Member Info for Laverda

DrGasman, Roach himself said let me make this absolutely clear we are progressing with a pilot plant because we cannot prove the resource with a DFS. No competent person will sign off a DFS.
Daz and I do not agree on everything, but he is right and was correct before when he kept repeating this.
Having an additional unwanted stage is absolutely no bonus.
So many on here seem to think they know the process and Prem better than Roach himself.
It is not all negative, if the pilot plant produces the quality and output ratios as expected it will justify finance and a full plant and investors will be in the money.
But inventing stuff, frankly is a bit weird.
Not only are people attacking others who type the facts, but they are attacking Roach too, Roach being one of the guys who may provide you with a return on your investment.
Get a grip.

Allan, Roach has just been on stockbox, he appeared to be concerned about investors comments and questions and completely spelled out in very basic terms three times the companies position, he kept getting questions and comments about Zulu going into production, which was incorrect.
We have a DFS, a mining licence and eventually when someone signs off the plant change, which took ages last time (over a month after the mining licence was approved) we will finalise finance for one full plant, possibly with an option for another close behind - we will see. Prem were unlucky they could not prove the resource, could not compile a DFS and confirmed that no competent person would sign off a DFS. As we know no DFS then no NPV and no finance = no production.
Mr Roach confirmed that they had no other option but to use a pilot plant to confirm the resource, the share price has since dropped.
People posting on the boards are posting a different story.
I think it is like some of our gold drilling samples, mine workings spoiling the samples, however they have a small acreage so they have to try a different approach.
As long as the pilot plant produces results which support a DFS they should be ok, but it is an extra unwanted step in an already long process.
The penny has dropped with shareholders and the very high market capitalisation looks like it will dwindle.

Cosmonaut, yes I would only look for solid returns rather than a multibagger. Only because I feel there is enough risk in exploration to miner without an additional step - the pilot plant.
I prefer a share to stay rock bottom until real value is added then there is little to lose, another venture can return capital if it all goes Fitz up
This is a high market cap at over 100m, the pilot has to prove itself, the finance repaid, an NPV calculated then finance sought for full production, it is a long process. I don't expect the pilot plant to fail but if it did, it is an almighty drop from this cap.

Dickie, if I was to buy into prem, it would only be after the pilot plant proved the resource and before a full production plant was constructed.
At current market capitalisation, in my view only it is miles over priced, by multiples.
As long as people pay more for the shares someone will make a profit so hype can drive returns, see who is left holding the baby.

Profitbags, possibly, I saw a house which belonged to an advisor in the credit crunch constantly with broken windows and paint up it from clients who blamed them from losing money.
Mr Roach sounded like he was removing all doubt in that interview so no blame would remain with him. All above board.
If the plant proves the resource those that did not listen will be oblivious anyhow!

Profitbags, my view is not to different to yours.
I saw Roach's interview as a response to over enthusiastic posters on the board and in the submitted questions ensuring that all investors realised their fiction did not come from him.
Every time they ignore everything he says and paint a different picture his interviews are going to be like that, firefighting crazy rampers and therefore could have a negative effect on the shareprice.
I thought Roach came across as a decent professional guy and I have never heard any other company give three clear warnings to their shareholders to absolutely ensure they know what stage the company is at.
I hope the pilot plant is a roaring success, I like the guy. Then by 2025 you may be in full production still catching the high lithium prices until 2030.

Snowing, the DFS was not put back for a positive reason. For goodness sake listen properly to what Roach said, no competent person (this is mining speak for an independent expert company or professional sign off in regulations) would sign off a DFS. No wonder he went over this three times and when asked about share prices said he avoids discussing investments. He wants to make sure that everyone understands that this is a pilot plant put in place to prove the resource in the abscence of a DFS.
If the pilot plant produces the output then it is justification for a DFS full finance and a full production plant.
Prem were forced down this path it was not choice.
That said in my opinion the old mine workings probably compromised the results and prevented a DFS, they would not borrow money and set up a pilot plant to fail, it would ruin their reputation and not help in raising future finance, so there is no reason to assume the plant will fail.
But dear me listen to what Roach says and write facts not fiction on these boards.

Jenkoo listen to Roach and his own words he said to be absolutely clear, they can't get a DFS so they are going down the pilot plant route. He further adds that no competent person would sign off a DFS on the site.
He could not spell it out more simply.
I think he must read the boards too, as I have never heard anyone else from a company spell it out in simple syllables so even the dumbest could understand.
He appears to have wasted his breath.
That said if the pilot plant comes up trumps you should be able to prove the DFS and get funding.

