Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Prem are in an excellent position, few hurdles to get over canmax deal will be renegotiated, grades back from the lab and an update on the plant modification and June shipment, prem will finally be a producer with lots of revenue coming in as we ramp up production.
The modifications been installed increase the output of the plant, which will be a benefit to all us holders💰
Jenko - I agree either way I’d be happy with an increased offtake or a bigger discount, all we need to do is bring in revenue, everyone has to start somewhere and we’re starting from the bottom, as time goes on we will of paid off canmax, have an offtake deal with someone for tantalum, rubidium etc, expanded the original plant, maybe add a 2nd plant and the end goal to be a full scale producing company supplying the global market and rivalling the likes of pilbara, we’re on the very first step of a long producing journey it should be a good ride for us all once these issues have been ironed out
Jen ko - good question, I see canmax agreeing to those terms with prem to receive smaller more frequent shipments but maybe they will secure more offtake, I also had a thought that prem can pay off the prepayment any time, maybe the new deal will be along the lines of prem have to supply canmax for a year with a 10% discount and only after a year can the prepayment be paid off, I also thought maybe they up the discount to 15% but prem can pay the prepayment off whenever they want.
I don’t believe canmax will be too harsh but I think they will get a little extra for helping prem, I think they will focus the new deal more around securing spod from Zulu for a longer time period, that’s just my opinion but I do believe they are working together to achieve the best outcome for both parties 😁
Points from interview, majority are very positive and give us a better performing plant later down the line;
1) He believes canmax will not pull out as it will not help them and it will not help us but what it will do is create a gap in the market for anyone to step into, we have bit of a hiccup but it’s relatively short term
2) canmax and us are in conversation, neither of us what to terminate, both want to come to an agreement where spodumene can be delivered as quickly as possible
3) Zulu is not a security or collateral the agreement is a prepayment and no body can come and take Zulu
4) doesn’t want to discuss the current production or grades, they’re currently been tested at a laboratory in Zimbabwe and he should have that information shortly
5) he thinks some fixes will be carried out quicker than what has been quoted so he is hopeful that they are
6) he has called for much shorter terms and a change in terms, where we can ship much smaller quantities and expect payment at mine gate and he believes that is what will happen as it is essential to support our cash flow at this time, he says they will say yes to these terms as they want the spodumene
7) conscious of what targets were to be set, so he told starks you tell me what targets your going to achieve and that is why those targets are so specific as it come from stark
8) hydro classifier will be shipped to site within the next week or so as it is available
9) modifications and all works to be paid for by stark, also this will allow us to increase the name plate capacity should see 5,000t+ per month once running properly later this year
10) cash constrained to sooner we can ship and get paid for it the better.
11) GR hopes to get data to release interim RUS for only the mining section of Zulu
Anyway enough of wasting my time on this BB, May return for a sensible debate once we’ve received the canmax RNS as then there’s actual some solid facts to debate, until then it’s all speculation and rumours to suit people’s agenda, great discounted price to enter now IMO but safer entry is after the canmax RNS, GLA :-)
Raymond Jackson - HAHAHA nice try you and your source are clearly clueless as prem can’t do a placing they’d need to hold an EGM which would take 21 days, so a placing by Thursday is impossible, I suggest you and your source step away from shares as your clearly clueless 😂
Raydar - sorry but your wrong with this part “prem may well have a lot of spod in the ground but right now they're not getting it out of the ground and processed in meaningful numbers and gr has dangled yet another carrot of 5k tonnes by december with some random figures thrown in for ****s and giggles.”
