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So I asked how much GR has spent on the RHA report! I don't know how much and perhaps we'll never know but he has bound to have used funds from the recent fundraising.
For every £10,000 he has spent on it, the cost in shares is around the 6 million mark... I don't know, has he spent £20K, £50K or £80K or more? That would be 12mil, 30mil or 48mil shares. Consider what those shares would be worth in a year or 2 when we're sitting at 1p or 5p or 10p... that is the real cost of RHA (plus the $2.5 mil to get it on track).
Factor that in and it doesn't look like a great project after all.
Check out the history of RHA and GR's inability to get it producing anything of substance over years and one might reasonably think that the chances of realising the profit implied in Friday's report is at best optimistic.
I don't know how much GR is spending on rigs but it seems to me that he would have got a much better response from the market if he had spent that money on getting another rig(s) on site at Zulu!!

Chuggley - I've been in PREM for years and GR might state that everything is ON TRACK but my experience would apply a good dose of scepticism to his statements. We don't really know if it's on track because he hasn't published any plan or any end date. I reckon GR thinks that it's like in a game of rugby, when there's a hold-up, the clock stops and that time isn't counted.
There is still no clarity on when that target for the DFS is... plus there's just the little matter of the scope... so far it doesn't include the EPO area.
Out of interest, how much do you think that RHA report cost?

That's because it is negative, Chuggley.
You forgot to include the 3rd rig for Zulu... wonder where that could be and when that is going to arrive!

Chuggley - the net effect of your rewritten RNS is still that testing results are delayed at Zulu and there is still no funding/deal to progress RHA.
It would have been better for GR to not have published any RNS!

I'm afraid, Snowking, that I'm questioning more and more this cosy relationship you and your group have with PREM... not quite sure who is playing who but clearly someone is benefitting from the arrangement and it's not us regular shareholders.

Here's my outlook for the next few weeks - no positive news until September at the earliest and the next news will include GR's next dilution. We don't have a cash burn rate but I reckon that GR will be burning through that £1mil he raised a couple of months ago at a good pace with extra reports being done on RHA and Zulu. And, of course, the next dilution is bound to be at a poorer sp than we might have expected because of last week's RNS.

Agree Johnny - at some stage, this will begin to motor north but short term is looking rocky.

Snowking, I don't think that the market responded negatively because of a poorly worded RNS. Fundamentally, we're seeing that nothing is changing vis a vis GR's performance and his strategy. We're all expecting imminent test results from Zulu but we now find out that there have been hold-ups and the lab is not even on site... and we don't know when we're going to get those results... when GR says that there's been delays and hold-ups but the overall timescale is still the same, no-one believes him (especially when he's not been willing to put a date on completing the DFS in the first place).

He also chooses to prioritise RHA over Zulu (remember the Zulu DFS that he was supposed to have started years ago but got distracted by Circum). Good on him for saying that Prem isn't going to sink any more money into it BUT if no-one else is going to, it's dead in the water. On the other hand, if it's that stellar a project then why would PREM not put the money up, GR has got the headroom to do it... given the poor history of RHA this all doesn't sit quite right... And if it's that stellar a project why don't we have a deal on it yet... he's had years to sort one out.
As for asset prices... they're not guaranteed to rise!
At some stage, we'll get the newsflow from Zulu and things like RHA and MNH and Circum will be insignificant.
I can't see any positive news anytime soon... certainly not this month... with no expectation of news in that timescale, the sp usually drifts. I can certainly understand why some are reducing their holdings or selling up altogether.

ProfitBags - you've highlighted some important points but just to reinforce this about RHA...

PREM has already spent $20mil plus on RHA and we still do not have a producing mine. It still needs $2.5mil to get to a stage where it can produce. Over the next 10 years, it may (or may not) produce $20mil "profit". Whilst GR has said that there are off-take partners waiting in the wings, none of them so far see it as something to commit to... speaks volumes!

Over at Zulu (which might produce billions of profit over 10 years), GR has managed to get 2 rigs on site to progress the DFS for the pre-EPO area. The lab is held up in customs and, whilst he says we're on track to deliver on the previously published timescale, I'd suggest that there is no-one who can say when we can expect the DFS. Will it be Sept 2022 or Dec 2022 or is it actually a date in 2023? To my knowledge GR has not given a date for completion.

AND, everyone should be clear that the DFS is only for the pre-EPO area... we do not have any plans or costs published for the massive post-EPO area.

In his wisdom, GR decided to prioritise RHA (which may or may not produce profits for PREM) above Zulu to effectively tell us that PREM are not going to fund it... and, as yet, NIEFF and off-take partners (who he has been speaking to for months, if not years) aren't willing to fund it either.

And we don't know what he's up to with MNH either!!

