Member Info for Martinigirl

My thoughts on the RNS. China Zenith don't want PREM shares, they see no value in being paid in shares right now. PREM now have 2 billion more shares that they need to sell to try and satisfy the original debt, minus interest. I would ask the question what about the interest? Are China Zenith foregoing the interest or is it still accruing and to be payable at a later date? These 2 billion shares along with the contractor shares will be a significant downward pressure on the share price and given the current lack of buying will take a long time to get through. Then there's the major question of working capital. George now has 2 billon shares he can utilise to raise funds they desperately need. What will be the price for the raise? I'd think it would need to be at a HE1 type discount, or will he go down the open offer route and pretend he's got shareholder interests at heart? Would an open offer generate enough interest knowing there's over 2 billion to be sold. Will be interesting to see how this plays out. Current cash situation is key, if they're not paying the staff then the plant optimisation won't happen. Whatever cash he can raise won't last more than a couple of weeks maybe less if he has 2 months of wages to pay. It's pretty obvious where this is heading and for anyone buying now it is a coin toss for success or failure. I'd say the coin is more weighted towards failure, there's just too much that goes against the investment case.

SprintRS are you really that confident? Surely there must be a nagging doubt in the back of your mind? The optimisation process will take a long time, minimum 6 hours between adjustments so no more than 4 tweaks per day then analysis and readjustment so probably no more than 2 per day.

PREM has been a sure fire short for anyone inclined to do so from the time it hit 0.8p but probably not worth a short now, assuming uou could get the borrow which I doubt has ever been possible. This is just the response from someone who can no longer debate or accept the fact that PREM is pretty much done for. The known lack of cash, the recent article suggesting the staff haven't been paid, the non payment of legally obliged payments to China Zenith, the lacknof a capital raise despite George being in London to facilitate that raise all point to the imminent demise of the company. Canmax have no interest in supporting the Zulu project any more, they see an alternative option that will secure them the supply they require without the incompetence of PREM management, they've played the game and are now see checkmate in two

No links required Nelly, just an ability to do some extrapolation and simple mathematics.

In fairness to the author of the article, the inaccuracies are in the form of a statement from the mine manager and not research on the part of the reporter, so could well just be the mine manager being somewhat confused.

It's certainly not outside the realms of possibility that the company have not been paying the wages as it's a well known fact that they have no cash left.

If there were no truth to the article I would have expected some form of statement from PREM to refute the allegations, none has been forthcoming.

If it's true that George was returning to Zulu on the date of the article (or perhaps the day before) then he's spent around 10 days in London on expenses (both him and Brendan plus any others), how much of the cash that PREM don't have did all of that cost?

Contractor sales continue and I saw at least another 25 million go through today maybe as much as 35 million so still around 350 million to get through. Still no payment to China Zenith and no capital raise which I'm guessing is because George is well aware that he doesn't have enough shares available at the current price. I also think that despite his best efforts, the city boys have been playing hardball, knowing that the contractor is still selling and the China Zenith shares will be sold once admitted. That puts PREMbon the backfoot when it comes to negotiating the price and it's likely George just hasn't been able to do the deal.

PREMs dire situation becoming worse every day. Will they survive beyond Q3?

I had you in mind when I wrote it Mugwump

Artificial Intelligence is an Intelligence which can be relied upon as much as the Intelligence of those who promote it but are unable to see it for what it is. The facts are clear and obvious:

1. Contractor(s) continue to sell and have around 500 million left to dump into the market

2. PREM needs to pay CZ around $2.25 million kn shares and has allocated 2 billion shares to do so. Meaning they need a share price of 0.1p at current exchange rate

3. CZ is willing to take legal action to recover its debt. Action which PREM believe could be a threat to the Zulu assets.

4. PREM is out of cash and needs at least $1.5 million a month to keep the lights on

5. PREM cannot pay its debts and raise sufficient working capital to last 1 month based on current SP.

The facts are clear and obvious to anyone taking an independant view, PREM is pretty much done for unless some magic cat out of the bag left field that nobody thought of saviour is coming. Vanmax are clear they're not interested in taking more shares, my guess is they'll wait foe the inevitable failure of the company and then make their move. They're more than capable of bringing in a competent partner

As always with a PREM RNS to fully understand what it's saying you need to break it down:

1. "the suppliers of the float plant have firmly stated that they have full confidence in the ENPROTEC flotation units' capabilities to effectively produce SC6."

I've been told that the suppliers think the equipment they've installed will don't he job they want it to do. Sounds very familiar

2. "As previously announced, the plant has already produced a spodumene concentrate at 6.2% Li2O"

I'll tell you again that at some point ages ago we produced some SC6, I'm not telling you how much though

3. "Anticipated changes relate to points at which reagents are dosed, agitation speeds and flow rates between components, slurry densities and cell resident times"

There's lots more work to be done and we don't know (or won't tell) how long it's going to take

4. "Premier does not contemplate any additional plant or equipment at this time."

However we might need some new equipment tomorrow, especially new sorters and a decent mag sep

5. "Premier is pleased that we are at the back end of the optimisation process"

We'll have to revisit the front end again in order to fully optimise as we can't fully optimise until everything is working to design capacity.

