Red Rock Resources Share Discussion Threads

[algernon2] 18/12/2022 12:58

I always thought Kemche was one of lifes free spirits, unique and immune from any form of cloning or impersonation. Now it's been revealed he may also be Noirua. I am shocked to my drill-core and am consequently having to go out now to Sainsburys coffee shop to read their Sunday Times for free and drink coffee to help with the shock.
Greekhovel, thank you for the expose; if true it was long overdue.
Shame on you both or one one of you at least.

[kemche] 18/12/2022 12:52

That is true Tom. We are both the same person. We might also be you. But with teeth.

[noirua] 18/12/2022 12:16

Good point kemche, dare I say that, well yes. When grasping at straws and having obtained an American Loan investor why not spread one's wings if a journalist spreads the word then a few might pile cash in. They might say, "Andrew Bell who is he" and that's the job done hopefully.

It needs someone with $1,080,000 to support the share price to stop it from falling below 0.3p. Mind you AB and Co might be scuppered as Diversified Metals would only have the option to buy at 0.3p minus 8% = 0.276p. Their overall purchase price would then be an average of 0.4173p - see bottom of the header.

[kemche] 18/12/2022 11:17

To try to get him to buy some shares?

[valuestock] 17/12/2022 15:26

If you have not read this from November, here it is copied from the RRR website
Q and A – RRR Chairman Andrew Bell
17 Nov 2022

We have been asked a few questions. We were told there were more in the offing, but I have taken
the opportunity to answer this first batch. The questions are unedited, and the answers I hope
always frank. Our message to shareholders would be to feel free to respond with supplementaries.
Where we can answer, we will.

Q. Where are you now in the arbitration payment process and do you see a near term successful conclusion to this?

This is actually two questions. They are good questions, but if I may I will rephrase into two slightly different questions which I will then answer separately.
A. The preliminary question is whether we expect a successful conclusion to the arbitration on the $15m. We answered this already in a precisely crafted formulation in our news release of 5th August.

If anything had occurred to make this formulation misleading, we would have had to announce it. So I will repeat what we said then: we are confident in our case, and know what we are entitled to.
We also said that a range of likely outcomes had started to become apparent and we and the other party had been pushed by the arbitrators towards a compromise, which we went as far as signing, back in July: the former local partner however did not follow through on their oral commitment so everything went back to the arbitrator to decide. The level we were closing in on for a settlement of
all claims, the past ones and those under arbitration – in other words, the $20m - was not too far from what we considered our rights overall but involved some concession in the interest of agreement.

We do expect the arbitrator to act in a manner consistent with the contract and with the earlier court judgment, and we and the other party have seen drafts of the Procès-Verbal (that is, the Minutes) and the Acte Transactionnel (Contractual Agreement) that will then be signed by the parties. However, until everything is signed there is no arbitral result and a draft may change up to the last
minute.

A. The second question is the timeframe within which we expect any judgment and how long it will then take to get payment.

I will start by a recapitulation of the current position.
In relation to the $5m already paid out, we have a court award for 50% of that against our former partner, which is not a financially strong company at present, so that we have not collected. The importance of this court judgment will become apparent to you over time: suffice to say for now that it establishes beyond question that we had rights in DRC law and we were deprived of them.

In relation to the $15m yet to be paid, the destination of which was the matter under arbitration, those funds are and have been sitting in the account of the buyer, a parastatal body of considerable wealth. Since they sold the assets on we believe the same day and for we believe over twenty times the price to be paid our group, there has never been any question that this money is due, and their
lawyer appeared at the arbitration to make clear that they stand ready to pay to whoever the arbitration decides is owed. We believe Red Rock’s direct entitlement is to $7.5m of that.

Whatever is not paid to us will be paid to our former partner and others, and who it goes to will not be our concern except in so far as it may affect our ability to enforce our $2.5m court award.
We had an award of $2m damages and costs against our former partner, currently under appeal, and it is too early to assess whether that would be a claim with eventual value.

We believe that registering the arbitration judgment and delivering a copy to the buyer of the assets will be a process quickly accomplished once the judgment is signed and issued, and that the buyer will pay without any undue delay upon receipt of instructions.

