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Problem is that the money from alll the royalties still owed are about what AB blew in 6 months. The shares are worth less than a quarters running costs. What good is any of this except for AB’s lifestyle?
Is bigger than results. Despite the depletion in Sasa, the reserves and quality have been revised upwards. This has become a great long term stock
Helpful, unless you are actually Andrew Bell trying to fleece a few more people before retirement/ jail/ fleeing the country, you have got to be the most naive person on earth. The link below is to RRR’s latest investor presentation. It states how the company has gotten AUD 4.2 million from JMS since 2017. By the end of 2018 every penny was gone. Whether Jupiter mines pays £300k or £3 million in dividends, AB will take the lot.
https://www.rrrplc.com/wp-content/uploads/2019/03/20190331_RRR_FINAL.pdf
Is there not some legal action the shareholders can take against Andrew Bell? His selling shares under the auspices of buying his daughter a house many years ago, just before they crashed off the back of bad news points to insider trading. We can’t prove beyond reasonable doubt that that was not a lucky coincidence.
I know it is illegal for a director to take a loan from a company without shareholders approval. What then, is the situation when a director lends company funds to a private company he is a director of, and likely receives payments from, without shareholder approval? A grey area I would think. What if the courts heard the same director had sold his shares just before they crashed many years ago. Would we have a chance of getting a case against him? What about not announcing that Steelmin is in administration?
I was not yet a shareholder when he sold his shares but am perfect happy to be the one who raises a complaint with the relevant authorities if anyone can guide me on whether there is a case to be made.
Another £380k down the toilet
With Jupiter mines at AUD 0.35, Para resources at CAD 0.2 and RRR at 0.563 p, RRR is trading below the market value listed assets. This completely discounts all other assets. Why? Because if you were offered a debt of a £100 owed by a compulsive gambler, you would demand a heavy discount to take on that debt.
When a ticks host dies, it doesn't die with it. It finds a new host who's blood to suck. RGM going down but Kaintz and Bell will now suck their blood from ABM.
The biggest Sue for me is the companies debt. They have £720 million outstanding bonds, costing £36 million a year to service. £360 million is due next year. At the last report the company had cash of over £500 million but they have since bought Mr Green and will now have between 200 and 300 million. If they have to roll the debt over it will likely be with more interest as the revenue cuts from the loss of the FOBT’s and the increased UK taxes and player protections make their future revenues less secure.
Next problem is Mr Green. Last year their bottom line was a little under £7 million at todays exchange rate. I think they overpaid heavily for this one. The company will continue to generate cash and so I’m not worried about it folding but, in my opinion, it will either need to cut dividends or do new share issues to deal with the debt, neither of which will help the share price.
Another year gone with no licence in Kenya. Nothing significant in Columbia. Nothing from Steelmin. Good injections of liquidity through Jupiter and Para resources payments squandered on questionable assets and “admin” costs. Andrew Bell and Scott Kaintz continue to be paid salaries with annual increases larger than the uk market average. Who thinks I’ll be able to copy and paste this message again at the end of 2019?
If you look at the annual report, you will see income last year was up 34% on 2016. A lot of that was due to the cryptocurrency bonanza. This means revenues are still well ahead of previous years where the shares were trading between £7 and £8.
We all knew revenue would fall with the new ESMA rules. IG have been warning investors this would happen since the rules were first conceived. If any investors didn't price this in to the amount they paid for their shares, they not qualified to be making their own investments.
What the RNS has told us is that June Felix, who only came on board a few months ago with the goal of expanding to new markets, is doing a good job. Non-ESMA area revenues are right up and the US office is opening soon. Share price a bargain 5.60 as I write this.
Toonman, read this article. It is from the government, so no press prejudice. Explicitly outlines the governments concern that "..has left thousands of households—many of them financially vulnerable—without gas or electricity". The chair of the treasury demanded answers. You keep holding your shares though. Results tomorrow I guess we'll know what the market thinks by next week.
https://www.parliament.uk/business/committees/committees-a-z/commons-select/treasury-committee/news-parliament-2017/paypoint-failure-chairs-statement-17-19/
They admitted the outage to Shareholders, but not that the government was demanding answers. The company are the primary provider of energy to the poorest households. I am sure this comes with minimum standards demanded by the government and a fallout would end these. Closing the Irish business should have been announced as a matter of principle. If they don’t announce something like this, how do we know what else they not announcing?
Andrew Bell is very good at one thing: getting RRR tied up with assets that get caught up in legal wranglings for years. This is what happened in Greenland, Columbia and Kenya. Now that Greenland is gone, Columbia is sorted and Kenya is soon to come to a head, he needs to justify his position and salary. With good returns from Jupiter and Columbia the shareholders should resolve to put this company under minimal management and overheads and pay all incoming cash as dividends.
That does not suit Andrew Bell. Being the **** he is, he wants to divert all money to his own bank account. By getting an exploration contract in an under explored area he is giving himself at least another year at the helm. The fact that it is in the Congo, one of the world's most unstable and anarchic states, means this deal exposes RRR to years of uncertainties and legal wranglings. I think he's just paid $250K in shareholder money and diluted the company by 70 million more shares just to keep his cushy job.
Following the fiasco with DS, RRR has now got two new major shareholders. Hopefully they see him for the crook he is before it's too late and remove him before its too late.
This is a very dodgy company. I was a shareholder and loved their dividends but last week, in anticipation of the company results, I searched for Paypoint in Google news and saw an article in a retail trade magazine that they are closing their Irish operations. They also had a major issue in the middle of the year, for which the government demanded answers. None of this was announced to Shareholders. All sold up now.
Cristallball, these machines wreck families and have lead to countless suicides. The UK has hundreds of thousands of people addicted to these machines. Banning them will see the addicts spend their money elsewhere and save billions in social costs. To say the government is not pro business by banning them is as good as saying they should re-open the opium dens.
Although I am happy with the progression here, I can't help remembering the headlines in July that Steelmin was producing and would have a positive EBITDA for that month. Three months later we hear it's at risk of closure. What f*ck up is waiting in the shadows to destroy the good news of this deal?
I was surprised at how often this company had to borrow on the back of strong oil prices. I think this has been going on for a while and other "loans" will be uncovered. If the company is still solvent and the people syphoning funds are removed this will be worth a few pounds a share. Problem is removing a connected Russian might not be so easy.
Although RRR didn’t lose anything on Steelmin it was an unacceptably high risk. The fact that Steelmin had to give so much away in exchange for a fully repayable loan shows that nobody else in the world was willing to lend to them. Andrew Bell, on the other hand, was willing to risk the companies only real asset for this loan, making it a make or break deal for the entire company. RRR were lucky to come off unscathed. Next time we might not be so lucky.
Following the half year report write down, these are now trading at 10 times NAV. The income from FOBT's is about to evaporate and their online business is going to be hit both by higher taxes and the effect of a universal self exclusion scheme the UK government is putting in place. The American sports market is big but it will be shared amongst many players who will be in a "race to the bottom" for several years as they compete with one another for market share. I see sub £1 within a year.