Riverfort Global Opportu... Share Discussion Threads

[blueteam1] 15/1/2021 10:49

Thanks outspan for your reply a while back. Yes bought in early morning here and also yesterday in the evening bought a few Tanzanian Gold Corporation , the gold production company that Riverfort Global Opportunities invested in late 2020 from their RNS Dec 21st.

Really hope to see a steady share price rise and nice Divi.

[daicaprice] 15/1/2021 10:41

Hi guys, new investor here having read up a bit on the portfolio but of course it was the PIRI stake that tipped the decision.
Picked up the 196k @1.245p.

DC

[ramellous] 15/1/2021 10:39

Can’t trade this with ii yet.

[davidlloyd] 15/1/2021 08:57

:-/. I make PIRI holding (by itself) currently almost half RGO's MC......
DL

[robsy2] 12/1/2021 17:12

Thanks for your excellent posts Outspan. I have taken the plunge and bought a few this afternoon. It is a real tiddler of course and it has quite a labyrinth of holdings. The div is good and as you point out , apart from the upside potential and low valuation , the way they invest gives a fair bit of downside protection as well.
Best
R2

[outspan] 10/1/2021 22:45

In the same vein, also worth recalling that RGO looks set to continue its solid underpinning for the future by taking an option to get further into gold, announced in Dec:





"...It is intended that Kodal will seek to realise the value of its portfolio of gold assets by 31 October 2021, at which point RGO can elect for its funding to be repaid, converted into ordinary shares in Kodal or converted into a 20% interest in the vehicle created to hold the Fatou Project and Kodal's other gold assets..."

Hmmm, sounds like an arrangement with near-term and clever exit assuming it goes ahead.

[outspan] 10/1/2021 22:18

Regarding your Tangold question blueteam, I don't know the company beyond it being the sort of big boy stuff and the kind of structured "deal with secured benefits" that emphasises how RGO now typically gets the chance of the action arranged by its "parent". For further info, here's a decent article on the deal you mention:



"...Downside Protection

But it does get better than just the interest income, equity conversion upside and the warrant exercise kicker. Just in case we are at Peak Gold and things turn down from here, Riverfort has downside protection through the debt structure.

Presumably, this is the kind of deal that many private investors would have liked to be involved in, given how close it is to being “Heads you win, Tails you don’t lose” in terms of the risk profile. But what most investors do tend to forget that rather than being on the outside looking in, they could participate indirectly via the equity of Riverfort via its AIM listing. If not so much a hedge for their portfolio it certainly would add variety in a smart way – often far more complex than many of us could get our heads around...."

[outspan] 10/1/2021 15:28

Where the bracketed three dots appear in the links above, I'd included a link to the parent player here i.e. RiverFort Global Capital but ADVFN doesn't like it, presumably because it is seen as a financial "rival" website. All the same, I suggest Googling it and researching in order to understand the "master" investment structure here.

[blueteam1] 10/1/2021 06:37

Working nights and been doing some investment scanning. New here on site and been directed to this company by friend as it had a good divi and seems to be doing well and to cast an eye over it. Why did it change it's name?

I am very interested in the RNS statement 21st Dec when it said about Tanzanian gold corp 'During Q3, investment activity has continued with the Company making a number of new investments, including a substantial investment in Tanzanian Gold Corporation, the gold production company. Anyone know about this company as well?

[wshak] 08/1/2021 11:27

And based on their RNS today, maybe RGO needs to have a quiet conversation with the avaricious Mr Patel!

I thought the same thing.

It is a relatively simple process for brokers to contact each other when public notifications are made. It should be a five minute job to touch base, and provide liquidity if someone wants the stock.

[outspan] 08/1/2021 11:12

Hi WShak, yes, slowly slowly might actually be just the job while Piri remains so hot and might have already started given Piri's RNS yesterday lunchtime!

And based on their RNS today, maybe RGO needs to have a quiet conversation with the avaricious Mr Patel!

[wshak] 08/1/2021 08:24

Hi outspan,

I agree that the first stop in selling down would be to convert warrants and sell them. Given volumes available (low), it will be difficult to do that, however. Maybe 500k a day to avoid hitting the price?

[outspan] 07/1/2021 23:23

Piri warrants not even mentioned here last August - since at under 4p at the time, they were out-of-the-money. Add Piri to those already in-the-money at the time but not included in RGO NAV and it's clear the potential hidden value here is substantial without even taking account of the increase to declarable NAV since the last update.

"...The warrant portfolio includes warrants that have been issued by the following companies whose share prices have increased by the percentages shown since the beginning of the year: Whitehawk Limited (49%), Artemis Resources Limited (231%), Tanzania Gold Corporation (50%) and Canadian Overseas Petroleum Limited (442%).

Currently, 39% of the warrant positions held are in the money, however, due to the inherent volatility associated with this form of instrument, the potential value of this warrant portfolio is not fully reflected in the Company's net asset value and a return is only crystallised when the respective warrants are exercised and resulting shares sold.

Phillip Haydn-Slater, Non-executive Chairman commented: "Given the current volatility of markets, we believe that our warrant portfolio offers significant scope to enhance the returns from our investment portfolio."

He can say that again!

[outspan] 07/1/2021 23:03

No opinion on Pires except to rejoice in RGO's holding. Seems to me, one easy way for RGO to increase capital while sensibly reducing its exposure to Piri would be to convert the 10m warrants it also holds and sell into the current demand without, for the moment, reducing the attributable value of the 26m ordinaries RGO holds.

This from the Piri placing in Apr 20 that brought in Chris Akers "Placees will also conditionally receive one warrant for each ordinary share subscribed for, exercisable at 4p for a period of two years from their date of issue and expiring on the two-year anniversary of the date of issue. " so a time-limited benefit in any case.

This from RGO's last Finals "....by the end of June 2020, the Company's
holding in Pires will amount to 26,149,993 shares and 10,000,000 warrants..."

However, I note RGO got 10.75 million shares in that placing so assume they are understating their warrants by 750k. DYOR.

[nico115] 07/1/2021 21:03

Thanks v much Any opinion on pires ? Had a v good rum and Akers has a large stake

[wshak] 07/1/2021 11:01

Hi nico,

It's difficult to say what NAV is in between updates. RGO has been pretty active in recent months, taking low risk debt positions but with considerable upside through warrants and options etc.

Pires represents a very large position with its recent rise but that wasn't reflected in the NAV of 1.3p last reported. I'd have thought it makes sense to slowly reduce the influence of Pires to the portfolio.

I'm happy to hold as they pay a good dividend, and have remodelled the company well over the last couple of years.

The shares should be higher than 1.125p, that's for sure, but difficult to know exactly where they should be until they reduce the weighting of Pires.

[nico115] 07/1/2021 06:44

Hi Shak What do you think is fair value here Thanks Nico

[wshak] 06/1/2021 15:16

RGO own 21.4% of PIRI.

They are the largest shareholder in the company with over 26m shares.

[nfs] 06/1/2021 14:21

Does anyone know how much RGO own of PIRI?

[webbski1949] 01/1/2021 12:09

Canaccord 17%
Miton Asset Man 14.4%

[webbski1949] 01/1/2021 12:05

By any measurement this is undervalued and, still has the backing of a large fund.
Should move up gently and we have dividends :-)