The key to timing therefore is when the arbitration judgment is issued. If people begin to wonder whether it ever will be, that is understandable, for there have been delays. Since we expected the result out in early July, these delays have now become considerable. The reasons for delay are easy for me to understand but too complicated for me to explain, so I apologise for that. I do not think
they reduce the certainty that a judgment will issue. We are nearer all the time, like a golf ball that slows agonisingly as it approaches the hole, which it sometimes half circles before coming to rest. I
went out recently to sign, and came back nearly two weeks later leaving a power of attorney behind, and the documents still not signed, though that may change at any moment. With Governments and Courts things can take longer than they should, whether in London or Kinshasa. The delays we have seen have been a result of a swirl of personalities on the side of our former partner, now resolved;
as a former student of 18th century English history, I received at second hand a Namierite understanding of the period, so this did not seem unfamiliar territory to me.

The result would I am sure have been out had it not been for Rwanda’s proxy, the M23 guerrilla group, seizing a town in Kivu just as I was on my way to the key meeting that was going to lead to
signature. The Cabinet went into session and expelled the Rwandan Ambassador that day, as I headed to the airport, and the crisis continues. The relatively small number of people that makes the wheels of administration turn have been disproportionately occupied with this issue since then: I will
forward you a report that gives a glimpse of this

(

At any moment there
can be a break in the clouds, a gap in the schedule, and we have a result. The frustration for us is enormous, as we have to deal with doubts and questions, and sometimes even question ourselves. But the result, bar some cataclysm, is not far off. As our hard-working and faithful friends in Kinshasa and Lubumbashi say to us: “Patience”.

Q. With assets covering a full suite of commodities, do you feel investing in RRR gives investors a hedge across most sectors of the space, Gold (Precious), Copper (Green Energy) and Cobalt and Lithium (Battery Tech/EV)?

A. I would add to that the balance I think we have between high return, high risk, low regulation jurisdictions and those with a more conservative risk profile and more regulation. There is not a conscious desire to cover all bases, or cover these bases, but simply a desire to identify and work on projects at different stages that can make a mine. There is a desire always to have a
Plan B, and if possible always to have liquid investments as a back up (though we are probably 7 months from being where we like to be in that respect). No Plan A, however good, is sure, and as a small company we do not want to become a one project company unless with a high grade project on the final runway to production.
We never hold projects in order to please the market, or for share performance; only for long -term viability - or potential viability - as a mine.
We would agree however that our current project mix quite nicely mirrors some of the market’s conceptions of what sectors are attractive.

Q. Elephant Oil – with 397,873 shares held in Elephant Oil Corporation, the recent Clear Capital
Markets report on RRR gave this an indicative value of a seven figure liquid asset in 2023. Have you been informed of the listing date and at the proposed valuation could this become a cornerstone investment for the business?

A. The current Elephant OIL Form S1-A filed with the SEC gives a public offering price of $4.65 per unit, consisting of one share and one warrant.

I have little knowledge beyond what is publicly posted with the SEC, but as an investor we look at recent developments as a sign that listing may be very close. I recommend interested shareholders to keep an eye on the SEC filings.
We invested in Elephant Oil years ago and we did so, though criticized at the time, in part because we had information from someone we rated highly who had looked at the assets for another oil company and thought them good. We still think them good, and though my days as an oil analyst, my first real job, are well past, it seems to us that if the management plays its cards well, and perhaps some new cards too, post-listing, this could be a company that develops well.
For this to become a cornerstone of RRR, it would have to perform very well indeed, and it is more likely that it will be held as a promising investment and reserve liquidity.

Q. New Ballarat Gold Corp – do you feel that the market attributes any value within the RRR market cap to the soon to be listed vehicle? Or is there a disconnect, particularly when considered against the recent strengthening of share price in AIM-listed ECR Minerals?

A. I am not sure that the market is as rational as you suppose. RRR has performed in line with a large number of shares that might be comparators, and on 7 November we actually carried out an analysis for interest, the results of which are here:
Company 1 month

%
3 months 6 months 12 months 24 months
RRR [phone]
ALBA [phone]
ARKLE -14 -36 -37 -41 -49
CGNR -20 -36 -53 -25 -54
ECR [phone]
GRL -5 +2 -38 -61 -27
GGP -11 -38 -41 -54 -64
JNO (Au) -4 -29 -9 -23 -43
JMS (Au) -6 -9 -14 -14 -27
KAV [phone]
POW -7 +52 -8 -20 -24
CRCL +13 +12 -70 +14 -62
Average [phone]
RRR - Avge -2 -16 +17 +10 -4

There is no cause for pride or joy here. We badly need to break away from the herd,
and something needs to initiate that. In the days when I looked at the Japanese stock market, I came across something called negorokan, or ‘feeling about stock prices’. That is to say, for example, that the price of Nippon Steel was always about 150 Yen, or whatever it might be, or the price of Fujitsu Fanuc always traded between x Yen and y Yen. There seems to be a negorokan about the correct RRR price range at the moment, and we need to break out of that trading range if we want people to start valuing us on a sum of the parts or some other rational basis, in other words as an individual stock and not part of the herd.

