Red Rock Resources Share Discussion Threads

[clunes100] 28/11/2019 15:01

I suspect the CLN will be rolled over for another year as it represents a 10% return which is backed by cashable and other assets, so repayment of £1m is not a current issue. In addition, if one of the big projects moves forward then 0.8p will hopefully be ancient history.

What we need is solid news on one of the projects and like buses hopefully two projects will progress at once or ideally one after another with a brief break to digest the first.

[torp] 28/11/2019 13:14

Deadline for repayment of the £1m outstanding CLNs is due this 19th Dec in 4 weeks time. Where will the company magic £1m from?

Beware the resident rampers attempting to peddle "jam tomorrow" rhetoric imho.

The share price here will drop into the 0.3p levels imho once a confetti placing is announced or if they sell down more of the "family silver" Jupiter shares.

Either way no point buying until that 19th Dec deadline has passed and they've announced how they intend to pay the £1m or whether they will kick the can down the road for a 3rd year

DYOR

[noirua] 28/11/2019 12:14

-

Red Rock Resources CEO Andrew Bell on doing battery metal business in the DRC (RRR)
27 November 2019


However, the third and most advanced prospect is Musonoi. Covering part of the ‘Musonoi Super Deposit’, this licence sits in a district called the Kolwezi Klippe that boasts 80 years of mining history and supplies a considerable portion of the globe’s annual cobalt requirements.

According to Red Rock, typical grades in the area range from 3-5pc copper and 0.5-1pc cobalt. Perhaps most notably, the region contains Glencore’s Katanga project, which remains the world’s largest cobalt mine despite being due to enter care and maintenance – something that Bell expects to increase cobalt prices.

This year has seen the VUP JV begin work to build on this potential, creating 3D models and identifying and assessing the old drill core from previous exploration activity. This work is the first stage of validating the results of historical drilling, something that will allow the JV to bring the existing non-compliant resource to the modern ‘JORC’ standard. More updates are expected over the coming quarters.

Musonoi was drilled in the 1930s and 1940s with a cut-off grade of 2.5pc copper.
Production took place down to a maximum depth of 105m, and the pit was partially backfilled after production ceased.
However, Red Rock believes that high-grade ore, alongside additional orebodies, could remain in place. Its consultant geologists have provisionally identified deposit potential of up to 400,000ts of contained copper and more than 25,000ts of cobalt at Musonoi based on a review of historical work and reports.

This year has seen the VUP JV begin work to build on this potential, creating 3D models and identifying and assessing the old drill core from previous exploration activity.
This work is the first stage of validating the results of historical drilling, something that will allow the JV to bring the existing non-compliant resource to the modern ‘JORC’ standard. More updates are expected over the coming quarters.

[seagullsslimjim] 28/11/2019 11:52

When's the dividend payable?

[torp] 28/11/2019 10:31

The preposterous amounts frittered away just on Admin Expenses through the years.


2012 - Admin £2,275,786
2013 - Admin £4,751,948
2014 - Admin £1,563,808
2015 - Admin £1,334,404
2016 - Admin £758,351
2017 - Admin £644,688
2018 - Admin £849,518


Bearing in mind this share generates no significant income except from the Jupiter dividends. Small wonder they constantly have to dilute shareholders.

It remains for me nothing but a lifestyle venture for the personal enrichment of the BOD at the expense of naïve investors.

DYOR

[torp] 28/11/2019 10:27

Atino flannel - "When the Kenyan government terminated AIM-listed Red Rock Resources’ mining licences for its Kenya-based Migori gold project in 2015, it would have been easy to just throw in the towel and move on to other opportunities on the continent."

What would have been easier would have been to actually spend money to do the bloody work to develop the license instead of just sitting on it for 26 years and annoying the locals in the process. Instead this BOD just continued to expend £millions of company cash on Admin and other Expenses thus destroying any value in the share and creating the need for endless dilution.

As reported in the news article here:





"the Mining ministry and the county government which complain that 26 years that the firms have held on to the land is a long time and the land needs to be used for development projects that benefit locals."

"Among the grounds for the revocation was that Mid Migori has held the areas for over 26 years without concluding the exploration programme. "

"Further, that the firm had never done any exploration work since it was granted the licences and that “it has only been getting into joint ventures. It has all along been an intermediary.”"