A wee bit of advice to GR - focus on Zulu, tell us the plan for getting the DFS done for both areas, get more rigs on site, get the testing started, get the sp motoring and then, if you've got time, you can continue fannying about with RHA and MNH.

Hey Acker - I've been too polite to suggest what you've suggested but it has certainly crossed my mind that there's some folks manipulating things!
Anyway, I've had time to reflect on the RNS and it's definitely a clanger of the highest order. If anyone cares to look back at the history of RHA, you will see the issues that beset it before... there is no easy road to profit and the Zim gov't are not going to give more money to GR.
Simply can't understand why the RNS needed to be issued in the 1st place. GR clearly wants the Zim gov't to put cash into it and it seems that they are stubbornly refusing... i suspect that GR isn't even getting an audience with them... and the RNS is an attempt to shame them into coughing up??
I have recently said that the tipping point had almost been reached, i.e. that the newsflow from Zulu would outweigh any of GR's incompetence... how wrong was I.
Fully expect the sp to drift back downwards again for weeks, possibly months, until we get some positive news out of Zulu.

Agreed whatitsworth - as for a placing, GR took £1 million 2 months ago. He didn't tell us how long that would last and I'm guessing that he'll be looking for more soon - clearly he's spending money on RHA and the drilling camp has been "active" for quite some time.
I'm absolutely sure that he would have thought that the next placing would be between 0.3 and 0.5 but here we are still languishing at 0.2... to counter Snowking's big month, this is going to be be a depressing month!

I disagree Snowking - the publication of the RNS is clearly aimed at NIEFF... otherwise ( and if there's an imminent off-taker deal), why issue it?
GR seems to have been talking to off-takers for a long time and it's clear that they don't think that RHA is worth committing to... otherwise, the RNS would have been about a deal. The table at the bottom doesn't demonstrate the profitability that was previously expected... it's not a poorly worded RNS.... it's a poor project that GR has got us all entangled with and it doesn't look as if we're going to get anything out of it... given what we've already spent on it!

Zulu is not on track. Drilling started months late, further delays due to covid and now the lab equipment is stuck at customs.

I admire your optimism but it's a mess!

Have to say that I do appreciate Snowking's input but GR seems to be playing him and the Pandora group.

Shiny -NIEFF clearly didn't see it that way and GR hasn't forced the point... perhaps, legally, he didn't have a leg to stand on. He certainly hasn't taken any legal action to recover any funds!

The real concern now (apart from it being a distraction) is that RHA doesn't appear to be the profit generating asset that we were told it would be and, from the figures, it doesn't look like the Zim gov't will get anything from it... so why would they cough up any money? GR is deluded if he thinks that he can get them to cough it up.

The other concern is that off-takers don't seem to see it as a great project and they're not willing to put the money up either.

The only hope GR has with RHA is if NIEFF make PREM the major shareholder... politically, that isn't going to look good.

For me, GR should realise that it is dead in the water!

Watch out for the 2nd wave of selling and then the drift... can't see any positive news this month now and wouldn't be surprised if we end the month back at 0.16.

Again, GR has proved that he just isn't the person to be leading this.

GR would like us to think that NIEFF owe us a fortune but that is simply not the case! The contract was for PREM to develop a profitable mine and PREM would take the first £20 mil of profit. Can't see NIEFF putting up any money if GR or off-takers are not willing to put any money up!

kievsky - do you really believe that it is all still on target? Clearly, there have been delays BUT he hasn't explained what he has done/is doing to make up for those delays. No news of getting any additional rigs. He is simply hoping for the best and, of course, delays cost money! That lab could sit in customs for months!!

AND please remember that this current DFS is only for the pre-EPO area - he still hasn't explained how he is going to extend it and how much it will cost.

As for RHA - he says that there are interested off-take partners but clearly not interested enough to get it going! RHA is going nowhere!

Disappointing.... very disappointing!

Another confusing update - has covid impacted Zulu or not? Seems to suggest that it has and then it hasn't!

The lab should have been on site at Zulu weeks ago and test results are still weeks if not months away.

RHA is really no further forward too and my main concern is that it is a distraction to focusing on Zulu. GR doesn't have the capacity to handle more than one thing at once.

Very disappointing - another infamous PREM sp drift downwards is now on the cards!

Fair comment, Snowking - for RHA, I just don't want PREM to be forking out anymore funds on it. The Tungsten price is fine just now and maybe it will continue to rise but, as you've indicated, the price was well below breakeven as recently as January.

It'd be nice to get an off-take agreement plus a healthy upfront payment!

If no news tonight or tomorrow morning then we're in for a turbulent start to trading - lots of folks, including myself, expecting news this week.

Sincerely hope that there's no news on RHA except that it's either been mothballed or given away for £1... RHA is an unnecessary distraction and has the potential to swallow up more cash... GR should leave it to someone else. The Zim gov't are not going to cough up anything so it's time to walk away.