in principle to acquire the remaining 20% shares of Steelmin BH Limited Liability Jajce from the other shareholder" "A short term loan of EUR 830,246 is secured on any interest the company has in any freehold and leasehold" "Creditors: Amounts Falling Due After More Than One Year The directors do not anticipate the loan of EUR 1,209,000 is payable in view of what they consider to be a breach of contract by the creditor. The company is currently seeking legal advice to determine if this loan can be written back to the profit and loss account" "Steelmin BH Limited Liability Jajce (Steelmin BH) is a subsidiary of Steelmin Ltd. During the year Steelmin Ltd advanced EUR 1,010,984 (2015: EUR 434,984) to Steelmin BH, and made payments of EUR 105,883 (2015: EUR 80,042) on behalf of Steelmin BH. As at the balance sheet date Steelmin BH owed EUR 2,940,987 (2015: EUR 1,824,120) to Steelmin Ltd. In June 2017 Steelmin then borrowed EUR 3.8m from RRR and EUR 3m from Christof Industries and OeKb, Osterreicheische Kontrollbank AG. With no production yet I'm struggling to see how and where people were expecting Steelmin to be able to repay all of this money from. Steelmin as at Nov 2017 have 1.7 BILLION shares in issue already with a nominal value of EUR 0.000000942857 https://beta.companieshouse.gov.uk/company/07734349/filing-history/MzE5NDMzMDM1MGFkaXF6a2N4/document?format=pdf&download=0 Meanwhile RRR has $2.8m left outstanding on its own loan with Yorkville. . . .

All Briar is doing there is suggesting/speculating that Steelmin will simply give away more of the EXISTING company. Were that the case then yes clearly RRR would maintain their % stake. However, the RNS talks of a "Structuring and Placing" agreement. That suggests to me the issuing/placing of NEW shares not the giving away of existing share capital. The two are very different. Very clearly if Steelmin create more shares in the company the RRR's % will get diluted. If Steelmin were prepared to give up to 30% of the company to RRR for EUR 3.8m of funding, one wonders if they also gave away a share % to Christof Industries and OeKb, Osterreicheische Kontrollbank AG who lent them EUR 3m. If so, how much % of the company is left which Steelmin themselves own? Sadly we don't have the detail of that "Structuring and Placing" agreement but I'm not inclined to believe Briar's speculations at this point esp with his history of posting so called info from MR Bell on this board which then turned out to be completely wrong.

Maestro: "Don't forget the loan steelmin will return which will have a positive effect of �1.8m to our cash balance." How can anyone forget this? It's probably the most important thing hanging in the balance right now imo. Steelmin were I assume, expected to repay months ago so as not to lose any further % share of the company to RRR, but they failed to do so. Steelmin were then expected to repay the loan by end Jan 2018 and failed to do so. Last RNS stated they intended to repay by "early Feb" and thus far they have failed to do so. Today is the 13th Feb so tomorrow is mid Feb which means "early Feb" will have come and gone. Production start was expected in Jan 2018 and that target has now moved to March 2018. I would understand if some were feeling nervous at this point. As well as borrowing EUR 3.8m from RRR, Steelmin also borrowed a further EUR 3m from Christof Industries and OeKb, Osterreicheische Kontrollbank AG. Should Steelmin fail to repay the loan, and I am not suggesting they will but it is clearly a risk here, then RRR would be left with a Steel plant that is not in production and which owes EUR 3m to those other funders (less anything they might have already paid off). I don't personally think that would be a good result for shareholders here but each to their own. In addition RRR would still need to service its own debt with Yorkville of which $2.8m remains outstanding. Failure to do so would result in the lenders being able to convert any defaulted debt into shares at 93% to the VWAP, and we must also not forget that the crown jewel JMS shares have been used as security for this loan. T minus 1 day for Steelmin repayment in early Feb Never a dull moment eh?

Nevermind the "trolls" GT, it's the markets in general you need to convince. They don't appear too interested, few trades, poor volume. Go figure. Worth noting that RRR's holding of Jupiter (1.2%) is currently being used as security against that huge $4.4m loan with Yorkville of which $2.8m is outstanding. As per the RNS 23rd June: "Investors to receive charge over the Company's shares in JMS, excluding any shares that might be required to participate in JMS buybacks" In rereading that RNS I realised also that I missed this bit: "Investor to receive a potential earn out payment based on the value of the Company's JMS investment at the time of a trade sale or IPO of the Tshipi Manganese mine, the amount payable varying between $0 and $410k, with $100k payable if no such liquidity event occurs by 31 December 2017" I guess that means $100k of shareholder cash has been handed over then doesn't it?

