Richland Resources Share Discussion Threads

[brando69] 14/4/2014 18:45

buywell

never really see the point of these 'i told you so' exercises...

but if you get off on it...

[buywell2] 14/4/2014 16:48

buywell2 9 Oct'12 - 07:21 - 311 of 412 edit



If it looks like a dog...... barks like a dog ...... sniff it's @rse like a dog


It's a dog





Ch1ck 9 Aug'12 - 17:26 - 278 of 286

Back in looking for a turnaround quite soon





buywell2 9 Aug'12 - 18:04 - 279 of 286 edit


I don't think so





SP from 9th Aug

[nick rubens] 14/4/2014 16:31

That deal a while back with STAMICO just felt very dodgy to me. Glad I went with gut feeling.

[bam bam rubble] 14/4/2014 16:27

Cash at end Q1 reported as $3m despite raising $5m at or around the start of the year.
Either cash burn is incredibly high or cash inflow via equity issue isn't as reported.

Recent sale of a marketing office raised $0.6m
The open offer (with 44% takeup) raised $2.95m
The attached placing to raise a further $1.64m is more questionable as broker RFC was reported in the circular as entitled to $22k fees which would only be 1.3% commission

Looking into the actual placees;
$140,000 went to undisclosed parties
$500,000 to Tanzanite reseller Colorjewels
$500,000 to Tanzanite reseller Vaibhav/STS
$500,000 to Tanzanite reseller Ming Fu (HK)

I expect those 3 received shares in lieu of payables, either tanzanite contracted but not provided or a fee for the termination of sale agreements. That makes sense of the small broker's fee and the low cash levels. The placing reduced liabilities by $1.5m and RFC found buyers for $140k of shares so the company could call it a cash placing.

[2cagey] 14/4/2014 10:26

Armagan,

Read my post above on 02nd April 2014. The Governments in these countries are all the same, however the foreign companies play into their hands by thinking that it is clever to do deals directly with the Governments themselves.

Just as all of these countries have armies to keep the politicians of the day in power,and line their pockets these Governments look at foreign investors as milking cows, that once locked in they can change the goal posts day by day.

Once a foreign company has an African Government as a partner it is only a matter of time before it becomes untenable. Tanzanite One should have seen the writing on the wall, when the rules were changed to restrict exports and force them into cutting all above 1gm (5carat)in Tanzania.

This move meant that T/O by doing that became a competitor of the people that were buying their product so T/O went further and has tried to retail the product. Selling stones one by one does not bring in the funds in the lumps required to sustain a mining operation.

Zambia the same by forcing Gemfields to sell only in Lusaka and this another hotbed of illegal local mining. I wonder if it registers with the Directors of gemfields that the Zambian Government (also a 25% non contributing partner) would now be tracking the whole exercise and one day will likely suggest that 25% is no longer enough.

Foreign companies operating in African countries have to do so legally, both in respect of the mining laws and also environmental laws, whilst the local illegal miners ignore not just both of those laws and regulations, but also taxation laws.

If you think that I am talking rot I can assure you that I am not as I have lived amongst it for 15 years and seen for myself that whilst the foreign investors struggle to make profits, pay taxes and comply with the laws of the particular countries, indigenous millionaires ( including those in Government) pop up day by day in ever increasing numbers driving new 4x4s and living the high life.

Poor Africans, they say. I say poor foreign investors.

[armagan] 14/4/2014 09:27

this is indeed a disastrous development. I fail to understand the foolishness of the government. The company is one of the largest tax payers in the country, but the government has brought the company to the brink of collapse, utter stupidity.

[brando69] 14/4/2014 09:05

and the cheek of it is they recently raised money to... mine tanzanite...!

[nick rubens] 14/4/2014 08:40

So they are not mining Tanzanite anymore, But looters are mining it,
while they are looking to start mining elsewhere, something else.

shocking.

[buywell2] 14/4/2014 08:27

Latest RNS means in effect that shareholder mine/s are being given over to ethnic miners due to lack of 3rd party support/intervention in any meaningful way

ie shareholders money has been used to find and dig the mines/commodities .... but not for shareholders

I expect to see more of the same in the Falklands and other countries as financial pressures ratchet up

[buywell2] 14/4/2014 08:21

buywell2 21 Jun'13 - 08:37 - 377 of 404 edit

I have been saying this is a dog for years from the Tanzanite one days even

Use of charts is a MUST

They work 70% of the time and give the investor the edge needed to beat market mugs

Tanzanite itself is not much of a stone as values asked on the TV jewellery sales progs show plus a search on ebay


Operational Update

Richland Resources Ltd, the gemstones producer and developer, today announces that TanzaniteOne Mining Limited ("TML"), the wholly owned subsidiary of Richland, has now received a new Mining License from the Tanzania Ministry of Energy and Minerals for its tanzanite mining operations.

As anticipated in our announcement on 7 May 2013, the new Mining licence is held jointly on a 50:50 basis between TML and the State Mining Corporation of Tanzania ("STAMICO"), the mining arm of the Tanzanian Government. Following granting of the new mining license, the Government of Tanzania has re-confirmed it will now be working with Richland to ensure security for workers at existing operations and reclaim mining areas lost to artisanal workers in the area.

