Member Info for steward1

Getting close to 2 years (July 2019 - when the Manganese price was substantially higher than now) since we first sunk money in to MNH and we're all still in the dark about it... has it produced any income for us... and apparently GR wants more of our money to buy more of it... possibly without giving us any more info about it!

Snowking - the simple fact is that GR needs funds and he needs to give up something to get those funds. Suggesting that we'll retain 100% can be misunderstood. Whether he gives shares away or he does a jv, my portion of PREM is going to be less than it is today (all other things being equal). How much less depends on what GR does - is he going to do a deal that minimises dilution... doubt it!

You didn't answer the questions about MNH????

WADR... That's no clarification, SK... so we keep 100% but may have to give some shares away... doesn't sound like we'll be keeping 100% then.
And since you've mentioned MNH... I agree GR WILL look to get headroom... that way he won't need to justify spending more on MNH!! What was the business case for MNH again? How much income have we received?
As for your slowly reducing your Omega holding to buy PREM... sounds like you're going to take your time so that you can buy more of PREM cheaper next week? next month?

The only positive is Zulu, Chuggley. That's why the majority of people are here. With the EPO, the asset moves into a different league and GR is simply not in that league. I don't expect him to be running Zulu in 18 months time - I'm willing to wait.
Any investor will be asking what is the optimum time to invest... I got it way wrong 4 years ago... but I've got a few bob more waiting for that optimum time... whilst there was a valiant effort to get the sp up on Friday, there is too much history and uncertainty about GR this side of the funding announcement... can't see the sp rising into the announcement but happy to admit when I'm wrong.

No need to be so personal, mugwump.

mugwump - we've been here before. GR decided to pull the plug on RHA and no-one else did. I'm pretty sure that he didn't cite the "corrupt" Zim gov't as the reason for doing this... does that make him a liar now by misleading shareholders about the reasons for putting RHA on hold? He took a very high risk approach which he couldn't pull off - it's as simple as that!

You might want to look in to RHA and MNH, Chuggley, if you've not done so. My initial investment in PREM (a number of years ago, I might add) was a bit rushed due to Zulu and lithium... there were also very positive soundings about RHA and even Circum. GR then pulled the plug on RHA and sunk more funds into Circum (rather than Zulu)... followed up with purchasing MNH... none of these assets have provided a return as yet and have the potential to cost more (apart from Circum)... GR's hubris about these assets and others could cost us dearly and, potentially, de-rail Zulu. Zulu had already been sidelined due to GR effectively running out of funds because he spent what he had elsewhere.
Remember, GR referred to MNH in the last but one RNS (?) - he's definitely thinking about using the sp increase (due to Zulu) to shore up MNH!! If folks are investing in PREM, they need to understand the history and GR's MO!!!

Absolutely Chuggley - no-one does anything for free. I'm just highlighting the difficulty that GR is in.
And, if I may, can I also highlight that you've only mentioned Zulu... what do you think that GR is going to do about MNH, RHA, Katete, gold mines (can't remember the name) and anything else that takes his fancy... where is he going to get the funding?
Before suggesting that the Zim gov't will cough up for RHA or that there'll be some off-take agreement... GR has had plenty of time in the last couple of years to get RHA moving again but hasn't been able to... I suspect that he needs cash to do something with it.
MNH - we're all in the dark about this one! Is it producing income or not? If not (which seems likely), how much does it need? How is GR going to find funds for this?
I'd love to see GR make some right decisions in the next couple of years but I doubt he'll be able to resist taking funds for his pet projects... and I reckon it will be sooner rather than later!

Thought that this was a discussion forum, Shiny - all views are welcome and helpful!
Once we know what GR has planned for funding Zulu and everything else, I'll be more positive. Meantime, there's a rocky few weeks ahead - even Snowking admits that.
GR has a history of taking funds for projects that don't deliver (I think we're all agreed that Zulu is unlikely to be a dud!) and my concern is that he wants funds for MNH, both to buy more of it and to fund a move in to generate income... and this was supposed to be an income generating asset from day 1! He might surprise and tell us that MNH is providing income (to fund DFS?) but that will make him want to buy a bigger stake even more.
Even Snowking has now admitted that GR will want headroom up to 25 billion shares - do some sums and you'll find that existing holders will be hit hard! However you look at this, the short term doesn't look too healthy for holders!!

A near 40% dilution then Snowking - that's not a small dilution, is it?... and when Snowking says these things, it's almost as good as coming straight from the horses' mouth!
Three questions all holders should be concerned about is who will get these extra shares, when will he look to dilute and what will he use the funds for.
Will GR do a RI and let us take part or will he offer them to a partner/jv or will he offer them to his mates?
Will he do the dilution sooner or later? In other words, will he allow the sp to rise?
Will the funds be used for Zulu only or will he shore up his pet projects?
This area is where GR has failed to make good decisions in the past... I'm very concerned!!!

