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Still haven't put in the accounts. No mention anywhere of this amazing opportunity. We are going to need a bigger oubliette.
Arrogant? I will tell you what is arrogant, a non-shareholder ie., you, thinking it is okay to lecture a significant shareholders ie., me and others about what the company should and should not be doing.
I am more than happy with the way things are going. I anticipate that we will make significant monies here and the recent news more than justifies the decision to roll the CLNs.
I know I am wasting my time because you are not interested in anything that goes right but we are due imminently:
1. News on the license at Migori
2. News on Steelmin
3. News on the cobalt sampling programme in DRC
4. Progress report on what Winmar and RRR are going to do at Musonoi
My view is that the above will all be good news but obviously good news for the company equals bad news. Lets face it your hatred of AB is obsessive and irrational to the extent that you are determined that the company will fail: well you will be disappointed. The break up value of the company just went up again.
DYOR
SL: "Rules are rules. There was no need for disclosure so there is no problem."
In that singular arrogant statement is everything people need to know about how little shareholders matter here imo.
Appalling
Getting all huffy on behalf of behalf of shareholders even though you are not one?
Rules are rules. There was no need for disclosure so there is no problem.
Let me know when you are a shareholder and have bought more £250 worth.
It looks a good deal to me: Gareth Penney won't be stopping at this deal. He will want to build a serious diamond business and RRR is in on the ground floor.
Why not ask an interesting question: how on earth did AB get us into this deal? What/who was the intro?
Okenia you duplicitous cad.
It matters not one jot whether the Amulet deal is good or bad (but savvy investors will of course draw their conclusions)
What matters is that the company failed to RNS the investment of $400,000+ of funds, looking for clauses in AIM rules not to have to (class tests blah blah). Common courtesy and investor trust DEMANDS that the BOD RNS this kind of thing. Thereby can investors make a decision whether to buy or sell.
In failing to inform the markets the BOD robbed investors of that choice.
That my friend is UNFORGIVEABLE
You can dance around with BS "jam tomorrow" rehtoric all you like, but the BOD just trampled all over investors imo.
Trust will therefore be extremley low. Time for large investors to get together and take action I would think.
And if they see us as good partners, next time they have a gig we get an early phone call .
Thanks for the informative post okenia
The final part of this - and a valid question - is what RRR brings to the table. With Penny/Diacore I think we can safely assume the expertise in diamond mining is covered and they've not let RRR take part due to Scott's deep knowledge of kimberlites. Likewise, I doubt either Penny or Diacore are short of a bob or two to fund this.
So why allow RRR in at this lucrative early stage? What could RRR possibly bring to the table that Penny and Diacore can't? Where, for example, might you possible see Amulet in a few years time?
Penny starting to drop yet? Come on, it's not difficult.
To make it easier for you to understand, think of a exploration JV structure like what MOD did with MTR. Each side put a small amount of money in to get equity in the JV vehicle. Going forward, each side then splits the exploration spend bill according to their percent ownership on a fund-or-dilute basis. That expenditure adds value to the JV vehicle and the equity portion.
If you think about it, the Amulet deal (although stated as a 'loan') is identical in the end result. All parties have an equity position (we know that). Both RRR and Penny/Diacore have put funds in to pay for exploration work ( we know that too). And it's done in a way that is tax efficient and doesn't trigger unnecessary waste of cash.
If you think about the 'unsecured interest free' part - well there's no need for additional security, that comes via the equity component, and charging yourself interest is pointless (and tax inefficient). Again with the MOD:MTR parallel their exploration spend has the same characteristics of not generating either interest or additional (duplicative) security over the assets, plus has no fixed date for repayment until such time as BHP buy out MOD (who listed on AIM yesterday - a little cross ramp for you there).
This RRR equity/loan combo thus appears identical to a exploration JV, and when there are only three shareholders in a private company and all want to contribute funds to drive the business forward these shareholder loans are far more tax efficient than (say) a pure equity based structure that would trigger income tax liabilities with dividends etc.
You'd have thought that the ex MD of de Beers and current Chair of Norilsk Nickel would have come up with the most tax-efficient SPV structure to fund an acquisition, given he's spent most of his life making acquisitions in the NR space. Amulet looks to be exactly that and thus although (being private) we don't have deep insight into the finances and structure of it, I'd say with Penny and Diacore driving it forward you'd definitely "back management".
So I think Amulet looks extremely credible as an acquisition SPV.
But you think this is 'shocking' and is 'pi***ing away RRR funds'. Go figure. Better still, go ring Gareth Penny up (when he's not busy running Norilsk Nickel - you might be put on hold for a while) and tell him. But from what we know (and there remain bits we don't), the Amulet deal looks sensible and exciting.
zumore
The trouble with having a trolling tendency verging on the weirdly obsessive is that you make assumptions. You have no idea whether this is a shocking deal. Your automatic reaction is to take anything the company does and just add 'shocking' 'woeful' or some other moniker to it.