Steelmin target for repayment RNS 18 Jan - "target issuance date of end January 2018" RNS 31 Jan - "hopes for fund drawdown . . . early in February 2018" T minus 2 days and counting before this latest target is also missed Guessing Mr Bell has already drafted the next "hopes", "intends", "expects" RNS

Maestro - "Rrr don't have to pay loan off in one lump sum should steelmin not repay" No-one ever expected them to pay it off in one lump sum. The original deal RNS clearly stated the terms were: "75% of the loan to be amortized over 8 months leaving a 25% bullet at 12 months" (after an initial 3 month holiday) It was a $4.4m loan with Yorkville carrying a 13% interest rate. The repayments are significant imo. If we ignore the 13% interest, then 75% of $4.4m is $3.3m and spreading that over 8 months means a monthly payment of about $412,500, roughly �300k in real money leaving a final $1.1m to be paid at the end. The first repayment was done on 20th Sept and was $507,156 (�366k ish) Since then AB has issued 3 tranches of confetti, (CLNs at 0.8p with warrants) to raise �495,000, �215,000 and �290,000. So that presumably took care of the repayments for Oct, Nov and Dec. A further �125,000 was raised by the placing on 21st Dec. Jupiter money (�364k ish) isn't due until 19th March. El Limon money (�540k ish) not due until April. So where does that leave the loan repayments for Jan/Feb? I could be wrong but it looks a little like AB might need to find 1 or 2 months repayments pretty soon. Does anyone else have a view on this? If Steelmin do repay this week then all is well. However there are only 2 days left of the "early Feb" target after today for that.

Helpful - " If the SP was around 5p that would be a diferent matter. " That confirms the point made by another poster yesterday, which is that on any rise here, many of those CLNs/warrants etc are going to be cashed in and sold/flipped thus stifling any rise. The ever growing number of CLNs and warrants is not insignificant. Not forgetting of course those 21m warrants exercisable at 0.66 pence which expire on 28th April 2018. They will surely be cashed in soon.

TomTech - "Giving away a further 8% equity, increased interest payments, yes that would suit them I am sure." Steelmin signed an agreement to give away up to 30% of their business. They are therefore quite willing to do so and have factored that 30% into their calculations. They borrowed EUR 6.8m in cash from different funders. They obviously needed that money to progress. It seems reasonable to assume that they won't want to repay it unless and until they get into production and unless/until that production is decent. The deal was done way back in June 2017 since when Steelmin haven't yet got into production and haven't repaid their debt to RRR. I'm sure they have factored in the extra 1% that RRR get every month they don't repay. I have always believed that they will opt to extend the loan by a further 8 months. We will shortly see who is right and who is wrong.

Hawaii - "Conversion of the CLN's inc warrants would mean the issue of circa 200m new shares priced at .80p Then Metal Tiger have about 55m warrants around the same price. If all of these are converted then it would equate to around 50% of the current issued capital of RRR Then add to the mix existing share holder/traders who have bought sub .80p these may dump on a 10%-30%profit." You are right to raise this situation imo. Also don't forget that according to the RRR website there are a further 21,315,971 warrants exercisable at 0.66 pence which expire on 28th April 2018, they will surely be converted pretty soon. Graphite's comment "All the outstanding warrants would bring in c�2.6m in cash. " is pretty moot TBH. I've pointed out many times that RRR raised over �9m in cash from various share issues in 2013, 2014 and 2015 which is a hell of a lot of money. To this day, no ramper or other poster has been able to demonstrate what shareholder value was delivered by this BOD having this �9m of cash. Where did it go? If �9m can be spent/absorbed and produce relatively little for shareholders and the company continues to issue the confetti, then what use is �2.6m? And finally on top of all those warrants, there remains the authority the BOD now have to issue up to a further 500m shares. Factor those in too and the garden is nowhere near as rosy as some here would have us believe.

A 7yr graph, showing the catastrophic loss of value. http://shares.telegraph.co.uk/charts/?epic=RRR&period=YEAR7&type=2&compareTo=&submit=Draw If this were a hospital heart monitor the patient would have been pronounced dead long ago. But of course, history is of no relevance is it??!

