Upside from an £11million market is HUGE!!!24 Oct 2019 10:29
Some folks trying to make it seem the recent rises have no justification, rise having no basis, we might come crashing back etc.
Let’s have a look at what we are getting for an £11million market cap:
1. RHA: we spent $20million + on its development. We have a mine and plant. Zim government have agreed bring RHA back into production, inputting equivalent to $6million (to in turn be subtracted from that $20million + which formed a loan account owed to PREM) to sort out the issues. This includes electrification, which we hear is going well, due to be completed Nov. That loan account now is $14million. Damnit, our XRT Sorter is worth a cool $1million on its own! Sign regarding RHA are very good. We may yet have a mine that achieves the potential we all once hoped for. Remembering our market cap again, £11million,
2. Zulu (without EPO): Zulu comprises Main Zone and New Zone, with a target ore of between 120million tonnes to 160million tonnes. Where we have already done a Scoping Study for a portion of Zulu (for 20million tonnes). Scoping study shows a more than viable project (including a very low CAPEX compared to other projects. Pilbara Minerals), the largest hard rock lithium project in Australia has ore target of 108 million tonnes (result of which, Zulu been said to be on a par with Pilbara), a company which at one time had a market cap of $$Billion +. Remembering our market cap again, £11million,
3. Zulu with EPO: EPO area is 202km2, compared to Zulu on its own only 3.3km2. In other words, EPO is 57 x greater than Zulu. That means potentially 57 x Pilbara too! To put things into further perspective, Bacanora’s ‘Sonara’ project is the largest hard rock lithium project in the world. If the grade and density was consistent throughout EPO (as what we have found of the portion of Zulu with done so far), then it is possible that EPO 72million tonnes LCE (Lithium compared to Sonara’s 8.7million tonnes of LCE. Remembering our market cap again, £11million,
4. Zulu EPO JV: EPO is an enormous area. PREM have had to provide credible plans to ensure EPO approval. That may likely will have likely required JV being sorted. Question is, how concrete will those JV options/ proposals have to have been? Many (including myself) think they will have had to have been solid to the point of close to confirmation, with EPO granting enabling JV announcement. What is this JV worth? If it can get us to DFS and even beyond, then shed-loads! Doesn’t matter who it is. Remembering our market cap again, £11million,
5. Circum: we have a 5% stake in Circum, just over 5million shares. Once Circum IPOs (is sold), we could get $15million back, or £12.3million. PREM have proposed a special dividend, after liabilities. That dividend could be anywhere between 0.050p and 0.10p – now compared that to our market cap, £11million (to Circum £12.3million)
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