RE: B0ll0cks18 Apr 2024 23:54
Dykee, what I buy and sell is my business and whilst I'd love to share my philosophy with you it could be construed as providing financial advice which is something I'm not qualified to do. I've done very well out of trading PREM as could anyone that can see it for what it is. Right now as I see it it's not even worth a potential trade, it is for me an uninvestable proposition, not even for a trade. The placing shares have yet to be admitted and whilst they're most likely forward sold, I suspect that the SP will drop down towards 0.15 over the coming sessions. There's far too much uncertainty around what the placing money is being used for and no confirmation as yet wrt the payment to Goddards, who imho will not be willing to accept a share payment at 0.26 (a circa 40% premium to current price), then there's the China Zenith payment still outstanding and George's loan still outstanding. There needs to be some visibility on these along with definitive progress on the larger issues at Zulu: Sorters, Sensors, Control units etc before I'd even consider investing any more money here.
These larger issues tell me that there will not be any production of SC6 this month or indeed next month, at the very best it will be mid June and it won't be 1000 tonnes. I doubt that will even happen but remain open minded. The company financial position is precarious, with the above debts and current "known" cash burn the recent raises will fund the company for maybe 5 or 6 weeks at best. Its a downward spiral towards either another EGM for more headroom or losing Zulu to Canmax, neither scenario is good for shareholders who will be pretty much wiped out and holding onto the hope of a Circum or Mutare carrot after George has diluted them even further to keep the lights on.