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You are correct of course about the warrants. Potentially a chunk of dilution, but you dont acknowledge the cash they will bring in. So whilst its correct to assume as the share price goes up the warrants will be converted, you need to factor in the cash brought in. Look at THR and GGP as recent shares where there has been alot of warrant conversions. Both have thrived. No reason this wont.... Especially now the mkt cap (even if every warrant was to covert) is underpinned by cash and some pretty decent assets
So Q1 2018 appears pretty much to have gone to plan. Steelmin refinanace done, and £1.8m in the bank as a result. Production imminent. Jupiter. Expected ipo now next month. Value to RRR looks like being £6 to £8m on IPO. My understanding is that 25% of our stake will be sold at IPO so another £1.5m or so incoming. Jupiter dividend due next week in addition. So cash position should be circa £4m within a month. Columbia payment due june will get cash to circa £5m.... Thats the market cap covered by cash alone... Assets all in for free... So i can reasonably conclude that this share should be trading at an absolute minimum of 2p, which would allow the assets in at a paltry £5m... Despite what lots on here would have you believe this is a very very safe share to buy at the current price.
Markets are rarely correct. This is where the opportunity comes from. You can look backwards and be negative all you like, or look at a valuation case as of today and factor in the predicted commodity prices. Some of us ( inc mr gyllehammer who has around 14%) believe that this is significantly undervalued. Mr magic et al have a different view. I am already significantly up (circa 50% ) on my investment and look forward to the continued recovery in the share price
Top top news. So RRR is now a £4.7m mkt cap company with at least £976k in the bank (enough to cover 18months of overhead). Now totally undervalued, given the value of its jupiter and steelmin investments.
Absolutely no doubt whatsoever this will be in production imminently. It really is an impressive facility and equally impressive team on the ground. Steelmin directors also very impressive. Mr magic and his fellow commentators who have clearly never been anywhere near Jajce think they know better however......
And maybe do some research, jump on a plane to Zagreb and take a drive up to the plant in Jajce. Have a walk around the plant, take in the beautiful Bosnian air. Talk to the team refurbishing the plant. Watch the 50 or so people now employed completing the refurbishment. I did. Doesnt half put your mind at rest...
They dont need magic now do they. Read the financial projection in the RNS of 23rd june. Add 20% to revs for price increases since last june.... Gross margin will then be approx 50% on eur45m / year. Just in case you have lost your calculator thats Eur 22.5m / yr which equals Eur 1.85m per month... Finding eur500k per month should be fairly simple...
Exactly what i was trying to explain You cant walk into your local HSBC and walk out with £4m unsecured..... You need a partner that undertands what you are going to be producing and who knows the future value of it. Hence the RRR loan. I would hope steelmin will get listed themselves at some point to crystallise a lot of value for themselves and RRR
Wrong. Mainstream lenders wont lend on an under refurbishment plant in the middle of Bosnia thats 9 months away from being finished. Steelmin have only the one asset and nothing to offer as security should they not get the plant working. In steps RRR to provide the, almost, final dollar to get the plant operational. Now the refurbishment is 99% complete steelmin can now refinance with lower cost finance as there is a valuable asset, the plant, to lend against. Really not too hard to understand.
Not long now. Steelmin money coming imminently. 22% owned as of tomorrow and production within the next two months. Add Jupiter IPO news, DRC news, El limon payment. And theres still folk that cant see that RRR is very very undervalued....
Spot on helpful. Best estimate for steelmin production commencement when we were there was mid january. Last long lead in items were to arrive mid dec and then take 3 or 4 weeks to fit. Everything else was on track for being complete by christmas. I know no reason why this wont be met.