Member Info for steward1

I'm staying, Redtrade.

Raaydaar - Anyone who has been here for a while will know exactly the risks with GR and Prem. More fool them if not.

All of us were disappointed with the news over 2 weeks ago now. I've got plenty of reason for not trusting/believing GR - after 5/6 years, you get to know the tells in his ways. BUT, I'm pleased with the action taken since they discovered some issues - which I think was probably closer to 4 weeks ago - especially, the action to increase the headroom.

Stark produced a new plan knowing full well the challenges and, I believe, they will have taken an under-promise/over-deliver approach. They will have had some idea about the quality in those bags and will have factored that into their production projections. I am very relaxed that they will hit production targets and that the quality is already or will be OK.

The much bigger issue to me was the revised Canmax deal and the potential for a major land grab. Canmax probably have been playing hardball but GR's move on Fri changes the dynamics completely and I now think that he's going to get a much better deal than, perhaps, what was offered.

So I've gone from 'this is a disaster, Prem will run out of cash, we'll lose Zulu' to 'they know the problem, they're fixing the problem, it will be back on track soon enough with a deal that is equitable and will still make holders loads of dosh'!

As for not releasing any update to holders, I think GR has been way more open than he has ever been! All the detail will come out on 26th June if not before.

The sp could just as equally be 1p or above if/when GR uses the headroom!

Romanwolf - I'm sure that Snowking can speak for himself but I think that what he and I have been getting at is that the negotiations on the revised deal just now has been about Prem getting enough cash to see them through to profitability but on reasonable terms. IMO, prior to Friday, GR has not had too many bargaining chips but, after Friday, he's in a much stronger position. Of course, the agreement will include SC6 as the standard since that is what Canmax need.

Inferences that Prem won't get a deal or that it will all fall apart because of what's in those initial bags are way off the mark. Stark are on the case and have been for at least a couple of weeks now... again inferences from others that everyone is sitting on their hands are way off the mark too.

GR will now be able to secure a better deal than he would have otherwise if he hadn't gone for the headroom. We're no longer at the mercies of Canmax.

This current stushie could be a blessing in disguise!

I'm looking forward to a blue day and a blue week!

You're still behind the curve, Laverda or simply refusing to acknowledge that GR now has the upper hand in negotiations for your own purposes.

With the announcement of raising the headroom, GR can confidently walk away. Canmax are now desperate to secure supply after signing that deal with Ford... they absolutely need Prem.

The issue with what's in the bags has been neutralised. It's a red herring.

Perhaps, you need to be buying first thing on Monday morning so that you can give up on this pretence.

Laverda - I can see that you're desperate to pick a major hole in GR's move. I'm confident, in the current environment, that GR will easily secure enough for all Prem's needs. I'm more concerned that there will be a bid that is good enough for some holders (which would still be a multiple of the current sp) but undervalues Prem and it's potential.

Glad that you're sounding a wee bit more positive, Laverda, BUT the quality in those initial bags (which can be re-processed if absolutely necessary) is secondary to GR getting that new deal and he now has the upper hand.

I'm no expert but I knew enough to know that GR was going to run in to some sort of issue. He's miraculously dug himself out of that hole, I'm pleased to say.

Raaydar - fair points but I think he'll raise that easily and I think that the sp will remain very robust. Canmax do not have the upper hand now. GR can now confidently walk away from any deal that they're proposing - he couldn't do that before Friday. The negotiations are now fundamentally about whether they continue working together.

How will Canmax react? I think that they will sign up to the deal that GR wants. They don't just want the spod, they need it now... having just signed a supply deal with Ford on top of the other deals that they have. Either that or they put forward a takeover bid for Zulu, possibly the whole of Prem.

You'll know from watching GR that he can be a wily old fox - I think raising the headroom is a game-changer.

johnnypc - you're right, Prem and us shareholders are going to be just fine.

Laverda - I think you're behind the curve on what is going on here.

