Member Info for Bickmaster84

There is also an update due on MNH.

From the 28th June RNS - "In June 2021, the Board agreed to provide Otjozondu Mining (Proprietary) Limited with $260,000 Facility Agreement with an interest rate of 20% per annum and is repayable in $25,000 instalments on each shipment of Manganese commencing from the beginning of September 2021".

I expect the next RNS, whenever it lands, will provide confirmation the loan has exchanged for more equity in MNH. Based on previous investments in MNH, this would equate to 2.6% of MNH. However, I would expect a higher percentage in this case as there should also have been interest due to PREM. I would also hope that MNH are covering all of the legal costs of these agreements. I also firmly believe PREM should stop funding MNH, it's other owners/shareholders have adequate resources to do this and it should not be down to PREM to continue to bail them out.

It would also be nice if the Auditor's report from their trip to MNH from the end of 2020 was published, though I imagine it doesn't make pretty reading. My view is that every $ spent on MNH is a $ which should have been spent on Zulu as there hasn't been any return on MNH within the next 18 months (and it doesn't appear there will be any return) whereas the Zulu DFS has the potential to provide $25+ payback for every $ spent (i.e. I am expecting the DFS will cost about $10m but will result in the value of PREM increasing by $250m, approximately £180m). This would take the MCAP from £40m to £220m and assuming there will be 25b shares in issue at that point in time would equate to a share price of 0.88P. So approx a 3 bagger from current levels.

The big issue of course is the performance, or lack thereof, of PREM's management.

Bickmaster

There are two pieces to the jig-saw for us to make good money here (assuming GR remains focussed on Zulu and doesn't go after other assets with nowhere near Zulu's potential). One is out of PREM's hands, the other is firmly with PREM for delivery.

1. Spodumene Price - we couldn't be in a much better place than we are currently, unless of course the spod price stabilises around current levels. Will be interesting to see how the emerging Evergrande situation in China impacts this.
2. DFS - looking forward to the initial results but there is a long way to go. This is where all of the manageable risk is for PREM. How are PREM doing in terms of managing this risk... everyone will have their own opinion.

Bickmaster

Fantastic numbers on the Lithium prices from Pilbara.

The reality though is we are still a long way from a DFS. There may be approx 1500m - 2000m of 20,000m drilled. How do we reduce the DFS programme? The simple answer is more rigs. There is now limited opportunity to get more rigs on site before the rainy season starts and the opportunity to get a few extra thousand metres drilled before the rainy season starts has been lost. This isn't pessimism, it's the reality of the situation.

Hopefully there will be 4-5 rigs drilling post rainy season when good progress can be made and it will be possible to bring in the DFS by the end of 2022 or early 2023.

Degrasse,

If I had posted something which wasn't true or 'attacked' another poster then I wouldn't have any qualms. All I have done is keep it objective. PREM has huge potential (hence why I hold 20m shares here) but we are 6 months on from when the EPO was granted and we have only drilled 1,000m of 20,000m with rainy season around the corner. Is it possible to show the rain clouds and rivers of mud on the golden cross? We haven't had confirmation of the lab being ready or a third rig on site. These are the issues which need to be progressed to make a material and sustainable difference to the share price.

And we continue to give money to MNH and facilitate a Director loan (i.e. provide security for a Director) which didn't need to be done as it has absolutely no benefit to shareholders.

It is clear you are in the breakout brigade. You have even posted links from Motley Fool on here (their articles arent worth the paper they're written on) and have also been adamant there was a special dividend from Circum on here.

As for the response to Darthtrader, 100m bid support is great but when it is below the bid in the market is it going to make any difference to SP? It appears not.

Bickmaster

Yup, the same group are trying to orchestrate the rise across a number of platforms. Lloyd even kicked me out of the tele gram group last night and accused me of being a troll and attaching other members on Twitter. I queried a comment made by Darthstock, that was all. It appears my agenda (needing actual progress and metres drilled rather than looking at a chart and drawing a few lines and telling everyone the SP has to go up) doesn't fit his. Funny how Oranolio seems to post very similar views as Lloyd on Tele gram...

I think it is very clear to everyone who the members of the group are and I would be very wary of placing any reliance on what they say. I also find it surprising that Lloyd posts voice messages to tg which he often deletes shortly after rather than putting messages in writing. I will continue to post my views on here, hopefully some posters might find them useful. Those who don't can simply scroll by.

Bickmaster

Indeed, volumes have been low today and even if the MMs had an 80m order, it was at 0.22 when 0.225 was available on HL and elsewhere. If it was at 0.24 I would get excited. I questioned DarthStock on Twitter earlier and he blocked me. Obviously he doesn't appreciate challenge on factual matters and is looking to ramp PREM as much as possible. His posting is very similar to Oranolio, who also posts regularly on ODX. Some funny games being played by a small number of posters, both here, on Twi tter and Tele gram. I wonder what Columbo would think.