"The company had been obtaining renewals of licences through promises of heavy investment in exploration work but which have never been honoured, the court heard. The ministry also blames Red Rock for the alleged non-performance by its partner, on account of its shareholding in the latter."



DYOR

[atino] 28/11/2019 09:15

Okay...so I’ve yarned Torp 🧶...and “information” wheel spinning again for you again 🧵 💭💭💭 and I’ve got:



🙇 Red Rock Resources’ resilience pays off in Kenya | Nov 27, 2019

When the Kenyan government terminated AIM-listed Red Rock Resources’ mining licences for its Kenya-based Migori gold project in 2015, it would have been easy to just throw in the towel and move on to other opportunities on the continent.

However, that is just not the Red Rock way. Fast track four years and chairman ANDREW BELL tells GERARD PETER that he is confident that Migori will be a significant contributor to the company’s diverse portfolio.

Red Rock was established in September 2004 to pursue mineral exploration and development opportunities. Initially, these opportunities were located in Australia and were focussed on iron ore, manganese and later uranium.

Today, the company manages a diverse portfolio of mining investments around the world. Over time, the company acquired more assets in central and eastern Africa, notably uranium properties in Malawi and gold in Côte d'Ivoire and Kenya.

Prior to May 2015, Red Rock’s interests in Migori was through its 75% direct interest in its Kenyan associate Mid Migori Mining (MMM), which controlled a gold resource in the country via Special Prospecting Licenses 122 and 202.

The licences covered an area of 310 km² and is located in the south western part of Kenya, approximately 290 km west of the capital Nairobi. The project tenements lie within the Migori and Narok counties, extending approximately 63 km from Lake Victoria in the west and parallel to the Kenya/Tanzania border which lies 10 km to the south.

The resource totals 1.2 Moz within the JORC Indicated and Inferred categories over five areas within the Mikei Shear zone. The 7 km long Mikei shear has upside potential between known zones and Bell believes that there is significant expansion potential for both gold and base metals.

In 2014, Red Rock commissioned a preliminary technical and economic assessment constituting the first stage of a feasibility study. The outcome of the study was positive and projected production of approximately 80 000 oz of gold over a nine year life of mine.

Read more about mining in East Africa

Life of mine revenue from gold sales is estimated at US$95 million and the capital cost is $3 million recoverable within the first...

Progress at Migori ground to a halt in May 2015 when the government decided to terminate MMM’s licenses. “Post the release of our JORC resource in 2014, there was some political trouble in Kenya,” explains Bell.

“Our case was more of a localised issue, but at the time we also had a mining minister who didn’t understand the market. While the process to take our licence away had already begun, the company had already invested more than $10 million.

"We took exception to that and Red Rock was granted leave to institute judicial review proceedings.”

The matter was eventually settled in October last year after the government and Red Rock agreed that the case be withdrawn with no order as to costs and that the company is at liberty to apply for licenses and that previous decisions will not be prejudicial to such applications.

In September this year, Bell announced the positive news that it received approvals from the Kenyan Mining Rights Board for the granting of new licences for the Migori asset in Kenya and that it is now awaiting official approval.

While Bell has every right to be bitter about the government’s actions in 2015, he believes that the resolution reached is testament that Kenya’s judicial system is fair.

“When we lost these licences, our share price suffered enormously and it was suggested to us that there were various ‘African’ ways to get them restored and maybe that would have been superficially attractive to our shareholders,” adds Bell.

However, Red Rock decided to pursue the matter through the courts and even though it took a long time and the company haemorrhaged large amounts of money, Bell is confident that it can now get back the money that it has lost over the past few years.

“Once the licences are approved, we will then get back what we thought we had in 2014, which was a platform for a 1.2 Moz JORC-compliant resource that will allow us to both operate and explore further potential at the same time,” he explains.

Another major challenge that Red Rock/MMM faces is to ensure investors remain confident about the Migori project. However, Bell explains that it is all about managing realistic expectations.

He continues: “When I first got into mining, I recognised that there is a clear mismatch between investors’ expectations and the timeframe in which they expect results and the timeframe in which you can actually achieve results in the mining sector.

“In Africa, it can take as long as anywhere to get started and of course there are always challenges around infrastructure development.

“As such, we knew we had a long-term project. So when the legal issues happened, we still believed in our long-term approach and vision, just in a different way.

