Member Info for Bickmaster84

The consensus towards a sale to the Chinese makes a JV less attractive for PREM. They have £7m they can raise via placings and could even take on some debt if needed to get the DFS over the line.

I also see the discussions about offtake agreements as being a red herring. If the Chinese are interested in buying the mine they definitely wont want offtake agreements in place, especially ones which they haven't negotiated themselves.

The risk is they do a JV solely so they can use the headroom shares to raise funds for MNH. There shouldn't be another penny spent on it, even if it means it fails. We can spend £7m on the DFS which will hopefully provide a return of approx £30-50 for every £1 spent. Or we can pump money into MNH to take it off GR's buddy's hands when numerous parties have failed to run it commercially in the past (at least two have tried and failed, and I believe it is three).

In my mind, the choice of where to spend the money is simple.

Bickmaster

Plasmerman,

2p is 900% increase from current levels., or approx £400m m/cap if there is no further dilution (there will be). If PREM did that I would be in a position where I could probably retire or at least cut down my work to a few projects a year, all well before my 40th birthday. But it is 900% from current levels. Am I saying PREM will never get to 2p; absolutely not - my fingers are crossed. But some of us would be happy with less than 2p. My target would be to take a chunk out at 0.60p and let the rest ride. Just need this to do 200% to enable me to do that which, in itself, is a significant rise.

Each to their own.

Bickmaster

I think the biggest issue here is the disparity between the interviews GR does and the RNSs he releases along with the lack of regular communication. It is very easy to say the world is great in a Stockbox interview. It is a very different thing to write it in a RNS. The twitter is a shambles. PREM should be posting pictures of drilling activity and mineralised cores on a daily basis. The market simply doesn't trust GR and this holds SP back.

I only see minimal downside here - potentially a drop to 0.15p levels. The upside is potentially huge but needs to be underpinned by demonstrable delivery (which is sadly lacking) rather than promises and pipe dreams. Apart from the EPO spike the SP has done very little in the last 9-10 months.

Approaching 9 months since EPO and we've had unverified results for approx 200m of drilling out of what was planned to be 20,000m of drilling. Need I say any more.

Bickmaster

Wolf, there wont be any significant savings on development of an above ground mine. Remember quality of manufacture/installation is sacrosanct and there isn't much difference in construction materials across geographical locations. There will be savings on operations but these will be on labour only. Generally the capital development costs do not vary significantly from one country to another.

Sirius is slightly different because of the extent of tunnelling and the mitigation measures required for proximity of the national park etc.

Bickmaster

Pilbara spent approx $300m AUD on their stage 1 plant. Which equates to approx £160m. Though it was in 2018 so with inflation and price escalation in construction materials (steel has doubles for example) etc. that would be closer to £200m nowadays. The thoughts of GR even going anywhere near a project of this scale isn't worth thinking about.

Although we may be lucky and Snowking might confirm more than 50% of the mine has already been built because GR has done some early design work on flowsheets etc. That would save approx £100m.

Bickmaster

Snowking,

In response to your post at 20:29 below, at no point in the Stockbox interview does GR say the majority of the drilling is done. So you cannot say over 50% of the DFS work is complete.

I am not a fan of your posts which are not true, indeed they are misleading. It may be time to bring back Napom as the spokesman for your group.

Bickmaster

Snowking,

At no point in the interview did GR say that drilling is more than 50% done so what you've posted below is simply just not true.

The interview shows GR himself doesn't know how much he needs to drill. What is actually happening is he is reducing the amount of drilling because he doesn't have a hope in hell of getting DFS through before mid-late 2023 without focussing on a smaller area. This is disappointing but he wasted 6 months and this is the result.

As for the rest of your post below, it is simply more jam tomorrow with the rose tinted spectacles.

My fingers are crossed the results from the first 5 holes will be very good which should push SP back to 0.25p range. If it was another company the SP would do much more but people know GR and know there will be a placing on the way. For the avoidance of doubt, I welcome a placing as it demonstrates money is being spent and the DFS is progressing. Indeed I am surprised there wasn't a placing in early to mid November.

