25 days until next dilutive placing?16 May 2024 12:32
The DRC payment appears to still not be within grasp does it...
Extract from the half yearly report: 28/03/24
As a result of the undertakings given by the buyer, a parastatal company, in the course of the arbitration process, our expectation is that payments will be made promptly. In the case of delay, we would need to accelerate alternative funding measures, whether by fund-raising or a sale of non-core assets, to strengthen our balance sheet and to meet our ongoing working capital requirements.
END EXTRACT
2 weeks later the company announces it has raised £260k via a placing so clearly cannot see an early settlement on DRC and cannot sell a non-core asset otherwise surely it would rather that than dilute LTHs yet again?
Extract from 11/04/24 Update on what raise is for:
Red Rock CEO Andrew Bell comments: "We are moving forward with production and pre-production activities in Burkina Faso, in order to start alluvial production and testwork at Bilbale. We are working to a tight schedule for operations to start within weeks, subject to the usual caveats. We continue to work with the programme and costings outlined in our announcement of 27 February 2024.
In the DRC, we continue to expect a quick resolution."
END EXTRACT
Extract from 27/02/24 stated the commitment was limited to £150-£200k so the raise gave a surplus of £60-110k above BK needs I assume to keep the lights on and pay salaries.
START EXTRACT: 27/02/24
Both parties will be making contributions, and our further potential commitment in this phase is limited to £150,000 to £200,000. We consider that our current resources and facilities, and indications of support we have received, will enable us to meet this spend. In the event of discouraging results at any stage, work on the alluvial potential will cease and Riverstone will move equipment to another project. Red Rock will update the market as work proceeds.
END EXTRACT
It will be very interesting to see how accurate Aimdogs countdown to another destructive round of dilution really is. I personally think it is inevitable as we now approach the 1 year mark since I first heard DRC payment was imminent.
Was just about to post this with my own heading 'who enjoys dilution' as the countdown clock from AD landed...
Watching daily with interest and still waiting to ride a rise on the DRC payment. However, if or once they announce that's a dead duck I will lose interest and move on...still the spread has opened up a little today so everyone will no doubt think it's Christmas here.
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