Member Info for raaydaar

It's all well and good filtering people and I do it myself. That said too many on here and everywhere else refuse to consider that there are risks associated with any investment.

PREM have done a great job getting the pilot mine built and producing in such a short space of time but as we all know it's got issues and has had issues from the start. Remedial work needs to be done which will take time, parts ordered need to be delivered, plant machinery dismantled, moved, reconstructed, tested, optimised etc.

Nobody allegedly knows what grades have been produced so far and if it's not SC6 further modifications will be required and whatever is in the 200 or so bags they have will need reprocessing. Not all of these things that are required can be done during scheduled down time so the plant will be offline for prolonged periods whilst this is done.

PREM have until the 25th to prove that the plant is capable of producing SC6 in sufficient quantities to supply Canmax and pay back the repayment plus interest. This downtime will significantly effect the forward production estimates for the short term and delay the ramp up predicted for December.

Biggest issue now is the grades and whatever anyone here says about the product processed so far grades are key. If the plant isnt capable of producing SC6 without reprocessing X number of times then it won't be commercially viable given the current running costs.

I'd be very surprised if GR doesn't know what grades he has in the warehouse by now, his own onside lab should have been up and running (according to the webinar) a couple of weeks ago in which case he should have an idea of some grades. The samples sent to the labs should also have returned results by now. So why hasn't he released this to the market.

Canmax won't agree to anything by the 25th if PREM can't produce the grades, a raise won't give GR enough capital to repay Canmax with interest and other parties won't step in if the grades are inferior.

Steward, how has the issue of what's in the bags been neutralised? If its SC4 (as has been suggested) it will need reprocessing and also mean that the plant at this time cannot produce the required grades without reprocessing. The reprocessing and then testing will take time and stop new ore going into the system. Time that PREM can ill afford and time that will most certainly mean the forecast tonnages will be way off mark.

Canmax need lithium there's no doubt about that but they need the right grades and you can be certain that they can and will walk away if Zulu cannot produce SC6

That's not proof, anyone could cobble together a couple of email addresses, call them George and Brendan and send yourself an email. If it is genuine then we all know how George likes to be economical with the truth when communicating with shareholders.

Someone told the Zim Chronicle what the grades were or they overheard someone (probably George) telling the minister what the grades were and what they're targeting. Something along the lines of:

"Minister, this is the Spodumene we produce for sale we are aiming to produce grade 6 but currently producing grade 4"

Steward, will GR be able to raise enough from 4bn share placing to pay off the loan with accrued interest and have enough working capital left over to keep Zulu running? Would there be enough interest in a placing to raise $40million or so that's a big chunk of money given that as yet Zulu hasn't produced any confirmed grades of spod.

Canmax have the upper hand here and I don't expect any agreements to be signed before they know the grades Zulu is producing.

Something here doesn't smell too good, is GR keeping price sensitive information away from the market but sharing it with the fanboys so they can work out how to spin it? Are the fanboys just lying here to trade their holdings because its easy to make money out of mug punters? Is GR just being his usual devious self to get the inevitable placing away at the best price possible?

My gut tells me all of the above.

Joey2024 problem here is that right now there aren't ant SC6 grades, Zim Chronicle reporting grades as SC4 which aren't usable, GR has stated he doesn't know what the grades are but somehow reporters are reporting SC4, who told them that if the grades are unknown? Has GR known the grades all along but choosing to withhold price sensitive information from the market?

DazedandConfused (one of the fanboy inner circle) has stated that the bags have nearly all been reprocessed.why reprocess the bags if you don't know what the grades are?

The potential new Canmax detail suggests to me that the grades aren't good so they're passing the risk back onto PREM to produce SC6. I'm not convinced the deal will be signed off before the AGM (or EGM considering they've already had an AGM this year) and I'm sure we are all fully aware that GR will be placing those 4bn shares as soon as the opportunity presents itself

DazedandConfused,

How do you know they've reprocessed most of the bags now?

Are you saying that:

1. GR knew the bags contained inferior grades and required reprocessing?

2. GR know the grades were inferior and deliberately kept price sensitive information from the market?

3. GR lied in interviews when he stated he didn't know what the grades were

Or are you attempting to mislead here by deliberately stating something that is wholly inaccurate?

RickyK, I'm glad you understand the intricacies of what the company you're invested in does. Lithium stone is not graded like that, spodumene concentrate is and Minister Gumbo was shown spodume concentrate of grade 4 ie SC4 he wasn't shown lithium stone.

Retrace I'd be very surprised if they haven't had some results back. One does have to wonder why GR hasn't announced anything. If he had SC6 grades back from the lab I'm sure he'd be shouting about it. Is the onsite lab working yet? GR told everyone it would be running a couple of weeks ago

RickyK and Snowking, I'll quote the article for you:

"Minister Gumbo was shown Spodumene, a final product which is produced after the processing of the lithium stone which is said to be of grade 4 quality the company targeting a grade 6 quality of the product"

Johnnypc looks like we don't need to ask what's in the bags, the Zim chronicle are reporting it as SC4. GR knows this but is keeping the shareholders in the dark. Likely even lying in interviews to mislead shareholders and other potential investors. SC4 isn't good enough to produce Lithium Hydroxide, if it can be reprocessed then that's gonna take time and cost money, if it can't be reprocessed then it's pretty much worthless.

Those potential shipping numbers don't look too promising right now.

That's my understanding of the agreement. However i do believe that you do need a minimum of SC6 to produce Lithium Hydroxide so I doubt that Canmax will be taking any spod lower than SC6 grade. Puts the risk on GR shoulders if the grades are lower.

