Andrada Mining acquisition elevates the miner to emerging mid-tier status. Watch the video here.
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When Jupiter relisted on ASX last April RRR's holding of just over 18m shares was worth about £4m (@ AUD 0.40 per share).
Sadly the Jupiter SP has tanked ever since and the Bid now stands at AUD 0.305.
Today the holding is only worth £3.1m
So pretty much £1m of value has been lost from that holding in about 6 months. Not good.
I'm mindful here of the plethora of shameless rampers (some still present here) who duped people saying that the Jupiter SP would rocket and be 10 times the relisting price !!!
The shares are unfortunately locked away in an escrow agreement so can't be touched whilst their value slips away.
Trueish.
If they do nothing they have lots cash but that will soon change if AB gets all the deals he wants in DRC. In the short term he will need working capital to get them going: even if only to find JORC reports on the assets.
Helpful
My point is they are not in desperate need for cash, when you have mkt cap of 3m, something gotta give.
It comes down to opportunity cost: repaying the CLNs gives the company a certain return of 10% but what does it generate by using the CLN money as wc elsewhere? If the copper and cobalt deals are are really good perhaps the company will benefit from rolling the CLNs. £3.5mil doesn't go far as wc if the company has multiple copper and cobalt deals.
Rubbish.
The CLN's were agreed last year at 0.8p a share, for £1m these derampers are thinking it will be difficult for us to pay them back which is laughable.
RRR has option to repay, roll or convert, with a company having close to £4m in bank and they come out with lame excuse that £1m is issue for us.
Await the final results to see how decent of a position rrr are in.
He has a choice: he either repays or he agrees terms to roll the CLNs. Ideally, he comes out with news that drives the SP up and we convert the CLNs. Next week might be interesting!
Next accounts made up to 31 January 2018 due by 31 October 2018. Those profits will cover the Loan Notes. There will be profits and a return to shareholders will there not? DOH!
Not long now until the loan notes need to be paid off. It may not be easy to refinance them in the current environment and Steelmin will probably need a bail-out loan. It will be interesting to see how the boss deals with this.
And your point is what exactly?
Something else for you to vent about.
https://twitter.com/AndrewBRRR/status/1055455190143385600
on an assets basis yet so overvalued on a liabilities (Bell) basis.
helpful
all fitting nicely, still cant believe how unbelievably undervalued this still is.
I think we all know the answer to your question, porridge.
Although I am happy with the progression here, I can't help remembering the headlines in July that Steelmin was producing and would have a positive EBITDA for that month. Three months later we hear it's at risk of closure. What f*ck up is waiting in the shadows to destroy the good news of this deal?
The problem with the RNS seems to be that someone very familiar with matters assumes that what they are saying is obvious to others.
It seems that we do not have the licences back at Migori. However, we can reapply on a "priority basis". This refers to section 56 of the Mining Act 2016. All existing licenses had to reapply under the Act to ensure that they operated under new health and safety and environmental standards.
So what this seems to mean is that RRR has to reapply under the same process as the other license holders post the Mining Act 2016 ie., it is being treated as though it were an existing license holder.
What does priority mean? It means that RRR's application gets considered before anyone else's: see section 56.
So RRR now has to go to the cost of submitting the new application and it must abide by the Mining Act 2016. No idea as to timing, cost or process but it seems RRR will have to submit a new business plan. Maybe AB will enlighten us in due course.
DYOR
We've got it back, it's worth multiples of our so currently. A lot of parties banging on our doors to farm into it.
Rrr ridiculously undervalued...
To be fair, I don't think today's announcement would have had much if any positive effect on the sp whether this was AB+RRR or not. It's a positive development, but far more meat on the bone needed before the market is likely to ascribe any value to it IMO.
Damp.
Same old. Bell manoeuvre to continue at the trough.
No one believes it any more.
very little interest today.
Andrew Bell's been here around 13 years and I suspect many many thousands have lost huge in his companies. So very few will invest in his companies these days.
Shareholders sticking with such an unpopular chairman is bonkers. He needs to go!
Migori worth multiples of current mkt cap. Has jorc resource of 1.2Moz with potential to at least double.
Good news today. Hopefully the market will see it the same way
They are really close with migori.