Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
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Just to confirm , GR did not deny or confirm if there would be a placing at some point ,additionally the discussion over current finance was glossed over.
Hopefully the video will be released imminently (sorry had to get it in there) & we can spend the next week discussing that in detail .
Have a good eve all
Tarquin,
I disagree with selling 51%, at this stage anyway. PREM has the resources (4b+ shares) which can be used to raise funds to complete the DFS. There will come a point in time where selling the asset is the right choice, but we are a long way away from that at this stage.
Bickmaster
After reading some of the reply and other threads, it would be best if GR sold 51% of the EPO/DFS and let someone more capable/able in charge of that and he could just do his bit with out risk to the PI with MHN and circum. You know keep a old man happy to the side and he would easy have the money plus the SP would rise to a new high.
@AlertRNS,
Yes, I am well aware that Oranolio is Lloyd as he kicked me of out the Telegrm group for 'being negative', 'attacking other members' and 'potentially being a troll'. Obviously he didn't appreciate a bit of objectivity. But then again he is the person who posts most of his updates on Telegrm using voice messages which he deletes shortly after - an interesting approach. Other members of the Telegrm group update me if there are rumours of anything landing and forward messages to me but I've come to realise certain posters are simply empty vessels who make a lot of noise. Have a look at his posts Wednesday night after the London meeting. It appears that using the term 'reading between the lines' gives him poetic licence to provide update contrary to what was actually discussed at the meeting and avoiding the key risks such as MNH. Take everything you read on here and elsewhere with a pinch of salt.
Bickmaster
Stewart,
JG is very knowledgeable and knows MNH isn't where the prize is and I am hopeful he will have some ability to get this through to GR. Unfortunately I believe some other members of the group would believe buying MNH was a great idea if GR says so given they dont have the ability to think for themselves. I thought it was telling that Oranolio or Snowking did not mention MNH in their updates last Wednesday night but instead said there will be no more placings, which is not something GR said at the meeting.
Bickmaster
Bick - re MNH, in some way I'm reassured that JG has stated his opposition to that on here and he confirmed he would tell GR that. I hope the Pandora group would voice their opposition as well - btw, their absence today is very noticable - and that they could jointly stop GR before he goes down that route! If the sp was much higher (say above 0.7/0.8) then I don't think it would be anywhere as near as big an issue
Stewart
I agree, the big players in the market will want control or, as a minimum, the ability to get control at a later stage and would struggle to get internal sign off without this being part of a deal. My guess is PREM need $8m - $10m to get the DFS done and my guess is it will be finished early to mid 2023. It should be possible to self-fund this if the focus is solely on Zulu given there are ~4b shares to issue to get it done. However GR is like a magpie and cannot pass any opportunity by and if he starts spending more money on other non-Zulu activities it makes matter much more complicated. MNH is my biggest worry. Even if he was to buy the remaining 81% for $4m (a 50% discount on the $1.9m paid for 19% already), he needs to realise this doesn't mean he is getting a good deal. It simply means he overpaid for the 19%. If he takes any more MNH I will be out of here like scalded cat. There's only so much of a beating shareholders can take.
Bickmaster
Bick - I doubt if anyone would want to be a minority partner with GR still calling the shots. And I very much doubt they would want any other part of PREM. It is way, way too soon to be talking about JV's - I reckon the completed DFS is a year away.
But this is part of GR's flipping and flopping - jv, no jv, jv, off-take, no off-take, jv, no jv, jv, keep 100%, give some away!
If there's going to be a JV then the deal could be done Q2 next year and he should give up 51% for a substantially higher amount than in the next couple of months.
Ha ha ha Profitbags, that made me laugh, GR as a 'Brand Ambassador', good one!
Tarquin,
I agree a JV could take away a lot of the funding risk. GR's issue is knowing or being able to justify what is a good deal and what is a bad deal. For example, if PREM is worth £40m (mcap) and you assume Zulu is 75% of this it means Zulu is currently valued at £30m. If PREM was to sell 20% for £6m would this constitute a good deal? That is the dilemma GR faces and the reason he is getting the valuation work done. The other aspect you need to consider is that if a bigger player was seeking to acquire ~20% of Zulu they would almost certainly insist on getting a pre-emption agreement as part of the deal. Pre-emption agreements are risky for the likes of PREM as they are likely to need to tell the market, which reduces the interest from the other larger parties that don't have the pre-emption agreement. So lots to consider.
Need a JV or someone big to take us over, a off take agreement would be good but the SP goes up on no news and down on good news.
It shouldn't matter what GR was like, if he gets it done now but even with that view he should not of mention MNH, it was the same as when we were on the rise but he turn and said no JV we want 100% of the EPO and made the SP plummet.
I agree, it doesn't matter what we find under there, if we cant get it out it is worthless!!!
I have just been caught out!:( put a buy order in for 18.5 and forgot to cancel it!. So although I have lowered my average I have even more shares to ofload. :( Snowking or anyone, is anybody interested in buying all my shares for 0.30?
Bick, a puppet would be the worst case scenario. If GR swallows his pride a little bit and literally steps aside slightly to become the brand ambassador, and if the new COO is competent, we should be good.