Reason suggests that an award by the arbitrator might do it, and so might some
other things. Maybe an arbitral award, and subsequent payment, is the sine qua non
for a whole lot of other things to start to have influence.
We have been looking at a possible pre-listing placement for NBGC, and thinking
how that might be priced in this market has shown us how difficult the stock will be to price. So I understand that the market finds it difficult to value. With news and perhaps a better gold price that may change. NBGC once listed would follow its own destiny but has every chance of being a very interesting investment, because it has some excellent ground including high grade old mines accessible from surface.
I do not normally comment on other stocks, but since you have asked about ECR,
and it is so relevant to a couple of points I want to make, I shall.

ECR has come up from 0.57 at the end of September to 1.08 today, a rise of 89%. In
March it was 1.65, for context, and in December 2020 it was 4. It has an asset to the north of some NBGC licences. On 19 October it announced “Re-assay of Creswick Diamond Drill Core Reveals High Grade Results Including 0.7m @47.75 g/t Au” and the price started to shoot up. Market value is some £11.6m. A 16 hole, 3433m, HQ drill programme had been carried out in 2021. HQ core diameter is 63.5mm.
The headline assay result was from a duplicate half core at 147m depth. The original half core assayed at 0.1 g/t Au. So what can one say? I only know what I would have wanted to say. I would have said “We assayed last year a whole group of half-core samples from our drilling and got results including 0.95m at 23.58 g/t at 90depth.
We have now re-tested these samples, using the other half-core, and although more
than half the results were down and not up (for example the other half of the 23.58
g/t core was 1.45 g/t, so that the whole-core result was 12.51 g/t), we got a result of 0.7m at 47.75 g/t Au at 147m down where previously we got 0.1 g/t (whole core result therefore 23.92 g/t Au). This shows we are in extremely nuggety gold, from which two conclusions may be drawn: 1) whether we get a result in a particular place will be hit and miss, and anything over 0.1 g/t is to be regarded as mineralised and therefore prospective, and 2) an uncommonly large quantity of drilling will be necessary to delineate an orebody, which cannot economically at over 100m depths be done from surface, but will require a decline and underground drilling. Therefore you should be patient with our results, and not get over-excited now, or depressed if the next drill programme has no ‘hits’, but remember we are in a long and systematic campaign to delineate a deposit with 6-8 g/t Au average mineralisation”.

The problem in Australia is that there are some hundreds of shooting stars:
companies that list, have some good drilling, go up, and then after some more holes
that do not provide instant riches decline to below their listing values, and become if
not black holes, at least red dwarfs. ECR is listed in London, but has not been totally
immune, though has held onto a good capitalisation with many loyal shareholders.
The loyal shareholders is half of the key to prosperity, and the other perhaps is
managing expectations. We want our shareholders to understand what we are
about, the time frame and the objective, and to educate them as we announce
results. We will want to do that with NBGC, because we will want to build a solid
company with a good capitalisation.
ECR did 3433m. We did 860m earlier this year. We got 0.4m at 12.3 g/t in one hole
at 75.7m depth, and 0.5m at 1/44 g/t at 50.6m depth. In another location we got a
hole where over 30% of samples were over 0.1 g/t, which as I say means
mineralised, including 0.4m at 5.13 g/t at 59m and 2.5m at 2.5 g/t at 67m and 1.8m
at 1.43 g/t at 69.6m. Is that as good as their results. Who knows what we would get if we re-sampled the other half cores?

Now are they over-promoting or we under-promoting? Perhaps both. But I hope I
have said enough to show that our starting point is comparable, and not at great
depth either. And of course we have very high hopes for the current drilling, which is at the site of an old mine.

Q. New Ballarat Gold Corp holds a substantial footprint in Victoria; which of
the licences would you pinpoint as the flagship asset?
A. It is too early to say. The asset at Berringa that we are now beginning to drill may be. Ajax where we plan to drill next, and another old mine, may be. But quite
possibly as we follow some of the mineralisation we have been looking at to greater
depth, something will leap out at us. We have a lot of good prospects and a large
footprint with production history everywhere.

