Member Info for Bickmaster84

Lets see the ramp brigade put a positive on this.
5hite RNS to end a****** 2019.

If the president wants the EPO signed off tomorrow he could provide his delegated authority to the minister of mines.

Why would the company or the gov do anything with electrification at Zulu at this stage? Assuming an EPO will be forthcoming, the company is at least 12 months away from needing electricity at Zulu. This would be the same as GR sinking the shaft at RHA in the wrong location before doing ground investigations.

If they already have the plant why are they not already doing 38k tonnes per month ?

Can you provide more details.

What did the purity plant cost. What makes it a good deal?

No, an insurance company would value a repair on the cost of carrying out the repair but that is completely irrelevant to this scenario. Again, have a look at the assumptions stated under the table in the 4th December RNS. These are not standard assumptions and have been put in place to massively inflate the value of plant GR could present to shareholders, however he had to list the assumptions to ensure he was not misleading the market. If you were valuing the assets, say for a bank loan security valuation, it would be based on the market value of the plant which is a much more reasonable approach. For accounting valuations the plant is valued at the lower of cost or net realisable value, which in most cases is a very close reflection of the market value. As such it is a fair assumption to say that the market value of the plant at June 2018 was $970k and as per the unaudited accounts at June 2019 was $1.6m. It is of course possible the company invested in more plant after this date but I have serious doubts it would have been hugely significant given the period in question is only 5 months. So all in all, the assumptions which have been used in the preparation of the Bara valuation lead to a replacement cost valuation of $22m compared to a 'market value' valuation of $1.6m. I know if I was the bank which one I would place my reliance on.

The deal for the 10% has been concluded. On its own it is not a deal that makes any sense so obviously there must be something more significant going on in the background. You say 'wait for the EPO' as if it is a given. I am hoping it will come but I haven't applied the same degree of certainty to it as others on here. Indeed I think its fair so say it is very unlikely we will see the EPO in 2019. I often wonder who GR is more concerned with doing a good deal for, PREM shareholders or his friends. I am hoping it is the former but we are yet to see any evidence of this as all we appear to be doing is bankrolling Stephen Dattel's projects for very little in return.

Noel,

I am not saying the valuation is incorrect. What I am saying is that the assumptions applied in the valuation arent realistic. Why would you valued the replacement cost of the non-running/damaged machinery. Valuation is an art, not a science and special assumptions are they way to get the answer you want. Perhaps you can ask GR if the valuation is a red book valuation?

Noel, its very difficult to say. For the volumes they are running they wouldn't need a lot of machinery. Perhaps you could ask GR for their asset register for the operational machinery?

Absolutely Noel.

Have a look at the assumptions they applied for the replacement cost valuation. They are absolutely ridiculous.

I am still hopeful this will all come good given the potential scale of Zulu but GR has shown again he is incapable of doing a good deal.

There may well have been investment in plant since June 2019 buy how material could this have been? They had $1.6m of assets at that date. Even if they increased it to $2.5m which would be a big increase it doesn't make a major difference when assessing 10% of it.

Like I say, i am hopeful this still comes good (bought another 3m this week) but lets not dress up todays Podcast or the MNH deal for something they arent.

GLA, Bickmaster.

You will also see a large proportion of the valuation, circa 55%, is a 'farm homestead'. Not sure that will be of much use at RHA or Zulu.

Fish, the replacement cost also covers non-running/damaged equipment. If you have been on any mining sites there is always a machinery 'graveyard' where the old machinery is taken to die with the hope it may be possible to pull some spares off it at a later stage. This also removes the need to pay for scrapping it. The Bara valuation not only provides a replacement costs for the non-running/damaged equipment, it also provides allowances of 50% on top of the base figure for spares and miscellaneous equipment and auxiliary equipment. Its all in the RNS of 4th December.

Easy for him to say that when he knows he cant move immediately because of lack of EPO.

In summary,

EPO - no progress.
Circum - no progress.
RHA - minimal progress on relatively straight forward engineering works.
Katete - no mention.

Not sure why GR bothered doing the podcast today. I was really hoping he would have some good news for us but there was very little to be positive about in the whole 14 mins. MNH appears to be more jam tomorrow and I imagine the very earliest PREM would get any return on its investment is a minimum of 3 years away, though I would be doubtful we will see a return given GRs track record.

Anyone saying the $1m investment is already worth $2m is clearly an idiot as the $22m valuation was on a replacement cost valuation basis. The 4th December RNS clearly states the total assets listed in the audited accounted at 30 June 2018 were €970k and the assets in the unaudited accounted to 30 June 2019 were $1.6m. The notes under the replacement costs table clearly state the replacement costs includes replacement of both operational and non-running/damaged equipment and that allowances of 50% have also been used in the valuation. The Bara valuation, like most of what Bara has produced for PREM is not worth the paper it is written on.

A leopard does not change its spots and GR has shown that with this latest deal, funding his buddy Dattels with PREM shareholders cash.

Next target for a meaningful update, in my opinion, is end of March 2020. Time to put the shares back in the bottom drawer and worry about them next year.

GLA, Bickmaster

Looking forward to what will hopefully be a useful podcast from the fat man today. I would be very disappointed if he is not able to provide anything material and plays his usual jam tomorrow card. He has had 6 years of **** ups and needs to start delivering for shareholders. This is all about EPO and Circum so if these are not discussed in detail it will be a waste of time.

Yes Steven,

Another smoke and mirrors RNS from GR, funding Dattels projects with PREM cash. Not what I was expecting and quite disappointing really. We need either EPO or Circum news. I doubt we will get with get either before Xmas but there’s also hope!!

Another 3m for me. 17.5m in the pot now.

Eyeguy,

My preference would be that PREM would not spend another single red penny at RHA but I imagine it is necessary to demonstrate some progress to support any discussions taking place with ZimGov on the EPO. As we have received a hand full of local currency we have to spend it somewhere so good to see GR putting it to use, though I have some significant doubts he would be as quick to pay his own wages in Zim dollars. RHA, in my opinion and based on previous experience, is not and never will be a company maker. Especially without having a DFS, having the shaft in the wrong place and having a 'cheap plant' that still cost a small fortune to put together over the years and hasn't been proven over any considerable length of time.

This is all about the EPO and we are no closer to getting it signed off. Forgive my realism here but all we have to go by at the moment is a poorly written article which was released a few months ago. For all we know GR is lining this up so Dattels gets a nice soft deal to get into PREM, a few of the bigger holders pool their shares and shareholders are shafted though I would be absolutely delighted to be proven wrong.

The majority of the SP increase has been based on speculation and I will repeat myself, this is all about the EPO. Hopefully we don't have to wait much longer for it.

The current Government are talking the talk but have not delivered on anything yet. About time they pulled the finger out or else we will be into 2020 waiting for news.

FYI...

https://ametrade.org/miningethiopia/agenda/

Circum speaking in Session 5 today.