We are approaching 4 months since FPP was delisted. My expectation was a September relist though I wouldn't have been surprised if it had been October. Still hoping the prospectus will be issued in the next two weeks which would pave the way for an October relist. Really looking forward to this as CiiTech appear to be very impressive and have big plans.

Bickmaster

Lyndon,

No one knows the answers to the questions Acker posed. If he knew the answers he wouldn’t have asked the questions.

Chuggley,

The answer to your first point below wholly depends on whether PREM decide to develop the mine with a JV partner or sell off the asset post DFS.

If the latter, any acquirer would want to buy all of PREMs rights to minimise competition on adjacent land.

As for your comments on RHA, I don't think you appreciate what getting RHA back on line is likely to entail. It has never turned a profit, never run continuously for more than a few weeks, there are serious questions about ore grades and it has been sitting idle for 4+ years. It isn't simply a case of flicking a switch and making money. You would be looking at a minimum of 6 months of work before any ore was processed. And I would imagine a spend of somewhere in the region of $4m. That $4m can be spent much more sensibly on Zulu DFS where it is close to guaranteed to pay itself back in multiples. On RHA, based on previous performance, you would be throwing good money after bad and wont see any return.

Bickmaster

For the avoidance of doubt, it will probably take a few months to get the material to be tested out of the ground. The areas would be targeted using some of the initial cores along with feedback from the onsite lab. That would then allow more targeted larger cores to be taken. I would be hoping for results in early 2022 from this work. This work is being undertaken to inform plant design to optimise processing outputs and is secondary to getting the 20,000m of cores out of the ground and analysed to enable the geological model be produced. It will be important however to inform the recover rates which a plant could achieve which, if underpinned correctly, could result in an acquiring party paying more for the asset.

Still lots of ifs and buts here but a step in the right direction.

Bickmaster

Profitbags,

Anzaplan Dorfner in Germany is most likely.

It’s very difficult to estimate release timescales without knowing quantities etc. I’d allow a 6 weeks for shipping and a month for testing. Pure guesstimate though.

Bickmaster

Positive RNS today and GR has actually provided some information. Let's hope he continues this going forward.

What I would like to see next.
- Confirmation of the status of the lab. The RNS was silent on this so we cannot assume it has been released from customs.
- Plans for a 4th and 5th rig. At the current rate of progress we need these to bring the DFS in on time. 2 more rigs will help shave a few months off the programme whilst also saving overhead costs. They will no cost any more (apart from mobilisation and demobilisation) as the metreage would need to be drilled anyway. It may be sensible to hold off mobilising these until early 2022, until after the rainy season.

Most importantly, it is crucial GR focussed on Zulu DFS and doesn't go looking for other assets. The payback on Zulu is likely to be multiples of what can be achieves at other assets so he needs to focus 100% on Zulu and not get distracted by magic beans in other jurisdictions which will eat into the funding needs to get the DFS complete. This includes MNH and RHA.

And as a reminder of what I was looking for 2 weeks ago, here is my post from 19th August, along with some estimates of where I thought the drilling work should have progressed to.

"I would assume a rig would drill 50m per day (obviously a best guess as we don't know geology, type of rigs or drilling rates). Assuming each hole is 100m deep, and allowing for mobilisation and demobilisation of half a day each, this reduces the effective drilling rate per day to 33m. I would assume the DFS will need around 20,000m drilled (200 x 100m deep holes), hence 606 drilling days or 101 weeks based on 33m/day (assuming 6 day week) for a single rig. Get 3 rigs on site and this can be reduced to approx. 34 weeks, or 8 months drilling.

Given there has only been one rig on site for approx a month (we only had confirmation the second rig is operational on 17th August), it is unlikely there is more than 1000m drilled, or based on the estimated 20,000m required, approx 5% of total required. This is also likely to be in a very specific area to minimise downtime between moving between drilling locations.

My view is the accelerated testing of 5% of the samples to drive what is likely to be a small increase in SP is not sustainable. The focus needs to be on getting as many rigs as possible on the ground to reduce the DFS programme. This will also reduce the marginal costs of the DFS.

More importantly GR should be after providing the metrics I have tried estimating above via a RNS. The fact he has not shows he doesn't have a firm programme as is making it up as he goes along. Shame we don't have someone competent in charge."

I’ll back up Degrasse and Raymondo’s comments in relation to Bootieone’s post earlier. Seriously wide of the mark and no place for such tripe on here.

Chuggley, so what are you expecting to see in next week's RNS?

Bickmaster

P.S. Well done James Goozee, great to see your continued confidence.

God forbid we actually get a detailed update on what is happening with MNH. Over $2m invested there now. I wonder what the auditors findings from their investigations before Christmas were. They spent enough time assessing it.

