History of Red Rock Resources: Then, Now & Onwards by a market observer here. Applicable to all junior explorers on AIM. Sun, 12.5.2412 May 2024 12:13
A Short Account: By Helpful in reply of his recall of events at RRR 's history.
[1] Two types of RRR investor: SUPER CYCLE 2010-2012 & POST SUPER CYCLE 2018 [let's say]. RRR went from 0.25p to the equivalent of 40p [My Ref: Paul Johnson tweeted 0.25p to 23p, hence how I learnt of RRR History ]. ROTATION taking place from OVER-VALUED to UNDERVALUED. Those who continued to invest TOP OF MARKET should have been getting out, not in.
[2] POST 2018, largely MUSONI and onto JORC. Backdoor deal was $420m. RRR had 51%. Partner "stopped" [see detail].
[3] "The MODEL RRR & OTHER mineral co's used to follow BROKE DOWN IN 2012. The MODEL WAS TO RAISE MONEY, SPEND IT ON AN ASSET AND MOVE IT TO THE NEXT INFLECTION point and then SELL/JV at an uplift on what was spent on it. SINCE 2012, ==THE BUYERS HAVE NOT BEEN THERE. THAT LOOKS TO BE CHANGING.==
[4] RRR BILBALE -FCF pretty soon.
My Comment: There you are, FREE from Helpful. In the chap in the USA that LOST $45k and has to NOW STOP, one said to him, you should go to a advisor and INVEST, not "speculate" [para phrase]. An interesting account by every American commenting but their mkts are very different but same principle. TWO POINTS HERE: Helpful has CONFIRMED what I said about AIM is to RAISE CAPITAL [that is what is stated by the way on the LSE AIM site]. YES, many AIM junior explorers raise and went from 1 project to another. NOW, ALL LEGACY projects and some may revive to be sold or not now depends on the projects market. My observation: Even now, IF URANIUM IS HOT, AIM juniors will get into it & so forth. RRR is taking another PATH which is what MANY are doing ie SEEK PROJECTS WITH CASH FLOW. In general, IF , the sky blue eventuate, then good to go. By Sky Blue is take care so as NOT to give the idea that it is a riskless event. IT IS A GENERAL PRINCIPLE as laymen think its the NEXT ...unless one caveats with Sky Blue. There you have it. DL has re-tweeted a criticism and his answer is insightful. The account is FACTUAL and applied to many AIM junior explorers. PAUL JOHNSON POINTED OUT RRR AS A CO THAT RODE THE GOLD BOOM in 2010 so CYCLE & AIM JUNIOR EXPLORERS coincided & history now. CAVEAT: They say history does not repeat but it rhymes. How true that will be is left to be seen. Did anyone see the PROPERTY market in Oz. One chap on Twitter said his Dad who worked as a garbage collector bought 100 acres of land in Bryon Bay for A$18,000 now worth millions. Ah, that was insight that was at least 40 years ahead of the curve as Bryon Bay, Australia is THE premier spot now. Recently, First Quantum lost their Panama copper mine or it was taken. On the day the financials were released and within almost a few short hrs, they had to get an EMERGENCY sum of $500m from Jiangxi Copper & within the next 24 hrs raise $1.6bn in notes. I dont think I need to explain why. So, many may NOT be aware big co's operate on income and project finance are raised but they have to be paid ba