Review of the RCG time line from 2015 to 2019.
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June 2015 annual report
7.6M assets in Indonesian properties
- 4.0M liabilities
= $3.6M shareholder equity
3.6M/24.4M shares = 14.7c/sh
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Changes during June 2015 to June 2016 business year.
$6.8M Write-off of Indonesian properties.
$1M 20M share 5c per share private placement.
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June 2016 Annual report
0.8M assets
-3.4M liabilities
= (2.6M) shareholder equity
(2.6M)/45M shares = (5.7c)/sh
45M shares, including 10M shares attributable to Gary Lewis, were underwater at 5.7c/sh.
The shares controlled significant tax credits.
The annual report notes a working capital deficiency.
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Changes during June 2016 to June 2017 business year.
$12.6M of capital was raised at 16.1c/sh through a mix of the private placements, debt for shares. Share count increased to 78.1M shares
The capital was used to acquire and improve the development and exploration properties with a balance owing on promissory notes.
The annual report notes a working capital deficiency.
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June 2017
25.0M assets including Dufferin, mill, exploration properties
- 16.5M liabilities including promissory notes
= 8.5M
8.5M/123M shares = 6.9c/sh
The annual report notes a working capital deficiency.
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Changes during June 2017 to June 2018 business year.
$5.5M of capital was raised at 10.7c/sh through a mix of the private placements, debt for shares. Share count increased to 78.1M shares
A bulk sampling program was executed at the Dufferin Development Property. The recovery rates were more or less in-line with expectations. The extent of the bulk sampling operations were limited by insufficient working capital.
The Company completed a senior secured loan facility provided by Sprott Lending. In connection with the Credit Facility, the Company granted security over substantially all of its assets in favour of Sprott Lending. The promissory notes and other liabilities were settled with the credit facility.
===
June 2018
33.0M
- 19.9M
= 13.1M
13.1M/175M shares = 7.5c/sh
The annual report notes a working capital deficiency.
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Changes during June 2018 to June 2019 business year.
No capital was raised during the business year.
Lacking working capital the company lapsed into insolvency.
Annual report states ... failure to continue as a going concern would require the Company’s assets and liabilities be restated on a liquidation basis which would differ significantly from the going concern basis.
The year before the company granted security over substantially all of its assets in favour of Sprott Lending.
RCG sold its assets to Sprott Lending.
RCG was reduced to a shell with significant liabilities.
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June 2019
0.24M
- 10.1M
= 9.9M
(9.9M)/175M shares = (5.6c/sh)
===
Notes:
1)
RCG shares control significant tax credits even when the company operates as an empty shell.
tax credits
2014 $14.5
2015 $14.7
2016 $14.0
2017 $15.1
2018 $20.8
The value of the tax credits has not been market tested.
2)
All share counts reflect a 5:1 consolidation in Feb 2016.