Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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We knew the DTB would be in full flow before GAS in full flow. Not only bb abuse of key posters.
The initial testing prog was known in advance to be flawed. Undersized guns having to be used, dictated by an unnamed third party, and necessarily timed acc to the Guercif Agreement. Unknown to most investors, that didn't stop the sp marching up to 14p, at which point we see big trades coming through. £76k and £59k worth dumped into the spike.
Failure to successfully flow and the sp duly takes a hammering, holding in the 8s as pi sells get mopped up by more savvy buyers aware of what's going on. High level scam being played out here.
To a large extent it'll be outside the control of Paul and Lonny. So, they go ahead and do the minimum necessary over a shortened period of 10 days. All now set for the properly effective sandjetting tools to do the job. And MOU5 brought forward for good measure.
We knew the tricks were coming, so don't be fooled by the events of the last few days. ITK buyers will be stocking up.
Bold claims that Paul withheld information about the testing program being flawed and using undersized guns I assume you have reported the company to the relevant authorities. They did state yesterday that they expected the "undersized" guns to work so maybe you are wrong.
They also have had 2 plus years to do some testing to meet the Guercif Agreement, so the company only has themselves to blame for this and not some shadowy third party.
How is the theory that Paul wants this testing to be a Total fook up to stop any low bids lolol could not make it up
Read the post properly. The underpowered initial flow test was doomed to fail. They suspected as much. Hence they got it out of the way at minimal time and cost, so satisfying the Guercif Agreement. Sand Jet was always the preferred option.
"High level scam" what a load of crap
Rosso
My opinion only...
We dont know they have satisfied the terms of the Guercif Agreement. They commenced testing on the 10th. Thats what they wrote in the rns.
Guercif agreement required they test by the 5th. In my books thats 5 days out.
My main question is who (if at all) has possibly attempted (and maybe succeeded?) in stalling the company to the point where they could lose their licence...? Always going to be politically risky partnering with powerful people.
Gas there or not, if prd dont own the licence in order to test then its worth zero. I wonder if another Moroccan 'outfit' might easily have the firepower to take over a distressed licence and test the lot rapidly. All of a sudden its nationalised and poof... our shares are worth nothing. Much easier once all the data is in to launch some kind of takeout/over. Dont think these things dont happen. They do.
Worth considering this. No guidance from prd on this exact point. All contingent on award of ammendment no. 4 which as of yet is not (that we know) awarded. Can only infer however it is by extension that they are planning mou5 drill.
Big resources, yet bigger questions as to whether prd can get the resource out or retain the licence.
Need a webinar and a better explanation of whats going on. Possibly smells of trickery, not from prd, but external forces.
Feel this will certainly trickle down as no news or guidance is forthcoming.
On this basis I have sold a bunch, for purposes of disclosure.
They were expecting 8" of formation damage( signed of by Pg 40+ experience) the guns were rated to 12". We can all agree that 12" is larger than 8" putting to bed the undersized argument.
The formation damage was greater than 12" leaving the option of Pg 40+ years experience admitting he got it wrong or claiming in hindsight that although he never mentioned it before he knew it would fail.
He choose the latter because the Pg never makes mistakes.
On a positive note Ive seen companies sandjet deep past formation damage. Even if it was 2ft thick and plasticised from mud reaction or exlosives then sand jet will slice through it like butter. Thats not the issue here... If they peforate and make contact with the reservoir then the gas will find its way into the wellbore. May need a few goes.
Its really just the political or licence extension risk.
Lets be clear - mou1 was drilled in 2021. What company doesnt test or run assessments on heavy mud damage long before they then are on the brink of losing the entire licence, or investors are having to legitimately even consider it as a possibility?? The answer might be a company that has (very impressively!) got three projects over three continents but has spread themselves too thin, has been stalled deliberately, or perhaps just has made some fatal errors that will all be laid bare in hindsight.
Last point on this.
Confident the gas will flow if sand jetted.
Not confident in an rns that tries to imply a retrospective approach that appears to most as a patch-up job on a possibly bad call.
Will wait for a webinar to clear up the matter.
Regardless of the above, prd are very impressive to be advancing all these projects on a shoestring and with (oddly) no loans, bonds or debt otherwise. But even their very best may not be enough if the licence is at risk. 75% of nothing is nothing.