Bigger issue is the uncertainty around MNH. We need to remember GR used PREM money to pay his buddy's costs at Circum for a few years. And he is doing the same at MNH at the moment. Never mind TCT and the hunting lodge. If PREM was able to get rid of its 19% in MNH in the morning, even at a significant loss, I would support it as it removes the uncertainty. Until we have clarity on MNH the risk of shareholders being shafted one more time remains.

Bickmaster

Snowking,

Every time I read one of your posts it makes me wonder whether you've taken any notice of PREM's numerous failures over the past 6-7 years. You finish your post below with 'now is a walk in the park'. You also say 'forget RHA and MNH they are side shows'. I wish we could forget them but we can't with GR at the helm. MNH and a complex deal with his ole buddies from Uramin, in my mind, is what we will get next. It is exactly what PREM does not need. All focus needs to be on Zulu.

You state below. "8. May hav drilled over 50% of what is needed to complete the DFS". What underpinning do you have for this?

At current SP PREM has the ability to raise approx £6.5 - £7m via placings. Commercially, if there is significant interest from the market, the attractiveness of doing a JV with one of those parties reduces substantially, as the JV company becomes party to information which gives them an advantage over the others. They may also seek some form of exclusivity. The end result of this is it diminishes competition at a later stage when the bigger deal needs to be done.

So I think GR should have a number of placings to get the DFS to a well developed stage.

Bickmaster

A frustrating week, with SP finishing lower than it started at. Some decent signs in the RNS and the qualitative assessment looks good but the market is only interested in quantitative results. The downside is the interview shows GR has no control on timescales whatsoever. Still holding and fingers crossed this will be huge.

Bickmaster

“Majority of DFS work done”. To quote Alan Partridge, “a lie is a lie”.

Acker

Do I think that progress at Zulu DFS will continue at the same rate given the approaching rainy season? No, not a hope, but the focus should be on getting in additional rigs once rainy season is over to accelerate at that stage and make up for past delays.

Bickmaster

Acker,

Yes, decent RNS.

Key points.
- Good intersections of mineralisation.
- 962m drilled over the last 19 days, this equates to 50m/day. Based on that rate of drilling and remaining 15800m, the drilling will be completed in 316 days - 7 October 2022. I would then allow a further 6 months for writing up the report.
- It appears we have moved away from LIBS and all samples are going for external independent assay. No explanation provided for this.

Disappointed there hasn't been any confirmation MNH is off the table. As such I expect it is firmly on the table and the next RNS will deal with it. This will most likely be a placing RNS in my opinion.

Bickmaster

Snowking,

The big boys are only interested in grades above 1%, not 0.50% so lets not start posting that we can lower the cut off grade to increase the resource estimate and the mines NPV because it simply isn't true in practice. It would take twice as long unless you doubled your plant and machinery capacity which would come at a significant cost which would have to be outlaid early in the development programme which in turn significantly impacts NPV. 0.50% grades may be viable at current Lithium prices but what we currently have is a spike. The big market players will be using a much lower price when undertaking forecasting to determine the price they want to pay for Zulu.

You also said 'drilling through many metres of lithium , slows the drilling compared to no lithium'. PREM are using diamond cutting so the difference won't be material in practice.

I am still both hopeful and confident the samples, the results of which you said will be received by the end of this week, will provide grades above 1%.

GR needs to provide clarification in the next RNS on what the testing approach is going forward. In London he told us why LIBS was so great and the calibration approach being adopted with known verified samples etc. He needs to tell us if he has moved away from this approach.

The next RNS needs to be a big one and ensure there is no ambiguity. Unfortunately the only RNSs GR has managed to be clear in have been the ones related to placings. I am in support of a placing if the company needs cash to keep the DFS running, even if it means raising at a discount to current SP. I would estimate the drilling programme is costing about £50k per week at the moment so £1m should keep us drilling for another 10 weeks whilst also providing a chunk of cash to progress the on site testing using LIBS, if indeed the company is going to use LIBS going forward.

