Member Info for Jenkoo

Profit - We only need to pay the $34m back 'IF' (and thats a big if) Canmax trigger the release clause. This would result in Prem needing to pay the $34m + interest to Canmax in 90 days.

Currently they have not triggered the clause, so a tense wait for a couple of weeks. SP will gain strength if they release a statement supporting Prem. Obvs vice versa.

Worst case they pull the plug, PREM have 2 options imo:

1) Find a new financier to payoff Canmax and reset new terms with the new financier

2) Sell Zulu for knockdown price (still a multibag from here imo)

Prem will not be able to pay the loan back from 1.3k T/pm based on current spod prices. But also they should be making a profit after expenses from June.... therefore i cant see how GR's comments about August profits makes any sense.

I remain strongly in the STARK TO BLAME camp, and i hope GR has a tight contract with them as he should not only be forcing their hand to pay for late delivery and miss-sold nameplate throughputs, he should also be holding them to account for damages. IMO

J

So taking the numbers from the RNS, if we try to understand finances and comment about profitability by Aug:

June - 1,367 T x £3.5k/pt = £4.78M - 10% discount and zim royalties = £3.8M.

Therefore, I don't understand how Prem can not be profitable when shipping 1,367 Tonnes.... because the value of the shipment would be £3.8M minus operating costs .... and im sure they wont add up to £3.8M pm???? What am i missing?

To quote below:

'At present concentrate prices and production at these current levels to the end of August, the Company expects Zulu to operate profitably.'

(by profitably - iv understand take that as free cash after paying expenses to put towards the loan or otherwise)

Sensible informative replies only please

J

I have to say, this particular headline takes the biscuit.....

'Production from Spodumene float circuit expected to increase by 25% after final optimisation.'

Talking about beating expected targets by 25% when they cant even achieve 25%..... is absurd. I don't trust Stark at all here. They are clearly out of their depth and any numbers they throw at GR can not be trusted.

J

J

A few of us called out for stating the negatives.... and right we have been proved.

Stark Resources have made themselves look very amateur here and Prem shareholders will suffer for this as well as the Stark brand. Very bad RNS. I am very unhappy about this, but unlike many on here, i will not be taking it out on other shareholders. This is a very bad piece of work by Stark. They are the centerpiece of the issues, not Prem... although GR does not help himself.

Starks incompetency has ultimately delayed by Prem by 9 months in total.

J

Johnny - AimH is someone that types a lot and says nothing of interest. He got filtered ages ago. Id suggest most do the same.

J

Thanks Profit, appreciate the note and some good questions raised below on the LSE board.

J

Acker, I can agree with you. What is also very interesting is the lack of focus on Stark. Their huge miss on the plant design cost Prem circa 1 month, and as we know optimisations during ramp up are required to get from (eg) 70% up to 100% efficiency, however we’ve been so far off that 70%.

Unless of course GR surprises us. All very strange.

J

The messages last night about delivery tonnage is interesting. Poses the question: What do shareholders think would be a likely amount of SC6 that would be delivered this month. (Assuming 6% quality and deliver by 30th May)

I think 1k Tonnes is realistic but I would prefer it to be 2k

Given we have already had a 30% drop before the news of delivery shortfall (which I think we all accept IS happening here!) I wonder how the market will react when Prem RNS 2k Tonnes for example. It’s 2k short of the 4k, but very profitable and a milestone in the company’s revenue generation.

J

Thanks for the information James. Out of interest, do you also believe the communication from Prem has been insufficient given the criticality of the contract timings and missed deliveries?

J

Thanks ProfitBags. Just trying to gauge what RedTrade said earlier. If he had a response I would expect you to have also.

GR and Wilna must have been inundated with worried holders this week!

J

Https://twitter.com/jamesgoozee/status/1660995886233649152?s=46&t=-sYSpaRy9cwxnWCOaKv6Gw

RedTrade - i sincerly hope that is true.

Profitbags - any news from GR?

J

If anyone was thinking about buying Prem out.... now would be a good time for them with the SP so so low....

J

Key part of the contract:

' If the Supply Commencement Date does not occur on or before 30 May 2023, then Suzhou TA&A may terminate and seek repayment of the Pre-Payment Amount.'

This means, if we dont deliver before eom, than Suzhou can ask for their $34m back within 90 days. In this instance i expect to see that Prem would seek another financer. imo

J

We at least know that Prem are making Spodumene and have been since early this month as seen on Stockbox. Mark said he saw 3 bags come off the line (i think in the evening or morning he was there.) Assuming (and yes its an assumption) Prem are making 6 Tonne bags per day and increasing by 50% per week, over the course of 20days, we should be looking at a circa 200 Tonnes. We don't know the quality of it, but would 200Tonnes be sufficient to class as a first delivery???? Is there a minimum amount for first delivery notice to be triggered???

FYI - i acknowledge how far off 200T is from the target, but that's kind of my point relating to required size of first delivery.

J

Jake - well done on a near 300% profit. No one can criticise for banking that kind of profit. Good luck with your next investment.

Regarding something being wrong, the answer is simply ‘GRs communication’

Until he updates the market on the truthful position Prem are in, each of us simply have no idea and are left to guess.

Maybi remind everyone that the StockBox interview was lead by StockBox, and likely funded by them too. Imagine how ‘in the dark’ we would be if it wasn’t for Mark and team. It’s simply unacceptable for GR to treat holders like this imo. I hope the next RNS is everything we want it to be. The first delivery was always going to be the hardest,,,, and the most rewarding. GLA

J

Choma - having a bad start to the day, haha. Wrote ‘and’ instead of ‘any’ and the misspelt ‘foresee’ on my correction.

Il just head back to bed now…. 😁

J

*forsee any

Morning Acker - might breach 0.8 but I’d say we are locked in below .85 without official news. News needs to be solid to breach 0.9. I don’t foresee and GR estimates affecting SP anymore unfortunately. What do you think?

J

Raaydaar, thank you for the correction yesterday on Zulu securities. You are very much correct.

You are also correct with Prem paying Canmax back via cash, rather than SC6 which AimH stated. Thanks

J