Member Info for Bickmaster84

Profitbags

I don't disagree with you, on the assumption the new COO is given the opportunity to lead communications and market engagement. Whether this would ever happen while GR is still round is another question as he may simple end up being a conduit for GRs comms which have always been poor. That would be the worst of all outcomes, effectively having a puppet in place.

The other point I forgot to mention earlier is that it would be good to get more clarification on the valuation exercise GR mentioned in London. For the avoidance of doubt, he set out the difficult of understanding/underpinning whether offers received for a JV or to buy a chunk of Zulu provide good value. He is getting a piece of work done by an engineer to help his position in this regards. It is interesting that he is getting this done by an engineer rather than a mineral valuer as only a registered valuation would be able to provide a proper valuation (i.e. Red Book). Anything else is only a largely unsubstantiated estimate. I don't believe any outputs from this exercise will be provided to shareholders or the market as it will be commercially sensitive.

Bickmaster

Profitbags,

You asked what is the next RNS supposed to be about. The best possible RNS in my mind would contain the following.

1. Update on DFS programme with metres drilled to date and no of rigs on site - there shouldn't be any surprises here as we know there are now 3 rigs on site. GR was unable to provide any underpinning on overall DFS timescales at the London meeting - if there is more logic available it would be useful.
2. Information on expanding lab testing capacity on site, why this is needed, progress to date and overall programme to complete this activity.
3. Results from any of the holes which are available at the point the RNS is released. Given GR stated 2 weeks for the next batch of results the RNS should not be any later than 3rd November. I would be happy with results from 5-6 additional holes.
4. We need to get clarity on prioritisation. GR dropped a clanger by saying he is interested in buying the remaining 81% of MNH at the London meeting. If he was to provide clarity that this would not happen until after Zulu DFS it would give the market certainty the funding available (i.e. the headroom on shares) is to be prioritised on the DFS and not running after an asset which has not turned a profit for some years. Shareholders and the market dont want MNH, they want progress on the Zulu DFS.
5. Update on adding new skills to the PREM team. We have heard about this for years and GR stated at the London meeting he was looking for a COO. We need to have some more depth on this given the previous references in this area have come to nothing.

Point 4 above is more important that the other points put together in my opinion. If the market is to take PREM seriously it needs to know PREM is serious about prioritising its trophy asset. MNH is not producing a profit and has not done so for many years. We should not and cannot be spending money on it which can provide much better returns elsewhere. My firm belief that that the SP will stay below 0.20 until this matter is cleaned up.

Bickmaster

Watcher,

Unfortunately I think there is a degree of scepticism in the market as we are used to GR overpromising and underdelivering.

His aspiration to buy MNH is also a big red flag given it isn't profitable and PREM should be focussing efforts and money on Zulu DFS. I really think the only way to remove the uncertainty he has created around this is a RNS confirming there are no plans to buy MNH. However, the big issue is I think he is set on buying MNH from his buddy Stephen Dattels.

Lack of certainty on Zulu costs and schedule is also an issue.

Bickmaster

Steward,

Jamgoo is who he claims to be. I can vouch for him.

Bickmaster

Snowking,

You say there is no point in arguing about the original MNH stake. Have a look back at the claims which were made and the BARA report which valued the asset at $20m. It is interesting how wrong they appear to have been. Otjozundu has a chequered history and has failed on previous ocassions. Just look at Shaw River. I imagine Stephen Dattels picked it up on the cheap after Shaw River, hasn't been able to make it work and is now looking to sell on his interest. I really dont think PREM should touch it with a bargepole. If it was a valuable asset he would take it to the market rather than seeking to do a deal with PREM. So it is relevant any you cant brush previous transactions under the carpet just like that.

Steward,

It was useful to attend in person and hear what the issues are with the DFS and how they are being addressed (more onsite lab capacity) but it also highlights other issues which are more difficult to control, such as the long lead-in times for third party verification. I took very little confidence and was quite unimpressed by the lack of any extra definition on the DFS programme, both in terms of cost and schedule. I have said it before and will say it again, it is being made up as it develops. I have no confidence there is any logic underpinning the 14 months or $5m estimate. Hopefully the new COO, if one is appointed, is able to sharpen this up.

In terms of the improvement in communications and the additional engineering capability (via a new COO), we have heard this on numerous occasions in the past before and it has never come to fruition so I have my doubts there will be anything different this time around.

