Member Info for Bickmaster84

Bridgedogg said on Friday morning at 09.35 that all 6 drill rigs were working.

Bridgedogg, it looks like your sources were wrong.

Bickmaster

Tigra,

Next RNS should have more assay results (hopefully 2 more boreholes worth), confirmation the three additional rigs which were supposed to mobilise week commencing 14th Feb have actually mobilised and a vague statement about discussions with interested parties continuing. This may be followed by a stock box interview. And possibly a placing for 582m shares the following day.

For the avoidance of doubt I’m in favour of a placing to provide cash to keep the DFS progressing for the next 2 months for a very small dilution which also takes the pressure off rushing into a deal. Though it should have been done 2 weeks ago when SP and volume was much higher.

AIMHO, Bickmaster

Bridgedogg

You are not answering the question being posed but instead you are posting other opinion irrelevant to the question.

My point was about the timescales for the RUS.

The Stockbox interview and GR's positivity doesn't impact the timescales for the RUS. It is dependent on getting verified assay results for more boreholes which add to the existing data set and then inform the resource estimate via modelling.

Then you refer to the JV. Again, the number of parties PREM is in discussions with has no impact on the RUS timescales.

This will come good but it will take time.

Bickmaster

Bridgedogg

What is more likely, a RUS based on 1000m of drilling or a RUS based on a few thousand metres?

To day that current drilling has no bearing on JV negotiations is just wrong. Of course it does.

Bickmaster

Apologies,

On my earlier post I calculated the timescales wrong. Based on the assumptions applied it would take a further 16 weeks rather than 8 weeks for the RUS to be completed.

Bickmaster

Gents

I am not sure if I follow the logic people are applying for timescales on the RUS.

We have had a handful of assay results back. From memory we have had results for 5 holes which cover approximately 1000m drilled.

Surely to have a meaningful RUS or even a meaningful interim RNS we will need far more than this? I would expect needing 4000m - 5000m of verified results?

Applying an assumption we will get 3 assay results covering 500m every fortnight, which would be a substantial increase on the current rate of progress, that would mean another 8 weeks to get 5000m. It would also take a few weeks to run the modelling, write up the results and issue via RNS.

Theoretically, a RUS could be published after each assay result but that is expensive and surely the logical way to do it would be to get a good few results which would equate to a sizeable RUS?

Bickmaster

Choma, nope he means £15 per share but it is an absolutely useless calculation to anyone. Though it is closer to the right answer than the £233 per share he was spouting earlier in the week which would value PREM at 1.5x UK’s GDP.

Richie

So you say a realistic valuation is £15 per share? This equates to a market cap of £291b?

I am not sure which planet you are living on.

Bickmaster

Mafs,

The cores look great and recent results show a good continuous strike length at a very good grade. Price of Lithium is phenomenal. The delays with getting assay results through is an issue and it delays RUS and DFS.

However the bigger problem here is GR's preference to enter a long term agreement with a JV partner (if that partner turns out to be a Chinese company).

I have little doubt we will see a SP of 0.8p - 1p whatever step GR takes.

However my strong preference is to avoid a long term deal and get Zulu DFSed to ~70Mt and get it sold. I don't see why it wouldn't make $650m or more in the current market which would result in a contribution of approx 1.9p per share on sale (assumes GBP/USD @ 1.34, CGT @ 20% and 20b shares in issue). That then enables PREM to distribute a dividend of 1.5p to shareholders and continue to DFS the rest of the EPO area.

A long term deal with the Chinese, assuming a mine would become operational and first revenues would be received in early 2025, may see a similar or greater SP in due course but is subject to much more risk. There is a reason Prospect sold Arcadia to the Chinese rather than looking for a long term deal. There is a reason other parties are not looking at long term deals with the Chinese either (i.e. they end up losing their mines!!).

Would you prefer ~1.5p dividend in the next 12 months (almost guaranteed this is possible) or a much riskier long term play with the hope of getting a dividend of say 1p per annum from 2026 onwards?

I know my preference.

Bickmaster

Mafs, the cores do look very good and seem to show a good continuous strike length.

Richie

Are you still predicting £233 a share?

Which would give PREM a market cap greater than Amazon, Tesla, FB, JP Morgan, Samsung, ExxonMobil, Pfizer, Toyota, BHP and Shell if you were to add them together?

Bickmaster

Bridgedogg,

You say 8 more boxes of cores showing in the picture. There are 8 empty core trays in the photo.

6 drills working now. We have not had confirmation the three additional drills have mobilised. I would expect an RNS on this.

