RE: Pricing mechanism adjustment - Hobson's deal7 Jun 2023 07:18
Glad to see people are starting to understand the deal rather than claim Prem were getting 2 paychecks for 1 delivery of SC6. My view is that this offers Prem a bucket- load of stability at a time when they need it. However it will come at a cost of circa $3m profit per month for the life of the deal (based on what ive read so far). All things considered, i'd say its positive, as it will be the making of Prem and constant revenue + short term growth of Zulu.
As Prem become more stable and fund their own developments (circa 2025 onwards imo) Prem will be the team puling the levers, funding others & playing 'the big funder role' along with developing their own portfolio of projects.
This deal is not the perfect deal, but it will get Prem over the line of Explorer -> Stable Producer. From that position they will be in a position to make the perfect deals. Overall, I'm happy, just need to see the contract details, signature and some mine metrics. GLA
J