The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
So the timing of this takeover bid is immensely good for prem . In last three months lithium prices have dipped and most think they are about to bottom out , but this bid is due to timely taking advantage of some of the dips in lithium asx shares . There are lots of hints of prem getting a predator . Even George in his interview said several companies have been interested in prem .
Prem is about to be the only aim lithium producer by end of the week , amazing times and bodes well for Prem to break the 1 p this week .
Prem market cap is only £200 m where as other miners are getting taken over for far higher values .
Great day ahead
So at last Prem is really moving these last three days .
The market is seeing that the risk for prem is now less and that there is very likely to be a series of good rns this month
personally i am hoping for this
1. RNS tomorrow to say production starts this week
2. Rns then friday or Monday to confirm it has started
3. Then in April several more rns , to confirm first 4000 tonnes produced , resource upgrade likely and drill results
what a stunning month to come .
Goood luck all who have had the confidence in the bad years to hang on and now see the big gains coming
President will come to zulu in a ceremony mid April I believe , he was never coming this weekend . Zulu should open end of week is my estimate . Exciting times as prem move on to become a billion pound company and over 5 p
jenkoo
you will like this graph
https://cnevpost.com/2023/03/25/cpca-expects-china-mar-nev-retail-sales-560000/
jenko , agree with your most sensible comments on lithium pricign and ev china demand.
it is fascinating , i just wonder if the fall in lithium and catl reducing battery prices wil lhelp bring cheaper ev cars and spur demand even more .
i like the prediction for march ev car sales of 560,000 in china and this is up some 28% on last march , this may be the turning point and it may be we see larger sales rises in China quicker than q3 .
I agree i think lithium and spodumene will go up later in year .
My figure for next year of $3300 for spodumene is a very conservative figure , but still a highly profitable level.
V8 tricky question , but for prem mostly working in Zimbabwe I reckon pe of 5 is reasonable in terms of historic pe . So if we jump forward one year only and if prem can produce 150,000 tonnes a year of spodumene at all in cost $1000 a tonne and even if we use a low ball $3300 sales figure that is $345 m profit .
£280 m profit per yr
After tax and royalty it is around £200 m post tax post royalt profit . Pe of 5 then gives a market cap of £1 billion which is close to 5 p .
Stunning
At 0.8 p prem is around a $200m company , but so much is about to happen .
Essentially their first mine was thought to produce 50,000 tones spodumene but Heoerge now tells us it will be more likely 75000 .
He also answered my question the other day , which was it is likely you will get a second plant , he said yes
So in one year we will likely be producing 150,000 tonnes year. Currently. Spodumene is $4900 a tonne , but assume conservative $3300 gives sales next year of $0.5 billion . Yes 1/2 billion dollars .
Prem is going to keep growing , I added all week to my big holding and it is not too late
Radika , there are multiple news items that will push up prem , many in March and April . But the likely biggest one after rns of delivery of 4000 tonnes wil be if and when George goes for a 2nd off take deal to build a second plant. That to m is the biggy as it can push us up to sales of nearly $500m next year. we are talking massive numbers hear and the market has not woken up to this , but it will and we will smash past 1p by April or May and higher .
Acker, will settle for that . What I liked especially about yesterday was the hint that things in the ground look very very good , it clearly will support two plants and the plants will produce maybe 50% more than the 50,000 tonnes initially suggested .
These are massive numbers potentially , which come end of the year people will wake up to along with instistions . So my buy today was thinking medium term multibag
Acker agree on pricing , it is a monthly fastmarkets price . But this is where it gets interesting as fastmarkets has different prices in different parts of the world .
But yes if we sell in April we get March average price which will be around $5000 less 10% .
I forecast spodumebe will slow,y dip to maybe $4000 by June , so we may receive $3600 then , but later in year we should see spodumebe back up and also no discount as we will have paid off
guys are you watchign a different interview , this was brilliant and prem are going to fly over next week and month . if you dotn see that you are missing something upstairs , no offence but every knowledgeable person thinks this was brilliant.
Thsi was oen of Goerges best performances ,
production very likely next week , rns early next week
Productio nfrom plant coudl be higher than 50,000 may be 70,000
a secodn plant is more than likely
enough spodumene for may be 20 years
epo bigger than ever
several companies approached interested in 2nd off take
ore exposed is better than expected
president coming to open mine
massive prospects and George was in great spirit in interview