Bickmaster

steward

Yes, we need some kind of a change, and quickly. Whether it is a JV or raising funds to get a competent professionals on board. Chris Males seems to know what he is doing but needs help.

Given there are 4b+ share available for fund raising my preference would be to raise cash now, get a COO in and push ahead and only consider a JV at a later stage.

Bickmaster

Snowking

I wish I could be as positive and optimistic as you.

Unfortunately 8 months on from EPO being granted and PREM have unverified results for less than 1% of the 20,000m they themselves have set out as being required for the DFS and have less than 20% of the 20,000m drilled. So all that is left to do is 80+% of the drilling, 100% of the verified testing as well as carrying out the modelling and writing up the DFS report.

Added to this...
There is a lot of uncertainty about the suitability of LIBS.
There is a lack of adequate skills and resource.
We are now into rainy season.
And we have a CEO who has a track record of failure (and expensive failure at that) and not being able to focus on a single asset for more than 10 minutes.

Apart from all of the above everything is looking very rosy indeed.

Bickmaster

El-Gelboy

I disagree strongly with your statement.

Snowking posts a lot of information on here, some of which is useful. My issue is the lack of clarity in what he posts. As we expect GR to be more precise and informative with his communications to shareholders, we should all aim to be more precise when we post on here also.

Bickmaster

Snowking

This morning you state ' just to clarify i dont expect an rns on lab results this week but definetly in Nov'.

And yesterday you posted 'Nice to see blue , results coming back this week'.

And last Thursday you posted 'The suggestion is that assay results are being completed next week' (which would be this week).

Perhaps you could clarify what your expectations are as there appears to be some conflicting messages.

Bickmaster

Wolf

I agree with a lot of what you post but disagree with a lot as well. ' it would be advantageous to start a small mine now and ensure we don't miss the lithium curve'. How are we going to fund it, especially without a DFS? Would it not make more sense to focus on the DFS? Why build a small mine now when we should have a lot more information in about 12-18 months time about what is actually needed (by which time I'm hoping the asset will have been sold).

Profitbags,

"Knowing that we have only drilled 1/57th of the EPO area and knowing more or less the quantity present, if we were to completely mine and extract it all from this single section only, how much lithium would PREM extract?" The 1/57th is a red herring. The EPO is for prospecting/exploration. Prospecting licences are almost always quite large to allow you to do the prospecting. We currently have 20MT @ 1.06% and hope to increase it to 60-80MT. Very little point in looking past that at moment (indeed it is impossible based on the data available) as we are still some way off proving it up.

Bickmaster

@Alert

Spot on.

johnny,

We have over 4b shares to fund the DFS going forward. Even at current SP and assuming 10% discount for a placing and no growth that is approx £6.5m. Allow £1m in company running costs and assuming GR doesn't spend money on other assets and that gives £5.5m. Unless we get a ridiculous offer that should keep the wolves from the door and alleviate the need to do a JV at these levels (unless we get an offer we cannot turn down of course.

For most companies that would be enough to get a 20,000m DFS completed (working at £275 per metre) but it should take PREM most of the journey. 0.3p is almost 70% increase from today's levels, so not far off a bag. Can we get to 0.30p in the near term? I am not so sure with GR at the helm. Perhaps if he was to take a back seat and let someone else drive it would make all the difference. The other big issue is comms. The PREM twitter continues to pump out repetitive carp day after day. If they want to drive SP up get a few photos posted from the drilling locations such as a highly mineralised core coming out the ground.

GR's focus appears to be elsewhere. The prize is at Zulu, not MNH and shareholders have made their views clear on that. If GR's buddy wants to sell MNH let him go to the market. PREM rarely get a soft deal on anything and I cannot imagine they will get one at MNH either. GR has already admitted he overpaid for the 19% we already own at the London meeting.

Bickmaster