Member Info for Bickmaster84

Another 12,500,000 added this morning (trade was approx 10.04).

All the pieces of the jigsaw are on the table. The only issue is that we have the equivalent of a 2 year old child trying to put them together.

This is still far from a given but hopefully there is a few £ to be made from these levels.

Bickmaster

Steward

You are correct re. proof needed to reverse an impairment of an asset. Though this can be a relatively forward assessment. I had thought the EPO would have been sufficient to reverse the impairment myself though if it was not it may be that PREM will hold off reversing the impairment until the DFS is complete.

Second, I wouldn't believe for a second that the Legal and General holding is a result of a conscious decision by L&G to invest in PREM. L&G will more than likely have taken over assets of some other entity which held PREM shares. L&G wouldnt invest anything less than £100k (or more than likely a multiple of £100k) given they would need to actively monitor the share as part of a portfolio and that brings cost.

Bickmaster

Degrasse,

You state ' IMPORTANT bit. Zulu impairment CANNOT be removed without a revised scoping study.' Was this in the RNS? If yes, apologies, I have missed it. If not, what is your basis for this?

In any case, the impairment is just an accounting treatment. What is important is getting samples on the ground. Shame there was no information about the no. of metres drilled to date and the number required overall for the DFS.

Bickmaster

Snowking.

It won’t produce £2m a year, that is the problem. The maths just don’t work out on it and there isn’t enough margin.

And yes, you definitely can ignore it if you have a monster like Zulu to progress. You can also ignore MNH and anything else.

Bickmaster

Snowking,

That would be fantastic but ultimately it would be an unwelcome distraction when there are much bigger fish to fry.

Where would you spend your time/focus. On Zulu which has the potential to turn a few hundred $m per year or on RHA which has been nothing but a money pit? I know where my effort would go.

Bickmaster

Yes, that is evident from the Share Price. Any podcasts, updates or RNSs from George and the Share Price drops.

Too much focus on RHA again and very little update on the drilling progress at Zulu. He said 'rigs turning on site'. Why can't he actually tell us how many metres they have drilled and how many metres are planned. Did he even need to mention MNH at the end?

I've said this before and I will say it again. He is making it up as he goes along. This is not good enough.

Bickmaster

Chuggley

Please treat the $2.5m figure to restart operations with a lot of caution. GR has a history of underestimating costs and programme. You also need to put yourself in the position of an offtaker. Who would sign off putting $2.5m into a mine which hasn't produced anything substantial and has been sitting idle for a few years. Continuing to keep operating mines running is a challenge, getting one which has been idle for a number of years and has never really produced anything of note is a whole different challenge, not only in terms of plant and machinery which will require significant maintenance or replacement but also in terms of operational knowledge/awareness. PREM would need to effectively train up a whole new crew of workmen.

You also need to bear in mind that an offtaker would want a significant discount for putting in the $2.5m. A tungsten price of ~$310/mtu only provides a margin of ~10% above the level which GR previously said RHA could be profitable. If the margin was 40-50% I could see some sense in an offtaker stepping in but 10% there is too much risk. If an offtaker did come along willing to put the $2.5m in, which won't happen, it is unlikely PREM would see a return for at least 2-3 years.

My preference would be for PREM to market and sell RHA and hopefully get a few $m to put towards the DFS. Every $ being spent on RHA is a $ not being spent on Zulu. All the focus needs to be on Zulu as that is where the prize is.

Bickmaster

Another shocking RNS from GR. 85% of the info about RHA and 15% about Zulu, when all the potential is in Zulu. He is continuing to spend money on RHA carrying out feasibility studies when there is very little value in it. He states $2.5m is needed to get RHA back into production. The focus needs to be 100% on Zulu. We also need better reporting on Zulu.

At lease there have not been any further 'loans' to MNH.

SP down 15% already so any momentum from the last week has been eroded. To have any chance of making a decent return here we need GR gone.

Bickmaster

DazedandConfused

'delay is due to Covid and border restriction between SA and Zim to bring drilling rig and testing equipment'. What is your source?

Bickmaster

ProfitBags

If we had positive answers to all of the questions below, the SP should take off and push towards the 0.3p area.

However, there has not been any confirmation of the second rig being delivered yet so in the absence of confirmation, I am assuming there is still only one rig on site. Next week will be the 5th month anniversary of getting the EPO through. This is incredibly poor performance from GR and his team if this is the case, especially with the rainy season approaching.

Bickmaster

Would be nice to get a RNS setting out the following.

