RE: Prepayment Agreement Details6 May 2024 23:01
Nelly whether I own 1 share or 1 billion shares I am a shareholder in PREM and have a voting right equivalent to my shareholding, as you do with your shareholding. Is the death spiral financing inevitable? I don't know, what I, you and anyone else looking at PREM know is that the cash is pretty much gone, the remaining headroom is enough to pay the litigant and Goddards for their services. As it stands Zulu cannot produce SC6 in saleable volume. The plant is not yet optimised with several issues, the most serious being the sorters. The sorters should provide the plant with optimum quality ore for processing, instead George is using people to hand feed the ore into the plant. There's absolutely no way that suitable grades of ore in sufficient quantities are being fed into the plant nor will they be until the sorter issues are rectified, which by all accounts won't be any time soon. The company is haemorraghing cash to the tune of $50k a day on mining costs alone, add in all the other costs and that number gets much much bigger. The debt for the prepayment agreement continues to increase with compounded interest at 12%. I'll give it until the end of May before the money runs out and another cash call. I think George will get shareholder support for an increase in headroom but for how much and at what price? $20 million at 0.12? Or maybe lower. He'll need as much as possible otherwise the death spiral financing comes into play and at that point PREM are pretty much doomed. TBH I don't think they'll survive through another capital raise, if they can't get ot working now, it's not going to work, just another care and maintenance project like RHA