The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
ACKER, I'd wager with discussions going back to at least March/April and recent road works that's it's more likely advanced.
21 Feb 2022 - Zulu Update
https://www.lse.co.uk/rns/PREM/zulu-update-jnfya5qg72n3bz1.html
"Our current objective is to secure direct trade investment into Zulu from a potential leading industry partner and while there is no certainty that a final investment agreement will be concluded, negotiations, together with legal, corporate, and technical due diligence, continue."
8 March 2022 - Zulu Lithium DFS Funding
https://www.lse.co.uk/rns/PREM/zulu-lithium-dfs-funding-lpqzhnf2zu7r2jd.html
ACKER, was important to get all our predictions in an RNS.
-Production Q1 2023
-Funded via spodumene sales
-18,000m drilled, weeks away from 20,00m if not there already
-Finance due
-Assays due
-Then commence of plant production
We have confirmation, now this month we should see financing and assays imo.
Buying more today. What a huge milestone for the company.
Financing RNS will be a formality at this point and could see it landing by the end of this week honestly.
Great bit of digging Ilovelith:
Pilot Mine announced/commenced - 11th Nov 2020: https://www.prospectresources.com.au/sites/default/files/asx-announcements/61006612.pdf
Pilot Mine near completion - 7th June 2021: https://www.prospectresources.com.au/sites/default/files/asx-announcements/61035856.pdf
Pilot Mine in production - 25th June 2021: https://www.prospectresources.com.au/sites/default/files/asx-announcements/61038157.pdf
Turn arround approx 7 months from announcement to production.
Exciting weeks and months ahead.
Peer valuations in this space. There are companies valued at a current SP equivalent of around 1.2-1.5p which have no production and won't be producing until at least 2024. Atlantic Lithium is one of these companies.
So if PREM announces a pilot plant that can enter production as early as Q1 2023, then it's far from a stretch to say the SP could settle around 1p with the other news that's due too and then climb above 1p as productions nears. Going to 2p and over once revenues start coming, production increases, as a the pilot plant would be modular and the resource expands further through more drilling in Zulu and EPO.
-Funding for pilot plant
-Development of pilot plant
-RUS
-Results for EPO
-Completion of DFS
-Sale of Circum shares
Price target, as this goes into Q3 beginning July is 1p and uplift to higher than this if production comes as quickly as Q1 2023, as seems very likely now.
More likely institutional buying - who may know more than we do. Everyone and there mother is looking at lithium, so it would make sense bigger money would eventually come our way with a Chinese major deciding to fund and bac us after DD.
1p very possible on fastracked and funded pilot plant RNS that is expected. As well as other news.
If it lands after today intra-day or after hours, then the long awaited 1p will come quickly.
Like the DFS funding anticipation, too much going on both at a company level and in the market for this to be a P&D. A funded plant that's fastracked and gets Zulu into production sooner than many expect is the goal here and explains the 24/7 drilling and explains the 6 rigs. It's on the record in the last interview.
All the heads, including Suzhou were on site April/May and we can see in May they've been quickly prepping Zulu for production. https://twitter.com/Premafrimin/status/1534090055723143168
Then there's also the RUS, DFS and EPO for big news soon (Circum too), so those that sell now will likely be caught out imo by one good RNS that see's this hit a new 5 year SP high, which is over 0.75p.
Morning all. Plenty more than pilot mine news due as we all know. Combination of it will see this over 1p quite quickly and sooner than many may expect.
Just like yesterday, any dip will be eaten up in anticipation this week. So a good strategy is to buy and hold long, whilst down here.
0.4p Suzhou's investment.
0.54p year share price high on DFS funding.
Can see it rising 100-200% from 0.5p to 1p+ on pilot plant, RUS, EPO results and DFS news. If it comes close together then it will be a sudden rise, otherwise gradual re-rate.
Not long to go now.
I see thanks, am trying to gauge value here vs PREM, which has a total valuation of $90mil, vs about $350mil here, as well as a DFS close to completion at Zulu Lithium and resource upgrades due. Seems like it may be entering initial production in H1 2023 and awaiting confirmation in the next few RNS's. Should fetch a valuation around ALL level and higher if that's the case.
Chinese electric vehicle giant BYD (OTC: BYDDY) is reportedly in talks to buy six lithium mines in Africa, Reuters reported on Tuesday.
https://www.nasdaq.com/articles/electric-vehicle-giant-byd-in-talks-to-buy-lithium-mines-in-africa-per-reports
Chinese Mining Billionaire To Invest $300 Million In Zimbabwe Lithium Project - this is on top of the $422million they paid for the project.
https://www.forbes.com/sites/gloriaharaito/2022/05/30/chinese-mining-billionaire-to-invest-300-million-in-zimbabwe-lithium-project/?sh=12d58d693dd1
The battle for lithium: A Chinese mine just sold for 596 times the opening price ($300mil for a 50% stake)
https://supchina.com/2022/05/23/the-battle-for-lithium-a-chinese-mine-just-sold-for-596-times-the-opening-price/
If BYD is looking to snap up at least 6 mines in Africa, then do we think all the competitor companies in China are going to sit back and do nothing, or will they also lookto do the same and secure their own supply ? I think most of us would reasonably agree it'd be the latter.
All this is occuring behind the scenes, whilst PREM progresses with the DFS, RUS, EPO and now possibly a "large scale pilot plant" and has a vested interest from a large Chinese major which has it's own rapid expansion plans and would love to see Zulu 'in production as quickly as possible'.
Micro-level company news has the potential to re-rate the SP to 1p+ and then 2p+, a fairer market cap akin to Atlantic Lithium as one example. Combine the macro factors on top of that, all of the above and the lithium price and I think the SP will soon be well over 0.6p and reach a new high.