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Bullboard - Stock Discussion Forum Resource Capital Gold Corp GDPEF

RF Capital Group Inc is a financial services firm. The company's operating segment includes Wealth Management and Corporate. It generates maximum revenue from the Wealth Management segment. The operations segment provides carrying broker services to third parties, including trade execution, clearing, and settlement services.

GREY:GDPEF - Post Discussion

Resource Capital Gold Corp > Trades between 2017-June and 2018-June
View:
Post by LeftBook on Feb 05, 2019 9:08pm

Trades between 2017-June and 2018-June

 
—--
Trades between 2017-June and 2018-June
other trades are list below for comparison.
 
 
from the quarterly statements
 
month      equity     shares     book    mrkt    mult
2017-Jun  $8.5M    123.4M    6.9c  17.5c  2.5x
2018-Jun  $13.1M   174.8M    7.5c   4.5c   0.6x
 
During the fiscal year there were private placements, Corcoran was sold, shares were issued for debt, credit facility was put in place.
 
Pros: the book value went up
Cons: dilution of payout ( but gold doesn't mine itself )
   89.2/123.5 = 72c
   89.2/174.8 = 51c
 
As a reference let’s say book was 7.5c
 
Trades (** see below)
24M shares traded    (13.7% of 174.8M shares)
$2.3M value of trades 

between June 2017 and June 2018
18.0c/sh 2.40x book  High
 9.4c/sh 1.25x book  Avg 
 4.0c/sh 0.53x book  Low
 
Note:
The credit facility of Dec 2017 includes 12.5c warrants
30% of trades were above 12.5c before Oct 2017.
It should pay out eventually.
 
---
Trades 2018-June-30 to 2019-Jan-28
 
After the completion of bulk sampling program.
book value 7.5c/sh
 
32M shares traded    (18.3% of 174.8M shares)
$0.8M value of trades 
 
5.0c/sh 0.66x book  High
2.5c/sh 0.25x book  Avg
1.0c/sh 0.53x book  Low
 
Note: 
PEA pg 207 
models a loss during an illustrative bulk sampling program.
Post-tax NPV,5% $89.2M
---
Bigger picture between 2016-June to 2019-Jan-28
reboot as RCG
 
79M shares traded
$7.6M value of trades 
 
33.0c/sh = 4.4x  book**  High
 9.6c/sh = 1.28x book  Avg
 1.0c/sh = 0.13x book  Low

** relative to June 2018 7.5c book to give context.
 
Notes:
digging deeper
Highest price was paid for the lowest book value.
Lowest price was paid for the highest book value.
 
RCG/Reliance had a $7.8M write-off the Indonesian Properties in the quarter ending June 2016. Book value was negative.
 
Book value has grown from sub-zero to 7.3c/sh.
Book value is not a perfect measure.
Cost and potential rewards are high.
Cash is need to fund operations.
Dilution is part of the process.
Gold doesn't mine itself 
 
 
---
** Yahoo Historical daily data
computed dollars traded per day based on daily market close and daily volume
---
 
my math. my perspective. I might be wrong.
 
Comment by LeftBook on Feb 05, 2019 10:25pm
2016-Jun-30 to 2019-Jan-28   44M shares traded below 7.5c 25% of 175M shares  
Comment by damianchosenone on Feb 05, 2019 11:08pm
A large amount of those shares that were not purchased in the last 6 months that were traded below 7.5 cents were in private placement by Gary and the Australians. Most Australian shares are sold already. Gary still has his shares but made a fortune on 2 gypsy swaps so all his shares he owns now are free. Spoke to a creditor today and they mentioned that they have not bee contacted by rcg and will ...more  
Comment by LeftBook on Feb 06, 2019 10:33am
    Some thoughts ...   --- Shares have traded below a 7.5c book value since March 2018.   44M shares traded below 7.5c 25% of 175M shares value of trades $1.5M   ---   1.5M/44M = 3.4c  average since March 2018   3.4c/7.5c = 0.45x book     That said, it is imaginable that $1.5M of trades could bring the market ...more  
Comment by damianchosenone on Feb 06, 2019 12:06pm
All these numbers make sense, however none of it is reality because the company is going bankrupt. I use dot believe that there was a chance of something happening becaus every time something negative happened, there was an explanation. Here are examples: January 18, 2018: News release that George resigns:I spoke to George regularly and cale dhim immediately. He was voted out by the directors 3 ...more  
Comment by therager on Feb 06, 2019 1:17pm
Yes Damian, you are finally waking up to reality.  This company is gone and will be cosolidated by one of the other regional players, most likely ANX.  I doubt AGB has any interest.  
Comment by damianchosenone on Feb 06, 2019 1:35pm
Does that mean we will lose our shares or get them in the new company?
Comment by therager on Feb 06, 2019 2:01pm
How would any current equity holders get shares in the restructured Newco?  It will be a total wipeout of the equity.  Sprott Lending will take control of company.
Comment by lmcbain on Feb 06, 2019 3:19pm
Hey therager - if there is a restructured "Newco" there will likely still be equity in it for existing shareholders. The current group would lose their shares if the properties were sold without connectivty to the company and an existed listed producing company would be the likely purchaser there - then shareholders would walk away with nothing. If the company is restructured, there ...more  
Comment by therager on Feb 06, 2019 5:30pm
Thanks Leigh...yes, that is the scenario I envision whereby Sprott Lending sells off the individual assets to another listed entity
Comment by lmcbain on Feb 06, 2019 3:16pm
If a deal can be made that leverages the tax loss value, then the company would be sold and there would be some retained value for the current shareholders. If the properties are simply liquidated to pay debt, then there would likely be no remaining value to the company / shareholders and an actual bankruptcy / delisting, etc may occur. I don't believe the end result to be a given yet. There ...more  
Comment by lmcbain on Feb 06, 2019 2:55pm
Sprott did not just transfer the shares to another account, the documentation filed explicitly indicated that the shares were sold (privately) to 2 different individuals. It was not just an account swap. Salut, Leigh McBain
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