How many metres has the first rig drilled over what timescale (i.e. what is the drilling rate per day/week)?
Is there a second rig on site? If not, why the delay and when is it expected to arrive?
What about the third rig? Are there plans to get a third rig and if so when is it expected to arrive?
What about a 4th/5th rig? Given the programme pressures with rainy season approaching why are we not looking at mobilising more rigs. The lab work can continue through the rainy season and would result in lower overheads per metre drilled.
How many metres of drilling does PREM envisage are required for the DFS? If we have the answer to question 1 above it would allow us to get a rough idea of how long the drilling will take assuming X rigs on site.
Is the testing area ready to go? Has the lab equipment arrived? If not, when is it expected to arrive and how long will it take to set up.
Has resource to operate the lab been procured? Will this resource be from a contractor who is independent of PREM?

All questions which we need an answer to. I won't hold my breath too long.

Bickmaster

From 24 May RNS, FPP has conditionally agreed to acquire the Target for a consideration of £17,500,000 (subject to adjustment should the number of securities the Target has in issue vary between the date of this announcement and completion) to be satisfied by the issue of Ordinary Shares in the capital of FPP at a price of 5.25 pence per Ordinary Share.

So the new shares are being issue at 5.25p. It doesn’t mean the new company will open at 5.25p. I’d be hoping it will open well above it.

Snowking, what do you mean when you wrote ‘plans for starting review of EPO’?

Phil,

Thanks for that satellite pic which shows there is some activity on the ground but not a lot else. With regards to 'Prem are doing everything they need to in the right order', with respect, we have no idea what they are doing (or are not doing) because of the lack of communication from the company.

The satellite pic doesn't answer any of the following.

How many m has the first rig drilled over what timescale?
Is there a second rig on site? If not, why the delay and when is it expected to arrive?
What about the third rig? When will it arrive.
What about a 4th/5th rig? Given the programme pressures with rainy season approaching why are we not looking at mobilising more rigs. The lab work can continue through the rainy season.
How many metres of drilling does PREM envisage are required for the DFS?
Is the testing area ready to go?
Has the testing equipment even been delivered to site?

All questions which need to be answered.

Bickmaster

Johnnypc

I wouldn't call Snowking a charlatan, he is a large holder, potentially one of the largest and not far off the 3% threshold. His posts over the last few months have focussed too much on what the big picture could be in a few years time rather than on the steps needed to get PREM to that point.

The bigger picture on PREM has always been rosy. Unfortunately for longer term shareholders this rosiness has not been reflected in share price and we are now in a situation where all our eggs are effectively in one basket - Zulu.

So, in my opinion, the focus needs to be on the short term plan and actual delivery rather than looking 2 years down the road to completion of DFS because at the rate we are going there's no way the DFS will be completed in 2 years.

Bickmaster

bootieone

Some pertinent points but PREM have cash and have the ability to raise more cash so I don't concur with everything you've said in your post. The provision of the $100k loan to MNH doesn't help. We all know the loan will never be paid back but instead will exchanged for equity. My worry is that GR is lining up a deal to take more MNH. For me that would be the last straw. All resources need to be focussed on Zulu EPO as that's where the value for shareholders is. Similarly with RHA, close the gates and come back in 2 years when the DFS is finished, no point burning money or effort on it now.

Bickmaster

This is the 8th time this month they've tweeted about the corporate presentation.

We need information on drilling rig mobilisation and DFS progress, not a rehash of information we already have.

The fact we have not been given any proof of the second rig mobilising would infer it hasn't been mobilised. We need more than 2 rigs on site to have any chance of pulling together a timely DFS. It would also reduce overhead costs per m drilled.

Unfortunately it looks like GR is content to plod on and draw his wages while being oblivious to the need to actually demonstrate progress. He has become used to failure over the past 8-9 years so it does not surprise me.

Time for new leadership here, GR is not the right person to take this forward.

Bickmaster

Yes Snowking,

Getting RHA back into production is exactly what PREM needs now… it will be a great opportunity to throw more money after bad.

Though I’d be more focussed on getting a second drilling rig on site at Zulu.

The mind boggles.

Bickmaster

whatitsworth

'Up the ante' rather than 'up the anti' my good man.

What kind of barbarians are we dealing with here!!

Robrob, $5.1m to $10m is a big jump. I’ll be proven right in time, trust me on it. There is headroom to raise the $10m so that is less of an issue for me. I would be more concerned with programme. Looking at DFSing the biggest undeveloped lithium deposit on this planet and we have 2 rigs on site with a third on the way. I would like to see more rigs mobilised as it will cut the programme.

Bickmaster