"We are entering the last stage of what has been a lengthy process and we look forward to the confirmation of the granting of these licences, and to renewing progress towards our aim, which is to have a producing gold mine, he concludes.

[torp] 27/11/2019 23:23

Desperate stuff Atino. Spin us another yarn.

When's the confetti placing coming??

tick tock

[atino] 27/11/2019 20:52

🙇 Red Rock Resources CEO Andrew Bell on doing battery metal business in the DRC (RRR) | 27 NOV 2019 | Daniel Flynn

Annual sales of electric vehicles (EVs) globally are expected to rise from 2 million in 2018 to 28 million in 2030 before hitting a vast 56 million by 2040, according to Bloomberg. To put this another way, the service stated in its latest EV outlook report that it expects 57pc of all passenger vehicle sales and more than 30pc of the global passenger vehicle fleet to be electric by 2040. AIM-listed Red Rock Resources (LSE:RRR) is seeking to capitalise on this exciting opportunity through its battery mineral exploration projects in the prolific Democratic Republic of the Congo (DRC).
The growth in EV usage is being driven by an ongoing, worldwide movement away from internal combustion passenger vehicles in the face of tighter emission regulations alongside a drop in the price of the batteries that power EVs.
With interest in their long-running, traditional products dwindling, automakers are responding to this step-change in their sector with a surge of new EV model launches over the next five years. Most plan to go completely electric by 2050.
Whether or not this will be enough remains to be seen. However, one clear beneficiary of the anticipated growth in EV usage are the metals used in the construction of the vehicles, their related infrastructure, and – in particular – the batteries that power them. Notable examples include well-known metals like copper as well as arguably lesser-known beneficiaries such as cobalt, lithium, and nickel.
According to the Copper Development Association, while conventional cars contain between 18-49lbs of copper, hybrid EVs contain 85lbs, plug-in hybrid EVs use 132lbs, and battery EVs carry 183lbs. A battery-electric bus contains an impressive 814lbs, most of which is used in the battery.
Meanwhile, according to Fortune Minerals, consumption in batteries has driven a more-than-20-year, 6pc compounded annual growth rate in cobalt use. The firm says that batteries now account for 60pc of a 125,000-tonne market, up from 1pc of a smaller 35,000-tonne market in the nineties.
Perhaps obviously, Bloomberg expects battery demand for EVs to proliferate alongside EVs themselves- passing 1,758GWh annually by 2030. Naturally, alongside this, associated metal-use in the sector is also expected to soar. What’s more, many of these metals are expected to experience additional upward price pressure due to supply issues.
Although supply is, in many cases, currently chasing demand, many analysts believe that it will be a very different story, indeed, once EV penetration passes the 10pc mark. With a lack of projects due to come online in many battery metals markets, growing demand is expected to lead to a shortage of raw materials, prompting a considerable increase in prices.
A critical factor in this dynamic is the DRC, which is estimated to contain an estimated $24trn worth of untapped mineral deposits. Much of this is held in battery metals, with the country currently responsible for more than half of the world’s supply of cobalt and large amounts of its copper and lithium.
However, the DRC has long been plagued by political uncertainty, concerns over human rights violations in its mining industry, a sizeable artisanal mining market, and poor infrastructure. Matters were made worse in 2018 upon the introduction of a punishing new mining code by then-president Joseph Kabila. The rules, the development of which dates back over a decade, sent shockwaves through the industry due to their inclusion of a taxing new royalty scheme on domestic metal production. This included a 1pc royalty on iron and ferrous metals and a 3.5pc royalty on precious metals and both non-ferrous and base metals.
Despite this, Andrew Bell, chairman of Red Rock Resources (LSE:RRR), says the DRC has demonstrated a marked improvement on many fronts against this backdrop of negative media attention:
‘The number of new mines opened in the DRC in the last five years and the last ten years dwarfs the number opened in any other African country, perhaps any country in the world. There is MMG’s Kinsevere, Barrick’s Kibali, Banro’s Twaqngiza, Ivanhoe’s Kamoa-Kakula, and Glencore’s Mutanda. And that is just to mention the names that come first to mind. So, ignore the Press chatter; look at the facts. Not all of these are copper or copper-cobalt mines, but if you want these battery metals you cannot be a significant force without being in the Congo. Difficulties exist, but are there to be overcome.’
‘It takes time in the Congo, but the effort is worth it. We need to convince the world that this is a place to do business, so that projects become easier to finance. Then their value will start to become properly reflected in the capitalisations of the companies that hold them. That transition, which is occurring, is what we are there for.’
Red Rock is currently one of the very few businesses offering UK-listed exposure to DRC metal production. The firm owns a 50.1pc interest in a DRC-focused joint venture called VUP, which it bought in exchange for a $700,000 cash payment and a £490,000 share payment in 2018. The JV holds three copper and cobalt prospective exploration licences in the Katanga segment of the Central African Copperbelt, where it is surrounded by active majors like Glencore and FE Limited.
The first of these licences is Kamukongo, which covers 5km2 within a structural trend called Kansuki and Kamikongwa – host of some of the most productive high-grade cobalt-copper deposits in the Katanga region. The second is Kasombo South, which lies at the mid-eastern part of the Kasonta anticline where numerous mines have produced considerable volumes of both copper and cobalt in the past.
However, the third and most advanced prospect is Musonoi. Covering part of the ‘Musonoi Super Deposit’, this licence sits in a district called the Kolwezi Klippe that boasts 80 years of mining history and supplies a considerable portion of the globe’s annual cobalt requirements. According to Red Rock, typical grades in the area range from 3-5pc copper and 0.5-1pc cobalt. Perhaps most notably, the region contains Glencore’s Katanga project, which remains the world’s largest cobalt mine despite being due to enter care and maintenance – something that Bell expects to increase cobalt prices.
Musonoi was drilled in the 1930s and 1940s with a cut-off grade of 2.5pc copper. Production took place down to a maximum depth of 105m, and the pit was partially backfilled after production ceased. However, Red Rock believes that high-grade ore, alongside additional orebodies, could remain in place. Its consultant geologists have provisionally identified deposit potential of up to 400,000ts of contained copper and more than 25,000ts of cobalt at Musonoi based on a review of historical work and reports.
This year has seen the VUP JV begin work to build on this potential, creating 3D models and identifying and assessing the old drill core from previous exploration activity. This work is the first stage of validating the results of historical drilling, something that will allow the JV to bring the existing non-compliant resource to the modern ‘JORC’ standard. More updates are expected over the coming quarters

