Couldn’t sit on the sidelines any longer and ignore this.
I believe Petercalk is working for Taurus to scare holders into selling. Going back to last year he was interested in buying shares off market and now constantly down ramping.
Taurus will use every scare tactic to get holders to sell.
I strongly suggest everyone keep writing to ASIC, it takes 5 minuets to complete the form. Link
http://asic.gov.au/about-asic/contact-us/how-to-complain/report-misconduct-to-asic/
Approach the media, make some noise.
Make time and attend the AGM being held at Maddocks Lawyers, Level 27, Angel Place, 123 Pitt Street, Sydney, NSW 2000 at 11.00 am(AEST) on 31 May 2018.
Taurus offering $1 seriously do they think we are stupid.
From my own research and IMHO this is worth $2 to $3
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Petercalk, Debts
ARE borrowings that have to be repaid. That’s literally the definition of debt.
View attachment 1108069
Firstly, even the bidder acknowledges that it is not a debt. It’s a contingent liability. There is a huge difference. Don’t pretend they are the same. If you actually think they are the same I suggest you go and do a bit of reading on the subject. If it was a debt, and not a contingent liability, RRP’s auditors might have mentioned it in 2016 and 2017 instead of providing unqualified approval of the full year accounts for both years, where it is clearly shown to be a contingent liability and not a debt. The guarantee would only be drawn if the mine closed tomorrow. Which it won’t. Otherwise, Foxleigh will be rehabilitated as part of the ordinary course of business and the Performance Guarantee will reduce to zero over time.
Secondly, RRP is currently paying a rapacious 9% per annum interest rate on the facility plus a 1% revenue royalty. If management and directors, collectively, had half a brain they would be looking for an alternative provider for this facility at a lower rate. As a worst case, even cash backing it would make sense and increase EPS, as the company doesn’t seem to earn much in the way of interest on its cash and they are paying Taurus 9% for this. That maths isn’t challenging.
Thirdly, it’s a Performance Guarantee provided to the Queensland state government to meet their legislative requirements. The Queensland government is looking at changing its rehabilitation legislation, and this may well eliminate the requirement for bonding making the whole thing a moot point. The need for the Performance Guarantee would cease, but RRP would not receive A$77m because it is not a debt. Western Australia used to have a requirement for a cash backed rehabilitation bonds. They eliminated that and now have simple annual rehabilitation payments that get pooled to cover the rehabilitation costs of any mines that do close prematurely. It’s not like Queensland is at the bleeding edge with its proposed legislation. Elimination of Performance Guarantee’s has been done elsewhere and has been shown to work. It’s a proven model.
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I wont be selling my shares to Taurus, this criminal offering $1.
Just a thought, maybe start a Twitter group for us.
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