Member Info for addicknt

okenia, i don't agree with your valuation,but you make a very good point about the ii shareholdings. It would be impossible for them to sell at the moment, witness KDNC's sale,at anything like true value. This would continue to be the case post-financing as there would still be a relatively small number of shares in issue and liquidity will remain tight. The only way they'll achieve an exit at a value which represents what we have here is via a sale. The BoD will be acutely aware of this and this will have been a major discussion point when PS was originally presenting the investment case to them. For me, this is yet another clear indicator of what's going to happen.

And has been consistently wrong at every turn. His own prejudice has blinded him to the facts.

Kluck, it's both. It adds considerable value, but at the same time places us in their hands in as much as they'll have a disproprtionate influence in a sale negotiation. On balance, I see it as a huge plus.

Fuku, what did you make of the recent adjustments made to the remuneration policy? It looked to me like a very clear statement of intent. The public pronunciations of going all the way are to be expected. Why would a CEO sitting on this asset state openly that the company is for sale? It would be a sign of weakness. This will have attracted plenty of attention. All he has to do is sit back and wait.

the market has now closed. Some recent investors may be disappointed that the price didn't rocket, but us older hands recognise how this one works and we are all long termers who can wait. Whatever happened today, this has been a momentous occasion in the history of our company.

Kluck, good question. A great deal will depend upon what value, if any, can be achieved for parts of the project not included in the FS, even if we only include the potential potassium sulphate sales. Clearly, this will be finger in the air stuff, but I'm damn certain it wouldn't be given away for nowt. A negotiation would also rage around the npv itself. The guys have been very conservative with the $11,000 market price. As I mentioned this morning, the sensitivity analysis shows just how much the npv improves at current market prices.A buyer would argue that because this was the price used, the company cannot argue for a higher figure. The company would disagree and a bit of horse trading would have to take place. 35%? Probably about right. But I suppose I'm saying 35% of what?

question has been raised before but,if you wanted to buy BCN would you wait a while or have a look now. If I were a buyer, I'd do it asap, particularly as the full details are now available. Once we have raised the finance, which could be achieved in as little as three months, our negotiating position will be stronger. What would you do?

"A substantial uplift in value over the next 12/24 moths" so said Cannacord. Not going to disagree with that.

Christ! He actually smiled! He must be happy.

andrbea, I'm not familiar with that story. How did they fund it? Equity, debt, or some other way?

Clearly, there are many permutations available; convertible loan notes, prefs(not popular), specific project finance, asset based lending and commodity based lending, to name but a few. One other possibility is that if only a relatively small portion of the requirement is debt fundable, this of course implies a higher level of retained free cash flow i.e it's not be used for debt service. This would provide flexibility for the eventual employment of share buy-backs. However,this is a long way off. Personally, I still do not see this getting to that point. It has trade sale written all over it.

the level of debt which the company is able to raise is going to be absolutely critical to shareholder value (assuming the company isn't sold beforehand) If we assume that £375m is required and that it can be split 50:50, 220.6 m new shares would have to be issued at 85p to cover the equity portion. On an un-diluted basis, this would imply a total of 353.4m shares in issue post-funding. If you apply a bit of sensitivity analysis to this, you can see just how important it will be to raise as much leverage as possible. SXX is a very good guide to this process.

"boy"...ha,ha. Funnily enough, unlike quite a few people on the Prem bb, I actually value your posts. But you've recently turned up on this board and this morning have made various observations that demonstrated the fact you'd hadn't read the RNS properly and proceeded to make statements about finance and the possibility of a sale that, had you been around a bit longer, you'd have realised have been very well rehearsed over the past three years. And as for your boast about having invested in mining stocks for 10 years, this puts you almost exactly 20 years behind me.So, with respect, I don't need any lessons from you. In any event, keep up the good work on Prem...as I said, I do genuinely value your input there.

xulu, of course you are. What is absolutely apparent is that you didn't read the announcement properly. And of course it needs finance...but that's not exactly news is it? As for other explorers, this company is way ahead and whether SAV or PREM (which I hold shares in) ever get to production is a moot point. In any event, they are years behind.

As I've already pointed out, the IRR improves once debt is employed. Xulu, you're obviously not happy with this, so I'd suggest you stick with your PREM investment, which you clearly believe is a better prospect.

xulu, they did include a sensitivity analysis. I've already referred to it.

WWN, indeed. But my point was that it won't be the 100% assumed in the FS.

Newboy, absolutely right. As I said on the KDNC page,the +20% sensitivity used pushes the npv closer to $2bn. And the use of debt will improve the IRR of the equity by a considerable margin. This is fantastic stuff and is exactly what we've been waiting for.

Dallas,indeed they did. However, the point I was making was that the FS is likely to to be a great deal stronger than anticipated (originally) and this should enable the company to support a greater degree of leverage and therefore, a lower level of dilution. It is only in my wildest dreams that I believe there won't be any dilution. p.s hope you've recovered from the shock of my somewhat cynical comments over on the other place.

xulu,it has long been the argument that an equity raise would accompany the debt element. This would be traditional and my guess would be that the issue price would not be far off from where we are now. However,if the FS is as strong as we are led to believe, it could well be that it is possible to fund the lot via debt. Ergo, no dilution. If equity is raised, it's my hope that we will be given the opportunity to participate, although given PS's general lack of interest in us retail investors, I'm not holding my breath.