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Conclusion
We expect to generate cash from sales of assets and from court and arbitration awards over the next few months.
However, we are now in a position to start selling product, initially from Zimbabwe lithium, and a key task is to ensure that this item increases during the current year of account to the point where our sales and profits expectations provide tangible support for our value.
If proceeds are not received from the DRC arbitration early in the New Year then the Company will implement some combination of cost reduction, joint venture or farm ins, asset disposals, and financing, in order to focus on those activities that can lead to early cash flow.
Andrew Bell
Chairman and CEO
18 December 2023
DYOR
Seriously... Can RRR not stay focused and be good at one thing and actually deliver on one EBITDA generating project which creates existing shareholder value before putting another 'jam tomorrow' project on the table.
It's literally insane...
Why have they not been mining and stockpiling lithium ahead of the impending CNY finishing if they think there is a market. They are going to sell 200mts at a loss apparently and then what???
Helpful has been posting some small price rebounds in Lithium highlighting a reversal and also highlighting large Chinese demand...again where is the update and strategy before pivoting in to yet another new idea with DL.
I just wonder if RRR has any strategy beyond surviving year on year on the dime of shareholder dilution.
I will not be fooled by anymore 'Jam tomorrow' stories posted next week ahead of the AGM. I'm keenly looking for DRC news only via approved NOMAD (not reach) RNS giving clear outline of when the funds will be received.
Appreciate those also invested here only want positivity and enjoy the addition of another consultant and another pipe dream but I just don't buy in to it.
4 working days to trade ahead of AGM. I expect the full PR assault to begin and hopefully this will give me my needed spike out of here. Fingers crossed for a push on 0.15+ this week.
BB - I would always just stick to your guns and filter the noise. A lot of what I've read on here over the last week has been complete nonsense with no substance so I've only checked in once or so a day. I would rather read 2-3 of your posts than the 100+ I've read this week.
I sympathise with those holding from next Friday in absence of DRC money landing and not doing research on other factors which could negatively impact their investment - but there is still time and the information is all here and within RNS's for them to review so they can make informed decisions.
If I sell I may return once (or I should quantify if) dilution takes place to still try and benefit from a DRC payment spike but I will review that nearer the time. I am not one to frequent shares I am not interested in buying in to but I am keen to see some return rather than a loss on my RRR investment. May have to be on my second run or not at all.
My summary as of today is to remain a realist & I will take a loss next week rather than a bigger loss gambling on hope. I have to look at market sentiment here which is low and highlights no belief the DRC will land (can see it is not priced in) and I have to look at RRR actions - why announce before the meeting, why not update straight after the meeting, why not postpone no.4 from AGM or postpone AGM itself.
Fool me once, shame on you, fool me twice, shame on me.
There's life... :)
Robins - with your average I expect you are just holding through regardless then?
BB- See you've now bought in which shocked me a little - are you following my strategy or are you holding through?
Helpful - Correct I am assuming no other news, I may change my decision if something material happens before next Friday but at this stage outside of DRC I cannot fathom what could land which would be so significant.
Thanks all for responses. Interesting to see how others are planning to adapt to next week ahead of the AGM.
Open question to all those invested again ...not a single response yesterday among the bulls or bears ...maybe everyone has me on filter :)
If DRC money does not come by 16th - will you hold through the AGM and potential placing of further 1.5b shares or sell up in advance and buy back in once/if dilution takes place - or not buy back in at all?
If holding through the 16th - any detail on why you're making that particular call.
I'm invested but will be selling by next Friday latest - I am hoping DRC arrives before that point and that's all I'm here for now. I've based my plan on seeing how the company operate and have diluted since last year when I first bought in on 'imminent' DRC money expectations.
We already know the 200mt lithium will be sold at a loss by RRR as they have outlined based on current market price and is not likely to leave Beira for at least another 2 weeks until CNY completes and also a buyer is found so this does not factor in to my decision making. For me it is DRC payment by next week or a withdrawal of article 4 or a postponement of the AGM for 1 month - I believe all would give mass confidence to the market and see a large spike which would hold rather than drain away as seen this week.
5 working days to go.
Open question to all those invested.
If DRC money does not come by 16th - will you hold through the AGM and potential placing of further 1.5b shares or sell up in advance and buy back in once/if dilution takes place?