Q. New Ballarat Gold Corp – do you have in-country support to lead on the
ground activities?
A. We feel it to be one of our strengths that our managers and geologists live in the area and used to work at the Ballarat mine, so are intimately acquainted with the geology both from an exploration and from a production point of view. They are as good a team as we could hope for. NBGC is an Australian-managed and operated
company, but more than that, it is managed and operated by residents of Victoria
committed to the area and excited by the potential.

The HQ of the operating subsidiary that owns the licences is in Ballarat, and through Dave Holden and our geologists and the community relations team we have built up relations with the communities in which we work or intend to work. Some people will always be hostile, but we can blunt some of this by being a friendly and professional presence in the community.

[noirua] 17/12/2022 15:18

The basics of the current cash raising both positive and negative:
The Company will initially raise US$500,000 by way of a subscription by Diversified Metals Holdings, LLC for new shares to a value of US$548,000 [0.70p a share]. To be admitted to trading on AIM on 19 December 2022.
The number of shares issued should be 64,274,000 approximately depending on exchange rates.

The Company will issue to Diversified Metals the 17,000,000 Shares (the "Fee Shares") (being the equivalent of GBP66,300 at the latest closing price on AIM 0.39p) in satisfaction of a fee. To be admitted to trading on AIM on 19 December 2022.

Red Rock may receive a further $1,000,000 by issuing shares most probably at 0.3p minus 8% or 0.2p ( possibly 0.2p minus 8% if Red Rock agrees). Diversified Metals will elect whether to provide the loan in the first place and how much. This will apply from about 14 January 2023 when the 0.7p agreement ends.

If Red Rock receives a large sum and the shares shoot to over 0.7p then Diversified Metals can issue the $1,000,000 loan at 0.7p minus 8% a share until 14 January.

The Price will reset after the 14th of January 2023 to the average of the five daily volume-weighted average prices selected by the subscriber during a twenty-day period immediately prior to the date of the subscriber's notice to issue Subscription Shares, less an 8% discount - rounded down to the nearest tenth of a pence.
-----

The good point on all this is Red Rock has no interest to pay or loan to repay. The bad side is Diversified Metals would hold more than a quarter of RRR. If the shares reach 1p and they sell their profit would be £3,280,000 or $4,000,000. Certainly, something to think about whilst Diversified Metals is no fool.

[kemche] 16/12/2022 16:49

And don't forget we are still awaiting the Greenland money from Cyprus.

[noirua] 16/12/2022 16:27

Well, RRR has its liabilities the wrong way around with short term ones much higher than long term. On the cash front, they have a reasonable gamble that DRC and ELEP will come right eventually. A mistake that many make was to expect an Arbitration to conclude quickly - if they did how could Arbitrators make large sums? So 9 months looks like a reasonable bet though the average time if it was an International Arbitration, is about 3 years and 4 months.

[kemche] 16/12/2022 15:46

Where is therein wherein in species akin?

64th Februember 1326.

[kemche] 16/12/2022 15:43

Whatever happened to the "no stock available" crew, or even "in species"?

[kemche] 16/12/2022 15:42

"Assets" - tee hee!

Good one!

Missed out the biggest liability I see.

[noirua] 16/12/2022 15:26

As given by SimplyWallStreet
RRR
Short Term Assets = £690.000
Long Term Assets = £17,620,000

Short Term Liabilities = £2,220,000
Long Term Liabilities = £316,000

[kemche] 16/12/2022 14:07

There will ALWAYS be some diehard cheerleaders too.

Apropos nothing of course.

[noirua] 16/12/2022 13:58

15 December 2022 𝗖𝗘𝗢 𝗜𝗻𝘁𝗲0319;𝘃ҳ10;𝗲𝘄; - posted 16 December 2022
@RRR_RedRock
CEO Andrew Bell spoke to
@StockBoxMedia
on the beginning of drilling at historic Berringa Gold Mine, Australia.
@nbgoldcorp
looking for drill results that could make a 6-8g Gold mine.

[noirua] 16/12/2022 13:48

These are the fairly up-to-date list of shareholdings. I'm not included so it shows it does not list all individuals.