They are getting it out the ground and the plant is running right now, also you say GR has dangled a carrot of 4K tonnes in December when actually all those figures in the RNS were from stark, so GR hasn’t got anything to do with the plant and those figures quoted, some parts of most of your posts are correct but there’s also big parts you seem to twist as I’ve just corrected, starting to be able to read your agenda here, I think before we can all assume or create more guess work we all need to await the canmax RNS, personally they won’t be going anywhere but let’s just see what the RNS contains, as for the figures that’s all in starks court for them to get the plant running at a higher output and make prem hit June shipment. Canmax May surprise us at they’re desperate to start receiving that spod also let’s not forget if they don’t help prem with funding and if we have to dilute let’s not forget they have £13m invested so essentially they’re losing funds through dilution, it makes more sense on all fronts for canmax to supply prem with additional funds :-)
The main 3 things I’d like to see in June, which I believe we will;
1) canmax deal will be a positive and they will work with prem and stark to achieve the overall goal
2) RUS, I believe then RNS will be in June and that’s an interim RUS as GR said on Saturday it is focused only on the area of the plant
3) first shipment RNS by the end of June
If we tick off all 3 of the above we are in a very strong and positive position, it’s easy to get caught on the negatives right now but I think we need to see how June goes before we start to make up scenarios, GR holds a huge stake in prem it’s in everyone’s best interest to turn this into a successful project, the worlds eyes will be watching stark imagine other companies see the prem builds a plant within a year and produces spod, STARK will look immense in this field :-)
Bag pipes - I agree there’s a lot of doom and gloom as well as trolls, however we know for a fact canmax are not going to walk away, also they will come to a sensible agreement with prem as they need the offtake from Zulu, also any unreasonable agreements then GR can start to look at other offers as we’ve had a few with investors happy to pay canmax prepayment to get their hands on Zulu, I don’t know why everyone is making it out like it’s prem vs canmax vs stark, all 3 are combined as a team to achieve the same goal they can’t afford to screw each other, these delays are not good by any means but the plant is still producing just not to the output we’d like, stark ceo Geoffrey madderson did say he helped to draft the recent RNS, also the works are by no means considerable and they will help to future prof the project as well as increase the name plate capacity which means we’ve already increased our output from the very beginning, once it ramps up of course.
I believe we will see a good RNS based on the deal between canmax and prem as in the space of less than a year we’ve a plant built and it is producing right now, canmax will be frustrated that we’ve had these minor issues but they will see that it’s actually starks fault and not in the hands of prem, I can see a steady climb back to 1p once we receive the June shipment RNS
Mick - the next RNS will be regarding the deal with canmax and they may borrow prem more funds as that then entitles them to the offtake for a longer period of time, if I were canmax I’d happily borrow them $5m which is pocket change to a company like that to further secure a longer offtake at a 10% discount, let’s not forget canmax have just signed a deal with Ford so they need even more spod, they will be desperate for stark to resolve this minor issue and I’m not sure if some are aware but the STARK CEO did put out a response to the issue saying that this modification will increase the name plate capacity, see the link below.
https://twitter.com/DeadEyeBeaky/status/1663115688821547009
It’s funny how everyone is blaming GR, let’s remember it’s stark who was to build the plant and now it is stark who is to correct their mistakes, the plant and how it performs is completely out of GR’s hands, I believe this will succeed as stark will rectify the issues quickly due to the amount of eyes that is currently watching to see whether stark can successfully build a plant within a year and get it producing spod, only time will tell but it’s all on the shoulders of stark :-)
Steward - you say there’s risk that we run out of money and the wolves will devour you, yes true but also we’ve had offers from others saying they will pay off the canmax agreement and step in their place, so I think canmax will not try and make times hard from prem when it’s actually an issue on starks behalf, it’s really out of prems hands, in my opinion canmax will help prem to achieve the goal that is in everyone’s best interest and that is to keep prem running while stark resolve the issues which results in canmax receiving spod :-)
Https://www.chronicle.co.zw/premier-confident-of-zulu-lithium-profitability/
Roman - let’s all just await the RNS with updates on the canmax situation, yes the delays and recent dilution is annoying but the great part about this now is we have stark who are dealing with the plant it’s all out of GR’s hands, in fact he’s just the middleman he can only report what stark have told him, as for canmax yes they will disappointed but they certainly won’t walk away from the Zulu deposit, it’s going to take a little longer than most would of liked but when stark resolve the issues, Canmax will give prem the benefit of the doubt and GR can then hopefully start with the positive news flow with regular shipments, an interim RUS some time in Q3, now the RUS isn’t important the main focus has to be all on the plant, take it easy and enjoy the weekend all we can do is hold and await the news flow over the coming month, I’m sure things will flip and take a positive spin, it’s easy to get stuck in a negative hole but let’s focus on the next 6 - 12 months, prem could be in a great position with the new modification allowing over 4,000t per month to be shipped, GLA still a strong buy and hold for me plenty upside although may be a bumpy ride :-)
Wolf - I agree it’s all speculation until we hear what canmax have to say, do I see them terminating? ABSOLUTELY NOT! They will stick with prem for a good few month yet, we will have plenty offers if canmax were to terminate but it’s for everyone’s best interest that we complete the current deal and look professional by delivering :-)
Roman - I know your more knowledgable than to say you’d take an offer of $400m when we all know arcadia sold for more than that when the market was no where near the stage it is now, yes a lot of people are annoyed but the sale of Zulu will be worth $800m+ to be considered a serious offer.