If holding through - detail on why you're making that call.
I'm invested but will be selling by next Friday latest - I am hoping DRC arrives before that point and that's all I'm here for now. I've based my plan on seeing how the company operate and have diluted since last year when I first bought in on 'imminent' DRC money expectations.
To add balance and transparency, I do not like how this company operates or communicates due to my perception there is a vagueness in every release, but I will wait to see if miracle payment happens before the expected significant dilution occurs.
6 working days to go.
Well for me... it's 8 working days for a miracle payment to appear...Everything else at this stage is just noise & spin.
I suspect this board will now quieten down as most digest today's events and reflect on yesterday's RNS with more intent wondering why we've not had an update from today's important meeting.
Will we see an RNS at 07:00 tomorrow rather than have to wait a week. This is the key confirmation for me on what yesterday's RNS intent was really for.
I sincerely hope my cynical view is proved to be very wrong.
See you at 07:00 RRR.
Now 5pm in Kinshasa... How did that meeting go today AB?
I called this at 08:58 this morning before the 900+m was traded...maybe sometimes LTH do know best.
Another bunch of newbies now stuck in here with the rest of us...
DYOR.
To all those who bought in today based on this vague reach RNS... I hope you don't get stuck here as the price now drips lower once again. Over 830m shares traded and yet price is back to 0% - why???
Surely you all don't think a couple of posters are that influential given the pure spam seen on this board today.
EXTRACT OF RELEASE BELOW:
Our local representative in the DRC has now received a call from Kinshasa advising him to stand by and be ready for this matter to be concluded.
Chairman Andrew Bell comments:
"We have had our local associate working on this very important arbitration, and he was advised last week that the arbitration judgment was now due to be released. We have two other lines of communication that have served as a listening post and potentially a back up to ensure the matter is dealt with speedily. Both have now provided the same feedback on timing, and we have had it confirmed that recent delays have been due to the elections and post-election reshuffle.
Our country manager has been invited to a meeting in Kinshasa on Tuesday and we are hopeful that matters will now progress to a satisfactory conclusion. After 18 months, we believe the other side, like us, will want to receive its portion of the sale consideration without further delay.
Because of the materiality of our $7.5m - indeed $10m - claim, we shall issue a further update next week. Expediting the arbitration is at this point our highest priority. It has been a very long process, and not without incident, but we are hopefully approaching the finishing line."
EXTRACT END
My queries as an investor here for c.6months who wants out before next Friday latest are:
Who is the country manager and who are they actually meeting in Kinshasha?
Why will RRR wait another week to update if meeting is today?
Why did they bother to release this CEO comment as an RNS yesterday rather than give more credible update after a supposed important meeting today?
Why are RRR not postponing resolution 4 to request 1.5 billion shares next Friday?
I'm in but I certainly want out. No deramp just genuine concern that could be rectified by the correct and detailed releases from RRR...The releases are always far too vague for me and laced with words like 'hopeful' & 'believe'.
It's nearly 4pm in Kinshasha, I assume their office hours are similar to UK and the price is not spiking... DYOR.
GB1 - I cannot see that the meeting referenced today even states who it is with, only a location, let alone that it will be to conclude a judgement. I cannot even see that they have referenced who the source is in yesterdays release, but it appears to be inferred that it is someone in an official capacity - I hope it is.
I also sincerely hope it is to receive a positive judgement so I can offload my 16m at 0.15+ but would be really surprised if this can hold over the Dec placing at 0.115 today. Preying to be proved wrong and wish all those investing this week make lots of profits and don't get trapped here too long.
No ramping or de-ramping from me - just facts to keep those gambling on reading a chat board which has blown up overnight he opportunity to make a more informed decision and make profit. I would advise all new to RRR to read the last 10-15 RNS regardless.
I fell for the DRC payment imminent news over 6 months ago now and that's all I'm here for. All would be smart to keep one eye on the 16th February AGM and have a strategy outlined to be in or out before that date.
DYOR
Pumpky - you are correct they will have better info today if indeed they have been invited to a meeting.
So ask yourself why RRR did not wait one day and release an RNS after today's meeting with greater content and impact rather than tell the market they have a meeting today but then not commit to update further until next week.
