RE: 20251 Jan 2025 16:09
My money is on Bell bringing home the arbitration award plus in due course a substantial cash generative DRC license - as he has said informally on so many occasions this has been discussed at a high level, cash positive day one etc. Big numbers. Special tax regime, supporting social housing needs etc etc
For the licence to be awarded by the DRC President Office that will mean that Bell would (over a long period - yes, don't we know) have succeeded in his recent Chairmans statement:
"Should we succeed, we will have put down a marker locally that we are prepared to work in good faith with the DRC authorities and to spend a long time over an extended period, acting always with patience and goodwill to protect our legitimate interests.
We will, in terms of our contacts and possibilities, have used this period to enhance our reputation and position to a point where many opportunities will open up.
Understandably, shareholders have found this a frustrating time. not least because some of the detail of any discussions and difficulties have not been possible to share without compromising the result."
But if the arbitration award is confirmed it means additional doors immediately opening for RRR:
Paying down (and importantly being in control) for the remainder purchase of RRAL (plus cash to progress either Oz listing, a sale or more ground work, production option etc);
The extra cash needed for planned large scale gold production in Burkina Faso - it was always planned to start bigger operation this month.
The cash to kick start gold production in Cote d'Ivoire - RRR has two granted licences.
Re-paying short term loan finance to supportive major shareholders (who have kept the lights on).
But also not forgetting Bell has made it more than clear that once the current arbitration is sorted RRR lawyers will be seeking substantial compensation for the DRC asset stolen, ending up in Glencore ownership. He has openly talked about the possibility of not taking a long winded legal action to remedy but an action to move quickly to compensate RRR (and its shareholders). He has said he has taken legal counsel on this and the path is clear, they have all the evidence needed etc. But this was never going to happen until signing of the current arbitration. Of course a separate and successful legal action would mean a very big number to RRR, a drop in the ocean for Glencore/intermediaries involved.
So Banbury, and by your own admission you know what this will mean. Yes, your RRR bashing days will over, time to hang up your boots old chap.
Fingers very crossed the circumstances discussed above materialise for RRR shareholders.
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