So let me help.
Amulet is a private SPV so we don't have a lot of insight into it as a result. However, it's pretty well covered in the press and is a joint venture between a couple of big industry players. Penny is ex-MD of de beers (so we assume knows something about diamonds), is currently Chair of Norilsk Nickel (a seriously big natural resource company) and the other SPV partner is Diacore (again a big player in diamonds that is looking to expand its production into Botswana - https://www.diacore.com).
So first tick - the SPV team look top-notch and very credible.
The SPV was put together to acquire a non-core asset (BK11) from Firestone (FDI:AIM). Firestone are having a bit of a torrid time, with their mcap now a lot less than the £200m it was in 2017. They're divesting non-core assets to survive, and when you're buying an asset having a distressed seller is always a good thing. The jurisdiction is good (Botswana).
So given the management expertise of Penny / Diacore I think we can safely assume they are able to judge a good asset from a bad one and will only proceed if it makes commercial sense.
Second tick then.
Amulet have an option (due to expire end of Dec) to acquire BK11 for $5.1m. Prior to that they are funding some bulk sampling, slightly delayed due to late arrival of kit. Bulk sampling a kimberlite is basically small scale production as well. That means some funds will have passed thru Amulet to fund this. That's important.
As commented below, the tax efficient way to do this - when you know you have to spend capital now and will get it back later - is to fund your company via shareholder debt. That can be repaid without a tax liability, whereas an equity investment triggers a whole pile of tax issues. Let us assume that the other SPV players have funded Amulet (as they must have done) via a similar debt/equity combination. We don't formally know the mechanism but I think that's a fair assumption. Because they're doing it for themselves, you don't charge yourself interest (and thus have to send tax to the govt), that's robbing Peter to pay Paul and does nothing expect send tax to the tax man. It's commercially most efficient if the SPV partners given interest-free loans.
Amulet has no assets other than an option to acquire, so there's nothing to have security over. The SPV partners already own Amulet so lending a company they fully own cash doesn't need security, they already have the maximum via their equity ownership.
That's the sign of the child you are, no apologies.
Ah well. They live and learn.
It is a shareholder loan. It means it can be repaid from revenues without creating a tax charge: a standard way of doing these deals.
MrMagic and Joe
time for me to move on, this is AIM, leave you guys too it. Enjoy RRR. :-)
Lol, say whaaaaat!?
Maestro, a fairly abusive ramper, gets caught out by the bod and scuttles off having sold down at a loss without a word.
Mind you, the size of the trades recently...last of the big spenders.
Have you any apologies for Mr Magic or are you still too immature for that?
Or will you be needing the application form for McDonald's now!?
lol another shameless ramper turns stale bull. The cycle continues. The RRR Gravy Train rumbles on.
400K LOAN, WHAT BENEFIT IS THIS TO RRR, INTEREST FEE AND NO MATURITY DATE, RRR PURCHASED $100K WORTH OF SHARES.
IMHO THIS DOES NOT LOOK RIGHT, WHERE WAS THE NOMAD AND NO NOTIFICATIONS ON 19TH JULY 2018.
FULLY OUT!!
On 19 July 2018 the Company agreed to subscribe for 35,519 common shares in Amulet Diamond Corporation at a subscription price of USD2.76 per common share. The Company further subscribed to USD401,961 of shareholder loans. These shareholder loans are unsecured, non-interest bearing and have no fixed maturity or repayment date. These loans must be repaid by Amulet Diamond Corporation before any distributions are made to common shares, including any dividend payment or return of capital.
Amulet Diamond Corporation holds an option to acquire 100% of a kimberlite mining operation and licence in Botswana. An existing processing plant is in place with 100tph capacity and a bulk sampling programme is planned for H2 2018. The resource is an open pit of up to 9MT of kimberlite and Amulet aims to produce 100kcpa with minimal further investment.
If Bell was to resign tomorrow i predict the sp will multibag on the day, RRR has some attractive assets but market doesnt like the management it may seem.
IMHO
Musonoi: Glencore and KOV on one side and Jinchuan on the other https://en.wikipedia.org/wiki/Jinchuan_Group
I note over on the Mayan board, (another share you have pumped endlessly despite the SP there being utterly devastated), you've been identified and also the company you work for/operate. I wonder how your clients are doing?
"Since the year end RRR has had the JMS dividend and Para has started royalty payments."
Para have been paying dividends for quite some time. RRR last reported their royalty revenue payments for quarter ending March 2018. They haven't done so since and we must draw our conclusions accordingly.
The royalty is pitiful. Reported as USD $13,658 for that March quarter which equates to $54,632 per year.
