When the final results rns12 Nov 2017 14:29
comes out in a few days or weeks for me it'll be interesting to see what RGMs cash position was at the end of their financial year on 30th June. I say that because RGM raised vast sums in the first half of this year and so personally i'll be fascinated how much money they had remaining on the 30th June.
What we do know is that RGM sold their UKOG shares for �1,297,000 and also in the 10th July RGM rns it says RGM also received a �54,498 cash payment from UKOG and so totting both of those up RGM received a total of �1,351,498.
Since then RGM have paid out �400,000 for the Curzon energy IPO and also paid out $350,000 towards their $1 million YA loan (which is around �265,000). So if we take that paid out �665,000 from the �1,351,498 UKOG money then that would leave RGM �686,498. Let's assume that the 18th October RNS comes true and Alba do indeed buy RGMs remaining horsehill stake for �630,000. So let's add that �630,000 onto the remaining �686,498 UKOG money and that comes to �1,316,498
Regency hold 6,467,500 shares in Curzon energy and so worth approximately �500,000 at todays Curzon share price. Though of course RGM are presently locked in and cannot sell their Curzon shares for quite a long period (i believe they can ask for permission to sell after 6 months after Curzon listed) and so i suppose it's a case of sit and suffer and hope that the Curzon share price doesn't collapse during the period in which they cannot sell.
Mambare and Motzfeldt are both on care and maintenance. I believe Mambare was on the books for �220,000 on last years annual report. Of course nickel prices have risen since then so probably valued more now. RGM a while back picked up the Motzfeldt licences for just a couple of thousand and with Paul Johnson continually talking highly of Motzfeldt in 2016 RGM decided to offer him chance to buy Motzfeldt for �350,000: Mr Johnson's company VGL decided against the purchase and so i guess the Motzfeldt licences now revert to being worth just a couple of thousand quid.
RGMs coal investments have so far been a massive disappointment. So with little news on them who knows what they are worth?
In April RGM took out a $1 million YA loan. They've repaid $350,000 but that incurred a 20% prepayment penalty (so $70,000 penalty). So with the loan interest i guestimate RGM still owe near $800,000 on this 12 month loan.
Of course i've not factored in RGM's monthly running costs but of course that will be eating away at the UKOG money.
Bell needs to make good use of RGMs cash because if he squanders RGMs current cash then in my opinion not much worth in RGMs present assets. So vital he makes good use of it.
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