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So Peter Gyllenhammar has increased his interest after previously selling part of hos holding. I wonder what has caused his change of heart? The impending jupiter relist, the Steelmin potential, or something else?
Anyone put a value on jupiter? 33m aud made in last 6 months, gives 66m aud per year profit. So say $500m on a PE of 8 with no value attributed for jupiters other project This values RRR 1.2% at approx £3.5m. And RRR mkt cap is?????
What vast empty space? Do you meam the kiln we were stood in? That just needed brick lining that started the very next day. There was one last long lead item to be delivered. That is due next week. Four weeks or to install them production begins
Do the research and you will see that it wont go wrong..... Ill leave this here for a few months and we will see who is correct.. Ill either lose money if you are right or you wont make any if I am as i assume you arent invested. I do wonder why you are here..
Its all about risk for YA. Steelmin have only the bosnian asset, without that they have nothing, yet. Steelmin arent listed, yet, so dont even have their own shares to use as capital. No mainstream lender would want to lend on the plant when, if it all goes wrong, all they will own is a non operating plant with no management. This is why RRR got involved. YA now have a backstop to get their money back, which they wouldnt have. Namely to issue RRR paper until they are repaid. So the key here is, how likely is the deal to go wrong? Having done my research, and i have done a huge amount, i have concluded that the Steelmin deal is an absolute corker and am happy to risk a significant sum of money on RRR stock on that basis.
I would be really unhappy if the authority to issue shares is removed or reduced for 2018. I am absolutely against issuing shares in placings to keep the lights on or for the ceo to take a Caribbean cruise. That is clearly not the case here. However, to do value accretive deals in a rising commodity market is absolutely fine by me.
MrM to insinuate $1m of jupiter income in 2017 will have absolutely no value for shareholders is ridiculous. This business has a "keep the lights on" cost of circa £400k / year. Mr "confetti" bell as he regularly gets called on this board hasnt actually issued any "confetti" since 24th august last year. Rather than relying on shareholders to put their hands in their pockets to keep the lights on, distributions from the investments keep the lights on at least a couple of times over. A proper company, no! We have exactly what you say you want "a proper regular repeating income from genuine projects on a scale that exceeds the overheads" The fact that you and others cant see this yet are providing the perfect opportunity to buy this share at wholesale prices just now.
The board of steelmin, which now includes Andrew Bell, will do what's best for all shareholders, of which RRR is a significant one. This could be royalty/ dividend or could be buy further plants/ assets which would enhance value. If steelmin decide to list themselves then again there would be a potential big upside for RRR. Meanwhile whilst this plays out over the next period of time RRR sit with plc costs covered a few times over by jupiter and Columbia.
Steelmin progressing very much to plan. Sorry to disappoint all the negative folk on here. Will be in production in 12 weeks and selling into a strong market. Shortly after entering production steelmin will refinance and pay the loan back. RRR will then own 20% of a company making £10m a year all for loaning a few quid for 8 months. Not a bad bit of business.
It really is a quality asset. Will be in production by end january. Initial ebitda of €7m in a strengthening market. This is before the second furnace is brought on stream much later next year that could add another €2m. RRR will benefit from a steady income stream in the form of dividends and/ or value appreciation through Steelmin bringing other assets to the table. Who knows what steelmins plans are. Could they float themselves to raise finance for other assets? Who knows. On a modest valuation of 5* could steelmin not have a percieved value of £35m? By read across RRRs 20% would be worth £7m, nearly 3* current market cap for this asset alone.