With GR's move to get more headroom, he has neutralised any immediate minor issue around the quality of what's in those 200 bags. He has also strengthened his hand immensely in negotiations with Canmax by looking for the headroom (which he will undoubtedly get). Canmax are not going to walk away based on what is in those bags. In fact, Canmax are not going to walk away... full stop... but GR can now chose not to accept what they are offering.

I'll concede that GR was in a sticky situation previously but he is not now. Quite the opposite.

Stark are on the case as far as the plant is concerned so I don't think you need to worry yourself about what is in those bags.

GR can now chose whether to accept a deal with Canmax or to do the placing, repay Canmax and then look for another partner.

Try and keep up!

I think that I'm now a wee bit more optimistic than you both about the eoy sp, Wolf and Acker. With today's announcement GR is going to get a better deal than he would without the announcement. That's very straightforward.

There seems to be a bit of a stushie (good Scottish word) around the quality of the stuff in the 200 bags and that it will be a shocker if the quality is below sc6 - have to say that it wouldn't shock me given that all the palava over the last few weeks has been about upgrading and tweaking the plant. In any event, that particular minor issue will be resolved soon enough and/or might not be a significant issue for either Prem or Canmax in any event.

I don't have a hotline to the Stark CEO like some others but I believe SK's report of his chat. For me, the quality and production issues have been grasped and GR has got the finance options sorted.

I can understand the panic of some and the drop in the sp but I'd be happy to stick my neck out and say that is upwards and onwards from here.

Prem is in a way more stronger situation today than it has been since this particular episode began - one might argue that they're in the strongest position they've had since the EPO was granted!

Disappointing news BUT I would hope that giving so much notice of a potential placing means that AP is hoping that there will be other news between now and then to bolster or rebound the sp. We're due an update on other assets which I expect to be positive.

Also, in an extreme worst case scenario, he can sue for the loss of the diamonds.

Iky786 - I'm actually relaxed either way. The long term future looks very positive. I simply have a preference to be in control of our own destiny. From experience, you'll know GR always says that issuing more shares is the last thing that he wants to do but, in this instance, I think it would be a wholly positive thing to do so that he has that buffer. I'd also have preferred him to have done this a week or so ago. It would've strengthened his hand enormously and may well still do that. He may well be playing a blinder here. BTW I couldn't resist adding again earlier.

Watching the interview and I'm afraid to say that it's back to the old GR, once again.

Jenkoo/SK - if the new Canmax deal is a good deal then why does he need the insurance? Even if GR was to do a placing, Canmax are not going anywhere.

He should do a placing of 4 billion shares as soon as he can and, based on previous behaviour, I'd say that he is more than likely to do it. I would support this and get out of the clutches of Canmax so that we can have an equal partners arrangement with them.

Yes, SK but I would argue that he could use the 4 billion shares and not need to accept a poorer deal from Canmax. Some estimate the new Canmax deal would make Prem poorer by around £4million per month, indefinitely... I'd say do the placing (there will be plenty of takers) and then re-negotiate a stronger deal for Prem once Canmax are paid off.

So GR looking to have headroom to issue 4 billion more shares from the AGM on 26th.

I did suggest that it would be a good thing to have a few million pounds of a buffer but that is a whole load more!

Tradedesk - like anyone in any share with potential, I'm perplexed at why the current valuation is so low. However, I do think the sp is going to rebound very soon. Nothing is a certainty but I'd be surprised if we've not seen the sp shoot up in the next few weeks.

I believe the scientists have always been confident!

I'm hoping that we'll see a return to the previous high of 0.18 or thereabouts later this month.

It was noticeable that the Q2 timescale wasn't changed in this morning's RNS so I'm assuming that all is still on target for this month.

I had hoped for more info on the testing but I understand that we won't have to wait too long for that. Drop in sp is well overdone. This will move very quickly when it decides to move!

Alwaysome - it's pretty despicable for someone to spin the falsehood that there is no lithium. The question is what is the quality of the spod in the bags.

There is no doubt that PREM is investable and will be very prosperous but if you're believing someone that there is no lithium at this stage then I'd suggest that investing isn't for you. If you need a wee bit more certainty then wait until 25th June or before when news drops... by then though, I reckon the price will be well north of where it is now.

AIMHO!