As previously reported, uncontrolled illegal mining activities have been severely affecting the Company's operational and financial performance for over a year. These activities have had a negative impact on the Company's 2012 financial results, due to be released before the end of June, which will reflect a significant loss for the year to 31 December 2013. The impact of these illegal activities over such a sustained period has also had an adverse impact on the Company's current financial position and the directors are currently considering various financing options to address this and the working capital requirements.

Working with STAMICO and the Government of Tanzania, Richland will be focusing on expanding high value production at its tanzanite mining operation and unlocking profits previously unavailable due to the ongoing security situation in the area. The Company is optimistic that, having now received a new mining license, that the Government of Tanzanian will address the illegal mining activities within the license area and also clamp down on the smuggling of tanzanite which is suppressing tanzanite prices.

[brando69] 14/4/2014 07:58

desperate attempt to pressurise the tnz govt

[giant steps] 14/4/2014 07:54

Bleak situation for Richland as Tanzania fail to provide safe operating environment

(no advice intended)


RNS 14th April 2014

[2cagey] 02/4/2014 18:51

Armagan you are dreaming!

The Directors and some shareholders have just kicked in millions to keep this company afloat. Without that it was/is dead in the water.

The Government is a 50% non contributing lead weight around the company's neck. The Government held the company to ransom over renewal of the tenement and grabbed 50% of the action without contributing one cent.

We are yet to see the stability that you suggest will come from so called government protection. The Mafia (African Governments) protect their own and not law abiding foreign companies. Illegal mining is rife in all such countries and locals are never held to account.

So the Directors after tipping in millions, now have to run a business where a non contributing (in all senses of the word) partner gets 50% of the profits and allocates 40% of the same profits to pay for the 50% equity that it effectively stole.

Only in Africa could this madness be considered good business and we are yet to see where this Company finishes. I bet that there are some that wish that the Directors took the Gemfields multi million dollar takeover offer back in 2008.

[armagan] 02/4/2014 15:55

Nick is partly right, they took over half the company, but what they bring is stability and government protection in this part of the world. The cost was great, but the protection against a population of desperate miners is very valuable.

the share price has taken a real beating. However I see this as a way to get access to the high growth jewelry sector. Diamonds have always been artificially priced high as the supply was controlled by De Beers, now that other supplies have come on line the price will no longer be so easy to control. RLD on the other hand has a virtual monopoly on Tanzanite, the only competition being local miners, who then sell their stones to RLD for cutting and polishing. Add to this the recent deal RLD struck with the Chinese retailer (can't recall the name) but it has 600 stores in China Mainland. This is a large upside from here, but its likely to only go when China and the world economy gathers pace.

[nick rubens] 18/3/2014 15:11

Basically the Gov took half the company and half it's future profits (if any)and haven't paid a cent.

[engelo] 18/3/2014 11:53

Taking a look after chance encounter via a geology site. Would appreciate some help. Tanzanite trade seems a bit like diamonds if the retail prices are anything to go by.

Basics seem to me that 50% of future Tanzanite profits payable to STAMINCO, who will use them to return $4m owed to TML.

Sounds exploitative but presumably TML would be dead if Govt had not cleared mine of 'illegals'.

sp saying total doom, but is this true?

Royalty claims referred to by Giant Steps: anyone got a source?

Graphite in for free?

Tia

[nick rubens] 18/3/2014 08:38

This thread looks well and truly abandoned. No future then, except lining the 'government officials' pockets?

[weegeordie] 19/12/2013 07:21

that would explain the sells from the other day - people in the know - level playing field?
WG

[giant steps] 19/12/2013 07:08

The disappointment for RLD continues. Not only is 50% gone of the tanzanite operation, but now we have to settle royalty claims from 2004 to 2010.

The sting in the tail today (19/12/13) is funding proposal for £4m,
118,148,951 @ 3.4p


RNS 19th December 2013

[nick rubens] 17/12/2013 15:15

Reason to hold back at moment IMO, from recent full year results.

"Director considering various financing options to address current financial position and working capital requirements
·Further details to be announced in due course"



No funding from joint venture partner then. Since when was a form of extortion called 'joint venture'? lol

[giant steps] 13/12/2013 12:57

Makes Tanzania appear an uninvestable proposition.
For RLD where will it stop as regime can always carry on grabbing more %'s

A very poor outcome imo (no advice intended)

[2cagey] 13/12/2013 12:51

Nationalization by blackmail it is. Give us 50% or you do not get the lease. How can that be painted up as progress as does the latest announcement? Some agreement!

[thiopia] 13/12/2013 09:21

Some showing interest at least. They wouldn't be mugging them for something not valuable.

[giant steps] 12/12/2013 13:57

Looks like a 50% robbing

RNS 12th December 2013

[m111kax] 12/12/2013 10:42

thiopia



must have been this results RNS since then they had issues with illegal mining etc but now with the Govt's 50% stake and Security forces Mobilised to secure the land and illegal mining ..looks like we could see the same again.