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‘Derisked’ ? Back in January we were told ‘In the absence of any unforeseen issue, I expect that first shipments of SC6 will commence in Q1 as projected.’ At the end of March ‘ We expect to produce spodumene, a lepidolite mica rich concentrate and a tantalum rich concentrate late this week provided that final formal outstanding approvals from certain Zimbabwean authorities are received.’ Not surprised share price is dropping as apart from a few tons in November (which will no doubt be deferred come November for operational reasons)we now require a brand new mill which will be installed over the Christmas break ? I think the word is ‘delusional’ when it comes to Prem Company announcements . The only consistent think about them is their inaccuracy.
If I was Canmax I would call in the loan simply to secure the best negotiating position - nobody in my view is going to be able to carry out the investigation and due diligence in 30 days in order to sink another £30 million plus into PREM. Calling in the loan will sink the share price and enable them to do the best possible deal. Methinks shareholders beware.
I agree completely with you raaydaar - a concise and accurate summary. Far too much risk now given the inaccurate guidance - we have been told over the last three months that we were days away from production when clearly we were many months away. On the basis that this is a billion pound resource if I was owed £30 million and could own the whole shooting match by calling in a loan ( who on earth is going to give George £30 million without taking almost total ownership ) why wouldn’t I do this ?
To my mind ACKER you provide well thought out and useful comment which is helpful to the rest of us and I like your optimism however are you not even a bit concerned that the misleading information about delivery has been continuous since January. Accordingly on what basis can there be any confidence in what we are now being told ?If the £30 million plus loan is called in George will have to tell us and the share price will plunge. Whatever anyone says we have no way of knowing if this is likely or otherwise.
On April 12th George said “With plant commissioning already complete, we are now going through the final stages of process control implementation with the plant designers with first concentrate expected shortly and first shipments now targeted for the end of the month." Seven weeks later we are advised that the first - small - shipment should take place by the end of June. Whatever else is going on we don’t know - what we do know is that we are not being given a truthful view of the situation.
It must be bothering anyone who invested here that on the basis we were given very questionable information in successive RNS statements in February and March that it is impossible to rely on any of the statements made today I.e. they are almost certainly best case scenarios viewed through rose tinted glasses. We have been told further funding will be required which against a depreciating share price means an unknown level of dilution even assuming the rose tinted view is correct. The RHA debacle looms ever closer.
Have been in and out of this since before the RHA disaster losing and winning a little along the way. Have sold out today because it’s sometimes better to take a small loss than watch history repeat itself. The RNS is in my view a total disaster , there is no good news only bad and a faint hope it might all come right at some point. The real problem is how do you have any confidence anything will be produced ? As has been pointed out this is so similar to RHA it could be a complete repeat. The share price could half again in days based on past experience of the wild fluctuations involved.
Any Company which is cash poor as this one is where there is a potentially positive outcome round the corner would look to raise funds to cover the short term shortfall, pay creditors and keep everything on track. Clearly a number of investors have been convinced everything is looking good and have invested enough to ensure survival until income starts flowing. When , if and how much income are the key questions and until they are answered this isn’t going anywhere. Commissioning a mine is not the breeze many here seem to think it is.
Very interesting - anyone thinking of investing on here against the enormous share values some are predicting should go the website next investors.com and read the article headed ‘The Mining Company Life Cycle Explained’. It makes interesting reading including ‘ Once construction has been completed and everything has been tested to verify it functions according to its design specifications, improvements in the share price should occur as value of the company becomes fully realised. Teething problems can be quite common during the testing stages. Those shareholders who have unrealistic expectations of a seamless transition, from development to production, may panic and sell out of their position when problems arise during this stage. Production is what every exploration company sets out to achieve, and essentially it means they are pulling stuff out of the ground and selling it. Investors at this stage should be very closely watching production rates (how much is being produced, and how fast, for how much profit).’
ACKER you are absolutely correct about RHA - I well remember the announcements and the excitement about the mine being in production only to find out as you say that it never came to anything. Until we have produced, despatched and invoiced we have nothing concrete. Here’s hoping that this time is different.
On the 21st Feb our leader stated we were in the final stages of commissioning the plant , it now appears commissioning had not taken place on 14th Feb and I think I am correct in saying it still hasn’t taken place - unless of course I have misinterpreted the RNS. A bit concerned that this is all a little misleading . Been in this share since 2015 and despite the enormous progress in constructing the facility feeling a sense of deja vu in terms of lack of clarity and the short term risks around funding which could weigh heavily on the share price. Can’t help wondering whether a fund raise and dilution is just round the corner - just hope not.
I have been in and out of a Prem for over 10 years and it has always tended to lie dormant then move quickly whether up or down. Given where we are and the current situation a rapid move up followed by a partial retrace is entirely predictable.
As per my previous post this is the historical pattern and I have a feeling that once before it fell 50% in a day after a meteoric rise. The fact is there hasn’t been any concrete information just a lot of hot air from those who should know better. Looks a pretty sorry story at the moment.
Anyone in this share for any period of time has seen this happen three or four times before and has probably sold the majority of their shares by now ready to buy back in on the inevitable drop.. Share price almost trebles on no definite news after an announcement saying there was no guarantee any deal would go ahead. Circum also now can illiquid investment until the war in Ethiopia is over . Anyone who bought in the last week really needs to keep their fingers and toes crossed because history is not on their side.
Clearly those who bought in last week hoping for an immediate announcement are disappointed and are presumably now selling hence the price drop - doesn’t mean anything, if a deal is done then the price will rocket if not I guess it will wander downwards - given the improvement in the quality of the management I’ll wait to see how we get on as I think we can trust them this time round. Might be wrong of course but will buy a few more if the price does drift down.
Given your 600 + positive posts over five years whilst share value has been destroyed can’t make my mind up whether you are an eternally optimistic investor solely dedicated to the Premier ( you don’t post about any other share) cause or maybe someone involved with Premier or maybe even the main man himself.....food for thought for anyone reading your posts and placing any reliance on them.