Otherwise, as you say, it will just be a YES person and do as told by GR.
In your other point, very valid. GR could be capable of undervaluing Zulu and potentially sell it for cheap. But look forward to hearing more of how they intend to tackle this.
In the end the potential is there, its for GR to lose.
PREM is a true test of patience LOL
Profitbags
I don't disagree with you, on the assumption the new COO is given the opportunity to lead communications and market engagement. Whether this would ever happen while GR is still round is another question as he may simple end up being a conduit for GRs comms which have always been poor. That would be the worst of all outcomes, effectively having a puppet in place.
The other point I forgot to mention earlier is that it would be good to get more clarification on the valuation exercise GR mentioned in London. For the avoidance of doubt, he set out the difficult of understanding/underpinning whether offers received for a JV or to buy a chunk of Zulu provide good value. He is getting a piece of work done by an engineer to help his position in this regards. It is interesting that he is getting this done by an engineer rather than a mineral valuer as only a registered valuation would be able to provide a proper valuation (i.e. Red Book). Anything else is only a largely unsubstantiated estimate. I don't believe any outputs from this exercise will be provided to shareholders or the market as it will be commercially sensitive.
Bickmaster
Thank you Bickmaster, appreciate it.
I agree that point 4 should be the focal point, even though i believe a new COO, with the right credentials, could wake up the sp again.
Not sure if more lab results will have much of an impact at this stage.
We may find kryptonite for all I know, but if PREM doesn't manage its assets correctly we'll never get that retail and institutional interest we need in order to move above .3
Profitbags,
You asked what is the next RNS supposed to be about. The best possible RNS in my mind would contain the following.
1. Update on DFS programme with metres drilled to date and no of rigs on site - there shouldn't be any surprises here as we know there are now 3 rigs on site. GR was unable to provide any underpinning on overall DFS timescales at the London meeting - if there is more logic available it would be useful.
2. Information on expanding lab testing capacity on site, why this is needed, progress to date and overall programme to complete this activity.
3. Results from any of the holes which are available at the point the RNS is released. Given GR stated 2 weeks for the next batch of results the RNS should not be any later than 3rd November. I would be happy with results from 5-6 additional holes.
4. We need to get clarity on prioritisation. GR dropped a clanger by saying he is interested in buying the remaining 81% of MNH at the London meeting. If he was to provide clarity that this would not happen until after Zulu DFS it would give the market certainty the funding available (i.e. the headroom on shares) is to be prioritised on the DFS and not running after an asset which has not turned a profit for some years. Shareholders and the market dont want MNH, they want progress on the Zulu DFS.
5. Update on adding new skills to the PREM team. We have heard about this for years and GR stated at the London meeting he was looking for a COO. We need to have some more depth on this given the previous references in this area have come to nothing.
Point 4 above is more important that the other points put together in my opinion. If the market is to take PREM seriously it needs to know PREM is serious about prioritising its trophy asset. MNH is not producing a profit and has not done so for many years. We should not and cannot be spending money on it which can provide much better returns elsewhere. My firm belief that that the SP will stay below 0.20 until this matter is cleaned up.
Bickmaster
GR is good at NOTHING other than doing his best to stay in his position as long as possible , which is the reason the extremely poor SP performance and there is nothing we PIs can do about it, WTF!!!!!
I also just bought more, lowered my average a little bit.
But I really was not expecting to see .18 again.
Genuine question: what is the next RNS supposed to be about? What news are we expecting? Regardless of when the RNS comes out, just wondering if we are waiting on info on MNH or more results or more progress in drilling?
Thanks
Welshy - I think that he's between a rock and a hard place with results.
The big problem is that we don't yet know how many holes he can test and in what period (I doubt that GR knows this either!) but it sounds like we might only get the next hole's results... which, imho, will disappoint the market again. Perhaps, in a month or two, they will be able to gather momentum but, for now, I think that they'll be struggling.
And do I reckon that they might've picked out one of the better samples first?... yes... so he could possibly disappoint on the grade.
I've yet to see the video from the event last week but one small snippet of info that has been mentioned speaks volumes about the level of planning, readiness and execution... and that is the fact that they're already doubling the resource to prepare the samples for testing. Clearly, if there is a plan, it has been developed by someone who doesn't know what they're doing... but I suspect, like others have mentioned, they are winging it.... and that's with potentially the biggest lithium deposit in the world! OUT OF HIS DEPTH!
And we're at a critical stage too - with a fundraising due and, supposedly(???), in discussions about a deal.
I have been waiting for a golden Cross for weeks, so this can spike and I can get out with a small loss. GR is clever he traps investors by issuing RNS and no RNS, making visits and rasing expectations and then not delivering all to keep the sp low or to make it fall. I really regret being taken in with the Prem story. I believe we have an unbelievable resource in Zulu and it will take a special person to mess it up, but we are blessed and GR is that man!
Little top up
.1920
Hopefully news around the corner
I not say imminent
:-0
Poor start to trading ..
Could be back to 0.18 by end of the day !
We know results are due , but market confidence is at a low.
GR if you have some news I’d suggest you release in phases rather than just a dump in two weeks .