Member Info for Bickmaster84

PB

You ask 'Why do you think the share price keeps dipping even though in the past few months we have had good news after good news? ' Simple, none of it is verified and a lot of the news which has been provided is small beer compared to the key items - drilling progress and verified grades!!

"And lastly, what do you think will actually make the price shoot back up again to 0.3 or above?" Verified results, confirmation on MNH, better comms and appointment of COO.

I really do think it is that simple.

Bickmaster

Shiny,

There are indeed a lot of similarities in current delivery issues to the RHA story though I am a lot more positive about the potential of Zulu. That does not mean however that it cannot be messed up from here.

Bickmaster

Wolf,

Yes, I have no doubt there are interested parties but the chance of doing a deal of any substance in the next 6 months is seriously undermined by the fact we have so little verified results.

We are 9 months since EPO. Allowing 3 months for organising resource and placing contracts we should have had 6 months of drilling completed with 4 rigs on the ground.

If we had 4 rigs, drilling 2 shifts a day, 6 days a week over the last 6 months, allowing 15m per rig per shift, and allowing for 20% downtime for moving rigs and breakdowns, this would equate to 15000m drilled which would almost be enough for the DFS. That in my mind is where PREM should be at this point in time, and they should also have a good chunk of this tested and verified.

Instead we are at approx 5000m drilled and nothing verified while GR has been pi551ng around with MNH and dewatering old mine shafts to go looking for gold.

LIBS doesn't appear to be working. Maybe there is a quick fix but at the London meeting GR sang its praises saying they had verified samples to calibrate against. Now it seems the LIBS results are approx. 35% away from the lab results. Maybe there is a quick fix. We will wait and see.

The opportunity at Zulu is huge but I fear GR is so used to ambling along and being bailed out by shareholders over the past 7-8 years he does not know what good performance looks like. Hence we need a change of the man at the wheel. Keep GR on as Chairman but we need a COO who can drive delivery rather than waiting for thing to happen in their own time.

I really hope I am wrong but I don't think we will be much more progressed in 6 months unless there is a change at the top.

Bickmaster

Hammered,

I wouldn't get rid of GR, but I would get someone with more capability in to run PREM.

Bickmaster

Wolf,

I see somewhere between $250m and $600m of value in Zulu, if the DFS is done correctly.

Re. no one will trust LIBS... Show it works and people will trust it. Currently it doesn't work. It may not simply be a case of calibration as GR has led us to believe.

Re. no one will trust GR... why is m/cap sub £30m? He doesn't deliver anything and never hits any deadlines. Look a the hunting lodge. How can you trust him after that? Look at the promises made on RHA and Circum?

Bickmaster

Wolf,

Arcadia entered into the offtake agreement in July 2020. Their updated DFS was completed in Dec 2019. They agreed the offtake after the debt financing had been secured to fund the construction of the plant. So the logical process is (1) Complete DFS (2) Secure funding (and start building plant) (3) Offtake Agreements.

I don't see how it would be possible to change the order for PREM, especially with a track record of never delivering anything. Indeed, I don't see how anyone could sign off providing GR with advance funding for anything given his track record. Can you imagine if you were in that position and were the person having to sign it off? I'd sign it off but I'd want a charge on the company assets to protect against non-delivery.

Bickmaster

Welshy

Indeed, the more I hear about LIBS the less attractive it is to me and the more I think PREM need to send all results externally for testing. It will cost more but potential buyers need to have certainty - LIBS does not provide this. I believe that if PREM continues to use LIBS the market will apply a significant discount when it comes to selling Zulu. I imagine there may also be a degree of nervousness given GR's previous involvement in Uramin. Anyone who does not know the history of Uramin needs to google it.

I note some other posters are still talking about a JV. We don't need JV until at least next summer. We need skills, not money at the moment. We can get money through placings. We can get skills through hiring or appointing external consultants.

Some others have mentioned securing an offtake agreement. Who in their right mind is going to give an offtake agreement to someone with GR's track record? We don't have an operating mine or a mine anywhere near construction. Indeed we are still about 18 months away from a DFS in my opinion. If the Chinese are likely buyers for PREM the last thing they would want is for GR to have negotiated an offtake agreement when they want the Lithium themselves. So, an offtake agreement is (1) Very Unlikely and (2) Commercially unattractive at this point in time. It would only be attractive if PREM decided to develop the mine themselves. Given how difficult it is proving to get verified results for more than a single 200m hole, I don't think we need to entertain the potential that PREM could build a mine.

Monetise the asset and move on!!

Bickmaster

@realtime2,

I hope you are correct.

However, my question to you is whether that is actually good performance? By end of December will hopefully be in a position where we may have approx 33% of the drilling completed and, if we get the result for the 5 holes back, we will have approx 5% of results.

We wont have a new COO appointed.

And the question of MNH is still likely to be hanging over our heads.

This will mean share price appreciation of approx 10% since the days prior to the granting of the EPO. My question to you is whether you think that is good performance given we will have had the EPO for 9 months at that stage?

Bickmaster

Acker,

I believe we have a similar outlook on everything apart from MNH. I cannot see how the company are better spending money on MNH than Zulu at the moment. The JV is not needed at the moment as PREM still have a few billion shares available to fund the EPO. MNH is likely to be another RHA. Other's have tried to make it work and have failed. I cannot see PREM being more capable than the others, hence I would avoid MNH and would be happy to write off the current 19% ownership if it meant focussing on Zulu where the value is. We dont need any distractions from Zulu at the moment.

Bickmaster

Edgy,

Depends on what the horizon is. I'd expect the £800k to last until end of March.

