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Looks like those that took profits moved these to KOD, well done on them, I should have seen that coming and could have taken advantage.
I hope PREM releases a video soon of the plant working, showcasing the process from start to finish (from the ground to the stockpile). I asked IR if that would be possible.
Have a great day all, plenty sunny days ahead. Had a drink to celebrate our milestones yesterday. Got champagne ready for first shipment, then debt payback, then RUS, then DFS etc. Boozy 2023!!
I was not around during the RHA debacle but re-reading the info on what happened it is evident that it is not comparable to Zulu. For example, RHA depended on indigenous organisations and poor power supplies from ZESA, the state power company. Now we have our own dam and will generate power for the plant and others.
Also the 2017 BARA report was way off, the Chinese got it done in half the time, for a fraction of a cost and triple the output. Plus they based their calculations on lithium carbonate and not spodumene 6%:
"Consulting expert Bara Consulting has completed a scoping study which has demonstrated a robust project with attractive economics based on two different scenarios.
A concentrate sales option would include a targeted annual production rate of 84 000 t of spodumene concentrate and 32 500 t of petalite concentrate for 15 years. It would require
$64 million to build the project, which is not an ‘indigestible’ amount considering the returns.
Bara has determined the project will have a $127 million pre-tax NPV at 10%, an 86% pre-tax IRR, an after-tax NPV at 10% of $92 million and just a very short two-year payback period. Over the 15-year period it will generate $1 billion in gross revenue (based on sales prices of $800/t spodumene concentrate and $400/t petalite concentrate).
The alternate option is to construct a lithium carbonate plant to produce 14 500 t of lithium carbonate (Li2CO3) for the same 15-year period. It would require $238 million to build and will deliver a $719 million pre-tax NPV at 10%, an 80% pre-tax IRR and after-tax NPV at 10% of $524 million and again just a two-year payback. Gross revenue of $2.9 billion would be achieved (based on a sale price of $15 000/t of Li2CO3)."
We are in a muuuuuch better position! Let's go PREM!
Are there still risks associated with this play? 100%
But let's not forget the significance of today's news, this is what we've been waiting for. PREM is making history, and if in doubt look at the sp action between Mar 2021 and Jan 2022, then look at the images of the bushy area at Zulu with those cheap small drills from 12 months ago and compare it to the beast that has been installed with all those services and resources . This year will be one epic milestone after the other.
Oh and by the way, Santa not only finished the slice of pie this morning but also the whole sherry bottle, didn't even leave me a taste.
Opening a small bottle of Piper champagne tonight to celebrate these milestone we have all been waiting for (1p and production green light).
Next bottle, the big one, is ready for confirmation of first shipment. Then i got more in the cellar for debt repayed, RUS and DFS completions.
Craig not sure what that has to do with anything but the article says "a dam is UNDER construction" so not finished yet. But it was quickly cleared as the dam can already be operational albeit uncompleted.
https://ibb.co/RNMY1DL
Bump
Sherry bottle and slice of mince pie still intact on the living room table, no sign of chimney use. Nothing on the NORAD radars yet. All systems on stand by.
Is that an AI bot speaking? Completely void of emotions and expressions lol.
Santa Claus is coming to town!
Acker, i am leaving a glass of sherry and a slice of mince pie on the dinner table tonight.
Yes, very true, thank you both. May not be yet finished but can already operate normally. Cheers
From tgis morning, good news from the Chronicle in regards to PREM's support to the community, but it mentions the dam is still under construction??
https://www.chronicle.co.zw/premier-africa-minerals-unveils-infrastructure-projects/
Johnny,
"Very interesting to see those who demanded an RNS as evidence the company said HC was in February, now asserting production has commenced - without an RNS."
Nail. Head. Coffin.
Good post and list of catalysts SK. Starting production before official visit makes perfect sense. Don't fully agree on the timelines but as always, i will be very happy to be proven wrong.
Is it Tuesday yet?
Aidan, well done for holding and being patient. It's definitely worth waiting a bit more until end of Q2 at least imo, we will all be rewarded, and well beyond the 1 pence mark.
And that is where my curiosity lies Evraz: we had the first blast, we stockpiled a few rocks, we are ready to feed the conveyor belts (as per GR this weekend) and will treat the ore with the reagent once it arrives. This sounds pretty much like start of production already, only thing missing is the loading of lorries and shipping out. Anyhow, been a good week of updates and news, hope we keep this momentum next week.
Hehehe was just about to post this.
So no official opening yet, come one Mr. President, accept the invitation :-)
The more the locals and the community benefit from Zulu, the more leverage we have with central governments to get what we need for future projects. Win win.
Can't wait for official RNS and first batch shipment confirmaton!
I am still confused: why release an RNS speaking of delays due to a missing reagent and permit when operations in reality started anyways without these? Don't mean to sound negative, just curious. Thanks
Some good coverage
https://twitter.com/SundayNewsZimba/status/1644865993750052865?s=20
https://twitter.com/SundayNewsZimba/status/1644863556695851008?s=20
Good article on China and lithium:
https://financialpost.com/financial-times/china-winning-lithium-race-africa
Local chief speaking at yesterday's ceremony:
https://youtu.be/ETnCUh6Z-zg
Dumb question perhaps but....how have they completed a blast and plan to start feeding the plant this weekend and treat the minerals with the arriving reagent, all without that missing permit from authorities? Is that permit even required to start production then?