Member Info for Bickmaster84

Your 0.42p doesnt take account of the dilution to provide the new shares.

"We valued Zulu at 3/4 of PREM?" Don't remember that.

My personal view is that Zulu accounts for 100% of PREM. Indeed it could account for more than 100% of PREM but the other 'assets' have the effect of reducing its value.

MNH is a liability as it will suck up cash for a number of years without providing any return (a number of parties have tried to run it successfully in the past and have failed which poses serious questions about with GR is going near it with his track record. Oh yes, it is owned by his friend).

RHA is worthless and has cost shareholders £20m. Spending any more on it is simply throwing good money after bad as it will be near impossible to have a return which would pay for significant whilst grades are still very uncertain.

Circum is also of very little value because the value is not realisable because of the worsening situation in Tigray.

So it could well be that if Zulu was valued on its own it would have a value 120% that of PREM but all the other****** is holding it back.

Bickmaster

Snowking.

You do realise that $12m - $15m for 15% would value PREM at $80m to $100M, which assuming 12-15% dilution would equate to a share price of .21p and .26p for each scenario. I'm not sure how you think that would be a good deal for PREM.

Even £12m - £15m for 15%, valuing PREM at £80m to £100m, would only equate to a SP of 0.37p and 0.45p for each scenario. Given the SP almost hit 0.34p on Monday I am not sure that would be a very good deal.

As for the $6m for 20% comment, that was mentioned only as a hypothetical scenario rather than anything to hang your hat on so it shouldn't be used as having any relevance whatsoever in relation to how a deal could be valued.

Bickmaster

Snowking,

If assay results have no bearing on a JV then why bother drilling at all? Why bother mobilising 3 more rigs?

Bickmaster

Bridgedogg,

Still holding my 19m.

Bickmaster

Snowking,

We don't know the parties involved but if dealing with the Chinese a multi-stage agreement is far from ideal. Much better to have a clean break and sell 100%.

Obviously that is what Arcadia felt. But I am sure GR knows much better than Arcadia.

Bickmaster

Bridgedogg,

Few corrections.

'Now we have 6 drills working on it' - incorrect. There are three with three more due to mobilise week commencing 14 Feb. Hopefully that actually happens on time as using GR's calendar 14th Feb would be closer to end of March or mid-April.

'rains cleared so results should be coming in think and fast' - incorrect. Rainy season runs into March. Hence why I was pushing for accelerating the drilling programme last year instead of hanging around doing very little. I remember GR and Snowking both gave us assurances the rainy season wouldn't cause any issues. Both were wrong.

'We were told that off take would likely fit part of the deal so this is borne out by the first choice of partner.' No mention of offtake today. Offtake wont be needed if there is a major involved.

Bickmaster

Snowking

It is fairly self explanatory. The shallower the Lithium the less overburden to deal with and the cheaper it is to mine.

I was happy with the results today. I just wish we had more than two holes though ZDD034 looks like a corker.

Also, as per my post of 23 January, I thought you had predicted that you were going to give up predicting?

Bickmaster

You'll find that is a mistake. There were a few days with volume higher than today last March.

Kenny what about 12 March 2021?

Steward

Fair shout, I had that in mind as well. In can see an auction as providing the best method to achieve best value and I am unsure why PREM would not go down that route.

Bickmaster

Kenny

If he has a choice of 14 he should be focussing on maintaining or increasing competition between them rather than seeking to 'get into bed' with one.

Very naive from a commercial perspective.

Bickmaster

Overall reaction, mehhh....

Rains affecting progress and only 1000m drilled since December. It means the drills are averaging only approx 10m per day which is about 30-40% of what I would have expected. Can anyone remember who was saying they needed to get more rigs on site last year and drill the 5h1t out of it before the rains arrive? Oh yes, it was me. While a few other notable posters on here said rains wouldn't be an issue... Again, this is one of those occasions where I don't like being correct, but I am.

Very decent grades, though at a more significant depth than I would have liked. That said, the lithium is there.

On the deal... Non-binding heads of terms mean very little. Indeed they are hardly worth publishing and I imagine they may have been agreed on the basis the market would have perceived them favourably. The fact they are worth very little is a positive as I don't think doing a deal where the 'partner' has the ability to buy in in a number of tranches is very commercial. It sounds akin to providing pre-emption or exclusivity rights which, for an asset of this size/value, will reduce the price achievable and the return to shareholders. PREM need to either sell a very small % (to fund DFS) or a very large % (i.e. JV for ~75%) now. Anything in between creates uncertainty.

My preference still is to do some placings and/or get some third party institutional investment on board should it be needed as this will maintain healthy competition among the interested parties without giving one a competitive edge over the others.

All in all a decent RNS but the SP has dropped back significantly on the back of it showing that any GR RNS is likely to reduce SP. Indeed today's RNS has knocked £10m off mcap rather than driving it up, albeit this should be a short term impact.

We have had a few very good days over the past week or so and long may it continue, despite the current selling off on the back of the RNS. More assay results needed in the next week - keep the news flow coming and the market engaged.

Bickmaster

Steward,

That RNS would be nice. Would make a lot of sense to release it.

Barnetpeter

I've learned a lot here as well. Initial purchase was 90,000 shares for £900 back in 2014. Averaged down significantly over the years and now have 19m of these. Was down about £37k at one stage in the no too distant past. Sitting in profit now and holding for at least 0.5p before I sell my first tranche.

It looks like the patience will be rewarded.

Bickmaster

Acker

The palpitations have started already!! Surely GR would only buy the rest of Circum after turning MNH into a potentially profitable venture first!!

Well done sir.

Hopefully you can make a few £££ on top.

Bickmaster

There is no benefit to a Friday evening afterhours RNS if there is positive news to share.

In my mind this reinforces the benefits of seeking to raise the monies needed to complete the DFS through placings and then seeking a much better deal post DFS.

There is only and will only ever be 100% of Zulu. If we think the 60-80Mt resource will be worth ~$400m at DFS completion that equates to $4m per 1%. The more PREM disposes of now at say $1m per 1%, the less can be sold later at the premium price.

Bickmaster

CrystalBall,

If funds can be spent efficiently to provide a return to shareholders, something which PREM has been unable to do in the past, then I am all for that. However GR has failed time and time again and the position we find ourselves in now is a result of the market rather than anything GR has done. Indeed, he had the option to progress Zulu in the past and wastefully spent the funds on other ventures instead.

My view is that GR should be looking at 2 scenarios.

1. Sale of a small percentage (5-10%)to raise the $8 - $10m needed to finish the DFS and cover overheads for 12 months.
2. Large scale JV.

I wouldn't support no. 2 at this stage as it would be possible to get a much better price for Zulu post DFS, whether than be for a % sold for a JV or for a full sale.

And with regards to no. 1 my preference would be to sell to an institutional investor rather than to one of the large mining companies to maintain competition for a larger sale or JV in the future. If for example, PREM were to do a small fundraise by way of selling 5-10% to Ganfeng, it reduces the interest of other players in a future auction or similar as Ganfeng will have access to more information than them.

Bickmaster