RE: Breakdown of Value its PREM SP of all parts, Zulu, RHA, EPO23 Oct 2019 20:34
5. Zulu + EPO JV One PREM have Zulu EPO in the bag, we are in a position to close out a JV deal with a large partner. This will be key. There are clues as to who they could/ will be.
Depending on specifics, JV contribution to the SP ------ 0.20p – 0.50p
6. Katate: The Katate is a rare earth minerals project (meant to be enormous) that has sat waiting for a long time. I suspect the current strategy is to enable work on not only Zulu + EPO DFS but to somehow begin on Katate.
Katate contribution to the SP ------ ???
7. New Management: New Management being brought in, as we have seen with Neil Herbert. I suspect there are some other key figures waiting on the side-lines (Stephen Dattels too?!).
New Management contribution to the SP ------ ???
A lot to happening in the very near term, including news of Zulu EPO. Things are moving fast.
Breakdown of Value its PREM SP of all parts, Zulu, RHA, EPO23 Oct 2019 20:33
Drawing on the good work of trusted LTHs, particularly tedoby, and following further revision, this is a breakdown of the possible contribution that particular elements and aspects of the business might make to the PREM SP
1. Circum Liquidity Event brings upwards of c.$15million to PREM. That is £12.3million adjusted to sterling. In terms of a dividend, we are talking about anywhere between 0.05p to 0.10p per share, huge in relation to the company SP and market cap.
Circum contribution to the SP ------ 0.10p +
Dividend equates to between £5, 000 to £10, 000 for every 10million shares!
2. RHA Tungsten, there have been well documented challenges around this. But Zim Government are committed to bringing it to production, whatever it takes. We are not required to put any more capital in. Following agreement for Zim Government to inject equivalent to $6million, we are owed further $14million, to be taken from profits until the account is cleared.
RHA contribution to the SP ------ 0.10p - 0.35p
3. MNH Deal: We are in the position to merge with the MNH bringing in the Otjzondu Managense Mine. This is a producing, profit-making mine. Is worth pointing out that the mine is even bigger in area than Zulu lithium project incl. EPO It covers 1300km2 compared to Zulu's 200km2. The deposit extends over 144km of strike which is huge. If #PREM can do the deal with MNH, it could potentially have an enormous impact to the SP
Otjzondu Managense Mine contribution to the SP ------ 0.20p to 0.40p (and eventually 0.60p +)
4. Zulu Lithium + EPO We have discussed at length the significance of the EPO area. The area is 202 km2 – while present Zulu project is a ‘mere’ 3.5 km2. Present Zulu project on a par with Pilbara Minerals, Australia’s largest hard rock lithium mine. Zulu without EPO (comprising Main Zone and New Zone), has a target ore of 120million tonnes to 160million tonnes. Pilbara Minerals is 108 million tonnes of ore. Even at the lower, without EPO, we are potentially larger than Pilbara.
However, the EPO area is larger than the existing Zulu project area by x 57.
If Zulu on a par with Plibara, then EPO area could be said to be 57 x Pilbara. This takes into the area of comparisons with ‘Sonara Lithium’, the actual present largest hard rock lithium deposit in the world.
Zulu with EPO announcement contribution to the SP ------ 0.20p +
RE: MNH Deal/Producing Otjozondu Manganese mine's HUGE!23 Oct 2019 20:27
Novykluk, thanks. Actually, believe your post to be considerably more knowledgeable and precise than mine (I would recommend it except LSE are not allowing me to recommend any posts at the moment). Good luck to us all!
RE: MNH Deal/Producing Otjozondu Manganese mine's HUGE!23 Oct 2019 19:06
Calcs I've seen suggest that MNH deal is, initially (at the point of merger) between 0.20p and 0.40pto the SP - and lot more as the revenue/ profit starts to roll in (which is pretty much immediately!)...
MNH Deal/Producing Otjozondu Manganese mine's HUGE!23 Oct 2019 18:23
Just discovered more detail regarding the MNH Deal, where PREM is proposing to merge with the producing Otjozondu Manganese project,
This is what NaPoM had to say on Twitter:
"Just realised the Otjozondu project is bigger than the Zulu lithium project inc EPO licence. It covers 1300km2 compared to Zulu's 200km2. The deposit extends over 144km of strike which is huge. If #PREM can do the deal with MNH, it could potentially have a bigger impact to the SP"
There is discusison that we may go in to suspension following EPO announcement, priorto the merger as part of the MNH deal. Looking at the details to the mine, we would be coming out a monster (with MNH's Otjozondu Manganese project, Zulu with EPO, and EPO JV to come, RHA etc.) with a vastly higher SP, then also looking forward to a Circum announcement (word is November is a key month!).
I think the Frontera situation will be a prime example of closer working cooperation to mutually benefit both countries, with FRR on the minds of some of those political figures in a very specific sense.
On the basis of this article alone, I feel arbitration must've been sorted some while ago.
Think some folks have to get over that we had risen form 0.025p and realise we are still undervalud when looking at the breakdown's various LTHs have provided. We'll be 0.16p + again in advance of news.