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What I suggest feels like a win win to me - somebody tell the Bod it's this deal or no deal - unless we had something better in mind! LoL ;-)

Ob.

Perhaps the "pro rata" might mean that we will pay off a total of 30% of the US$4,064,374.88, in stages according to how much we own at the time. i.e. $406k of the $1.5m in stage 1 will go to loan repayment. Meaning that of the $5.1m, a total of $1.2m will go to debt repayment? If this is the case, is it possible at the end of stage 5 that the loan will be written off in full - PREM essentially contributing their 70% by "writing it off", by whatever manner is most tax efficient to do so ;-)

Ob

No mention of funding going towards paying of debt in this interview. Perhaps he forgot to mention in his excitement! ;-)

"Cadence Minerals - Heads of Terms Signed - Premier African Minerals" (28 Jun 2018)
https://www.brrmedia.co.uk/broadcasts-embed/5b34a1a91eb9836a7ff26528/?popup=true

Which reminds me, where are those San Luis Licences!?

You know I don't really blame him for not mentioning it in that interview - if some of the $5.1m is going towards debt repayment, it's not going to be much given how much the DFS is going to cost. Perhaps a million, 2 tops I'd say. But it's far from clear to me what's going on with respect to it. Of course we might pull out completely, especially if we can't find funds on the required timelines...

Ob.

Thanks @CHRH. Here is the relevant sound bite:

"Upside for Zulu lithium project looks very exciting says Premier African's Roach" (27 Jul 2018)
https://www.youtube.com/watch?v=RiQYOxiR_Qo&t=4m29s
===[
From PREM's perspective, once this closes the funding of whatever's happening and is associated with Zulu then falls away and does have a benefit from our overall working capital perspective as well.
]===

Paying off some of the loan is fine, it's potentially a great project and deal, just not as great as I initially thought!

Clarity on this if we go ahead would be much appreciated @Kiran! ;-)

Ob.

So by your understanding, what is the relevance of the word pro rata in this context @Dallas?

It's certainly more complicated than it should be @Dallas! @Barksy - "Premier Loan" is just short hand to describe the loan of US$4,064,374.88 which PREM have made to MouCo.

If not zero @Dallas then what? My initial thought was zero, but I'm left scratching my head now, as originally I interpreted the word "offset" as "wrote off", rather than "redeemed", and in proportion (pro rata) to our investment. i.e. does PREM get any of our money, or does it stay fully invested within MouCo - the project we are investing in? If not, in my mind this arrangement would mean that PREM is writing off the loan to the JV company (MouCo) as their "contribution" to the DFS? Too many questions! Too few answers! @Kiran!? ;-)

I agree @Dallas. First question I have which might shed some light on the matter is does anyone think the Premier Loan will be 0 once we have invested the full $5.1m?

Indeed @Dallas - I thought I understood it, now I'm not so sure. What's with words? Can't they use equations? Much less ambiguous! Usually... ;-)

Cheers @addicknt.

"Heads of Terms Signed to Earn In up to 30% of a Significant DFS Ready Lithium Project" (27 June 2018)
http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2489469
===[
The Parties have acknowledged that at the date of the Heads of Terms an aggregate amount of US$4,064,374.88 has been advanced by Premier to MauCo ("Premier Loan") and the Parties have agreed that the Premier Loan and any interest due under the Premier Loan will be offset on a pro rata basis against the Investment Amounts paid by Cadence to MauCo.
]===

Anyone got a strong conviction on the meaning of this?

Everything is worth nothing until it is worth something, or something like that. I've got the value of what we own in Yangibana down as somewhere between £5-10m, but hopefully that will be proved far too low in hindsight! Wind and EV revolution could drive prices and demand through the roof in the coming years! But if it has to go now to pave the way for projects we can steer our own course, then so be it. ;-)

I thought you would know - but thought it worth checking: the headline NPV is after all based on their extended case so without qualification I've equated that to "their DFS" ;-)

Since I've got it open. "Table 16-1 - Production Targets by Deposit" is what you want ;-)

I can see why you may think that @tomcat - however years 7 & 8/9 of the DFS are based on resources. Years 1-6 are reserves, so the DFS is based on > ~25% of the total resources. Somewhere between a third and two fifths? I haven't worked it out! ;-)

Worth a skim through. Shame they appear to have mixed up their LME and LCE in places...

"Lithium Valley: Establishing the Case for Energy Metals and Battery Manufacturing in Western Australia" (13 July 2018)
https://www.rdaperth.org/rda-projects/lithium-valley/

Bit of a discussion on this report here:

https://www.linkedin.com/pulse/tale-two-valleys-lithium-vs-silicon-emily-hersh/?published=t

and on Emily's twitter feed, and the most recent lithium podcast. I think Emily is correct despite the author's apparent instance that they have the units on figure 1 correct and are forecasting 2.25Mtpa LME (Lithium Metal Equivalent) by 2025!

Oh hang on, wasn't I forecasting 10Mtpa LCE by the mid 20's at one point? ;-)

Ob.

By the way, I'm sure most invested here realise that a certain website has a reputation short on us. If the end of year bid is below 0.04p they gain reputation, by their metric, otherwise they lose it.

It's very much in their interest to keep slinging dirt in our direction! But it looks like all their followers might have sold out by now, and just when a certain rabbit might be about to be pulled from JG's hat - dead or alive!? ;-)

Ob.

We have 30% joint venture interest in everything that is red here:

https://hastingstechmetals.com/projects/yangibana/

Unfortunately Hastings appear to be playing hardball and are threatening, OK, planning to mine their 100% blue areas in the first 8-10 years. They could have easily included red areas in later years, but instead chose to present the definitive feasibility study based on their 100% blue areas - keeps it simple I suppose...

Value-wise I'd say pessimistically it's worth somewhere between 0 and single figure millions, optimistically double figure millions. Look at the "Yangibana" and "Dressing down?" threads from earlier today for more information...

According to the annual report, KDNC sold all of its 3,636,563 shares in Hastings during the period (in 2017). We very likely bought these shares in the range A$0.05-$0.1 - and likely sold them in the range A$0.2-0.4, likely making somewhere in the region of half a million pounds profit. ;-)

To most people it appears Yangibana is worth 0 to KDNC. To me, in the absence of Hastings share price movement, it continues to be worth around 5-10 million pounds. To @Frankie, it's sentimental. Read back through today's posts from me for more information.

LoL @FrankieH! The market appears to value our Hasting's JV at around £0m, so my £5-10m personal valuation is an infinity greater! ;-)

Their sensitivity analysis considered the realistic (IMHO) scenario of escalating Nd2O3 prices due to electric car, wind turbine, and other new applications, leading to an NPV almost 3 times higher - so my £5-10m would escalate to around £15m to £30m to KDNC.

They announced a provisional debt package last week taking them one step closer to production and towards a likely market cap approaching the project NPV should the project be fully funded/de-risked at first production, meaning that £15m to £30m would likely increase in value to 2 to 2.5 times today's: call it £30m to £75m to KDNC.

So we may be considering selling out today for circa £5m, or perhaps we are holding out for potentially an order of magnitude greater value. Maybe there isn't even an offer on the table, but if there is I'd wager our BoD are considering it carefully! Less than £5m would feel bad. £5m-£10m would be OK, and greater than £10m would get them a slap on the back from me. We'd then use the money to progress our Zulu and San Luis resources without having to draw down other assets.

Fabulous in my eyes! ;-)

Ob.