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Hi Clueless,
Does the RNS move Prem towards production? That's kinda my point.
The RNS says that the new kit has not fixed the problems and that production projections will be revised in the coming weeks. That means revised down and pushed back.
The RNS does say that they can squeeze some SC6 from lab work but that isn't a production pipeline and nobody is suggesting that they run all the current contaminated product through that lab process.
What they're hoping is to run the current unusable product through the flotation circuit multiple times until it produces sellable product. And that will probably work but how much will be produced and how long will it take? If it takes 3 weeks to produce 1 ton of SC6 then it might get sold but its not solved any cash problems.
Someone else has said, we will produce it'll just take time. I would agree with that. But time is limited if the deal with canmax breaks down.
If they revise projections to something like, in 2 months we think we will be able to produce 1000 tonnes per month... Will that be enough to find a new partner to take the 5bn shares, pay off canmax and move forward as a producer?
I'll get shouted down. But given all the "when lambo" chatter here, I can't not try.
Yes, it is possible that a new deal is agreed sometime soonish between Prem and Canmax. And yes it is possible that Stark works out how to replicate its lab experiments at production scale. Fingers crossed for both.
But the RNS yesterday did not say that either of these things has happened.
Talks with Canmax are "ongoing" as of yesterday morning. Any day now we could hear that talks have concluded and there's a great new deal that gives nothing away, or there's a crap deal that gives a lot away, or there's no deal and it's going to arbitration. We can hope, we can have faith in GR... but we don't know which of these it's going to be.
As for the promised SC6 grade and becoming a producer in August: the RNS said that the plant is currently producing unusable dirt and that is with the new hydrosizer and UV sorter installed. They're hoping that running the existing sacks through the circuit several times might make something they can sell.... but that is not something they can keep doing. They need a lot of work and possibly new parts in order to turn lab results into a production scale pipeline. It says the production projections will be updated (reduced) in the coming weeks. That is NOT a woop woop announcement.
So, tell me to shut up, filter me, whatever. I'm just trying to remind people of what the RNS actually said and what the uncertainty is. Share price is rising but Prem has always been quick to rise. Don't use share price as proof of value.
Good luck all.
That headline is pretty misleading.
They say it "nears" a satisfactory outcome but the only quoted part is "satisfactory outcome" from GR's comment that he appreciates the work from both teams. GR has not said its "near" in that RNS.
Fingers crossed they get a deal, should know by end of day
The 10 days of "friendly discussion" would be up at end of today as far as my counting goes (notified on 17th July, 10 working days is up to and including today).
The RNS this morning said they were ongoing and at an advanced stage but not that they were being extended or that an agreement was close.
So I would expect an RNS at end of day or first thing tomorrow to say whether these friendly discussions were to continue or whether one party was taking it to arbitration.
Great help Gazza.
So - the RNS says:
Discussions are "friendly" but no solutions mentioned yet.
We can produce SC6 in a lab experiment but not with the plant. There are big issues to fix with the plant- work is ongoing.
Please turn up at the SGM and vote to allow dilution.
That's it.
So, Wagner are in quite a few African countries.
Shock.
Mali and Zimbabwe- well I guess KOD and PREM holders will be aware and make their own risk assessment.
Maybe this will quieten down some of the nonsense that comes on these boards though.
Some folk on here are far too used to the hype and pump fron other shares.
It's true that the KOD website could be better but in terms of interviews from the CEO we don't need any and may not want any.
We know the status from RNS (more reliable than rampy interviews). KOD and Hainan have completed all their parts and are just waiting on the Mali government to approve the restructuring. That's it, that's the status. We all know that.
Would it help to have the CEO on Stockbox every week repeating that message? I don't think so. There is a new Minister of Mines in Mali. Do we want to send them the message, we're just waiting on you, get your finger out? No, we don't. That's how you annoy essential partners.
So Bernie is presumably thinking, I've told investors exactly where we are at and I'm letting the new Minister get up to speed without trying to publicly pressure him. That's good CEO'ing.
So relax and trust the RNS's. I for one don't need my CEO to whisper sweet nothings to me.
Https://www.politico.eu/article/portugal-lithium-mining-project-scrap/
There's lots of ways to raise money to pay off Canmax if that's required.