Acker, you clearly don't have a clue.
Exploration derisking is a clearly laid out process. It should have ended DFS, finance then production, then the resource is fully derisked.
Prem could not go DFS, so they have an additional pilot stage, then hopefully DFS finance production. An additional risk.
Outside of resource risks there are normal everyday business risks too.
If you don't understand which elements of the derisking process are still in front of you that is a concern for you.

Cosmonaut - good to see a more balanced and measured view, AIM holds high risk, exploration very high risk too as we both know. I read through many of your posts and did not disagree with anything that I read.
The monies from the pilot plant, if successful, should assist the financing of a full plant and as Mr Roach said give them valuable information on the way to proceed.
That said there is higher risk here, as a DFS could not be completed.
I hope for the Prem investors the pilot plant is successful there is no competition between mines or shares.
Lithium prices are fantastic so hopefully we all benefit from them in all our lithium shareholdings.

PBh, why would you read an article in 2018 when the resource was unable to produce a DFS and no competent person would sign off the DFS?
Roach gave an update this week, that is where Prem is today.
Hopefully the pilot plant will prove the resource and then full finance and production can be supported.
Roach from Prem's words not mine, possibly you can go to his next Q&A and argue with him?

No need to listen to me, listen to Roach. He explains it ABC anybody could understand it, or not so it appears.
On the upside they would not invest in a pilot plant if they thought they could not prove the resource. You are going to be waiting a long time for a DFS and full production.
Tonnage was quoted by Chuggly not Acker, so Acker you are not following the thread here either.

Dickie, I am just reading some of the rubbish written in here with disbelief, Roach spelled it out ABC, yet some posters appear to be deaf.

Acker you need to listen to what he is saying, he is telling you the same and he is in the company.
The tonnages you quote are peanuts.
Production plants run at 100k plus of final product and normally there is more than one. Production needs efficiency.
I have read back through some of your investor posters on here cosmonaut it appears tried to communicate the same much earlier as did Daz.

Acker, it is a pilot plant not a commercial plant, if the plant does not prove the resource it will be closed and job done.
There is no proven DFS on the ground, the plant is doing the job of the study.
Roach could not have made it more simple to understand.
Of course they will sell the low output of a pilot plant but it is just low output pilot production.

Look at your RNS list Pilot Plant. Listen to Roach let us be clear we are putting in a pilot plant because we cannot prove a DFS.
No competent person would sign off a DFS.
Of course a pilot plant has output, you could not do the testing if it did not.
A pilot plant is an unwanted stage in the process, it only happens when there is an issue.

With respect Acker, I think you need to listen properly.
They are not negative comments by him they are factual.

I don't usually comment on boards where I am not invested, however some from here decided to post on ours so I read up on Zulu and listened to Mr Roach.
I thought he was honest and interviewed well.
I am confused by a lot of comments on here totally at odds with what he said.
Let us be clear we are putting in a pilot plant because we cannot prove a DFS.
No competent person would sign off a DFS.
I am not sure that many people on here know what a DFS is, it is the final study which includes an NPV which either supports financing for production or writes it off.
I am guessing on this part but probably the old mine workings are messing with the samples - so traditional drilling may not be the answer.
They must be quite confident in the ground to fund a pilot plant, but that is all it is, a plant to see if you can justify and support a DFS and production plant because they can't get a DFS any other way.
Roach could not have been more honest or clear. Loads of times he repeated it, cart before the horse and comments I wrote above.
Quite where this breakthrough news or production is going to come from in some of these comments I have no idea.

Devil, I would not give the current share price a moment's thought, all we need is the government to get round to signing that amendment off, then see which way we are proceeding, a JV or going it alone.
No worries. Other shareholders on AIM have real stress - none here. All the ducks are aligned perfectly.

Ilovelithium, funny you should mention that company I read some of the Roach quotes yesterday. He gets a lot of flack, but I read his quote that the pilot plant will quantify the resource, so it is not him that ramps that share, he is honest about what that plant is there for. The results from the pilot plant dictate if the project goes into production.
When he spells this out so simply, it is confusing where the going into production comments come from on that board.
I have seen this many times on other boards on various companies a weird frenzy, I suppose if the share flies high for whatever reason someone makes money.