The shareholders who attended seemed to be quite unanimous on the preference to focus the efforts and cash available on the Zulu DFS as that is where we see the potential payoff for PREM. The closing point GR made about potential to acquire the remaining 81% of MNH was very disappointing. Even if he buys it at a knock down price of $4m (equates to 50% reduction on $8.1m based on what was paid previously and is a figure I have pulled out the air) it is money which needs to be prioritised on Zulu. Otjozondu has a chequered history also and I believe it is effectively owned by Stephen Dattels. I am not sure PREM should be buying a mine he is walking away from.

Bickmaster

2/2

There was a discussion about funding. Number of attendees suggested a percentage of Zulu in return for funding the DFS to remove funding risk. GR pointed out the difficulty in knowing what is and what isn’t a good deal. For example, would 20% for £6m be a good deal. Other issue is the majors are less interested in 10/20%, they would want control. He is going to get a valuation done to support this going forward. I have my doubts that valuation will be made public but will be a sounding board for GR to use in discussions.

He didn’t confirm the cash position or provide any information on when the next placing will be. Contrary to what some what posted on here, he definitely did not say there wont be any more placings.

He showed the pit shell (resource model) from the previous geotechnical work which has taken place and the additional step out zones being tested now. He is looking at at a large increase in the resource, though all of this is still currently within the existing licence area rather than in the wider EPO area.

Then went through the economics highlighting the conservatism applied to the assumptions – e.g. petalite income based on $400/t when market is $800/t. Also mentioned the ‘hidden benefits’ of the petalite being high grade and low iron and the tantalum.

RHA – Discussions are taking place with minister in relation to the ownership structure. The plan is to capitalise the $20m outstanding from ZimGov in return for increased ownership. GR still believes RHA has a future and is doing more test work. He previous geologist believes an open pit could work at RHA. Biggest issue the market perception that it is a failed mine
given the history over the past number of years.

Circum – not much discussion. Updated DFS due soon. GR didn’t have a timescale for this.

MNH – GR gave overview of the issues with containers and work taking place to assess potential options to get the material the 140km to Walvis Bay. Interestingly the Indaba presentation shared yesterday said ‘cash generative asset’ for MNH whereas in the presentation GR said it ‘should be cash generative’. When GR was closing the presentation he mentioned potential to ‘follow through on’ MNH. I asked him if this referred to buying the remaining 81% of the asset. He said it did. I pointed out this would cost $8.1m based on the cost paid for the 19% already owned. He said he believes he can get it for much less than that. This obviously means PREM have overpaid for the 19% they have and, in my view, also shows the issues with the Bara valuation which was used to underpin the previous acquisition. To me this was the biggest red flag in the whole meeting and shows that despite how much the shareholders want GR to focus on Zulu, he is likely to continue to go off on tangents. It is also contrary to the point he made about PREM being good at exploration but being weak at mining.

If there are any questions let me know.

Bickmaster

1/1

Morning all,

Here is my summary of last nights meeting.

Communication – GR recognises this has been poor and has a plan to improve it.

Capability – GR said PREM has what it needs in terms of exploration capability but recognises need for more technical expertise and has plans to bring in a COO with a strong engineering background. He has a shortlist though some of the candidates wouldn’t be available to start until early 2022.

Zulu - GR said this is taking up more and more of his time and he needs to bring in more skills. He started by giving an overview of the route to get the Lithium out of Zimbabwe when it is mined – Bulawayo to Harare to the Port of Beira in Mozambique and said there is lots of capacity along the rail line. He said this is a big positive as there can be significant costs in logistics and handling and this would keep those costs down.

He reiterated 20.1MT /1.06% Li maiden resource from previous work with target to increase this to 60-80MT which would make it ‘one of the largest deposits around’.

He then gave an overview of the DFS work taking place. Third rig is on site and is operational – approx. 3200m drilled to date with the cores looking encouraging. Said the DFS programme is not dependent on no of drills on site but the time it takes for bulk sampling. He was asked about the programme and how long the DFS will take. He wasn’t able to give a definitive answer but said he previous specified 14 months when EPO was granted and depending on when you start that 14 month period it will be in the right ball park give or take. He was asked more detailed questions about this. He gave a detailed overview of the process from drilling, logging, splitting, quartering, crushing, pulverising, amalgamating/homogenising and forming the pellet which is then tested using LIBS. The process is slow and he is currently doubling the facilities for the sample preparation as it is the bottleneck in the process. Samples will need to go offsite for third party independent verification. This will take place outside outside Zimbabwe as there isn’t capability within Zim to do this. This needs an export licence which takes time to organise but it is important to follow the process to ensure there is a chain of control. Globally there is a backlog to get samples verified as there is a lot of exploration activity taking place.

