Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
It was mentioned that they were contractors who knew RHA and will know exactly what they are walking into.
Also in that Twitter letter it states that NewCo will possibly do contracting work for other companies and generate additional revenue that way.
Still weird that I can't find anything at all about KME Holdings though.
He won't be standing down from PREM, as such, but he just won't be in operational charge of NewCo. He'll be a shareholder, like the rest of us.
PREM having significantly less management costs has also been mentioned a few times. There is virtually no way he can take Circum for himself with this setup.
It really is worth reading, if it is genuine.
Parts of it do match almost word for word what he said in the podcast.
Confirms that Newco will be managed by the KME management team and the last paragraph is basically George taking the blame for failing to RHA profitable.
Is this letter real?
https://twitter.com/freespirit_fox?lang=en
https://www.vox markets .co.uk/articles/premier-african-minerals-john-meyer-on-krs-and-chris-bailey-on-brby-sbry-hfd-sdry--43fd861/
He mentions new management, rude shareholders having a go at him and removing something that is holding the SP back. It would be reasonable to interpret that as him not being part of NewCo.
He seems quite frustrated about shareholders, almost blaming us for being too thick to understand his methods, like we are the ones that have dragged the SP down to the depths they are at.
Why would the Circum deposit be worth more than Colluli (if you don't mind me asking)?
Colluli has the benefit of being just over the border in Eritrea, much nearer to shipping routes. It has a longer mine life and lower costs.
You are quite correct. I was sure this article said January 2019 when I read it but it just states 2019 now.
“Our focus at present is to secure the necessary funding to move into construction, with the objective to raise the capital through a combination of debt and equity.
“With the money secured we will start construction in 2019 – which entails a two-year build period followed by a two-year ramp up to full production. According to this schedule, we will produce our first SOP towards the end of 2021,” Bowker outlines.
Full article (from 2 days ago) at https://www.miningreview.com/circum-minerals-danakil/
Regardless, PREM can't exist as a cash shell for more than 6 months. Possibly something we'll find out in the webinar.
One of the world’s biggest undeveloped potash projects, the Danakil Potash project is located in the Danakil Basin, approximately 600km from Ethiopia’s capital city, Addis Ababa.
The project received mining license from the Council of Ministers of the Federal Democratic Republic of Ethiopia in March 2017. Circum Minerals subsidiary Circum Minerals Potash owns 100% interest in the mining license, which encompasses 365km² of large-tonnage, shallow potash deposit.
The license includes exclusive rights to mine the deposit for an initial period of 20 years, extendable up to ten more years, based on its financial viability.
The definitive feasibility study (DFS) of the project was completed in August 2015 and an optimised version of the same was released in March 2016.
With first production scheduled for 2021, the mine will initially produce 2Mtpa (million tonnes per annum) of muriate of potash (MOP), a common potash fertiliser, and 0.75Mtpa of sulphate of potash (SOP), a premium fertiliser.
The mine life is estimated to be 26 years, based on current reserve estimates.
The potash reserves will be mined using solution mining technology, which is considered as the lowest risk mining method based on the geology of the region, followed by solar evaporation.
The project is receiving significant infrastructure support from the Ethiopian Government. Besides upgrading the local roads to access the mine, the government has laid a 130km-long paved road from the Danakil Basin to the city of Mekele, the location of Circum Minerals’ logistics base.
The government further agreed to construct a reinforced concrete main production haulage road, which would transport potash from the basin to the main rail line. It also approved the construction of a new road between Ahmed Ela to Afdera that will reduce the distance from the mine to the proposed new Port of Tadjoura by approximately 200km by 2018.
Circum will be able to leverage the low-cost sea transportation of potash product to the Asian markets such as India and China through the Port of Tadjoura. The port will be designed to accommodate 65,000DWT of bulk carriers and export 7.5Mtpa of product.
Circum Minerals is also evaluating rail transport for the project, once the production exceeds 5Mtpa. It conducted a prefeasibility study for the construction of a rail line from the Danakil Basin to the national rail network in June 2016.
The proposed mine operations are expected to require 77MW of electricity. Ethiopian Electric Power Corporation is constructing a power transmission line and a substation to deliver the same. The new Dallol substation will receive 180MW of energy through a double-circuit 230kV line from an existing substation in Mekele.
With an estimated operating expenditure of $38/t for MOP and $112/t for SOP, Danakil will be one of the lowest cost potash producers in the world. Estimated capital intensity of $838/t also makes the mine one of the world’s most capital-eff
I'm about £7k down, very few of us aren't down I would imagine.
Fortunately I had to sell to pay a tax bill before the biggest drop at the end of last year so managed to buy back in again this year for a bit less. Wish I hadn't bothered but I always thought that at some point it would have to get better and I'd kick myself.
The new restructuring might be a good thing. Shares in Newco plus something from Circum and we might end up in profit.
George wouldn't have anything to do with a reverse takeover company.
He'd wander off into retirement with cash in his pocket from the Circum sale. It's the only way he can do this without having to be a lot more competent. surely he must be getting fed up like we are.
The ins and outs of it would be a tad weird but Datells could help George out.
Newco gets funded for 18 months and the expertise and equipment to deal with RHA and Zulu. Plus less shares in use and more room for manoeuvre.
Circum get their listing quickly and cheaply. Apparently it is not that much different, requirements wise, to a new listing though.
Existing PREM shareholders (including George) either get a special dividend or some sort of share consolidation for Circum shares.
Everyone is reasonably happy and gets what they want.
It's what I would do but then I am stupid enough to have been buying PREM for 2 years.