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We should know in next 3 weeks whether the Chinese have paid the full amount due re the mine. If not, the choice is take it back and retain the money received so far or extend the deadline. If they go the latter (which I’m guessing they will) surely that needs to be ion the basis of a further material cash payment received. Will be interesting to see how the directors deal with this.

This is on a knife edge, a true glory or bust share. The company has gone from cash flow neutral to cash flow negative. Fortune favours the brave but as little seems to be in Petrofac’s control this really is a punt.

Thanks for sharing. Pretty poor but standard response. In the circumstances couldn’t they bring forward the 20 December date or is this carved in some regulatory stone?

I’ve been waiting in the wings for a punt but not until the SP shows signs of settling. For a new investment this is a glory or bust scenario. The absence of a more prompt update from the company makes me fear the worst.

I did wonder what Gazza was up to these days!

Was expecting this to break 4p this week, but no, it issues an RNS to drill in SA, then 2/3 days later SP drops. I sometimes wonder how this bloody market works. Still I’ve come in as a new investor (last Friday) at 3.87p and was encouraged by watching the TMT Solutions interviews. Patience needed, will top up if this drops below 3p, though his knows why it would do that. I assume no more 2.75p warrants on the horizon

Even so, the company is in a far better position than it was a year ago when the SP has been over 1p. DE bought a chunk in the Summer at 0.8p in addition to those he previously held at 1p. My average is around 1.05p (not that much higher than DE’s) so IMO there is more upside to come from here than downside. DE is not an idiot and wouldn’t have significantly added to his investment if this was a croc. You either believe the investment case or you don’t, if you don’t then why are you invested and on this chat site?

Even if the Chinese don’t pay, KZG gets the mine back and keeps the money it has already received. HMS hopefully to take off soon. Loads of cash, no debt, what’s not to like? Oh, and diamonds too ? Patience will be rewarded in 2024 IMO once Align have completely gone.

GR was very frank and emphasised all partners aligned to see through the success of Zulu. For me, the conclusion of the current confidential discussions with Canmax will set the scene for how this may play out. Hopefully we will hear more in the coming days and hopefully later this week. Unfortunately GR could not discuss the financial position around current cash, future funding etc but fair enough that would need to be RNS’d anyway

Flava, on what basis should we share that belief?

Me too, bought a further chunk at 0.532p, how often will we gwt a chance to buy at these prices i the future.

I think we need to wait and see what George has to say in the virtual Q&A session which will hopefully take place next week. It doesn't look good at present (an understatement) but there may be method in the madness. For me, if Canmax have been kept in the loop and are on board then (despite the penalty position or alternatives) then this could still come good. Glory or bust - place your bets

OMG it gets worse, the penalty increases to $3m per month from 1March 2024 and $4m per month from 1June 2024.

Blimey, no production in November and December likely so not going to meet shipping target of AV of 1000 tons plus or minus 10%. That’s a $3m penalty, why would Canmax not hold Prem to this? God knows how it will be funded. To believe it will all come good in Jan 2024 is to take a massive leap of faith. Each month missed is an extra $1.5m penalty. Yikes!!!!

It’s a production target not a delivery target isn’t it?

A gradual climb until someone increases their short position and then back down she goes unless there is positive Company news in the meantime. Very risky to take the plunge for a new investment at present. I’m neither a ramper nor a deramper but just need some more clarity on the more likely direction of travel

SP down 33% in last month - is this due solely to short selling and money leaving the stock market generally as I can’t see the drop is based on company specific news? How likely is this to go into administration? IMO this is a recovery buy but what am I missing?

I’m confused too, if Prem has the cash (and if it hasn’t where the bleep has to gone) why would they take shares? Unless they can dump them quickly and get 0.44 a share or more. Mmm, more questions than answers…..

Great news for shareholders. Following on from recent contract news (especially the mid September RNS) and the recovery from the Palma Mozambique terrorist attack, the company is giving us a positive sign that it intends to resume paying dividends to shareholders. This is a strong recovery buy IMO as the company revenues and cash flows are set to increase and dividends funded. As a precursor to that the purpose of the capital reduction exercise will be to increase distributable reserves which can then facilitate dividend payments. DYOR and IMO

The RNS is overall positive IMO because it suggests Newcrest will be on board post takeover, but there is a delay to the FS issue date. Around a year ago we were expecting to go into production by March 2024 whereas now I expect we will have to wait another year say March 2025 once the Australia summer next year has passed. It means shareholder capital inactive for longer but the investment case remains compelling IMO. DYOR