"I don't plan to issue any more shares at this stage"

😒 I've heard those exacts words from his mouth in an interview before and less than a week later there was a placing. Apparantly on the day of the interview ("at this stage") he didn't plan on a placing, the day after he changed his mind. GR cannot be trusted. If I were a shareholder I'd use this opportunity to remove him

Shouldn't an AGM be an annual thing just once a year? Didn't PREM have an Annual General Meeting in January? This is and should be called an EGM. George is clearly worried about the situation with Canmax and is prepared to dilute shareholders to the tune of another 17.5%.

Those 4bn shares will be placed before 30th June, at what price?

Jenkoo, assuming GR could get a placing away at current (falling) price, at current Mcap 1bn shares would cover roughly 25% of the loan (not including interest) maybe that's why he wants the option for 4bn!

Can't see you weren't warned, things not quite as rosy as GR has been implying

What people are forgetting here is that all the last RNS tells us is that they're still talking. It makes it clear in one of the opening paragraphs that Prem has failed to deliver and Canmax can still terminate the agreement and request repayment.

Nobody knows the grades at the moment and I guess that's why no agreement has been made but Canmax are willing to support PREM should those grades be suitable and PREM is able to ship reasonable quantities on a regular basis. Alternatively they could be playing a blinder. PREM cash position is well known and if the grades are sub standard or (after reprocessing) quantities are low Canmax can still walk away leaving PREM in dire straits, no cash and slim to no chance of raising sufficient funds to keep the lights on.

"Canmax have confirmed that their intention is to continue to support Premier and not to terminate the Agreement providing that an addendum between the parties is entered into on or before 25 June 2023."

The caveat of 25 June 2023 is what to me is very concerning. This is not a done deal right now and until the grades are confirmed as SC6 or a usable inferior grade then the possibility still exists that this relationship goes south despite Canmax "intention to support Premier . Intention doesn't always become action.

Market will wake up soon enough. Agree the 450k this morning was a buy, somebody taking advantage of the suppressed SP and I'm sure they'll be rewarded for buying at these levels.

Would be nice to at least have a detailed update prior to the AGM, anything more would be a welcome bonus. I'm sure there's plenty more to come as we build towards the $2bn AUM target.

Key things that need to be considered:

Mark Ward increased his holdings to 25% of the company, why would an advisor to the company and its largest shareholder choose to buy around £500k of shares on the open market?

Another circa 15% of the company is held by the other 2 TR1 holders plus another 3 people that I personally know of who are holding just under the 3% threshold. That's roughly 40% of the shares held by just 6 people and I'm sure there are others with large long term positions in the company.

Gazza4563 nobody, including me is disputing the grades in the ground, there's no doubt about those. The worry is the grades in the bags in the warehouse, GR silence on those is deafening. Its June 6th and Zulu has been in production for a number of weeks now with samples sent off for analysis. Where are the results? GR stated on video that the onsite lab would be up an running last week, GR isn't one to miss an opportunity to get a ramptastic tweet out showing his shiny lab with a tech analysing some samples, maybe he's too busy trying to get a placing sorted to take time and get that tweet out

Last person on here that called me an idiot amongst other names, AimHigherStill ended ip eating humble pie when George did exactly what i said he would do. I called it right then because I know how GR works and I'm looking at the bigger rounded picture instead of focussing on all the little positives. It's so easy to focus on the good stuff and so easy to forget that there's a potential downside.

I'm not qualified to give financial advice but I would suggest that anyone invested here also consider the potential downside, consider the fact the company has just about enough money to last until the end of June. Consider the fact tha GR has said it would be prudent to look at placing. Consider the fact that nobody knows the grades produced that will then impact the potential shipment amounts. Consider the fact that there's been no guidance on how long the plant modifications will take. Consider the fact that Canmax could walk away.

Consider all those facts alongside a video showing a working plant producing unknown grades at inferior quantities. Consider all those facts alongside a video that was recorded at a time when GR knew the plant was producing unknown grades at quantities far below the 4000 tonnes (rolling average) but decided not to inform shareholders. Consider all those facts alongside the fact that GR has continually misled shareholders. Once you've taken all of those facts into consideration along with everything else such as the telegramp group banning anyone with any sort of doubt, then you have the bigger picture.

Kellysheroes hit the nail smack bang on the head.

We know the plant works, not as efficiently as it should but it works and Stark are working on the remedial issues discovered so far.

The elephants (plural) in the room here are:

1. Grades, what grades is the plant producing?

2. Funding, GR has openly admitted the company is in a cash poor situation and needs funds - will he go to the market and raise against conditional approval at an AGM? Or are talks with Canmax sufficiently progressed for them to stump up some cash to keep the lights on whilst the plant modifications are made?

3. Canmax. Nobody knows what they're going to do, they want spod of a specific grade, until they know what grade Zulu is producing they're not going to commit to anything

4. Production forecasts. GR Has provided guidance on future production numbers supplied by Stark. What are these numbers based on? Volume through the mill and anticipated tonnage based on that volume? At what grade? If it's not SC6 or a usable lower grade then it will need reprocessing and will affect the projected numbers.

The onside lab (according to GR) should have been operational last Wednesday, GR should have had results from the labs in Zim by now (he did say shortly in the Stockbox interview) and yet nothing.

One does wonder if the release of today's video was an attempt to increase the share price for alternative reasons.

GR under a lot of pressure right now from many sides, needs to get the plant sorted, will the tweaks reveal additional issues? Needs to know the grades. Needs to deal with Canmax to stop them walking away and leaving a massive debt to be owed. Needs to sort out some sort of financing to keep production running and above all needs to keep shareholders informed.

Historically he doesn't seem to do too well when under pressure.