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Does this board think that, what is potentially the biggest Lithium mine in the world, should be garnering more attention from leading mining houses and EV manufacturers? And how long will the Government of Zimbabwe allow a small outfit like Prem to pussyfoot around with an asset that could affect the whole economy of the country? If the consensus is that Prem is handling the situation efficiently, then I withdraw my remarks.
Dont know of anyone that can put much meat on the bones and answer your questions - guess we are in need of a crystal ball
As to Prems relationship in Zimbabwe - its probably one area where i can say I reckon George has under control and doesnt worry me - a bigger outfit may not be able to handle the situation as well as someone with as much in country experience
Sorry in answer to your first question - yes it has potential to be the biggest in the world and if not it will be ONE of the biggest and will attract the interest of some of the big boys - think they will just be watching the next few results - and that could be sooner as opposed to later. But its all assumption and opinion
Chuggley, are you not just a little concerned that it's not the results of the core samples that's holding back the sp its the abysmal lack of progress on the drilling so far.
Wolf
wolf , dotn worry we are getting there , ok up to 3 rigs later this month and why not 4 later.
you guys always have something to fret about.
So what if the dfs is say 2 months over time , i reckon we start building the mien before dfs is completed , but that is just my opinion.
Wolf - lack of progress is definitely the main concern IMO. Around 1/7 of the drilling done in 6 months.
Snowking - I think DFS is going to be a lot more than 2 months late, with the associated extra costs.
Sorry snowking your sounding silly now... will that forth rig appear when the 14 months has passed and at what point.
Building a mine before DFS. ! Snowking , you have zero understanding of how this works . If you want to see a lithium explorer in action please do some homework on an ASX Listed Company , Liontown Resources (ASAX:LTR) and see how their share price has appreciated over the past 4 years. PREM will have to spend 10's of millions of $ before reaching a decision to mine and most banks will keep well clear of him. Have a great week-end.
cherryburn , lets see what George says next week
i made an error in calculation of what could happen to prem in 2004 early.
i missed out petalite
In the scoping study planned production was 83,768 tonnes spodumene per year at $800 a tonne
However due to price of spodumene which is moving towards $1500 this means the cut off 0.5% can be reduced to 0.25% , which increases the tonnes ,so resource goes up from 20 mts to 28mts . this would allow production of 100,000 tonnes a year spodumene . Petalite production was planned at 32,00 tonnes a year but the price has doubles to $800 , so assume yearly production can be 40,000(as cut off grade lower)
This gives sales per year of spodumene $150m and petalite $32m . So total sales based on the modest scoping study resource of 20mts cut off 0.5% is $182m .
If George can get resource up to 80mts , which we think he can without epo , then sales could be $700m a year.
My earlier post with my calculation was too conservative. We would be looking at a profit of $400m = £300m . post tax profit of £230m pe 5 market cap £1.1billion.
Share price 4p based on 25 billion shares in issue.
happy to hear what is wrogn assumign we can increase resource to 80mts
If an over run was guaranteed and confirmed then George would have to announce it. So maybe he has a solution
That said this is a huge project I'm personally expecting an over run so the prospect holds no fear ... the direction of lithium value and the potential testcresults that will now be rolling in 13 more to come over the next days or couple of weeks more than makes up for that. Potential value far exceeds what was originally estimated
Chuggley -
On 6th August 2021, in response to my suggesting the DFS would over-run and offering you a wager on it as in the previous post you denied this...
"I'm not so childish. Making assumptions that it won't is just for those trading. The rns does not state that in fact it states on schedule".
I'm pleased you've finally accepted what was obvious even then. The DFS is even further behind now though. Hopefully the next placings will be at a higher SP, so the extended dilutions into 2022 don't hit us existing shareholders so hard.
Have a nice weekend all. Onwards and hopefully upwards next week.
Cherryburn and others , you are getting fixated on drilling metres and finish time for dfs . You don’t understand the dfs and the necessity to drill 20,000 m .
Honestly aske George on Wednesday but prem are not behind on the DFs .
You guys are just making up problems . The drilling increase the resource , but by Xmas they will have enough to massively increase the resource .