[torp] 27/11/2019 11:31

Watching and waiting for the tell-tale placing signs

A manufactured rise in the SP, Update RNSs, increased ramping

Not gonna fall for any of it myself.

Tick tock

DYOR

.

[seagullsslimjim] 27/11/2019 10:43

Will the maiden dividend be paid before the year end?

[noirua] 27/11/2019 09:53

Tweets from RRR:
BIRD RRR

[torp] 26/11/2019 10:34

So desperate is Noirua that he is now reduced to peddling rumours . . . .

Sad to see TBH


Meanwhile, the 19th Dec approaches for repayment of £1m worth of CLNs.

Best rush out those wordy update RNSs imho otherwise you'll never be able to
get a placing away in time . . .


Tick tock

DYOR

[noirua] 26/11/2019 10:17

Paul Johnson has stepped down as a director of Armadale Capital ACP. Rumour he may join the board of Red Rock Resources. -



Looking at the drill results for ROCK today, they are not as good as Mid Migori and the latter has a 1.2m ounce JORC resource. Just a matter of that mining licence being rubber-stamped.


https://pbs.twimg.com/profile_images/1675460883/RRR_Symbol_bigger.jpg
China, EU markets to demand most battery metals up to 2028

[noirua] 26/11/2019 09:31

Red Rock Twitter:

[torp] 25/11/2019 17:52

Tick tock

Just 4 weeks until the £1m CLN repayment date arrives (19th Dec)

Confetti placing will have to happen pretty soon imho to fund it unless they
are intending to pawn off more of the "family silver" Jupiter shares.

Either way 0.3p levels will soon be here imho. No point buying before 19th Dec.

Holders could dump and buy back later to avoid the risk I guess.


DYOR

[noirua] 25/11/2019 17:12

NEX Exchange: Red Rock Resources RRR.GB

[torp] 25/11/2019 16:41

There were a bunch of warrants issued with the CLNs Noirua if I remember correctly

[noirua] 25/11/2019 15:44

Red Rock Twittering:

-----
Very few options and warrants remain and a chunk will likely retire at 1.6p. Unless an announcement or two arrives. Myself, I do not know and will just wait and not guesstimate the ifs and buts.

