George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Snowking,
Thank you, I did raise an eyebrow at 3.5p. 1.5p short to mid term sounds more reasonable and realistic. Although like everyone here I do hope that is just the beginning and we can all do very very well out of prem.
Lots of byproducts in the ground as we know, stockpile for now and offtake (s) for these later. Let’s sell some Li first and fund the next stage.
As frustrating as this is sometimes (I’m in since 2015) prem have never been in a better position. £47m from SZSE is quite a chunk of money and will push us forward at some pace I’d imagine. A new beginning? These Chinese know how to get things done, and at speed. George will have to get them done.
I still read daily, thanks to all who continue to post. Bick, Johnny, happy, Acker, Wolf, Snowking even you :) and some newcomers. All good.
Good luck all
I dug thus out...not new but may be of interest.
ArmchairTrader
.https://www.thearmchairtrader.com/premier-african-minerals-share-price-forecast/#:~:text=Premier%20African%20Minerals%20(LSE%3APREM,particular%20over%20the%20last%20year.
I keep looking into Global Lithium (GL1) and its progress as there are many parallels with what we are doing.
Looking at the timeline:
- Global Lithium and Suzhou signed cooperation deal in Dec 2021 to diamond drill
- In May 2022 diamond drilling commenced
- Today first assay results were returned
Source: https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.breakerresources.com.au/wp-content/uploads/announcements/220628-ASX-GL1-Manna-initial-RC-assay-results-Letter-Announcement_final.pdf&ved=2ahUKEwizgYrCstD4AhWHiVwKHeDADckQFnoECAMQAQ&usg=AOvVaw1zC2qMwMJlIy8qw9-XG0qU
So, Suzhou is pushing amd moving fast with their investment plans. Also, our current inferred levels are higher than Global's.
Plus, assay results came back within a month. Either they have some special partnership with the labs or these delays we hear of at PREM are fake. Which makes me more convinced that PREM assay results have been back for months and were used to close the deal on the pilot plant.
A solid RUS could really go a long way now....
Cash appears to be the figures that a few are confusing with profit. Many of the figures stated are cashflow estimates. It's a measure but shouldn't be confused with profit and certainly cash is very important for PREM and investing in further exploration, mine expansion as it will mean they can support there own expansion without the need to rely on other external sources for the cash.
Dividends being paid would generally require profit to issue or a build up of reserves which would come from prior year profit
Am I correct in thinking it’s cash flow that’s important in real life beyond the semantics of P&L and balance sheets, cash is something you can use either to invest or pay dividends?
It might be easier to get yourself a basic accounting book that's not meant sarcastically. It's simpler then to understand the concept of double entry, statement of financial position and statement of comprehensive income.
You can see the how the movements impact profit
OK so if we have no revenue the loan still gets paid from cash? Where does cash come from?
Hey maybe it's just a technical and certainly don't intend to get into debate .... despite sarcasm
If I'm understanding..... its academic. With the revenue discussed prem and investors are in an extremely positive position however you cut it
Even better if loan repayments don't require revenue ?
Thankyou ACKER.
Correct Wolframite hence the simplistic version of events as an example.
Chuggs could go in circles with you all day on this but I'm too busy. loan repayments aren't deducted from revenue in accounting they come from cash.
Chuggley--sorry to say---you are wrong.
The capital repayment of the loan will have no baring on company profit as declared in the accounts.
Acker
That's true Roman but the life span of the mine is only for a small part of Zulu... When the DFS is completed the resource will be much larger.
Wolf
Repayment of loan. Would impact profit as repayment of physical loan has to be within 12 months and is deducted from revenue.
Could debate gross and net and how its amortised and how assets are deprecated
Most of this would just confuse most investors due to complexity
Fundamentally though the figures discussed by SK work and work well for prem and shareholders
Again however you cut it. Loan gets paid easily and prem makes profit. Which is can reinvest to increase revenues further
Repayments of the loan would not effect profit that would be a balance sheet item impacting assets (cash and fixed asset) and liabilities for the loan. They would effect the cashflow.
The depreciation policy of the asset in the accounts would have a bearing on the profit.
In simplistic terms of the life of the mine was to be assumed at 3 years the 35 million cost of the the mine would be depreciated over 3 years regardless of repaying the loan in 6 months, 12 or 36 months.
Thanks both. It would be interesting to hear the GR current strategy. Would it be primarily to focus all Lithium profits to repaying the mine whilst using the tant/rub sales to build accounts and invest in next stage, or cream some of the profit off all three resources equally to use for growth.
Personally, i would be happy to make no profit early on, and get ahead of the Suzhou repayments to ensure we don't get impacted by delays such as heavy rain fall.
Not that i expect to find out the above. just sharing my thoughts.
J
Hi Jenkoo, i also had researched the same thing, wondering if future profits off of these elements may come from a continual partnership with Suzhou or would require a new contract with a new purchaser. Could not find any info about this unfortunately.
I'd be tempted to write to Suzhou and ask but I seriously doubt they communicate that openly.
Three by-product streams will be stock-piled and will go to inventory, pending completion of additional test-work and additional plant. These products are a tantalum concentrate in a magnetic fraction, a petalite rich mixed ore and a mica/lepidolite concentrate that is likely to contain Caesium and Rubidium. That this may be immediately saleable remains a possibility.
Not sure if they do or not. But I'd guess a seperate offtake agreement and perhaps seperate customers
As to when. Guess it's reliant on the assays. Last 3 showed exceptional grades
Think the rns suggested it could happen quickly. Ie little or no stockpiling
Does anyone know if Suzhou offtake Tantalum or Rubidium?
Guessing this would be an alternate offtake agreement which will be set up after stockpilling and inspection of quality…
J
Be good for prem to release some grades. It’s been a long time and must have some results
I'm not too concerned with weather. Any project plan built would take known factors into account and ensuring critical path builds in contingency
Same goes for operating and producing.
I also wonder how the seasonal rains will affect operations....rain tends to end around Feb-Mar, hopefully that does not prevent us in hitting the deadlines. Hopefully they complete the build before the rain starts.
Chuggley, phase 1 mainly lithium. But its great that the plant will be sorting other elements, there may be a plan already in place for them that we are not aware of. Sounds like extra opportunities and partnerships for PREM and more profits in the future.
I think sooner. Later today or tomorrow
Can't remember if previous ones had much prior warning??
Don't think the interview will be today would have thought it would have been advertised at least yesterday. Maybe end of the week or early next week depending on the annual financials coming out this week might incorporate it in one?
Interestingly. $75m. Would give us sufficient to pay off the loan easily in 12 months. But to also start reinvestment within the first months and increase production further.
I too agree with the assumption of discount and price and how it might work
I still think we'll also see sales of tantalum and or rubidium in the short term to add to the spod