The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Acker - I’m not sure. They have lost a of money dropping from 1p to barely holding .2. George will dump billions of shares to pay for new sorters, new equipment. Stark won’t pay for any of it. Remember last year when George said stark were going to pay for all the remedies and then they didn’t. And George spent 14 million to buy new equipment. That’s good to happen again
George can’t just issue more shares. If shareholders vote no, he would have to do a conditional open offer and have to call an egm. And shareholders should demand that an experienced mining ceo be appointed as a condition to support the egm
Acker - that’s not really true. You just need a few hundred million shares to vote no, and the resolution will not pass with the 75%. Then an egm will need to called and shareholders can add the appointment of a new ceo as a condition. I think there are enough disgruntled shareholders hearing the same hot air from George to vote no
Acker - why all this aversion to getting a new ceo who has mining experience? It’s like shareholders are happy with having a ceo with very limited mining experience trying to build a mine. Soon I’m sure we will see a very concentrated effort like last year to get shareholders to support the share increase. Last year they said it was critical to getting the mine to produce. Well the plant is not producing and George has spent all the money. Why take the risk again. A new ceo with mining experience is the right way to go. And that requires a no vote
Acker - don’t take it as a cheap shot. Take it as confirmation that George can’t deliver. He didn’t deliver over the past two years and doesn’t look like he will deliver now. If shareholders vote no to the resolution, prem would have to call an egm and then you could add the removal of George as ceo as a condition and bring in someone who knows what they are doing
Acker - I think this goes much much lower. Looks like there are fundamental issues with the plant and they have very little understanding of the resource. Canmax must be thrilled they gave George almost 50 million to build something that will be used as scrap metal when Canmax hired their own plant construction company in 2025
I thought people said George was a visionary. He should have gone for 20 or 30 billion additional shares. The 4.5 billion won’t last him the summer. Prem’s burn rate is around 2 million a month. Add that it will have to pay the new epc company and buy new equipment, George will be calling an EGM by the summer time for more shares
Oh no! Even billy now is admitting that prem cannot produce any spod. George said that he was in advanced discussions with lenders for debt but that was only on condition of Zulu producing. So if billy is now saying a placing is incoming, it says prem is not producing