Bickmaster

Morning all.

Certain sense of deja-vu here this morning. My takeaway from the RNS is provided below.

1. Placing - this was needed and is a better route than JV at the moment. However it should have been done earlier, it could easily have been done at 0.18 rather than 0.16. Large sales from yesterday show this is leaky, though we are well aware of that.
2. Drilling progress - ok but slow. Obvious that the rainy season is having an impact.
3. LIBS - this is a mess. Approx 35% variance between lab and LIBS in the RNS. Need to decide whether to commit to LIBS or go fully with an external lab. I'd prefer the latter. I provides more certainty but will obviously cost more.
4. JV - smoke and mirrors in my opinion. Very easy for GR to big this up in the interview. I have no doubt he is talking to parties but PREM are better self-funding as much as possible at this stage.
5. MNH - no update. Have to assume this is still on the table.
6. COO - no update since the London meeting. GR was obviously telling us what we wanted to hear at the time.
7. Comms/Twitter. Still awful.

Overall - disappointing not to have more results but the placing is needed to keep the drills turning.

Bickmaster

Not even GR is stupid enough to issue a positive RNS on a Friday. If the RNS is positive hold off until Monday.

If negative get it out at 5pm today. Simple as!!

Another useless Twitter update this morning. Have a look at Heliumone's update as a comparison.

Tweet some pics of progress on the ground, drill rigs operating and mineralised cores being prepared for testing. Why cant PREM take this on board? They said this would improve at the London meeting but nothing has changed. If anything is has got worse. I wonder if GR has a laugh before tweeting saying 'this will really get on their nerves!! Haha!!"

The Zulu RNS due later this week (mentioned earlier by D&C) will tell a lot about progress.

Bickmaster

Indeed Steward,

He said he was expecting assay results 23-26 Nov. If these are not returned and RNSed before the end of this week, or the end of next week at the very latest, then something is very wrong.

Bickmaster

In hindsight, and seeing GR's continued interest in MNH when it is the last thing shareholders want, I firnly believe the reality of the situation was that his buddies from Uramin wanted some $$$ they didn't want to put forward themselves and PREM funding them was an easier route that seeking debt funding or raising elsewhere.

Johnny

I’d predict a spike followed by a retrace. I can’t see a rise being sustained for three reasons.

1. The results will only be for the first 5 holes, which will be only approx 5% of what’s required overall.
2. MNH uncertainty holding SP back.
3. A placing is required.

Bickmaster

Speel,

He said he was waiting for results to be provided 23-26 November. Allowing them to be a week late they should have arrived this week.

Allow 2-3 days to get them ready for RNSing, all going well there should be an RNS next week.

If the results are positive, SP might do 10% because of the known need for a placing which will follow.
If the results are no so positive, I imagine they will be held back. Hopefully this wont be an issue.

And all of the time there is the MNH risk in the background which will limit SP increases anyway, at least until clarification is provided from GR this is off the table.

Bickmaster

Plasmerman,

A placing will be needed to continue to fund the work on the DFS. Even 600m shares at current levels will raise approx £1m to keep the drills turning and the sample verification progressing. That should cover another 2 months at least.

A JV at this stage, when the company has the ability to raise approx £6-7m is not commercially sound. Funding should continue via placings (ideally at higher SP) and, if required, debt.

In response to some other earlier posts, anyone who thinks doing a JV with the Chinese is either (a) possible, or (b) desirable doesn't have much experience of doing business with the Chinese. The truth is any purchaser will want to buy 100% of the asset and get PREM and GR out of the way so they can progress unimpeded.

Also, it appears the general consensus (everyone apart from Snowking) is that the MNH issue continues to be a thorn in PREMs side and GR should provide clarification on it.

Another week without news. Let's hope next week will be better and we get the long overdue assay results through.

Bickmaster

The price of Spodumene is in a very good place at the moment but, to be perfectly honest, I don't focus on it that much as it is too early.

When the DFS is 80% complete (i.e. all drilling and testing finished with report being written up) I will take more interest.

There is still a huge amount that can go wrong for PREM with GR at the helm and the fact he doesn't publicly state MNH is not being pursued will continue to hold the SP back. I am fearful a deal is being constructed involving giving a percentage of PREM and some cash for the remaining 81% of MNH, just so GR can bring his buddies into PREM on the cheap, effectively paying them to take PREM shares as I don't ascribe any value to MNH as it is loss making and needs significant investment.

Is this moaning? Perhaps. But GR has form for doing strange deals which benefit his friends (Circum, MNH, Casa, TCT, underwriting Herbert's loan to MNH) and until it is ruled out it is the biggest risk to PREM shareholders.

Bickmaster

Redpolo,

Prem currently has estimate of 20.8Mt. The target is 60-80Mt. It is of course possible the DFS could result in a larger deposit, though from the last stockbox interview I believe GR is targeting doing the minimum necessary to get to that level to keep programme on track as obviously the more drilling and testing required, the longer the programme.

From a minerals valuation perspective, a 120Mt resource may not necessarily be much more valuable to a purchaser than an 80Mt resource. The larger the resource (past a certain point) the lower marginal returns, simply because the buyer will apply a DCF approach and the revenues in later years are significantly discounted. Generally any revenues past 20 year LOM is discounted so much it is largely irrelevant. And if PREM gets to 60-80Mt it will definitely provide 20 year LoM.

So, all going well, the plan is to do the bare minimum to get to the 60-80Mt target and stop then sell that. That does not mean there may not be other resources outside of the DFS area which cannot be assessed thereafter.

Bickmaster