It doesn't take a genius to do the math there. To reoup the first $2m of that royalty is going to take :
2,000,000 / 54632 = 37 YEARS !!!!
just laughable.
Once that $2m is achieved the royalty drops from being 3% NSR to just 0.5% NSR and thus at the same royalty rate it will then take about another 100 years to recoup the final $1m.
All you shameless rampsters can do is harp on about Para's forecasts for better production, the usual hopes, dreams, jam tomorrow rhetoric you've been peddling for so long both here and at Mayan.
Come back when that actually happens eh?. Meanwhile the savvy here will ignore the "jam tomorrow" rhetoric that has plagued this share for years and will keep their eyes firmly focussed on the actuals, the reality.
That reality sees the failed Greenland project where millions were spent, sold for just £1
Sees the failed Shoats Creek project written off by this BOD
Sees the failed Steelmin project unable to operate at a profit due to high electricity prices
Sees the value of our Jupiter shares having lost over £1m since they relisted. JMS SP still falling.
tick tock
PS looking at the RNS from 17/10/2018 we should be due an update on the sampling programme from license PR13513.
You can look it up on the DRC Mining Cadastre
Your credibility was shot some time ago. Regardless of what RRR said or did you would find a reason to whinge and claim that AB was wrong.
Of the liabilities just under £1mil is the CLNs. The majority has been rolled and so no need for any concern there. Since the year end RRR has had the JMS dividend and Para has started royalty payments.
The management has delivered huge value, it just hasn't been reflected in the share price yet: not that you are bothered.
The idea that none of that has any value is ridiculous but then you are not a shareholder. AB has publicly confirmed that he thinks that there is 375,000 tonnes of copper and 24,000 tonnes of cobalt on just the old Musonoi mine fragment at Musonoi. I have looked in detail at the old Musonoi mine and I reckon that he has it right. The market might not see if that way but it will in due course once people do their homework.
The deal with Winmar means that the Musonoi mine will likely be brought back into production at a low level in a matter of weeks: the workings are still there.
Steelmin has been brought back into production (fine it has since temporarily ceased as stated by AB), it has signed three licenses in DRC (see RNS dated 17/10/2018), it has resolved the issues with Migori and is expecting the licenses back any day and it has completed on the VUP deal in DRC, it also has the Botswana diamond deal with Gareth Penny (ex MD De Beers and current chairman of Norilsk Nickel).
In particular Gareth Penny is not doing his diamond gig to mess around, he will be looking for it to be a big deal in due course. RRR is bed with the ex CEO of BHP, ex MD of De Beers and in a JV with the Congo state mining company.
I also expect that we will negotiate a stake in Winmar as part of the deal for signing a feedstock agreement.
DYOR
even you must admit that Red Rock's big loan and investment in Amulet diamonds corporation looks incredibly dodgy? How is p***ing away such an huge amount of money good for RRR shareholders?
It was never RNS announced and it was buried deeply in the Red Rock annual report:
"On 19 July 2018 the Company agreed to subscribe for 35,519 common shares in Amulet Diamond Corporation at a subscription price of USD2.76 per common share. The Company further subscribed to USD401,961 of shareholder loans. These shareholder loans are unsecured, non-interest bearing and have no fixed maturity or repayment date"
.............
Of course nothing will be done about this but i'm sure to most PIs it looks incredibly incredibly shady. Let's be honest it looks shocking.
So a "bury the bad news Friday night" RNS seems to have slipped by. No takers today looking at the sparse trade list.
Shocking numbers imo.
Cash and cash equivalents - £2,263,288
but
Total current liabilities - £2,653,992
Not great
Admin and other Expenses are a horrific - £863,736
plus
Other project costs - £306,666
Bugger all meaningful income except the Jupiter Dividend which as can be seen above gets leached away in those horrific costs. This is an outfit with just 4 exec directors and 1 admin staff. How the hell do they burn through circa £850,000 a year on Admin ??
Really what is there here for shareholders? This BOD are imo haemorrhaging money in Admin and expenses and delivering little shareholder value. Dividends from Jupiter are not passed onto shareholders and every year this BOD holds out the begging cap at every AGM asking for authority to issue more shares in the coming year. This time they're asking for authority to issue up to 400m more shares (there are 536m currently in issue).
Were all that not bad enough we now learn via this Annual Report that way back in July the company started up a new project/investment with Amulet Diamonds and failed to put out any RNS of such, not even out of basic courtesy to its shareholders. RRR subscribed for "35,519 common shares in Amulet Diamond Corporation at a subscription price of USD2.76 per common share" and also "subscribed to USD401,961 of shareholder loans" which are "unsecured, non-interest bearing and have no fixed maturity or repayment date."
All of this without a single RNS informing shareholders. Quite unbelievable !
Struggling to see how anyone can trust this BOD personally.