[kemche] 25/11/2019 12:36

Jim, :)

Love it!

[seagullsslimjim] 25/11/2019 12:28

Anyone got details on when the tickets will be on sale for the Red Rock Christmas Panto

I hear that it's Cinderella this year, but rumour has it that they are still missing the lead role and ex RRR PA Natasha has politely declined.

Fortunately the role of the ugly sisters has literally been filled, so all good there.

Maybe a cameo role for Noirua beckons or time for him to explore his panto crudentials and take the lead role in a Christopher Biggins type way.

Maybe they'll offer a free ticket for each CLN held by some and with a thrown in meet and greet and signing session to get some extra money in the coffers.

Sausage on a stick anyone?

[kemche] 23/11/2019 23:42

I believe this is what you were trying to hide Noirua:




Torp23 Nov '19 - 16:17 - 9035 of 9036
0 1 0
Noirua - "The CLN situation where holders have 2 choices and maybe a third will be offered. Conversion at 0.8p a share, right to return of cash and maybe a chance to roll over for another year to 19 December 2020."



All eventualities are dire for shareholders here imho.

The CLNs have already been kicked down the road for a 2nd year thereby incurring
a 2nd year of interest at 10% which of course is more cash/value seeped out of the share.

Conversion at 0.8p? Just laughable. Never gonna happen.

Repayment ? With what? What cash does the company have? Very little I would think.

They began the year with just £27k according to the Half Year Report

They expend approx. £850,000 on Admin and other expenses a year

They had Total Current Liabilities of £2.7m to boot.

Since then they raised £323k via a dilutive placing
Received approx. £250k from a Jupiter dividend
Raised about £300k from the sale of 1.5m of the "family silver" Jupiter shares

So where the hell will they invent £1m from to pay down the CLN's by 19th Dec??

There are only 2 real outcomes here

Its either more dilution placings to raise the cash

or more pawning off of the "family silver" Jupiter shares

Either outcome is dire for existing holders and will imho see the SP
plummet into the 0.3p levels.

Just utterly pointless buying shares here before 19th Dec.

Sit back and watch how the company attempt to get themselves out of the
CLN situation. Then when the share price plummets decide if you want to buy at that
reduced price.

Problem is the only real income here is the Jupiter dividends and they barely
even cover the Admin Expenses. Hence no shareholder value. Many far better
shares out there imho.

DYOR

[noirua] 23/11/2019 23:29

The Annual Report should be out in December for the year to 30 June 2019. An update since then is bound to be included.
The CLN situation where holders have 2 choices and maybe a third will be offered. Conversion at 0.8p a share, right to return of cash and maybe a chance to roll over for another year to 19 December 2020.

There is now an Interview with Chairman/CEO Andrew Bell in the header which outlines what is going on. As it was early in the year.
Here it is to save you from having to scroll:

About 6 weeks after:

[torp] 23/11/2019 16:17

Noirua - "The CLN situation where holders have 2 choices and maybe a third will be offered. Conversion at 0.8p a share, right to return of cash and maybe a chance to roll over for another year to 19 December 2020."



All eventualities are dire for shareholders here imho.

The CLNs have already been kicked down the road for a 2nd year thereby incurring
a 2nd year of interest at 10% which of course is more cash/value seeped out of the share.

Conversion at 0.8p? Just laughable. Never gonna happen.

Repayment ? With what? What cash does the company have? Very little I would think.

They began the year with just £27k according to the Half Year Report

They expend approx. £850,000 on Admin and other expenses a year

They had Total Current Liabilities of £2.7m to boot.

Since then they raised £323k via a dilutive placing
Received approx. £250k from a Jupiter dividend
Raised about £300k from the sale of 1.5m of the "family silver" Jupiter shares

So where the hell will they invent £1m from to pay down the CLN's by 19th Dec??

There are only 2 real outcomes here

Its either more dilution placings to raise the cash

or more pawning off of the "family silver" Jupiter shares

Either outcome is dire for existing holders and will imho see the SP
plummet into the 0.3p levels.

Just utterly pointless buying shares here before 19th Dec.

Sit back and watch how the company attempt to get themselves out of the
CLN situation. Then when the share price plummets decide if you want to buy at that
reduced price.

Problem is the only real income here is the Jupiter dividends and they barely
even cover the Admin Expenses. Hence no shareholder value. Many far better
shares out there imho.

DYOR