focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Snowking, if PREM cannot produce and ship within the next 3 to 6 months what will the market cap be? How will George be able to pay the contractors and all the other bills if the company has no revenue? Companies that don't generate revenue can only survive for so long after which, no matter what agreements are in place with the customers, the become insolvent and cease trading. That's when the assets are sold for pennies in the pound to satisfy the creditors. The long stop date and associated agreement is a distraction and an irrelevance.
We can carve it up and argue as much as we like. Bottom line is Production soon or we are screwed. Although it might be useful to know how long we have..
As someone said on another site MOB bag....(Multi or body bag). And this is regardless of people opinions.
Are you in or are you out......
Ofcourse they could just request the $55m in Prem shares. How much of Prem would that be on 1 April 2025 if insufficient SC6 is being delivered. Remember we would not have yet made any revenue due to it all being sold under the pre purchase agreement. I.e. already paid for. At the current share price that would be 50% of Prem but without production the share price would be in the gutter so let’s say a generous 75%. They already own 16%….
You mean “Settlement of all amounts of Product due under the Amended Agreement will be subject to a new Long Stop Date of 1 April 2025, and should Premier have not delivered the required Product or provided Cash Settlement to settle the Advance Purchase Amount in full, and provided that Canmax has not elected to take settlement in new ordinary shares (the "Outstanding Amount"), then Canmax will be entitled to receive as settlement of the Outstanding Amount, a direct interest in Zulu Lithium based on a project valuation of US$200 million.”
So if no product provided by April 2025 then:
$6m owed for the period 1 November 2023 - 28 February 2024
-$9m owed for the period 1 March 2024 - 30 May 2024
$40m for 1 June 2024 to 1 April 2025 ($4m/m)
That’s a total of $55m. Based on a valuation of $200m thats 27.5% of the project. That probably is the best case senario, however it a we haven’t managed to repay the outstanding amount almost a year from now what would that say about the actual value of the project, and what would the Prem share price be by then?
In the meantime we would have our other debts to pay.
Bridegroom,
You seemed to ignore the fact that if prem pay nothing back to canmax this year , then canmax don’t get prem or Zulu plant . But they get a small % of Zulu valuing Zulu at $200 m ie .32 p a share .
How come you failed to mention that .
I’ve been rereading the terms of the prepayment agreement. The problem as I see it is prem have prepayment of US$34.6 million plus accrued interest to pay back.
That will come out of any product sold. Not only that but from 1 June Prem accrue $4m to Camnex until the prepayment is fully settled. How long will that take?
So due to the delays there’s already:
-$6m owed for the period 1 November 2023 - 28 February 2024
-$9m owed for the period 1 March 2024 - 30 May 2024
Then the amount owed to Camnex goes up to $4m per month until “the Advance Purchase Amount plus, interest has been settled in full” - so the amount accumulating and owed does not stop when sc6 is shipped but from when the c. $40m of sc6 is FULLY DELIVERED.
Now even under the absolute best case senario by the GR supporters that has to be some time away. So far away that the amount owed will be close to or even exceed the market cap. The only reason Camnex hasn’t picked this up already is because it will simply drop into their lap after Prem shareholders have been rinsed to get the operation up and running.
Now far be it from me to be cynical but getting all this mine for nothing is worth a huge amount to the Chinese. I’m sure they would have been willing to pay someone say $10m (not forgetting someone’s salary) to completely F this up to just enough that Prem pays for it and Camnex pick it up for free. How else would you explain the terms of the prepayment agreement and the farce to date. Can someone be genuinely that inept? Being generous maybe it was on the Stark side. It is Africa after all.
Anyway, even If there is an RNS staying nameplate capacity reached over the weekend, that’s still no where near enough to save this one. I’m out Tuesday 8am.
Luthee is he invested directly in PREM? I haven't seen his TR1, or is he just a Chinese businessman with an interest in PREM through an association with Canmax? Not worth mentioning someone when they're not worth mentioning unless of course you're trying to achieve an agenda
Significantly you never mention Zwenhua Pei
Do you even know who he is?
