The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I thought Mark did a brilliant job with stock box interview . He got some subltle things out of George .
1. Canmax agree prem need to have a shorter window from shipping to payement
2. As a result Prem exoect first payment in three weeks
3. This is likely to be enough for prem to not need further money
4. The problem at plant running at 30% are likely to be partly fixed by end of June bring production up to more than expected , ie 30% up to 50% . If correct then production would be 2000 tonnes a month producing $8 m per month .
5.parts arriving this week and in second week of June to boost production
6. Evetualnproduction by Xmas to be 5000 tonnes a month. $20 m a month .
I was very pleased with this interview and prem shares I think will change quickly to go back up .
Watch out for resource coming soon I exoect
Guys you did the same last time prem raised money all doom and gloom when we raised I think at 0.2 before mov8ng up to 1 p .
George said we may have enough money at Zulu . He said he may have an egm called sometime to maybe have headroom for other activities outside of Zulu .
Prem shares are down 40% and close to a floor from which they will bounce strongly when we hear of canmax deal . So talk of placing is nonsense . You should be focusing on canmax deal and resource upgrade which will come long before any egm ,
Usual antics here on lse .
Firstly George has put to bed anupy issue of Zulu being security for the $34 m . It is a pre payement not a loan , so it is clear as daylight that canmax will re do the off take agreement which we will hear by end of tomorow . Those being scared out of their shares tomorow morning will be very upset if we get a good canmax rns on Wednesday . I also gather a further interview is coming , so reckon news is about to flow . All we need soon is the resource upgrade after the can max deal and we will be flying .
For those trying to scare shareholders think , what price did Arcadia , the lithium mine down the road from Zulu sell for : $422 m and it did not have a proper mine and at the time spodumene was half the price .
So currently prem should be worth more than Arcadia 1.5p
Ben , where does 4000 times $4000 equal $5-10m ,
I think by Xmas we will see 5000 tonnes a month at $4000 is $20 m a month ,
This is my take on ne t two weeks ,
Dip Tuesday , buyers who are smart move in ,
Wednesday rns on a deal with can max , shares go back up ,
The week after resource
So in two weeks time we are above .9
Prem have a great value they have a lot of spodumene in the ground , they have a mine and a plant , they have the Epo . Its neighbour acradia sold for $422 m when it did not have a big plant like ours and has low spodumene % , needed a proper mine building costing hundreds of millions . So prem has a big intrinsic value of hundreds of millions , so predators will be watching . Georg3 must be very busy concluding some deal with canmax and we should hear with next 48 hrs .
As usual all the panickers are out , bring back bickmaster I hear. Well he honourably left after calling prem share price wrong . Tuesday buyers on any dip should do very well .
You have to put th gs in perspective . Over a year ago . Prem got Suzhou to give them £12 : to drill when they had only a field . Then they gave them $34 m . Now we need a rejig of contract to Get the spodumene . We should hear Tuesday on a new dealer fir sushou and a resource upgrade soon. We will be producing near to 5000 tonnes January
Iky , the chinese are not walkign away , if they did what do you think will happen loads of companies are tryign to buy into lithium plots , but prem have a producing mien , there will be loads wanting in .. but canamx work very well with prem so not going anywhere
Iky , not seen this delay comming , but there won't be a placing . i reckon a new offtake but not certain. disappointed like i am sure George is with delay , but we are producing .
but i take what you are saying , it is very painful
Disappointing with RNS , i thought there was some delay but thought it was a month not three to get up to max production.
So accepting we have come off 45% and we are in production now with ramp up to decent volumes in September , it seems this is too low , but sentiment is hurt.
Personally looking for September to come along and we will see beter prospects for share price , if not well before then .
I expect PREM to make some statement on can max and they are highly unlikely to run away now . think back a year they put in £12m for 3 billion shares and are a big shareholder , they waited a year for spodumene and now it flows , so they are highly unlikely to run away . if so are companies will fight to get in with PREM .
most likely option is a new offtake agreement as the rns today says production will exceeed plans by 25% . so they are getting up to eventually 50000 tonnes a month , but offtake is for 40000 tonnes a month. So Prem can do a s ecodn offtake for the excess 1000 tonnes a month or increase the one with Can max.
we have com a long way and we are producing abotu to ship and we just need to get over the line . so whilsit a bit of a delay medium term we are looking to go to 50000 tonnes a month which is $20m a month.
this is where the brave make a lot of money
Interesting week coming , high volume I exoect , rns due .
But shareholders should take the view of where will we be in a few months not hour by hour worry , unless you are trading it . Volatile days com8ng , but this price .80 is too low in my opinion . Some are disappointed we not shipped yet , but it is coming .
Sprint
your comments are the best of the weekend .
exactly 50% of max capacity is likely for a few weeks to ramp up this was neer goign to be 4000 tonnes a month first off .
I see comments floating around of a 4 stage ramp up
Stage A 1000 Tpm
stage B 2000
Stage c 4000
stage D 6000
so as long as are at stage A in May and progress then cool , if it takes till August/Sept to get to 6000 that does me .
Raydarr
has sushou asked for any interest so far , i think not
sushou need spodumene and so wont burn their bridges . so many companies want spodumene that PREM can get anyone to pay off the $34 m . So no worry at all . just ask George is he worried . i think time has come for George to speak to shareholders in some format like yrs ago and answer these questions.
Difficult week for prem last week , but prem slowly progressing it what i here towards shipping.
What i expect and dont shoot me again if it does not happen but this what i expect /
Prem likely to update us on progress this coming week. What do we expect if they do
well we need to appreciate this is a mammoth task to get this plant up to full production.
So first step is simply are we shippign . This is an important milestone because it is ok showing a bag of spodumene but it has to be tested to meet the requirement of SC6 which i thin is a minimum of 5.5% lithium.
So shipping means quality is good enough . so important.
Then next comes the volume of shipment . we saw one bag which i think is one tonne, so it woudl be nice to be getting up to 1000 tonnes a month (250 tonnes a week) in next few weeks. It will take time to hit the 4000 tonnes a month.
Don't fret about not meeting the 4000 tonnes this month , that clearly cant happen and Sushou will know that and it is not a big deal.
What we really want to know is are there plans to get bigger than 4000 and that is where this gets very exciting.
So when can we get to 4000 tonnes a month and when can we go to say 5000 or bigger. If we can get to 5000 say in August and that is a guess then by then i expect Spodumene after 10% discount to be $5000 a tonne given the massive rise in demand for chinese car sales seen in April. So we can be easily generating sales of $25m per month in a few months time. That is $300m on an annualised basis.
Prem is likely to get to maximum production just as Spodumene price is on its second bull run .
But to get to max production takes time and we should not be panicking. Friday sell off has no basis and will be reversed soon . exciting period ahead but keep a 3 month time line not one day .