I wouldn't attempt a sum of the parts valuation for an AIM diluter such as this. It's not appropriate, doesn't work, and that has been proven over and over. It's a "sleight of hand" approach. Broker report after broker report over the past 5 years has tried to perform "sum of the parts" valuation and they all, just like you, conveniently fail to mention the likely increase in shares (dilution) and as a result their target share prices are always horribly horribly way off the mark. It has been proven time and time again with Edison, Dowgate and I have no doubts personally that Align will follow suit because they too make no mention of the 500m shares that RRR now has authority to issue in their report. What counts is whether the management are any good, whether they have a track record of success, whether they are trusted and respected by the markets, whether they put shareholders interests before their own, whether they made good use of available cash, whether they reward themselves for poor performance, repeatedly grant themselves options and so on. Good luck continually trying to generate a spike here but it's clear your confidence is low otherwise you'd have no need to keep ramping and trying to get others to follow you into the share. Weds deadline for Steelmin looms.

That would surely be inside info Maestro. Silly suggestion.

You're most welcome to your view GT. Others who have witnessed the actions of this BOD in the past will hold contrary views. In the past the Jupiter shares held were worth in excess of �25m. This BOD failed to sell them all at that hugely advantageous price (circa 55c a share) and instead sat on them whilst their value tanked and then sold tons of them for an absolute pittance. That is NOT managing an "investment" in the best interests of shareholders imo. Instead of seeing the MCAP increased by �25m, they embarked on years of death spiral devastating dilution. This is the same BOD that is still running the company. Your "sum of the parts" valuation is, as always, entirely cherry picked. As always, it makes no mention of the authority that this BOD requested to issue up to 500m more shares here. With 499m currently in issue that allocation means the share issue could double which IS very significant. Double the shares, halve the SP. Simple maths. The issue then is what value one ascribes to the cash raised by such issues and many LTHs will hold the view that X amount of cash coming into the coffers does not equate to X being added to the MCAP. This is a company that has historically operated through the constant issuing of shares. As recently as Dec we've had 3 rounds of CLNs with warrants issued and a separate placing. I see nothing yet to suggest that the overall situation has changed. We jump from one project to the next with the merry band of ever present rampers trying to convince us that the latest "new kid on the block" project is the big one, the one that will generate tons of cash and raise the MCAP. We have witnessed the ramp squads wax lyrical about Colombia, about Greenland, about Cloud Computing, about Candy Sweets, about Ivory Coast, about Shoats Creek and many more. They've been horrible wrong on each and every project since most have been utter damp squibs. And here they all are, in true form, over-hyping the latest "new kid on the block" potentials, Steelmin, Jupiter IPO and even the mothballed Mt Ida project which imo won't see the light of day for many years. I can't envisage that many are fooled. People understand I'm sure, that there is potential, but that potential is ALWAYS marred by the fact that we have the same BOD running the show, and by the fact that they ALWAYS request authority to issue shed loads of shares year on year.

" it holds no relevance to today." The past will always hold a relevance to today while ever the SAME PEOPLE are running the company that were running it in that past. That is simple, logic and reason.

GT - "No he means after they (Steelmin) pay back RRR pay back the YA debt and the balance left is net to RRR" Except what has transpired is imo likely NOT how people expected it to. It was presented as simple back-to-back finance. This is what the original RNS stated: "We have worked to find a creative financing solution to enable us to make this investment while not giving away equity upside in our business, knowing that a value crystallisation of our Jupiter Mines holding is likely this Summer. Using back-to-back financing facilities we transfer substantially all the financing costs to Steelmin" Seemed great. What could go wrong? Borrow $4.4m from Yorkville, lend the money to Steelmin, then Steelmin pay it back to RRR and RRR pay YA back . . . . . simple back-to-back financing? What could possibly go wrong . . .?! lol It transpires that Steelmin fail to repay the money to RRR in a timely fashion and RRR get an increased share of Steelmin as a result. But RRR then have to find cash to pay down their own debt to Yorkville (which was secured on the crown jewels Jupiter shares!). Cue the issuing of a bevy of convertible loan notes with attached warrants to raise the cash: 10th Nov - Tranche 1 - �495,000 of CLNs at 0.8p with warrants 12th Dec - Tranche 2 - �215,000 of CLNs at 0.8p with warrants 14th Dec - Tranche 3 - �290,000 of CLNs at 0.8p with warrants With the warrants, the total number of shares these CLNs can produce is 187,187,500 So much for "not giving away equity" ! As ever it's the shareholders that will suffer the dilution. Latest RNS stated that Steelmin intended to repay their debt in early Feb and today is the 11th so only 3 working days left before this latest hoped/expected/anticipated guesstimate timescale falls by the wayside. What then? More CLNs with warrants? As always please check all figures in case of error.