Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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It's worth saying I think the 500kt's production rate will I think be set by how much Mn Concentrate can be shipped by road from the mines production area to the freight rail head some 50km's away.
It's unfortunate that there isn't a rail link into the mine and I doubt very much road trains could be considered. So it's likely to come down to transporting the Concentrate by road in the short term at least although the economic incentives to build a rail link are there looking at the extent of the potential resource.
Perhaps more significantly for us near term is according to MNH's letter to its shareholders that Otjozondu is on track to produce 200kt's of Concentrate by this Christmas which is less than ten weeks away now. As that time it could be throwing out $7m to $8m positive cash and more than double that by Christmas 2020 as it ramps up to optimisation in the following year.
That would be very nice for Prem and us as shareholders. It would more than likely bring in over $3m in cash in addition to its loan repayments of $1m. So by my count that's $4m cash for Prem nest year. On paper the notional deal would boost Prems SP by at least 0.1p possibly 0.15p when it's executed in the coming weeks. I have it that would increase to something like 0.35p by Christmas next year and finally to 0.50p to 0.60p in two years or less as things stand.
No doubt the EPO award on Zulu will help to facilitate a deal with MNH as will Prems much improved SP. But a deal won’t be conditional upon the EPO or the SP now in my view It's Prems overall near term potential which will be the decisive influence I think..
It’ll be interesting to see what the mines fundamentals are when the deal is announced as I’m confident it will soon after the EPO nes is RNS'd. If it's anything like what I’ve detailed here MHN looks a very attractive opportunity and deserves its place as just one of four Prem assets taking centre stage in Prems portfolio at the moment. The others being RHA, Circum and of course the mighty soon to be even mightier Zulu!
AIMHO and fingers crossed
Great to hear from you again Tedoby
Phenomenal post tedoby, absolutely standout!!
Tedoby, great to have you posting again here!! I look forward to your further thoughts and analyses!!
You very rightly mentioned the very striking fact, for a Small Cap AIM stock, that PREM is a net creditor. Remarkable!! That's additional to having a significant number of catalysts which are (IMO), very likely to create a significant re-rating in the next few days or week or so. Not wanting to be repetitive, but for clarity, we know those include;
* The EPO being about to "land".
* A with a "major player" being prepared in the wings ready to go once the EPO arrives.
* Likely RTO or some form of merger with MNH (the very profitable manganese miner) for RHA.
* RHA upgrade progressing to plan.
* The Circum liquidity event only weeks away now.
* 50% of the Circum proceeds (less minor expenses) now formally ring fenced to pay a dividend to shareholders! Worth between £5,000 - £10,000 per 10 million shares! (See neiltom88's post yesterday)
* George Roach to stand down shortly!!
I'm still "under water" with my PREM holding. But with so many catalysts imminent, there's now way I'll be selling one of my shares! In fact I continuing to add!!
GLTA genuine LTSH's. NK
Some welcome common sense Tedoby. It would be really great for everyone who reads on here if all the personal comments about those we disagree with (whether negative or positive about Prem) could stop. They never help one's argument and usually diminish it. It is pretty obvious that the sp will be going up soon so that should help the mood, with a bit of luck anyway :)
Nice to have you back Tedoby. I look forward to your posts and calculations.
Tedoby , awesome honest post
Great post tedoby.
Thanks.
Brilliant! not selling a share for a long time!
Tedoboy thanks for a post that has both sides and points to make equally, refreshing to see an overview without the usual snide comments.
It underpins my faith and understanding of reason I have invested here
Thnks Colby and Tedo. good to know events are about to unfold, lets hope reward for LTH's come sooner than later. As a Solo LTH, I know the disappointment of misguidance ;), for whatever reason. But let's hope Zulu will spearhead the revival for this solvent company.
No Mal. And the second question, maybe thats something from your era...
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I'm a long term holder in Prem and like so many LTH's I've been underwater with my investment for quite some time. It's been a difficult stock to hold for most of the time I must admit.
So I know only too well what it feels like to be in a loss situation and it's certainly far from nice! Even more so if you're late in your working life or retired as I am now and have less time to make any losses back..
I used to share my thoughts quite a lot on the BB's but in Prems case I decided to stop it.
The BB's and social media became increasingly full of keyboard warriors who relentlessly and openly criticised fellow posters for not seeing things their way. Or they continually blamed Prems management for their losses all day seemed madness to me.
Anyway in the relative peace and quiet over this weekend I thought I'd share some of my own current views with you at what looks to be a pivotal time in Prem's development.
Prems been in the Doldrums for various reasons for roughly two years now and for the last four months wallowing in the mire as they say.
To put that into perspective for most of the last four months Prems Market Cap has been less than the current value it holds in RHA's plant. So not much more than £2m. So that too has been utter madness.
