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Raaydaar

I addressed that in a previous post. Both posts are correct under the circumstances

i’ve seen the posts claiming zulu is burning £75k a day in diesel and will need a 20-billion-share placing just to keep the lights on in april. let’s look at why that math is pure "bull****."

1. the "full production" fallacy

jaglith is using numbers from a "steady state" production model—where the massive primary crushers, the ball mills, the heavy haulage mining fleet, and the entire flotation circuit are running 24/7.

the reality: we aren't mining. we have 5,000 tonnes of ore already sat on the rom pad ready for the trial.

the fact: right now, the site is in "cold commissioning." they are testing pipes, fitting launders, and running small pumps. you don't need a 10-megawatt power station to run a few xinhai engineers and some welding gear. the current burn is a tiny fraction of that "£75k" scare-figure.

2. the zera factor (local pricing)

the post assumes prem is paying uk retail pump prices for diesel.

the fact: the zimbabwe energy regulatory authority (zera) specifically subsidizes fuel for the mining and agriculture sectors to protect the economy.

the reality: even when the big generators do kick in for the 20-day trial in april, the cost per litre is significantly lower than market rates. claiming they need £1.5m just for diesel in april is mathematically impossible for a site that isn't even in full-scale mining mode yet.

3. the 20 billion share scare

the claim that gh needs to dump 20 billion shares next week to pay for diesel is the biggest reach of all.

the fact: the board only has about 25 billion shares of headroom left in total.

the reality: if gh wasted 80% of his remaining "bullets" on a month's worth of fuel, the company would be insolvent by may. he is raising "hand-to-mouth" specifically to avoid that. the £750k raised last week wasn't for "fuel"; it was for the jr goddard settlement and the xinhai contractors.

the bottom line: don't let "bears" confuse commissioning with production. you don't turn on the "£75k-a-day" switch until you have a working plant ready to produce sc6. right now, they’re just finishing the plumbing. the "20 billion share" dump is a fantasy designed to shake weak hands before the q2 trials begin.

The MD is right: the most effective way to kill the "junior discount" is to stop being a "project" and start being a producer. Until that first saleable concentrate leaves the gate, the market will treat the progress as noise. Once it’s "steady-state," the valuation gap usually closes fast.

I’ve been reading the back-and-forth between the believers and the bears, and both sides have half the story right.

The Bull Case (Acker’s side): The engineering progress is real. The March 25th RNS confirmed flotation cells are in, pumps are on plinths, and piping is underway. From a technical standpoint, Zulu is closer to commissioning than ever before. If you’re here for the "rock in the box," the team is delivering on the ground.

The Bear Case (Jaglith’s side): The finance is the Achilles' heel. We’ve just seen a £750k raise at 0.0126p, which barely covers a month of overheads. With 5.95 billion shares hitting the market next Wednesday (April 1st), the dilution "churn" is a mathematical certainty, not an opinion. We are still millions short of the Q2 budget required to reach steady-state production.

The Middle Ground:

You can like the project and still hate the entry price. The plant might be ready in Q2, but the capital structure is currently a "paper mill." Until the funding gap is closed without emergency discounted placings, the share price will continue to be a tug-of-war between engineering milestones and the printing press.

I've moved to the sidelines to watch the April 1st admission from a distance. Good luck to those holding through the churn.