Member Info for raaydaar

Ricky, maybe he's waiting for the spod fairy to deliver some SC6

He'll have to pay them straight away or risk:

A) not having enough shares to pay them

B) expensive litigation which could threaten Zulu and the wider company

C) Significant reputation damage within the industry

Nhjj, that's correct and therein lies part of GRs problem, he owes them around $2.25 million or about £1.75 million. Here's the breakdown at various SP values:

0.09 = 1.945 billion shares

0.08 = 2.188 billion shares

0.07 = 2.5 billion shares

0.06 = 2.917 billion shares

0.05 = 3.5 billion shares

0.04 = 4.375 billion shares

As you can see in order to pay CZ and have sufficient shares left over to give themselves any reasinable amount of working capital, GR will need the SP to be at or above 0.08p this will give the ability to utilise 2 billion or more shares fornthe discounted raise.

2 billion shares generates enough money to last between 2 and probably 6 weeks at most depending on the price he gets the placing away at:

0.09p = £1.8 million

0.08p = £1.6 million

0.07p = £1.4 million

0.06p = £1.2 million

0.05p = £1 million

0.04p = £800k

All of these numbers are before expenses which will be a fixed percentage of the monies raised or the number of shares placed son in reality those numbers are likely to be reduced by around 10% to 15% to cover the expenses.

I think it's obvious when you look at those numbers and look at where the share price is today then things aren't looking good for PREM in terms of its ability to raise sufficient funds to continue operating to the point where it becomes revenue generating.

Pjmcgra, clearly the buys aren't overwhelming the sells hence why the SP remains where it is. Just wait until Thursday when the contractor shares start being sold then you'll see the SP lower for 3 trading days until the placing is announced that's when it will really drop. The city vultures will see just how desperate the PREM situation is and they're gonna want a hefty discount to part with their money.

7 days until the EGM, if he gets the headroom then it's 8 days until the 4 billion are placed to pay the debt and raise a few weeks worth of working capital.

However it's only 3 days before 900 million shares are admitted and will be sold so the contractors can be paid for their most recent invoices. That's a lot of downward pressure to hit the market ahead of a guaranteed (subject to headroom approval) massively discounted raise. No doubt the contractors will want to dispose of those shares prior to the discounted raise so it's likely they'll get whatever they can for them.

Looks like there's buyers around and they haven't got the stock so need to try and entice some sellers. Can't imagine there'll be many ready to sell at these levels knowing that the company have told shareholders at the AGM they consider themselves to be on target to achieve the $2bn AUM by the end of this year

* Sunk Cost Fallacy

Defines the majority of posters here and in the other groups.

One day they'll wake up and realise exactly what's happening here, will it be too late by then?

Clueless you should perhaps revisit some of the interviews GR has done, when they were previously optimising and Goddards were working full time, they weren't able to stockpile any ore so what makes you think they've been able to stockpile anything now, especially since they've not been undertaking any mining operations whilst the plant has been switched off.

Let's look at some more numbers shall we.

50% mining operations equals $25k a day or $750k a month, utilising 2 billion shares placed at 0.06 raises roughly $1.6 million. Diesel costs are circa $700k a month but let's go down the 50% route and say $350k so mining and diesel costs based on a 50% operation are $1.1 million then there's salaries, other contractor costs, incidentally and consultancy fees to be added kn top of that. That's pretty much the full amount gone in a month. You could scale it back further but it's unlikely they'll be able to optimise at less than 50 %, in fact GR has openly stated that the plant cannot be optimised until everything is running at full capacity which suggests that the 50% costing figure is unrealistic and the optimisation costs will be closer to the figures previously quoted which means that post a raise utilising the full 2 billion shares (the number will actually be less once CZ have been paid) then PREM will have sufficient funds to support the operation for less than 1 month, assuming GR gets shareholder support for the increased headroom. Chatter amongst the telegramp groups suggests there's a whole lot of dissenters out there and that the support for the vote isn't a foregone conclusion.

£0 ÷ 31,380,000,000 = £0.00000000000000000^

Gazza you only really need to consider 1 cost which GR has openly revealed in previous interviews. $50k daily mining costs or $1.5 million a month, tell us at 0.06p how much does 2 billion share placing raise?

What he also said in that interview was that dilution was coming, and he didn't mean the contractor payment he meant the full 4 billion plus a little bit left over to pay CZ and for working capital. Working capital that won't last beyond September. Will shareholders approve additional headroom in September, another 10 or 20 billion shares?

PREM haven't got enough cash to pay the invoices. As Acker said, "Hobsons Choice" they'll be selling them as soon as they can.

Now reliant on the EGM vote, he'll have less than 2 billion to use for capital raise (if he pays CZ) and I expect these 900 million to be sold ASAP ahead of the EGM, that's a whole lot of shares to churn through ahead of a known discounted raise.

I do indeed remember those names Acker, like you say all been and gone, the names change, sadly George hasn't changed at all.

Someone mentioned a poster called Xulu earlier which took me back to the good old days when I first invested in PREM back around 2016, when RHA was going to be the making of the company and we would all be able to retire when GR delivered.

I also remember a poster called Crazcacti back then, Xulu would be the equivalent of Snowking today, forever positive and trading the hell out of the SP movements. Crazycacti was an island dweller, lived on the IOM if I remember rightly but had a balanced if slightly negative stance on the situation at the time, much like Acker today. However, whilst the bulletin board names have changed, GR hasn't, if you look back to the history or interviews, placings etc back then, you can see that GR uses pretty much all the same words with the associated videos. Back then the XRT sorter was the equivalent of the conditioner, needed tweaking etc but he had every expectation all would be good, the videos of the mine working pumped up the SP ahead of placing after placing, I'm pretty sure he even used the threat of PREM going out of business to get a couple of placings away around 2018. He failed to deliver back then and he's using exactly the same tactics to get thisbnext placing away to keep paying his wages.

Anyone looking at PREM objectively right now knowing all the information that is in the public domain wouldn't invest a single penny into the company. Imminent raise utilising closentob3 billion shares at least a 20% discount, I think at least 30% possibly more , coupled with a share issue of another 2 billion shares at the prevailing SP, all of which (and by all I mean nearly 5 billion more shares) will be sold, those participating in the imminent placing and the debt holders have absolutely no intention whatsoever of becoming shareholders in PREM, they want their profits by selling the placing shares or they want their debt paid for services provided. Both will provide a downward pressure on the SP which doesn't bode well

If you haven't already, I'd suggest running the numbers on the prepayment agreement with the various interest rates (compounded and simple) up to the long stop date. The figure is quite eye opening against the supposed $200 million valuation of Zulu.

it's unlikely to get to the long stop date as PREM won't have the cash flow to get beyond the end of September, but worth crunching the numbers all the same as so many seem to be reliant on the long stop date and valuation with their arguments here.

Metalbasher, that valuation will most likely be revised when the offtake agreement is renegotiated.

RP2020, you clearly have little to no experience with PREM.

The Company is pretty much done for, no cash, no ability to raise cash with the SP as it currently stands, no product, no licence, no hope.

Santiago, how do you propose he raises £10m? He hasn't the authority to do so, he could of course resort to other methods which would certainly see the end of any shareholder value.

As it stands if shareholders support the motions at the upcoming EGM then GR will have just enough share headroom to pay CZ and leave enough left over to buy the 250 workers at Zuku a McDonald's breakfast.

Unless of course he chooses once again not to pay CZ, that's his dilemma,lose Zulu because he's run out of cash or risk expensive legal action which will cost him Zulu and ruin his reputation with the Chinese.