The dream scenario for me would be that GR doesn't need additional funding for Zulu (or anything else) because he is either getting income from MNH or he is selling other assets to fund Zulu... giving away, say, even 5% of PREM now would ultimately be at a huge cost to holders.
I'm in agreement with you, Bickmaster84... he needs to focus on Zulu.

Depends on who is paying for it, Chuggley, and whether it would "perhaps" contribute to the DFS or "definitely" contribute to the DFS! I think that there's a widely held expectation that GR will not be paying anymore towards RHA. If the Zim gov't come up with some funding to get it going then that would be very positive... if not then that wouldn't be taken well by the market especially when there would be a big ? over whether it could be successful.

The risk to the sp here is that GR does some sort of fundraising for more than just Zulu... given he doesn't appear to be in a rush to get something done, I'm speculating that he's got some positive news on the way for either MNH and/or RHA? It would be a huge positive if GR can avoid a fundraising because MNH is providing income in the next few months with RHA to follow later in the year. Anyone hearing any whispers on MNH or RHA?

Yes, Chuggley - I'm sure GR had in his mind a few years ago that he would be overflowing with income now (even paying a dividend). Circum should have moved forward and, yes, more than covered the cost of the DFS. Unfortunately, he's simply made the wrong choices at a few key steps. I've always said that the Zulu asset will eventually outweigh any of the other disappointments... it's within GR's gift whether that happens sooner rather than later.

Yes, longer term (months), Zulu should multi-bag. Hoping that GR takes the right steps!

Fair comments, Chuggley - out of interest, what attracted you to PREM? Lithium?

Chuggley, there's more that motivates a man than money! GR is a proud man (aren't we all).
Anyway, you're suggesting he might keep "assets as the income they could bring in could finance the zulu DFS"... I've got a wild hope that MNH might be giving him some funding (he doesn't have anything else which will produce income in the next few months). Should he buy more of MNH though... definitely not unless he can prove to the market that the case is overwhelmingly compelling but as I argued earlier, giving up part of Zulu to get more income from MNH to then fund Zulu doesn't make sense!
There's an outside chance that he can deliver an update before the AGM that would have an immediate boost to the sp and, yes, perhaps that's the complex deal that Snowking mentioned. Maybe, Bara and company are happy to take warrants as described with the EAS appointment... that would be positive. Maybe, they're insisting on Zulu shares only (I would) and GR needs the time to change the structure?

Just in case anyone else is questioning my motives – there’s some basic principles when running a company… one of them is deciding where to put your money (if you’ve got it). GR has a number of assets which I’m sure he thinks will all produce a return for holders at some stage in the future. He needs to choose which assets to invest in and needs to understand what will give him the biggest return. Let’s put a 1 year timescale on that…
The asset with the greatest potential is obviously Zulu by quite some distance – I can’t imagine anyone thinking that investing in the DFS will result in a lower value for Zulu in 1 year… it could be £200m, £400m, £600m … take your pick. So it makes complete sense to find and commit funds to Zulu… and to retain as much of Zulu as possible.
The other assets may have some potential but nowhere near the potential of Zulu and, in fact, have been a drain on resources. What return is he going to get from MNH or RHA in the next 5 years… we just don’t know!
My main concern is that GR uses the increase in sp due to Zulu to bankroll these other projects… that is in no way a sensible thing to do at this stage. As an example, GR is hinting at buying more of MNH – could cost him £6m. With a market cap of £30m, he might need to give up as much as 20% of PREM (i.e. Zulu) which, projecting forward a year, actually means that it will cost him/us £40m, £80m, £120m depending on what value you put on Zulu in a year’s time.
Giving up any % of PREM/Zulu at this stage to fund these other projects would be utterly foolish. In fact, we would get a better return on the £5m or so that Circum is worth if he sold it and avoided any other fundraising.
And if you’re saying to yourself that no-one in their right mind would choose to give up part of Zulu to fund other projects (with money that is not theres), check out what he’s done over the last 4 years… he has consistently chosen to raise funds for other assets except Zulu.
Just imagine if he had decided to put an extra million in to starting the Zulu DFS over the last 3 or 4 years rather than plunge money in to Circum, RHA or MNH. Pressure needs to be put on GR to ensure that we’re not sitting here in a year’s time… if he’s not going to sell the other assets, he needs to do what he has promised a number of times and set up a NewCo for Zulu.

Acker - I think we both agree that there is upside in the longer term and that, at some stage, in the next few weeks/months the momentum behind Zulu will outweigh many of the negative factors. Between now and then, there is a rocky road... GR can make that road less rocky if, for example, he limits any fundraising to Zulu and general expenses... wait until the market cap is above £150m before raising funds for MNH or anything else... that might be in 6 months or a year... I don't have an issue in raising funds for Zulu... it's an absolute necessity.
What puzzles me is where did he get the funds to get the DFS going - are we going to get a very pleasant surprise and find that he is getting some income from MNH?