Member Info for Bridgedogg1

Crazy that £20k worth of sales can wipe £1m off the value of a company. AIM is so fked atm.

Are the economics of the projects very different? I would have thought that the overriding 80% tax is the key factor?

People are talking like Hum is benefiting from the current price of gold despite the hedge

Is Pensacola is worthless under the tax regime why is Selene any different?

No mention of the financing? As the end of April has passed and we have been cash flow negative I assume there has been a default on the first debt repayment. But no RNS? A rampy presentation smacks of a fund-raise to me.

I think the point is that the likes of Google and Amazon are reporting increased advertising spend on their platforms for the first time on 18 months and therefore their earnings are higher.The hope is this trend feeds across to us but the WPP results indicate that it hasnt quite yet.

I noticed Sneller also took a fairly large hit on Deltic so hasnt been a great year for him so far.

Hopefully the block buying continues here with one or multiple parties clearly building positions while the share price is so low, expect to see some more holding RNS in the near future. If Sneller hadn't sold 15% I expect we would be at 2/3p by now.Looking at the chart, if we can break through 1.2p its a clear run back up to 3p. We've got the presentation on Thursday and news regarding the loan, financial reporting and operational progress all to come this month.

The take up of the open offer should be maxed out at the current share price providing plenty of cash working capital headroom until we hit net positive cash flow.

Eco never answered my question why Africa oil got such a better deal in the farm out than us. I guess I shouldn’t have noted that out conercial manager who negotiated the deal for us actually works for Africa Oil.

It’s difficult to know what will happen, with some of large us tech companies reporting improved advertising numbers but WPPs numbers are down around 10% for digital. This is defiantly the first quarter in some time that we’ve had some hope of good numbers. I think I’m going to exit and wait in the results rather than sitting it out, just don’t feel confident enough at the moment. Though I think this will be over £1 by the end of the year.

I think the onshore will be good for us but struggle to believe it will unlock 1tcf.

Nelly

Why would they convert the amount owed (which I say is $50m and you say is $36m) at the pre agreed valuation of $200m when they can at any time request they be issued in prem shares, as per the agreement. They will just take ownership through prem rather than the project. Basically they own any product produced for the next year and once that is up they will own the majority of Prem. Billionaire Chinese businessman vs GR - no surprise who came out on top.

Also, go through the document you linked and add up the figures. Then add the 12% interest.

Nelly, it’s exactly what I said. Add up the figures:

If no product produced the we pay them

So if no product provided by April 2025 them

$6m owed for the period 1 November 2023 - 28 February 2024

-$9m owed for period 1 March 2024 - 30 May 2024

$40m for 1 June 2024 to 1 April 2025 ($4m/m)

That’s a total of $55m.

Are my figures incorrect.

Is it not also incorrect that if we do provide the product Canmax have already paid for it u see the ore payment? How much will Prem be receiving for the next year IF it does start producing?

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.

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.

It’s a good job Sneller bailed. If he wasn’t happy he could have caused real issues with the vote. I assume canaccord is now the new largest shareholder and luckily are fully supportive. There is the chance that sneller did an off market trade and someone else picked up the whole lot but doesn’t look that way. The guy could have waited for the 7th and given himself the option of the open offer. I think he may have sold because he simply didn’t want his huge losses to continue to be so public. He’s an investment manager ( or is he retired?) and anyone looking him up will see largest holding in a company that has gone from 70p to 1p. Does not look good if he still needs to attract investors to funds. Anyway, his loss put gain-gave me the opportunity to get in at under 1p and have been adding ever since. Actually I’m beggining to think I have a little too much in here but it’s just such a no brainier. The £13m loan with the placing/OO proceeds will see this through to profit. Looking forward to the presentation.

I can’t sleep, I’m making too much money

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.

There can’t be many companies as undervalued as this one is right now. Once the vote is passed and money in the bank this will be a takeover target, especially if the share price isn’t a lot higher than it is now.

The numbers will be interesting. Most of our cash has gone on the expansion. Now we have the loan ringfenced for capx the proceeds of the fund raise should last until cash flow positive. Sounds like the operational efficiencies are improving so maybe there’s a nice surprise and that comes earlier than expected.