Member Info for Martinigirl

Johnny so now you agree that there was a problem.

Let's look at the facts, GR loan of £1.7m to tide them over and a placing of £4mn we were told was sufficient to see them through to November. Clearly it wasn't as the £1.7mn has been used and what's left of the £4mn wasn't enough to see them through to November. Just how much cash are they burning through that £5.7mn isn't enough to last them 8 weeks?

I see George has reverted to type, just can't resist getting those placings away. 2 placings 72 hours apart plus another share issue to repay his loan plus share issues to pay contractors will be well over 60% of the headroom gone in just a couple of weeks following him getting the headroom. He clearly has no respect for shareholders and is more than happy to dilute as much as possible.

Clearly things at PREM are not all rosy from a financial perspective.

On the first placing RNS "George Roach, CEO commented: "Based on current projections this funding and the arrangements set out below is expected to see Zulu pass through the current interim remedial situation and allow the Company to reach target nameplate production at Zulu." So he reckoned he had enough cash to get through to November.

This second placing RNS "The Subscription, together with the Placing funds (as announced on 25 August 2023) funds remaining expected operational expenditure and any shortfall in remedial expenses not met by the plant supplier for first revenue forecast for November 2023."

Key wording in the second RNS "Placing funds (as announced on 25 August 2023) funds remaining"

So it's likely that the 1st placing was nowhere near enough to get through to forecast production and now they needed the extra placing to get to 1st November.

DrP zulu wasn't a valued asset at that date, valuation was agreed following the renegotiated offtake agreement. It is however arbitrary should PREM not be able to meet its financial obligations

Romanwolf an asset is only worth what someone is willing to pay for it hence the cashflow test. We all know that when a company is insolvent and in administration the assets are sold for pennies in the pound. If / when GR screws it up who do you think will be bidding for Zulu? My guess is Canmax. They played hardball and lost to a force majeure call,now they've negotiated a deal that gets them the land grab they wanted if GR can't get zulu into production

I agree they're not there yet and I agree thatblies have been told. How many more lies will be told? What will George be telling stockbox in the next interview? How many things will be imminent or in the next few days / weeks? Like I said he has 8 weeks to get Zulu into production, will the SP go up in anticipation? It may well do but I think caution would be best right now with PREM and I think the SP will remain in a range of 0.35 to 0.45 so ideal for the likes of Snowking to make a few quid buying and selling.

Gazza,

The legal definition of Insolvency is set out in Section 123 of The Insolvency Act 1986 and also sets out two tests to consider whether a company is insolvent.

The Balance Sheet Test says that if a company’s liabilities are greater than its assets then it is insolvent.

The Cashflow Test says that a company is insolvent if it is unable to pay its debts as and when they fall due. Or put simply, creditors are chasing for amounts that are owed to them, and there are insufficient monies to pay them at the time. Therefore, while a company may have significant capital assets, if it does not have sufficient cash to pay a bill when it falls due then it is considered insolvent.

Gazza,

Section 123 Insolvency Act 1986:

"The Balance Sheet Test says that if a company's liabilities are greater than its assets then it is insolvent. The Cashflow Test says that a company is insolvent if it is unable to pay its debts as and when they fall due."

Shark41 it's probably impossible to get the borrow to open a short on PREM, any shorts that exist would most likely be spreadbets

Gazza I've done well from some of my investment decisions and not so well from others, that's the nature of the markets, you win some you lose some and occasionally you do very well out of some.

I don't know what you would call it when a company hasn't got enough cash to cover its liabilities, I'd call it insolvent and if PREM isn't producing by year end it won't have enough cash to cover its liabilities.

RomanWolf I'm inclined to agree with Raaydaar on the timescales he stated, as much as he was wrong with the Singapore precedent, he pretty much called it right with everything else he stated. If PREM don't start shipments by 1st November then they need to repay $1.5 mln, if PREM can't pay then the options to rollover or convert to shares come into play. Right now PREM have several billion shares they can place to raise funds and since Canmax elected not to participate in the placing it's unlikely they'll look to convert to PREM shares or rollover, they'll want their money back so George will have to place to raise those funds, alongside paying contractors and repaying himself and day to day expenses. Once that's all gone then Canmax can elect to take part of zulu but unfortunately at that point PREM will be out of cash and have no facility to raise further funds other than another GR loan facility.

As I've said before if PREM isn't supplying by November 1st then they're pretty much insolvent. George has about 8 weeks to get things sorted. I note Snowking has made a return with some cryptic insinuations, perhaps he's had dinner with the Stark CEO again and been told all is good, I also hear he's buying again tomorrow. I'm sure that all in the telegram rosy tinted glasses group will believe him and get in quick on the bell, but anyone with any knowledge of PREM and indeed knowledge of Snowking will know he is full of it and manipulating the telegram group to meet his own ends and get them to spout his untruths across social media and the bulletin boards.

PREM is now a binary play, production and supply by 1st November or administration. One will come before the other and uou can rest assured if the latter is 1st, Snowking won't be left holding any shares, unlike his disciples

Might be a good week for Snowking his placing shares will hit the market and his portfolio will show a profit from his forward selling. As for other news, unless GR has bitten the bullet and stepped down then there's nothing to see here as is the norm with the Pandora group mysterious assertions.

"Awaiting production" yes indeed we are and have been for 6 months, yet still no sign of production and all that lies ahead is more dilution to pay back George, to pay contractors and no doubt to keep the lights on post 1st November. Stockbox interviews are worthless, they as a company are as guilty as George in misleading shareholders with the leading questions to get substantiate his lies. No doubt he's paying them in shares too.

Wolframite, not quite true. Prem aren't funded until production, they're allegedly funded until November.

Bagzz some of us did very well out of DEV, I put £50k in just after the IPO in the 1p area got out in the early 30s, couldn't trust Jeffries after he starting lying to shareholders and selling his shares.

GaryBaines: " do these people feel the need to warn you of impending doom why do they think they know better than the people closest to the company"

Probably because those closest to the company are either lied to by George or promoting their own agenda. Those of us with a more negative slant recently have been proven correct and will be correct again when the next issue of shares happens to pay back George and additional issues to pay contractors. I personally don't believe they'll be producing by November so expect a further placing of the remaining shares. Q1 2024 is the ultimate deadline, zulu must be in production or Prem becomes insolvent

Malpenn, what does Canmax not taking part in the placing tell you?

Acker, I would guess that Stark are charging PREM because the rha mill is not part of their fix, its a PREM workaround until Stark supply their mill.

I'm sure Marcus and those that don't understand the meaning of "have been" will be writing apologetic posts to all those people they duped with their lies.

What's interesting is that there's no mention of Canmax, did they reject the placing (I believe that they were still required first refusal to maintain their %). If they did refuse then it's clear to me that they anticipate George to fail once again. Where's PREM gonna get the money they'll need to pay the Canmax penalties?

Marcus you are in serious need of a reality check. The rns clearly stated the £1.7 million has been spent, George has clearly stated in emphatic terms that the company does not and will not have enough money to see them through to heir estimated production date. There will be a placing to raise funds there is absolutely no doubt about that, it will be at a significant discount, there is absolutely no doubt about that either. Jow much of the 5bn headroom will George use? I'd say as much as he thinks he can get away with but at least 2bn. To use your nautical analogy that might be enough to keep them afloat until production in the new year

Jaguar those grades were produced under laboratory conditions. All those tests show is that the stuff in the ground is capable of being turned into a saleable grade. As it stands the plant isnt capable of turning the stuff in the ground into anything remotely near a saleable grade and imho isn't likely to this side of Christmas