6. "Premier would like to take this opportunity to remind shareholders that Premier's internal estimate (including Zulu) of the all- in-projected cost, which has not been independently verified, on a delivered China port basis, inclusive of all administrative and overhead costs is less than US$750 ton SC6 when plant output reaches 4,000 tons per month."

Until we get to 4000 tonnes per month our costs are much much higher and Zulu would continue to be unprofitable at current declining spod prices

If we get to 4000 tonnes a month we've made a guess at what the costs will be and hope we're right as we can't afford to pay someone to verify our costings data

Nhjj, you're right in that respect in terms of expected costs at those production rates. However the plant optimisation requires or to be fed into the system, that ore needs to be mined and we know from previous interviews with George that during previous optimisation phases the mining costs alone equated to $50k per day and he also pointed out during one interview that they were utilising all of that ore during the process. Therefore we can deduce that the minjng costs for optimisation remain at that $50k daily figure so roughly $1.5million a month then add in the diesel costs, salaries, consultancy fees and all the other ancillaries then, at the very best you're looking at $1.75million a month just for the optimisation phase. PREM have pretty much zero cash available, possibly even in debt. The maximum amount of cash George could raise utilising the full 4 billion shares (and not paying China Zenith) would, after fees at a zero discount to today's closing price would be around $3 million or enough to keep the plant optimisation process continuing for another 6 weeks. China Zenith aren't going to wait for their money any longer, they've made their position clear, they want their money or they're going to take legal action which will be very very costly to PREM as they'll no doubt be liable for China Zeniths legal fees on top of their own costs and interest being added on a daily basis. I know he said that the full 2 billion wouldn't be issued but I don't think he will have any choice but to make payment in full either in cash or shares. If it's cash from a zero discount placing he's left with less than $1million. If it's shares he's left with about 1.2 billion to place for cash. We all know the city will not entertain a zero discount placing, the risk with PREM is far too great for them to entertain that. No doubt we will find out at 7am tomorrow what the placing price will be and at that point we will have a much better idea about the viability of PREM as a going concern.

Just watched the recording of the meeting. I must say that things are certainly not looking good for PREM. Plant optimisation is likely many weeks away from completion so any meaningful production figures of any grade will not be happening this side of bankruptcy. He dangled a couple of the usual carrots but nothing we haven't heard before and quite frankly the market doesn't trust him. The current share price will require more than 2 billion shares to be issued to CZ to pay the debt owed to them, over 2 billion shares that Geroge requested at the AGM which could have paid the debt at a higher share price without the extra dilution but chose not to. Brendan has no authority over what CZ will do with their shares and I'm confident they won't be negotiating with PREM after the way George has delayed payment to the point of the threat of legal action many many months after the contractual payment was due. They want their shares so they can sell them and get whatever money they can for what's owed to them. They're likely willing to forego the interest when they sell and will be happy to get what they can. So that's 2 billion plus of selling pressure inbound. I've no doubt he's spent the weekend courting the brokers and their clients and I expect a placing RNS tomorrow or 7am Wednesday at the latest at a hefty discount that will raise enough working capital for maybe a month at most. What happens after that is down to how desperate George becomes and what he's willing to give away to the detriment of shareholders. It will be further massive dilution or delisting and George taking it private. Similar happened with DEV not too long ago and shareholders were wiped out.

Jaglith, Canmax will vote however they choose, a vote in favour of dilution just means they're willing to give George a little more time, abstention is the same, a vote against would mean the end of PREM.

The contractors will have around 7 hours tomorrow to dump their shares, as it stands that we know of that's 800 million, ahead of the EGM.

I certainly wouldn't want to be a PREM shareholder tomorrow and if the talk in the preferati group is to be believed then they don't want to be holders any longer. Noel and Snowking have been surprisingly silent but we all know they've been selling down for days but not telling anyone.

It's clear what's about to happen here and I feel for those that genuinely believed in the asset and the project I believed in the asset and still do however PREM is not the company to realise the potential,

Shareholders have a whole lot more pain ahead and I honestly cannot see any upside in the short to medium term

Jaglith, that's a matter for the FCA to decide should shareholders wish to complain. He did most definitely state in the RNS requesting the 4.5 billion that it was required to pay China Zenith. Is that market abuse? Probably not. Is it yet another lie to shareholders only this time in an official regulated communication signed off by the NOMAD? Possibly and should the NOMAD bear some legal responsibility for this communication, without a doubt. Both are culpable and should be held to account for misleading shareholders in official regulated communications.

It will be interesting to see how this pays out. I don't think there will be enough support against either resolution and I expect both to be passed, unless Canmax have withdrawn their support, which would essentially be the end of PREM.

George would be mad not to pay China Zenith what's owed, the risk against the asset would be too great and the reputation al damage with the Chinese would be insurmountable for future projects (should PREM remain in business).

Whatever happens on Monday, PREM have at most 6 weeks to firstly produce a sufficient quantity of verified SC6, obtain an export licence for the SC6 produced (not the sub standard grade product they have already bagged up) and have a plan in place to raise sufficient additional funding to see the company through to the end of H2, how he goes about raising those funds will determine the future viability of the company of they survive the next 6 weeks.