There was a lot of discussion about the recent RNS and why the market perceived it negatively and when the next set of samples will be ready. He said the other 19 samples are ready for testing but . Initially he said 3-4 weeks, then 2-3 weeks, then after being questioned further he rang Chris Male who is in Zimbabwe and asked him when the next set of results will be due. Chris said a week but GR said to allow 2 weeks. It wasn’t confirmed how many samples will be released in the next RNS.

Good to meet you and a few others tonight Plasmerman.

Hopefully cash generating means they are making more money than they are spending. RHA was cash generating as well for about two weeks. Unfortunately it only generated about $200k in cash and cost about $20m to develop to its current stage.

Shiny,

I will have a few questions ready about the EPO, as well as other matters.

Bickmaster

I am not expecting anything ground-breaking tomorrow. I am expecting lots of positivity from GR, a summary of how difficult life has been over the past 12-18 months and lots of reassurances on future delivery and being positioned so well to take advantage of the current market (debt free etc...).

Unfortunately we have seen more than enough positivity over the past 8 years here. We are at a stage where the prize on the table is too big to mess it up. We need to have 100% focus on the DFS, get it finished as soon as possible and get the asset sold. The thoughts of PREM entering a JV or even going it alone to develop the asset doesn't bear thinking about when we cannot even get a third drilling rig on site in a timely fashion. Let the mining to the miners.

Bickmaster

Snowking,

So you are saying we are around 2 -2.5 years away from having a working mine (i.e. October 2023 to April 2024).

PIlbara finished their DFS in September 2016. Construction began Jan 2017 and was completed at the end of July 2018 with the first lithium being shipped in October 2018. So their timeline was approx 25 months from end of DFS to first material shipped.

And you reckon Prem, who have drilled 3000m to date, are 2 to 2-5 years away from having a working mine? The way things are going and with the track record to date, I would be hopeful the Zulu DFS will be completed in 2 years, never mind having a working mine.

Bickmaster

I’d imagine there should be a few more test results available given it will be 1 full week between the last RNS and the meeting. There’s no reason they shouldn’t have another 5-6 results analysed.I imagine we will also get an update stating the contract had been placed for the third rig and it is on the way but has been delayed by border issues or similar.

Wareing,

Iconic will use the pumping/leaching method to steady Lithium from sediments whereas PREM will be hard rock mining. So the 1013ppm is not comparable to PREMs >1% average grade.

Indeed Chuggley, I'll be there.

I haven't been in London when the other ones took place so this should be a good opportunity to ask a number of questions. I will be focussing on DFS programme, timescales, cost, certainty etc. Nothing else really matters at the moment.

Bickmaster

Speel,

The reasons for the nosedive, in my opinion, are as follows.

1. Only providing the result for a single test hole, especially when Snowking and Co had primed the market for something more substantial.
2. An expectation that a placing RNS was to follow shortly after (PREM has form for this).
3. Poor rate of progress on the DFS programme to date (3000m drilled out of 20000m).
4. Lack of visibility of the DFS programme to date (what is expected completion date and cost). It appears GR is making it up as he goes along.
5. Reference to gold exploration in the RNS which detracts from Zulu which should be the only focus at the moment. We are well aware GR is easily distracted.
6. RHA and MNH in the background taking funds which need to be prioritised on Zulu.
7. Lack of progress on getting a third drill on site. It really shouldn't be taking this long.
8. General lack of credibility in GRs corporate communications. It is easy to say the presentation was great, as many have said. Unfortunately the RNSs need to provide the positive news, not the presentations.
9. No fresh blood. It was good to see Chris Male on the presentation last week but it would also be good to get a project manager on board who is better at delivery than GR.

They would be the main reasons, in my opinion.

Bickmaster

Snowking,

When you say results do you mean result?

Bickmaster

So, we have 13.39m at an average grade of 1.37% at a depth of approx 45m. That is decent.

After waiting for such a long time I disappointed we were only provided with information from a single hole. Market seems to be a little disappointed also as can be seen from the share price reaction. We wont be pushing through 0.24p on the back of these results.

Also disappointed we have only drilled 2700m to date. Based on current rates there isn't a hope in hell the DFS will be delivered in 2022.

I wonder what our next RNS will be....

Bickmaster

Snowking

PREM has a SAMREC compliant Inferred Mineral Resource Estimate of 20.1 million tonnes grading 1.06% Li2O and 51 ppm Ta2O5 using a cut-off grade of 0.5% Li2O.

Are you expecting assay results or are you expecting a revised mineral resource estimate as they are two very different things?

Bickmaster