Ownership - Name - Shares - Current Value - Change % - Portfolio %
15.75%
Charles Topham 204,147,627 £663.5k 0% no data
4.82%
Barclays Bank PLC, Wealth and Investment Management Division 62,491,225 £203.1k 0% no data
4.38%
Andrew McMillan Bell 56,751,015 £184.4k 9.49% no data
4.35%
Red Rock Resources Plc., Employee Stock Ownership Plan 56,383,578 £183.2k 0% 100%
3.8%
HBOS Investment Fund Managers Limited 49,282,097 £160.2k 0% no data
3.25%
IG Group Holdings Plc, Asset Management Arm 42,082,632 £136.8k 0% 0.02%
3.12%
UBS Asset Management 40,416,758 £131.4k 0% no data
2.96%
John Bolitho 38,357,187 £124.7k 0% no data
2.81%
SEI Investments Company 36,449,435 £118.5k 0% no data
2.8%
Jarvis Securities plc, Asset Management Arm 36,334,837 £118.1k 0% 0.01%
2.78%
A J Bell Holdings Limited, Asset Management Arm 36,059,913 £117.2k 0% no data
2.01%
Lloyds Banking Group plc 26,018,762 £84.6k 0% no data
1.59%
Scott Kaintz 20,586,225 £66.9k 0% no data
1.4%
Sam Quinn 18,186,191 £59.1k 0% no data
1.17%
HSBC Global Asset Management (UK) Limited 15,201,405 £49.4k 0% no data
0.93%
Charles Stanley & Co. Ltd, Asset Management Arm 12,027,810 £39.1k 0% no data
0.92%
London Wealth Management Limited 11,969,066 £38.9k 0% no data
0.69%
Close Asset Management Limited 8,962,824 £29.1k 0% no data
0.46%
Peel Hunt LLP., Asset Management Arm 5,956,547 £19.4k 0% 0.01%
0.32%
Cantor Fitzgerald Asset Management 4,130,000 £13.4k 0% no data
0.23%
Fidelity International Ltd 2,992,004 £9.7k 0% no data
0.23%
Puma Investment Management Limited 2,980,232 £9.7k 0% 0.01%
0.21%
Canaccord Genuity Wealth (International) Limited 2,751,080 £8.9k 0% no data
0.18%
Equiniti Group Limited, Asset Management Arm 2,293,628 £7.5k 0% no data
0.15%
UniCredit S.p.A., Private and Commercial Banking Arm 2,000,000 £6.5k 0% no data

[yasxii] 16/12/2022 12:32

You have to question the motives of the HNW group who hold sway here with their >20% stake and continually support Andrew Bell - with the right backers Bell & Co could easily be removed.

History suggests they will be diluted away like every other TR1 holder who dared invest in a company with AB at the helm - they plainly do not have copious sums of cash to lose either.

Readers may like to examine the major holders (names on RRR website) and refer to Companies House, their personal balance sheets seem ultra stretched to put it politely.

Many believe AB is so well versed in losing investors money he actually enjoys it.

It costs to be stupid the more stupid you are the more it costs.

[soulsauce] 16/12/2022 12:05

Bell has been a failure for as long as I can remember. Serial failure, serial dilution and serial shareholder value destruction.
It surprises me that he still allowed to run a company. Only on Aim.

[gozo] 16/12/2022 11:48

Glad I gave this one a swerve.Bell is serial failure in my eyesAnyone who thinks otherwise should look at RGM and the total destruction of shareholder value that took place

[noirua] 16/12/2022 11:36

Remain calm as Diversified Metals Holdings can only buy in the market at present prices, or increase the loan at 0.7p for one month after the loan was granted. The possible problem after that is if the middle price falls below 0.3p when they can increase the loan as they please at 0.2p.
My personal view is the loan structure is very good provided the share price remains at 0.3p or higher.
The DRC sum sought is not less than $7.5m and the Elephant Oil eventual IPO will be worth £1.5 million and can be sold 180 days after it comes to market on the NASDAQ.
People have differing points of view or even hidden humour. I cant see problems of any great concern myself - good luck.

[neo26] 16/12/2022 11:00

Lifestyle ceo..

[kemche] 16/12/2022 10:13

As long as he has Helpfull's clients danglies in a vice like grip he can continue with the charade. No one can stop him. There are always more muppets to fall for the spiel.

GLA LTHers!

Is that 36 fundraises now? Only 17 more to go.

[kemche] 16/12/2022 10:06

He is one of the finest operators in the market. Been doing it successfully for nigh on 20 odd years. Good man.

Classic treeshake to let in all the shrewd buyers in on the cheap. Lucky LNW individuals!