On a risk vs reward basis, the risk far outweighs the reward at this stage in the life cycle of the company. I'm shocked that the share price didn't drop further on Friday but I guess that's down to warehoused sales by the contractor which will be revealed on Monday. I suspect that at best they still have 650 million left to sell but more likely closer to 700 million which they'll want to get rid of as quickly as they can ahead of the EGM results, so I expect some significant downward pressure on the share price on Monday which will have the knock on effect of reducing George's ability to pay China Zenith in shares with only 2 billion allegedly (potentially) available to pay them.

I too have concerns that George will go against his request and if given the full 4 billion he will use them for working capital rather than their intended use.

Luthee you'll no doubt learn the lesson the hard way. It's to be hoped you've not invested a whole pension or home improvement funds in PREM like some members of the PRG. Those unfortunate people were duped by the controlling members of the group, it's to be hoped that at some point they may have some legal recourse against the controlling members of the PRG when the inevitable happens. A class action may help to clean up the AIM cesspit.

Luthee, you seem to be obsessed with Pei, it's obvious from anyone sitting outside looking objectively that Pei is letting GR run the company into the ground. He's allowed Canmax shareholding to be diluted despite having first refusal on recent placings but hasn't participates utilising their rather large cash reserves. Pei has had a plan all along which is typical of Chinese investors, that plan will now play out with the impending failure of Zulu. PREM shareholders will be left with a Tungsten mine on C&M, an Ethiopian carrot and whatever other valueless assets George holds under the PREM name, none of which will ensure the future survival of the company.

Botuney what's sad is you're blind optimism and belief that somehow all will be good.

Any analysis of the company will tell you that the investment case just doesn't exist at this time and given the cash position, likely inability to raise sufficient funds for continued operations and likely inability to service debts without substantial additional dilution over and above that requested by the EGM then PREM is pretty much done for.

That said I saw today that Jason Brewer has had a conversation with George recently so perhaps he's made an offer for PEEM to bring it into the MARU fold of discounted mining operations that don't actually produce anything. I'm not sure which would be worse, George or Jason.

I agree, even if they produce 900 tonnes of SC6 before the end of August they don't have the required export licence or independent grade quality assurance analysis to be able to even sell it ex mine gate. They're still waiting for the analysis of the bags of dust they've got sitting at Zulu now which have been gathering more dust for the last 3 months and still not confirmed as low grade dust that can be traded for diesel. Will the additional dust accumulated by the bags add to the value? An extra gallon or 2 of diesel?

I wonder what trick George may try tomorrow in an attempt to stop the upcoming freefall of the share price? He'll be in London by now so maybe a video of him outside The Garrick ahead of an important meeting or perhaps blowing some of the expense account at Platinum Lace.

I see that Noel got himself into a bit of a pickle yesterday when confronted with some facts about the export licence that he couldn't spin to suit his agenda. Today, the preferati are strangely silent, not a peep from Noel or Snowking, no doubt they're selling down ahead of the placing and will reappear when the share price dips below their current average and they try and convince their disciples that buying more is the right thing to do, I'm surprised Snowking hasn't maxed out another credit card at these levels or DEB taken more of Mum & Dads retirement funds to invest here.

I'll keep hold of all of my PREM thanks, I'm more than willing to lose everything I've invested. As a correction to my last post I can see a drop to the low 0.06p tomorrow and further as the week progresses..

Whywastetime, I'm intrigued as to your thoughts on how this will pan out. 900 million shares to be admitted to trading on Thursday, 900 million shares that contractors will want to redeem for cash to pay their staff, 900 million shares of downward pressure on the share price when, as this week has shown, there is very little demand for buying. Couple that with the clearly desperate situation the company is in, at what discount do you see the placing?

Oh deary me, I cannot believe that PREM have seen fit to release that video. An apology for the sound quality does nothing to detract from the obvious inebriated state of the CEO. Clearly the situation at Zulu has driven him to drink and for some reason known only unto himself he has thought it a good idea to do a drunken rambling commentary on a video which shows absolutely nothing we didn't know already.

Desperate times call for desperate measures and George is obviously now very very desperate to try and get an increase in the share price. He knows the numbers he needs, we all know the numbers he needs, they were posted here yesterday. Quite frankly he hasn't got a snowflakes chance in he'll of getting th share price up to the number he needs, especially if this is his best effort. I wouldn't be surprised to see a drop into the low 0.6 tomorrow on the back of that shameful effort and then further drops towards to weekend as the contractor shares are admitted on Thursday. George is going to have his work cut out to get anything close to as little as a 20% discount on the placing next week, could we be looking at something akin to HE1? The city will smell the fear and take every advantage.

Sharebel, they do have a mining licence but no longer have the EPO licence, not that it matters as an EPO licence is pretty useless if you cannot convert the stuff in the ground into a product you can sell, and is equally as useless to a company that is pretty much destined to run out of cash, become bankrupt and delist leaving the creditors to pick up the assets for pennies, bring in a credible mining contractor and start to get the product they've been promised for the best part of 2 years