Hint - Canmax.......billionaire and major shareholder
Keep up please
Luthee PREM won't last another 6 months let alone another year without production and if they've any hope whatsoever of getting to production then there'll have to be another fundraise. Company has no cash left and the bills continue to mount up. Question anyone should be asking is do you trust George Roach to see this project through to production or are the issues just too big that the Chinese will cease to support and make a land grab? Sorters still not sorting so the issues they have are pretty darned big and as patient as they've been (aside from pre force majeure) Canmax won't wait much longer before taking Zulu leaving PREM with nothing more than a couple of Carrots (Mutare and Circum) and RHA, so that's pretty much the end of PREM as neither of the carrots nor RHA will be cash generative any time this decade
A year is fine m8
This was always a long term investment
With Canmax & Zhenhua Pei supporting - the ultimate goal will be achieved
Goal = an insatiable requirement for lithium....
You won’t see 0.40 for at a year….
I can’t sleep, I’m making too much money
Over 400 posts in the last month!
Have a nap gg1....
Without a pump the placing is going to be brutal. The mine will need to be full operational for how many months/years to repay the 6 months + delay.
The only hope is a placing after a pump to clear the decks.
Same position. I want out but no point selling now.
There's always been an opportunity to get out on a pump and dump so far.
Just hoping for one more.
There IS a point dbh - if you think you'll lose money!
Let’s just get the placing out of the way at an amount that means there will be no more. This will mean another egm but that is better than death by a thousand cuts. I am coming close to the end of my tether with GR but there is no point in selling now.
If you look back at other GR videos you'll see that what was said doesn't come true.
The last one before this said something along lines of a significant progress step and it was definitely happening. Days later.. Nothing.
I don't believe anything at all that comes out of prem. It's constant empty promises.
As said. Just waiting for next pump to get out. There's no point selling now.
What the 10/4 RNS said:
Throughput
“In original test work, mica content was estimated at 17%. In early processing actual mica content is closer to 27%. This is currently restricting throughput to approximately 26 tons per hour of dry solids and the theoretical SC6 output is 4.5 ton per hour until certain pumps and valves in the mica section are upgraded. The OEM expects these components to be at site over the course of April to enable an increase in throughput to the target rate of approximately 37 tons per hour.”
Grade and Recovery
“Whilst the plant has demonstrated its capability to produce SC6 to grade, it is not able to do so consistently and achieve the desired and required recoveries at present. The reasons include circulation between float cells, resident time in float cells, and "in cell" slurry density. Our Zulu engineering team in conjunction with the OEM team has identified both the cause and the remedy and is in the process of attending to flow changes between the various floatation cells. This problem is expected to be rectified in the coming weeks.”
Now we are in May and it does seem that these key issues have been resolved. Waiting on an RNS to confirm but for those following we have some hope that this at-last be coming together.
Yes it could be all lies, hence we are at 0.19p rather than 1p, but we have seen the equipment on site and the mine subsequently running. If you wait for official confirmation then it will cost a lot more to buy/add than at the current 3 year lows.
YouTube video (May 2) is a lie?
Please quote your source - 4x!
The youtube vids from Prem have been shown to be absolute lies and garbage and have zero credibility.
Company is a joke. Just hope can get at least one last pump so I can exit this garbage stock.
V8, some of us have been here for years listening to GR's rhetoric and his BS interviews where he lies and misleads, I will hold and will be the first to cheer when things come good but at the moment he's just up to his old tricks, check the SP and that will give you a clue that i'm not alone thinking this isn't superb news, and until I see an RNS I don't believe a thing he says and even then you have to be careful.
GL everyone , i'm sure we will get there in the end
It's impossible to win with these people. If no information is forthcoming from the company, it's 'no news is bad news' and the share price is headed for a fall. The company then releases information via a video and that's wrong because it shouldn't be the company CEO presenting, but someone else. Who, the tea boy? When RNS lands in the next few days reporting progress, no doubt the naysayers will find something wrong with that.