I believe if we make the shipment in June then we are back on track until then it’s a take your positions and await news
Canmax decision to be made next week. Hopefully things will be worked out.
Stark is paying for the mine tweaks. We have a good relationship with them.
If Canmax terminates, there are others who have expressed interest (not Chinese) who would give us what we want and pay off Canmax. There is lots of interest. But it's in Canmax's interest to extend or add to the prepayment. Confident we will find a way forward.
Very confident payment delivery in June. Providing there are no delays we shouldn't need any more funds. But funds are constrained.
Shouldn't need money if we make delivery. If funds are needed in the interim there are still a number of options. AGM with shareholders re issuing more shares is a possibility. But it is a last resort. 21 days notice would have to be given for AGM.
Question "IS THERE ANYWAY CANMAX CAN CLAIM ZULU AS PAYMENT?"
GR - "NO!!! AND IT IS NOT A LOAN, IT IS A PREPAYMENT. SHOULD WE NOT DELIVER WE CAN BE CALLED UPON TO PASS CREDIT AND REFUND. ZULU IS NOT SECURITY FOR ANYTHING!"
Canmax did not have knowledge of the delay prior to the day of the release of the RNS. They were disappointing and surprised. The objective is to have this resolved by 1st June. It will be RNS'd immediately.
GR wouldn't have made the placing at that time if he'd have known. But he bought believing it was the right thing to do at the time.
Minimum that can be shipped is 240-250 tonnes.
Staff wages, Reagents, diesel and other things are paid up for this month. Diesel is $300k a month.
Mining costs are currently $1m per month.
The Spodumene grade quality will improve with volume.
Shipment with go in 34t trucks, containerised and taken to Durban. All warehousing in place.
Zulu is the start. There's a big future for PREM and Zulu will help with this.
Mining licence application for the extended EPO has been sent and hopeful it will be granted.
Li3 Mutare project is looking very exciting. We own 50% and could be sold in the future.
He states he has been accused of being over confident. But is confident that by December we will be exceeding 4kt.
There is still due to be an opening ceremony with the Zimbabwe President.
Zulu is currently operating 24/7.
Gross revenue is $16m by December.
Independent expert invited to inspect current cashflow model.
We are (in his own words) asset rich and cash poor. Currently. When we become cash rich a share buyback is a possibility. But personally I'd like to pay a dividend.
Gold JV is being looked at by Geologists and is very prospective. But no assay results at this time. Although some drilling has been done.
There is ongoing activity at RHA.
BB turned into a kids playground! Nothing has changed fundamentally we have a plant producing spodumene, an RUS is in the pipeline and we have a lot of interest from other parties, this drop has been over exaggerated so those selling now or taking profits will miss out on the main event, but money in the bank is safe so nothing wrong with that. This will rise back to 1p over the next few weeks as whether people like it or not zulu is a monster if an asset and no one’s words can change that, we will soon have huge revenue pouring into prem and be on the world stage for all to want a slice of what’s going on at prem, too many worry about day to day movements but by the end of this year we will look back to this as the beginning of a huge transformation so let’s just sit back, either sell if your unhappy and add to your holdings if your able to take the ride, until then sit back and let’s get behind prem as it’s the start of a new beginning, we are starting at the very bottom and hopefully working our way to the top, GLA THIS WILL COME GOOD SOON :-)
Lots of rumours saying Zulu was at risk if shipment wasn’t made, well after an email from GR I’ve had confirmation that Zulu is not at risk and things are still running with progress been made, general market update is to follow very soon, I’d guess RNS this week for sure, great buy opportunity :-)