In the event the $260,000 is converted to shares, which I have no doubt it will be, it is reasonable that the amount of shares received should be worth more than the $260,000 to reflect a discount and opportunity cost of the monies loaned. Though I doubt GR will push for a hard deal. After all, it is simply a transaction to facilitate PREM shareholders fund his buddies at MNH so they don't have to put their own cash in.

Chuggley,

In your 16.43 post you state your belief that an RNS will come before the end of next week. Can you let us know what you are expecting the RNS to provide in terms of information which will have an effect on share price?

The issue here, in my view, is not the frequency of the RNSs. It is the fact that we are getting very little information about DFS progress. We are now 5 and a half months since the EPO was granted and we don't have a clue what the scope of the DFS is. The last RNS would seem to indicate GR doesn't know himself. I've said it here before and I will say it again, he is making this up as he goes along, which had largely been his approach over the past 7-8 years with PREMs other assets. He should confirm how many metres the DFS is expected to need to drill, what has been drilled to date and the status of the lab equipment. The fact we only have 2 rigs on the ground is the biggest issue given the rainy season is approaching. There's no reason not to have 4-5 rigs running. The core samples can always be stockpiled until the lab is ready to go.

My view is the next RNS we will get will be to confirm the $100k loan to MNH has been converted into shares. In my mind that is a waste of $100k that could have been spent on Zulu.

Bickmaster

Cue the broken record.

I would assume a rig would drill 50m per day (obviously a best guess as we don't know geology, type of rigs or drilling rates). Assuming each hole is 100m deep, and allowing for mobilisation and demobilisation of half a day each, this reduces the effective drilling rate per day to 33m. I would assume the DFS will need around 20,000m drilled (200 x 100m deep holes), hence 606 drilling days or 101 weeks based on 33m/day (assuming 6 day week) for a single rig. Get 3 rigs on site and this can be reduced to approx. 34 weeks, or 8 months drilling.

Given there has only been one rig on site for approx a month (we only had confirmation the second rig is operational on 17th August), it is unlikely there is more than 1000m drilled, or based on the estimated 20,000m required, approx 5% of total required. This is also likely to be in a very specific area to minimise downtime between moving between drilling locations.

My view is the accelerated testing of 5% of the samples to drive what is likely to be a small increase in SP is not sustainable. The focus needs to be on getting as many rigs as possible on the ground to reduce the DFS programme. This will also reduce the marginal costs of the DFS.

More importantly GR should be after providing the metrics I have tried estimating above via a RNS. The fact he has not shows he doesn't have a firm programme as is making it up as he goes along. Shame we don't have someone competent in charge.

Gents

You all have your priorities wrong.

The key issue at the moment isn't getting the lab set up. It is getting the samples out of the ground (i.e. getting more rigs on site). The DFS is a long process and there doesn't need to be a rush to get the first handful of samples tested. It would be nice to have the lab set up but the fact it is not yet set up doesn't really matter at this stage.

I would much prefer to see a positive RNS re 3rd rig mobilised along with some metrics on drilling progress rather than having a lab set up. Any testing backlog can then be dealt with over the rainy season when there will be little to no drilling taking place.

Bickmaster

Johnny PC.

My views below in CAPS.

- Test lab almost definitely still at customs - initial drill results probably weeks away - AGREED 100%
- Virtually zero chance yesterdays fund raise will last the whole year - AGREED 110%
- DFS almost certainly behind schedule. GR keeps mentioning it is and says he will update if this changes tells me he's
preparing SH's for that eventuality - AGREED 100%, AND THE LACK OF A SCHEDULE AND METRICS SHOWS HE'S MAKING IT UP AS HE GOES ALONG.
- Almost certain more than initial estimates of DFS cost will be far to low given the increase in EPO size - AGREED, THIS COULD BE SEEN AS A POSITIVE GIVEN SCALE OF THE RESOURCE, THOUGH OBVIOUSLY MORE TESTING = MORE $$$
- Resource almost certainly massive and extensive - AGREED, FOCUS NEEDS TO BE ON IDENTIFYING THE HOT SPOTS WHERE LITHIUM IS MOST CONCENTRATED. THERES NO VALUE IN DFSing EVERYTHING AS IT WOULD BE IMPOSSIBLE TO MINE EVERYTHING SO PREM WOULDNT GET PAID FOR IT.
- Big risk but potentially massive reward. AGREED, THOUHG I WISH ID HELD OFF MY 12.5M BUY FROM YESTERDAY UNTIL TODAY!! "Invest" in the knowledge that you could very well lose all of your money but you could also make many multiples of your "investment" at these levels.

GR is not at fault for all the negatives, but IMO is certainly guilty of not being honest. AGREED, THOUGH THE DFS SHOULD HAVE STARTED EARLIER THAN IT DID AND WE NEED MORE RIGS ON THE GRIUND ASAP. As are lots of posters on here and other social media. DYOR.