There was lots of scaremongering about placings and even talk of Prems bankruptcy. Perhaps I was naive but I never saw bankruptcy as being on the cards. Nowhere near it in fact despite what some who purported to know it all were saying.
Ostensibly there are only two tests for companies to pass to achieve "going concern" status. One being the overall asset value exceeding the value of overall liabilities. And the other being the ability to pay debts as and when they fall due.
Any other minor tests or variants to the two I've mentioned you can forget. Of course in Prems case it passed them with ease. Its assets out value it’s liabilities many fold and with that kind of ratio it’s always able to raise all the cash it needs to pay it’s debts if and whenever it needs it at short notice regardless of it’s the cash balance in it’s treasury.
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Significantly but not often mentioned Prem didn't carry any debt for most of the period and it's only of late that it's undertaken a "friendly loan" for $350k. On the other hand, it's been a Creditor on RHA's books for many $m's and it's now a lender to MNH for $1m too. So effectively a nett creditor to others and with no debt. Find me another like it as they say!
So in fact unlike any other miner in its class on AIM it has huge potential and as I say negative debt ratios. A very significant advantage to most and a huge tick in the investor checklist. Take a minuite to think about it!
Like most progressive companies Prems development will follow a logarithmic curve. So with it's development rate slowing the further it moves along it and being initially at it’s fastest. The opposite in fact to an exponential track which hopefully we'll be seeing it's earnings follow.
What sets Prem apart from most others though is it's starting point on the development curve. It started from a negative asset base. Most others do not. That in itself and quite apart from it’s assets gave its SP more imputus!
We can see the benefit from this in Prems position now. Prems Market Cap was no more than £2m three months ago and it's now at about £17m. So even though it's only just started and has huge potential it's 8 bagged in little over three weeks! The SP would have done the same but for dilution so it’s been just a 6 bagger!
So if you had invested £10k when the SP was on its lows just a few weeks ago would have bought you 40m shares or so and those you would be able to sell those same shares because of their high demand on Monday for over £60k when the market opens.
I've been buying heavily in the lows but to my mind Prem is only just taking its initial steps along it’s development curve. So there's no way I'm even thinking of selling any yet. There's huge potential here over the next few months in my view and I'll be posting again with substance and maths over the weekend to demonstrate it.
GLA Genuine holders.
https://youtu.be/1O8jsxj9Dqo
NAP uncool and the gang RHA tungsten mix. Im sure GR makes a cameo appearance....
Normal- no concrete info however Zims cabinet are meeting Monday and many believe at that point it will be signed off. I’m sceptical, although I would love for it to be so.
Are there any definite timelines on agreements, has been a great time to buy in, but momentum has "stalled", is there any concrete info to regain it's fantastic rebound?
Maybe Nap and the gang can post openly that they WILL oppose any attempt by GR to raise the share cap by EGM?
just stopped by, very long term holder - finally though there is scope for this to do what it should on news flow thanks to the dilution ceiling being reached. Finally!
Long as he doesn't raise the dilution ceiling on basis of mates fantasy projects in SA we will all be able to retire in a couple years with massive cheap holdings. If he raises the ceiling at any point write this off and go home
Yes, plenty of dilution (not always popular) , but massive assets with no debt!
Unbelievable that someone is really jealous of shareholders with a balance holding in the millions. Did you ever take time to ACTUALLY think how those holders ended up with millions? Let me give you a helping hand .. DILUTION DILUTION DILUTION and more DILUTION ..
These same optimists are now salivating that GR the architect of this performance will finally deliver value. Jury is out on that front as history would beg to differ.
I've got to concede that PREM will have it's day if/when the EPO is granted.... I think anyone who holds a negative view on GR would hold that position. And, yes, I can see the sp spiking at a multiple of the current sp... how long that spike would last is a matter for crystal-ball gazing.
Beyond that, my own position is that, for PREM to prosper, someone else has to take the reins - whether that involves some form of restructure (e.g. separating out Zulu or a JV or a combination of both) is neither here nor there for me. The big issue is GR's influence. I think the best outcome would be for the EPO to be granted and for GR, at that point, to announce his departure either because Zulu is being separated out under a new entity or that a JV partner is taking a majority stake.
In the current situation, one might even reasonably ask the question of why the President would grant the EPO to Prem given their track record of failing to exploit any assets that they hold... I doubt if the Zim gov't look upon the RHA debacle with fondness!!
Zulu is most definitely the game changer. If we get the EPO without a JV circum will come in very handy to profess Zulu to what it needs to be. Alternatively if we do get a JV then a circum dividend wouldn’t go a miss.
Agreed:-)
Have a great weekend all
Fully agree mal , after a two week period of prem rising , this week up 50% .
The market slowly waking up . Monday is a cabinet meeting , so likely to be rns Tuesday