I’m all for constructive comments but saying 1/7th drilling in 6 months, whilst true, is not representative going forward. There were a number of ‘setup’ issues. We are now in the operational phase now, so no setup issues to encounter.
Agreed, Awhen we get to the last few months of DFS - we’ll have either all sold up because the results were horrid, or we’ll be much, much richer than we are now because the result were fantastic. EITHER way, 2 months late in the big picture really does not matter either way.
Going to sound a bit Jekyll and Hyde here...
Snowking - don't forget the potential for gold and anything else under the ground. Zulu will be massive!
Chuggley - no one knows where we are with the DFS. I defy anyone to spell out when the original 14 months started and when it is due to end or to spell out the scope (pre and post EPO) or what the cost will be. Most of us think that it is months late and over the published cost but by how much is anyone's guess... quite a damning indictment of our esteemed leader! I don't know how he gets away with it... he will leave any admission of it being late or over budget until the very last minute (although I agree that he holds some sway in Zim).
Johnny. I've just re read the conversation. Doesnt quite read as you suggest
I do no more than point out your ongoing negativity. You conveniently miss out my full statement
"I'm not so childish. Making assumptions that it won't is just for those trading. The rns does not state that in fact it states on schedule
To be honest I don't care if it takes longer if price of spodumene...lithium continues to rise"
We are discussing the rns and I only point out you making assumptions.... the rns said on schedule. I go onto say. I don't mind if it does over run
Now add to my statement not only price of lithium increasing so is the potential size of the resource
Surely as an investor you're pleased .... that is if you're not just a simple trader playing with people with deceipt
Steward. I understand your point to an extent. You say we don't know when the 14 months started or when it ends. I'm sure in one of his presentations George says ends end of May.... but again. Am i certain of that date range. No I'm not. Will it take longer. Maybe
I suggest you go to the meeting and ask your questions.... if you don't. I'm sure these questions will be asked and sure we will see many answers on Thursday or Friday.
But I'm also sure if dfs takes longer or costs more. This is more than made up by lithium cost increases and perhaps by increases resource % ... in that first sample 32% up. Look forward to seeing more results to make better assessment
Difference between investing and trading
Traders bothered about nano seconds, investors look at things in years sometimes decades
As an investor all is looking really really good here IMO…chill who cares about a few extra weeks….have a good weekend peeps
Snowking.....you do not understand what is involved in completing a DFS nor do you comprehend how much it is going to cost to drill an acceptable grid of holes. GR has always been out of his depth and if you believe everything he says then I suppose that is your choice. I have been speaking via Zoom to 14 exploration companies over the past few days and three of those companies are at DFS stage and negotiating with debt providers and will sign off on DFS once all has been audited by third parties and finance deal is on the table and that is how it should be.
Cherry burn fair enough , it sounds like this is your area of expertise , may I ask what do you do
Prem don't have any debt. Woohoo
Cherryburn, thanks for the realistic info based on facts and not wishes or personal interpretations.
May I ask which are those 3 miners at DFS stage?
Cherry. As such an informed and involved investor in mining. I take it you will attend the investor meeting Monday. Ask your questions. I look forward to seeing you post the Q&As here Thursday
Chuggley - I'm afraid other commitments and being north of the border prevent me from travelling (quite disappointed because it would be good to meet you all in person) - it would be good if they could set up a Zoom link... wouldn't be too difficult to do.
I sincerely hope that we still own Zulu when it starts producing and with prices at the current level or higher. Prem's priority should surely be to speed up the DFS so that we can get there without any additional delay - if GR gets the message that holders are OK with a delay then I reckon that he'll take his merry old time. I would support any fundraising that has an acceleration of the DFS as its focus.
The bigger picture is that there is other stuff in the ground at Zulu and potentially at other sites. Delays not only shove Zulu further away but also pushes these other projects over the horizon. I'd like to see the Zulu DFS accelerated so that PREM can then get on to other things too.
Given Zulu, especially, but also given these other projects, GR needs to be thinking much, much bigger and build an organisation that can deliver without delay. The fact that he doesn't yet have the 3rd rig operational and isn't considering a 4th or 5th rig says to me that he's trying to do this on a shoestring.
I reckon that an appointment of a credible COO followed by a plan to accelerate Zulu and a fundraising to support that plan would be a very positive move.