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Raydaar
i don't believe the mas production will be at only 5% , i am sure we wil lget about or just a little under 6% , i reckon we can beat pilbara , but it is not certain yet. however the iron levels etc make this a very favourable material to produce in zulu .
Y ou may say the ramp up in volume will also be a ramp up in grade , so as long as we get to 4000 tonnes a month of say > 5.5% by December that will be great
Raydaar i was about to post on here but beaten to it .
I don't think Pilbara have processing ability themslfs.
the normal is to ship to China to process , thats what most companies do and in time that may change.
But Prrem look nearly set up to go very big
Redtrade thanks for posting . It is a must watch for prem holders and for those concerned about grades . One slide incredibly shows the grades from producers like Pilbara . Most lithium producers produce below 6% , like Pilbara average is 5.3% . They still sell it all , you just get a little less for the lower quality . So all the panick if the first run is only 5% is misplaced hysteria . You would expect first run to be 4-5% , it’s not a big deal when we seen the new Uv sorter has been installed and is designed to boost the % . Also you can reprocess in final two stages if you need to boost production .
So getting bs in, we need to focus on the upcoming canmax deal . Can prem get a prolonged deal , multi year . Prem being vertically integrated into this multibillion company can only be good . Also spodumene price has fallen in last two weeks whilist lithium hydroxide is rising . You got to give credit that George is smart at getting a good deal and canmax are a great company to partner . I see this upcoming deal as both companies do well .
We forget Epo is massive , the Epo trenches look full of lithium . Canmax have a director at Zulu and can see the massive potential . So prem are at a great price to get in before Fomo next week
Roman , just my point you guys are obesessed with something that does not matter . New kit is being installed like the uv sorter designed to give us sc6 . So it matters not what the old bags were on first run some three weeks ago . What matters is with new kit what can prem achieve
It still surprises me the armchair experts as others refer to them .
I had dinner this week with George and CEO of Stark .
Stark confident that the problems we worry about will be fixed . he was very confident and i felt reassured . he was such a wise man and such an expert on processing ore .
I believe concerns about what are in the bags are misplaced , because i dotn think it matters .. Clearly from George interview a deal will get completed and Canmax will provide money upfront to see prem through till full production.
As it is highly likely can max will provide upfront money , they are satisfied with prem , so why are so many talking about these bags . it seems an obsession of doom has got people thinking wrongly.
I bet in two weeks you won,t mention them again .
all that matters is what exactly is in the deal and how much can prem produce.
most of you will have ignored the big news a week ago , that prem intends to produce 10,000 tonnes a month of spodumene from next summer . that is 120,000 tonnes of Spodumene which is 16,000 tonnes of Lithium hydroxide which gives Prem a profit share of around $280m per annum
This is what you should be focusing as clever investors will be , not whats inthe bags.
There is no placing coming , this is simply prem putting pressure on canmax . There is an interview this morning com8ng out to explain . No plans for placing , but prem need to have headroom to get a good deal with canmax
So did lithium carbonate and hydroxide .
I can see hydroxide at $50,000 in a couple of months .
So if next year Geoerge gets to 10,000 tonnes spod a month , that will convert to 1400 tonnes lithium hydroxide .
Prem will get costs back of $10 m
Say canmax also get $10 m
1400 tonnes BYD sells for $70 m . Profit split $25 m each .
Prem make $25 m profit per month , which is $300 m a year . :£250 M profit
You can see prem being a billion pound company soon
Https://www.fastmarkets.com/insights/east-asian-lithium-carbonate-prices-surge-on-chinese-strength
Did you see George answer to production targets at the presentation he just gave ,
Wow 2024 q1; 6000 tonnes a month spodumene
2024 q2 : 10,000 tonnes
That is 120,000 tonnes a year just from Zulu 1; just compare that to Pilbara who are a $9b company
Awesome news .
Jenko , we need to think of the bigger picture on calculations . Firstly this deal gives us some protection against a falling spodumebe price , so it may turn out more profitable if spodumene drops 25% . Also lithium hydroxide is rising quicker than spodumebe which is actually down in last month , so you may find the maths works in prem favour if spodumene is $4000 and hydroxide is $50,000 plus .
But it is clear prem will get money from canmax to expand production and drilling . So whilist this years plans are 40,000 tonnes sc6 we could see 70-80,000 sooner than before with pcanmax money . We are now secure with bigger potential if you tKe a 6 month plus view
Just looking at the can max ford deal in more detail
Can max from 2025 need to produce over 3 yrs 72,500 tonnes of lith hydroxide , that woudl be per year 24,000 tonnes a year .
Prem can produce per year around 7000 tonnes in 2024 and a good chance that will double for 2025 it could treble so prem could be producing all the lith hydroxide can max need for ford deal in two year. This could be over $500m to prem per year in a few years time.
Well what an RNS . Todays RNS has lots of messages in it
1. No placing coming because Canmax are going to increase the prepayment amount. My guess is $5m to get PREM through next few weeks and be able to continue looking at the EPO are with trenches and drilling
2. PREM is fully de risked because it has a multi bilion dollar company
3. Can max just did a bit deal with Ford https://www.yicaiglobal.com/news/ford-picks-china-canmax-for-three-years-of-battery-material-supply
4. The new deal is different from last deal which will be scraped in that prem will get 50% of profit in making lithium hydroxide . roughly speaking it takes 7 tonnes spodumene ($4000 a toone) to make one tonne of lithium hydroxide ($46,000)
5. This deal protects prem in two ways , firstly if spodumene price drops , it buffers the effect and still means prem wil lbe highly profitable if spodumene falls a lot . secondly if prem's costs go up it is protected by this deal somewhat.
6. Clearly can max want more and more and more spodumene from prem . with such a big partner canmax is likely to fund further drilling of epo and i reckon build a second mine . Also with mutare rumoured to be amazing i reckon fudn further work in that area .
Eventually prem will have three plants up and runnign and produce my guess 200,000 plus tonnes of spodumene within a few years
6. Can max must have been shown evidence of results for the resource in the pit. , so i guess we will here very soon on the pit resource . So expect good news sometime to really push shares over 1p.
7. City institutions when told of resource and they see this canm ax deal will at long last start wanting to buy in to prem a highly liquid stock. in a few weeks the nms of prem increases to 3m and adds to the liquidity
so bottom line risk has gone , placing gone , profits in comming and so will be the city institutions . prem should get to 5p in next 12-18 months.
Raydaar ,
Your comments are so negative it begs believe . You will be eating humble pie when Prem hits 2 p this year , but you won’t be around then to be reminded.
Prem are heading towards revenue of $400 m a year I reckon in 12 months time . You forget the resource is coming soon , ramp up production .
I reckon in 12 months we will be at 100,000 tonnes a year .
Prem are now a producer and will mint money .