My opinion - RRR are trying to limp across the line to the AGM and share resolution being passed. As Zumore highlighted earlier, why is AB not on the next flight out and now leaving matters to a country manager !!!!
DYOR
Sadly the spin and the ramps are not enough to get me out of here just yet. But well done RRR on luring in another bunch of punters and immediately putting them underwater, ouch.
The only thing that significantly moves this and holds the share price is the actual RNS saying money is now in RRR hands. As I have previously stated this will be a miracle if it arrives before the 16th.
Lenigas tweeted to say he thought the RNS was being released today...reassuring to see him and AB are already not on the same page after less than a week.
It aint done till it's done but this has at least created a small spike, I hope it continues in the run up to AGM and I prey money arrives before 16th.
I sincerely hope this is not more spin... the update offered for next week needs to be crystal clear, no ambiguity of imminent or still days away etc.
I would also like to see direction from AB stating that no further dilution necessary to reassure those invested. We don't want pump and dump on money received followed by mass share dilution as surely no need with this payment.
I'm a little closer to my 0.15+ exit target so I'm slightly relieved with this RNS. I now welcome a sea of rampers to help me get there over the next two weeks.
Hi Bb - this is AB's address isn't it?
I'm not sure I understand what you're asking?
https://find-and-update.company-information.service.gov.uk/company/11857467/officers
BB - You have summarised it perfectly.
I perceive that there are only two significant short term catalysts that can send the share price in opposite directions and it is simply which will come first during February:
DRC payment or dilution via shares after the AGM, I believe the latter will come at some point regardless of DRC payment arriving or not.
The rest in the short term is simply nonsense and noise. It's clear that no amount of indirect news is moving the share price whether it be consultants, spin doctors, neighbours with good news, small changes in gold price, lithium price, 50 year charts, even a sale at a loss on the 200mts of spodumene.
Those either in or out have 10 trading days to decide which way to lock in a gamble...and make no mistake it is a gamble for the punter but the house always wins.
Another horse analogy springs to mind... flogging a dead horse. I would love to be proved very wrong.
Well if I'm not mistaken the market has had all day to digest this incredible addition to RRR and has valued it at a whopping c.£50k which I imagine they will take off again as we near the AGM date and in absence of a DRC payment which was days away over a week ago.
I cannot believe some of the blind belief on this board today that RRR is now saved and has a long term positive future for current shareholders because a 61 year old with a documented track history has joined.
I ask again helpful - what specifically is he helping with on getting deals over the line that you stated earlier today and do you think this magic will happen before further dilution occurs for bonus points.
Good weekend all...
Noting the link below is for 6% plus spot CIF to China which is what RRR will be benchmarked on when negotiating a sale delivered to destination port - the stuff at the port has only been confirmed as 3% plus... but I'll log a disclaimer that this means it could well be be 6% plus.
Either way, the price has not moved favourably since November 200mt RNS.
https://www.fastmarkets.com/insights/market-volatility-drives-changes-to-qps-in-spodumene-contracts-2024-preview/
It's easy this posting links game isn't it :)
Anyone a fan of the supreme's lyrics:
… Give me DRC why don't you, babe
Get out my life why don't you, babe
'Cause you don't really love me
You just keep me hangin' on
DYOR
Extract from Wikipedia on DL below:
Corporate Governance Related Criticisms
He has been accused of frequently "promoting a company, pushing up the (price of its) shares, then raising cash by placing new shares — and (thus) diluting the holdings of the early investors",[15] described as "a familiar tale with most companies he promotes".[16] His defence has been that "You can’t build a business on bottle tops.".[17] Furthermore, he has argued that it's not accurate to claim that "all his ventures have turned sour".[18] Although finance commentators have noted that most of the "hundreds" of companies he has been involved in, and "stock promoted" for, have failed to generate any successful shareholder returns.[19]
In 2009 he was one of a group of claimants, claiming that he had been libelled when an investment publication in South Africa had described the group of executives of one of Lenigas' ventures as "cynically and greedily indulged in self-enrichment at the expense of, and contrary to the interests of, shareholders."[20] The High Court of Justice of the United Kingdom rejected Lenigas', and the other claimants' libel claim, and found in favour of the publisher.[21]
https://en.wikipedia.org/wiki/David_Lenigas
Take from it what you will. For me it further reaffirms why I won't be holding past the AGM date.
DYOR