They could, in theory, offer 5bn shares at a higher share price than the current one- if the new partner believes the SP will grow upon deal completion.
Or, they could offer the new partner a mix of shares and prepayment for offtake, like they did with canmax. Although I'd the Force Majeure claim is bogus a new partner may not want to go down the same road as canmax.
There's bound to be other options like offering future warrants at discounted prices or more seats on the board or discounts on future product or whatever. Basically it doesn't all need to be found in 5bn shares.
But that all may depend on whether Canmax still has 50% offtake rights from Suzhou's subscription agreement (I think so) and whether the new partner looks at the FM claim and thinks, I do or don't trust these guys to act in good faith on contracts for product
Nigel50 - you're basically correct. A vote 'no' still allows the company to issue shares but existing holders get given the chance to maintain their percentage. A vote 'yes' means they can dilute your shares in quite a big way.
But what they want to do is on a slightly different scale to the normal fundraise.
They're not just raising a couple of million and can ask existing shareholders to chip in to cover it.
They need to raise tens of millions and so they'll need to go to a company and offer them a lot of shares (5 billion is mentioned in the RNS) in exchange for a lot of cash.
If you vote 'no' then it messes up their ability to do a deal like that because they can't negotiate a known percentage of the company when an unknown percentage of shareholders will demand to increase their own number of shares.
So you can vote 'no' and the company may go bankrupt as it runs out of funding before the plant is fully producing (or as Canmax somehow get to a point of claiming their money back) or you can vote 'yes' and let them dilute your shares by about 20% but hope that they find someone to keep the company afloat in the near term.
There are some folk saying Mali is a bad place to go mining.
https://www.juniorminingnetwork.com/mining-stocks/mali-mining-stocks.html
Here's a massive list of mining companies in Mali... and that's just for gold mining.
Mali is a mining country. Loads of companies mine in Mali. Its a place to do mining.
The recent RNS said the BOD want the ability to give 5bn new shares away (if I read correctly).
I'm guessing that's to allow a new partner to buy in, and therefore provide significant cash to pay off Canmax.
But 5bn is about 25% of current shares and mcap, or roughly £20m.
And I suppose it may be less when they value it because adding 5bn shares dilutes things.
Is that likely to be enough?
Canmax are owed 35m? Or thereabouts?
And paying off the Canmax prepayment is not the same as paying off Canmax's own subscription and rights to offtake, I think.
Seems like voting yes is the only way to move forward but just wondering if folk have better back of envelope calcs than me and can show a way where this gets us over the line
From reading the note, it seems that SP Angel essentially ignore the issue of DSO export being stopped and instead focused on other potential changes in the mining code i.e. the chance that the Mali government is intending to increase the ownership rights for government (up to 30%) and local stakeholders (possible 5%).
If the announcement was related to these percentages then it would have been a useful 'read across' for Kodal who are presumably subject to the same.
I don't think SP Angel's comment was intended to thrash the KOD share price, they'd simply been reading articles around the issue (widely reporting potential percentage changes) rather than focusing on what was in Leo Lithium's request for suspension (only mentioned DSO export from memory).
Given that no one knows what Leo Lith has been told by their contacts in government, it's possible that the Mali government is going to make an announcment about either, both or none of these potential changes.
The share price collapsed because it collapses at the slightest thing - we were down here last month and went up to .60 and now we're back down again... I expect we'll return to 0.6 and then maybe come back down again and on and on until the Mali government a) approves our funding structure b) clarifies any updates to mining legislation/regulation.
In summary, seems like a harmless and legit comment by SP Angel given the unknowns and potentials - and then an over-reaction by the perennially reactionary KOD traders
From RNS after the AGM in June, "As announced earlier today, Premier has the general authority to issue shares on a pre-emptive basis such as an open offer or rights issue."
The shareholders had voted against the BOD and the BOD came straight back and said, we can do a raise anyway.
Well, they wouldn't be the first company to make a plan that doesn't include any time for delays.
That said, i've seen on their LSE board someone saying that their director (Steve?) has built a plant like this in 11months in the past. I suppose that's where the timescale comes from. Optimisation would take time on top, i'm sure.
I guess the proof will be in the eating etc.