Earlier you also stated 'Discussions are on track. Assay results no doubt on Monday. Lots to look forward to.' Calm down man. You are setting unrealistic expectations here. It will all fall into place but overpromising like Snowking doesn't help in the least.

Bickmaster

Anyone who doesn’t find the pinned tweet funny on that profile doesn’t have a sense of humour. Especially if you are a LTH. The newbies mights get some of the older references.

News

Minor correction.

The Arcadia project in Zimbabwe contains an overall mineral resource of 72.7 million tonnes at 1.06% lithium oxide and 119 parts per million tantalum pentoxide for 770,200 of Li2O and 19.4Mlbs of Ta2O5 at a 0.2%Li20 cut-off grade.

Ore reserves have also been upgraded from 37.4Mt at 1.22% Li2O and 121ppm Ta2O5 for 457,000t of contained Li2O and 10Mlb of Ta2O5 to 42.3Mt at 1.19% Li2O and 121ppm Ta2O5 for 504,000t of contained Li2O and 11.3Mlb of Ta2O5.

My only comment is you don’t have a clue how to value mineral resources.

Steward

Fair shout but it ties you into a long term deal with someone you really don't want to get into that kind of relationship with and also significantly reduces the potential of securing any consideration up front.

Bickmaster

Acker

Indeed, the big question here is how to value an asset where grades and resource size are not known. For GR to state that grades and resource don't impact a JV is just untrue. For other assets the consideration paid by the acquirer will have been based on two main factors - grades and resource size. PREM not having these ready is akin to someone selling a house and the buyer not being able to have a look inside before making their bid. In this case however the buyer doesn't even know the size of the house or what condition it is in, never mind being able to have a look around.

The commercial strategy to monetise Zulu is all wrong. Need to get DFS done and auction it. Any long term deal with Ganfeng or any of the other Chinese players is commercial suicide. There is a reason none of the other Lithium explorers have gone down that route.

Bickmaster

A nothing interview in all reality. Ducked the main questions and hid behind confidentiality when he could have provided a general overview rather than going into specifics. Not sure why he bothered with the interview to be honest.

news,

Great response and apologies for thinking you were a newbie.

You mention below that it is a common concept that a takeover results in a bid of X, Y, Z over current sp. Theoretically, if Ganfeng or someone else announced they held 30% of PREM and made an offer for a takeover in the morning at 0.6p (50% premium to current SP) what would stop them executing their plan?

Bickmaster

Daz

Just responding to your 12.05 post. My response is in uppercase.

No mining license - IT IS A LOGICAL ASSUMPTION THAT A MINING LICENCE WOULD FOLLOW ON FROM EPO AND DFS OR A DEAL AND IT IS LIKELY A DEAL WOULD BE CONDITIONAL ON THE MINING LICENCE BEING SECURED RATHER THAN IT BEING A PREREQUISITE TO COMPLETION. AS SUCH THE LACK OF A MINING LICENCE WOULD NOT IMPACT A DEAL.
No cost estimates - PREM HAS COSTS ESTIMATES BUT THE BUYERS WILL BE PREPARING THEIR OWN ESTIMATES BASED ON THE TYPE OF MINE AND PRODUCTION RATES THEY ARE ASSUMING AS THEY WOULD NOT BE ABLE TO RELY ON ESTIMATES PRODUCED FOR/BY PREM.
No environmental or community impact done. EPO AND ZIMBABWES DEVELOPMENT PLANS PROVIDE A PRESUMPTION IN FAVOUR OF MINING AND THE AREA IS SPARSELY POPULATED. SURELY THE DEVELOPMENT OF A WORLD CLASS MINE WHICH BRINGS EMPLOYMENT IS A GOOD THING. ALSO, THIS IS ZIMBABWE RATHER THAN SOMEWHERE LIKE THE SURREY OR BUCKINGHAMSHIRE SO THE RISKS ASSOCIATED WITH EIA ARE SIGNIFICANTLY REDUCED.
No lidar surveying - LIDAR IS INCREDIBLY BASIC AND IS SOMETHING WHICH WILL HAVE BEEN DONE YEARS AGO. PREM HAS CARRIED OUT MORE DETAIL AERIAL RESONANCE SURVEYS TO TARGET HOT SPOTS WITHIN THE EPO AREA.
No infill drilling - CURRENTLY BEING CARRIED OUT AND SAMPLES HAVE BEEN SENT FOR TESTING BEFORE XMAS.

So all in all, I believe the risks you highlighted are very well mitigated.

My view is all the risk here is in the commercial deal (long term agreement with the Chinese) as I have highlighted in other posts.

Bickmaster