Member Info for orslega

Banbury, I realise the risk, I also realise the opportunity, eyes wide open.

POW £250K first cash payment - yes RNS said that payment was underwritten by supportive shareholder. Of course the major shareholders will need to be rewarded for their own risk taking.

Fact. It has been them that has kept RRR alive.

TBH little point keep repeating the obvious.

Banbury - you could say exactly that about many AIM companies. As you and I know full well AIM is a very risky market. Timing is everything.

My current view is that because of current and expected future gold prices combined with the quality assets RRR hold, the risk v reward from these levels is very attractive ie very undervalued, you don’t think so. I’m a buyer you’re not.

Time will tell.

Https://www.rrrplc.com/wp-content/uploads/2023/01/FEQ-Red-Rock-Resources-19-01-23-Buy-Note.pdf

I use this broker note from last year to remind me of all the current projects/assets in play for the company.

Yes I realise that it was based on 1.4B shares in issue and we have 5B now but on the plus it is well out of date in terms of valuation of its gold assets. The valuation used $1,700 spot price for gold, but now 50% higher at $2,500 and probably going higher.

We now own 100% of RRAL - since that note we now know the rediscovery of extraordinary gold grades in adjoining acreage of Southern Gold, SXG. And now there is now interest in RRAL, not surprisingly.

Near term DRC cash, Bell said in his last interview that he was looking at a better outcome and that on the face of it seems close.

And BF - near term production - like any day now is expected, quite a large operation being assembled.

Even if you remove lithium completely from the list of risked asset valuation for the time being imo you are looking at very bigger values for their gold assets.

Risk v reward is probably more even compelling.

Let’s see news due for sure.

That’s no way to talk about our ceo 😂🤞

Banbury- as you know as an accountant, it’s all about the current/likely market cap, near term - yes of course more monies will be needed, but the risk V reward right now is imo the opportunity.

Note all those recent “raises” were at the direction of holders, they could have easily added to loan account (safer financial planning, protection of capital blah blah blah). But they chose shares, wouldn’t you? Of course faced with that. No brainer.

Regardless , I suspect they know much more than you or I.

Anyway.

So we wait, either way, something has to break, and pretty soon imo. Personally, looking forward to much upside from here, have been adding. Let’s see. 🤞

Yep, all the ducks lining up, time for significant re-alignment for gold juniors. Here's hoping RRR are in the thick of it:

Nice chart:

https://x.com/graddhybpc/status/1828335753870393358

Last Stockbox interview for anyone interested:

https://buff.ly/46I7tuB

Bell in last Stockbox interview said it's down to process now "in Congo one day it won't be there and then next day it will be there......."

"And I am looking at slightly better result than I was looking at before....."

It's notable that in that last Stockbox interview 10 days ago Bell said he was planning first to go Burkino Faso first, then when needed he would go to to Kinshasa.

So on the face of it plans have moved on in the DRC. Let's see.

RNS 4/7/24

This RNS?

Company Chairman Andrew Bell states: "A shareholder and lender to Red Rock has converted £182,328.79 debt into shares which he has confirmed to us he intends to hold in his ISA account for the long term. He has also indicated his support in respect of his remaining lending. We appreciate his longstanding support for the Company and its prospects."

Black increasing.

Maybe he also thinks the risk v reward from down here is worth it : )

Defo confounded.

Risk v reward, keep the focus, think we are close.

Let’s see.

Banbury for balance: yes we all know cash is currently strapped but on each occasion the major shareholders made a choice- they chose to take shares:

“Each Note holder may either capitalise net interest to 19 August 2024 and add it to the principal amount of the Notes or settle such net interest by the issue of new Shares in the Company”.

Why? Do you not think the major shareholders who frankly have kept the company afloat for some time now might know more than most? I think they do, and they chose the option to receive shares. Clearly by doing so they have assessed risk v reward.

From a risk perspective surely it is far more risky to take more shares rather than add to existing debt; in an insolvent winding up the shares would be worthless where secured debt would rank in creditors.

What would you do if faced with making that decision?

Cheers News, I understand the super accountant valuation approach, but from all accounts that will need revisiting soon, and very thoroughly. Production based valuation principles.🤞

News:

“Faso is pretty spot on [Asara in recent days sold 2 licences in Faso for US$2.2m. So per Banburyboy, tho not confirmed in any public RNS RRR has 20% = 20% of US$2.2m = US$440,000, so FQ pretty spot on if Faso is sold even at 20%.”

Spot on? Surely though if BF production kickstarts very soon, even if using minimum production RRR data (see matrix on website but update for current gold pricing) the value will be significantly higher than $400K. 🤞

The question to answer though is does the current market cap of £2.4M reflect the company’s current gold (and other) assets, less liabilities? Almost certainly not in my view, and considerably.

Investors have been understandably cautious because the company has been through a pretty torrid period last year or so but that could easily change, and very soon.

One piece of really good news will change things substantially imo. For me, the risk reward with current developments has only got better.

Hopefully Banburyboy you will be able to hang your anti Bell boots up soon, I seem to recall you saying that is your plan when he delivers. Everything times out eventually but most important, timing is everything, this now looking very good for RRR. Let’s compare notes again in a couple of months.

When RRR announced their co-operation agreement for BF production back in January and then the 49% remaining RRAL acquisition in February gold was hovering around $2,100 ish; 6 months later we see a significant uplift to $2,500, with many experts predicting the rise to continue.

Margins on BF planned production have substantially increased as have with asset values on rest of RRR gold portfolio.

Can only be very good news for RRR, the risk v reward just gets even better. Ducks lining up for a major re-rating imo.

Gold's bullish breakout to $2,506 signals continued upward momentum, with key targets at $2,543 and $2,605, as the market eyes further gains.

https://www.fxempire.com/forecasts/article/gold-price-forecast-new-highs-and-future-projections-1454510

Very interesting video, why gold might be heading for $3,000: https://www.fxstreet.com/amp/analysis/will-gold-prices-hit-another-all-time-high-in-august-video-202408131357

No and we have never met if that helps.

Helpful has no bearing on my choice of investments. RRR has some tremendous assets, we hopefully will see good value.

As I said from here the risk versus reward is excellent. My view, no one else's.