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Jonjo, little exercise for you and probably a worthwhile one for all who don't understand off take agreements. Have a little research and find out the difference between an uncommitted and a committed off take agreement.
One is rather loose and a short term financing option without much backing or reliability and the other isn't - did none of you wonder why the word uncommitted was in the RNS?
the added danger is him buying more assets diluting everyone like the 10/6 purchase.
there is no focus on existing assets.
MNH has been a non event expansion, over $1m sunk in 600 tons extra
RHA still a basket case and likely to remain so. If it was profitable it'd be in production.
ZULA likely to be 2021
CIRCUM 2022-2025 by the time potash prices recover
MNH are currently producing which they can't do without the offtake. The increase in offtake facility is being reviewed as you say but I dont see why it wont be granted.
Jono you have absolutely nothing to confirm the off take deal is real - the wording from the RNS is ""The offtake partners have confirmed to Otjozondu that they are reviewing the existing uncommitted credit facility with the intention of increasing prepayment for manganese ore in two equal tranches each $300,000, in the ensuing months. This planned increase in offtake finance will ease funding requirements associated with increasing the mine production rate and help fund the lead time between production, shipment and final payment on outturn at the destination port."
They are reviewing nothing more and nothing less so it's not real, anything outside a RNS (some would say even within) from Prem has constantly proved to be worthless. No off take = urgent need for dilution
Offtake deal is real. Neil Herbert recent podcast mentions prem and his connection to offtake company Wogen. Finance facility from offtaker likely to increase to ramp up production further imo.
Cant argue with that. GR known for telling porkies in the past. As for taking it private, dont think this will happen. He will lose the only source of income from placings which pays his wages and he wont be able to liquidate shares in company.
S72 - indicated earlier a potential issue as financing hasn't yet been put in place for the expansion, we're still waiting to hear back from the off take provider from the 18th as to whether they're prepared to sub $600K. No off take and the rest is even more pie in the sky that at present. Problem with Prem is the longer these take the more likelihood we later find out they were just wishful thinking and forward looking statements a la Honey Badger or equipment arriving from Namibia. Two weeks on and the odds now have to be heading towards needing to fund themselves to a degree more than expected. Can foresee another percentage buy of MNH backed by a Riverfort or Darwin in the near future to fix the hole left. Leave you to do the maths as to number of shares to be issued to cover perhaps $500K required with the usual 25% discount (profit margin for funders) and how long it'll take for them to churn through on top of what is already waiting.
"GR says it will double production from 5600 tonnes to over 10,000 tonnes."
The problem is the first two words at the start of the sentence. Surely no-one puts any credibility in what he says after his historical performance? I do not believe he would get another placing away to PI's, there cannot be many that are not aware of his history of non-delivery. IMO PREM will fold and the assets will be taken private by, guess who, the very man who has led everyone up the garden path for years.
New offtake agreement will allow MNH to change loading container facility directly iat Walvis Bay. GR says it will double production from 5600 tonnes to over 10,000 tonnes. Even at today's manganese price it will be profitable.
Taken from recent RNS.
Local logistics, to some extent still affected by Covid-19 issues are limiting shipments to a load per week, each load circa 1,405 ton of Mn lump ore. To help overcome this, Otjozondu plans to relocate the container loading facility to Walvis Bay from the present location at Okahanja siding, the effect being that ore will thereafter be railed in bulk to Walvis Bay. This eliminates the need to rail empty containers to the load siding, takes out any potential demurrage charges associated with any rail delays or other breakdowns at the loading siding and will allow for continuous filling of containers at Walvis Bay and a much more rapid turnaround of bulk rail cars from the siding. This is a significant step in the eventual change to bulk shipment as opposed to containerised, with important cost and efficiency benefits. Further trading updates will follow as these are made available to Premier."
The manganese ore is delivered by train straight to Walvis Bay Port. No delays expected according to GR.
By the time prem use Walvis bay the virus problem will most likely have recessed in that area. You must be talking several months away from using Walvis . By the time prem use Walvis , production will be heading to 20,000 Tonnes a month . So some time away
Thanks Acker for that explanation
Erongo, which includes Walvis Bay, was placed under the strictest lockdown three weeks ago after reporting a spike in Covid-19 infections. Of the 63 recorded cases of the virus in Namibia, 42 are in the region.
This won't help current expansion plans at MNH.