Member Info for steward1

At this rate and before any announcement, we could see between 0.4 and 0.5 this week. On news later this week or next, we'll be heading towards 1p.
For anyone new to Prem, some of us longer term holders are expecting a £1b company in the next 12-24 months. Once we understand what the EPO area holds and as we move in to production then the sky is the limit. The EPO area is 57 times the size of Zulu and we're expecting Lithium, gold and other rare minerals. The big question is how much are potential partners prepared to pay for a majority stake.

Snowking - I don't think that we, as in Prem, will get to finish the DFS. Any major will bring in their own team to progress and accelerate everything. Anyone putting money in to Prem is not going to suffer GR's timescales!

My thinking on a deal…
Prem is still undervalued as it stands today – only £46m due to the GR factor.
Any major will want control over Zulu – GR has never delivered anything on time and no-one will hand GR money with him having the responsibility to deliver. For me, that means that any partner will want at least 51% of Zulu.
Do we need the assay results and DFS to get the best price? I’d say “no”… too many interested parties and too hot an asset… and I think GR (despite all his failings) will get a good deal… I wouldn’t be surprised if he could secure £200m for 51% of Zulu now.
The bonus on getting a deal done for Zulu is that there will be a greater value placed on the EPO area. I think initially it could be £100m but majors may want to take a chance and take out the whole of the EPO area as well so, like others, I think we could be looking at a fair few hundred million for the EPO area as it stands today. The same argument above applies – any major will not want to leave GR with control and will want at least 51% of the EPO area.
You have to ask what price majors are willing to pay this year for 51% of what is likely to be the biggest Lithium deposit in the world (Zulu plus the EPO area)… given the prospect of lithium continuing to increase in value rapidly, it has to be £500 million, if not higher. Prem would then have a market cap of close to £1b!
I simply can’t see any major agreeing to be the junior partner and I can’t see them leaving the EPO area in Gr’s hands either having to wait for him to do something with it when the major partner could accelerate it all immediately. The world needs Lithium and the majors need to supply it.
So I’m sticking my neck out and suggesting that we’ll definitely reach 1p very soon and can see us hitting 5p this year.
NB I’d still want to retain 49% of Zulu and the EPO area so that we benefit from the undoubted upside over the next 3-5 years!

Yes, SK - I'm expecting news next week. When you consider that the market cap is still only circa £50m........................

mmm??? not sure about that, nookie. This week's rise could easily be repeated next week plus, if good news drops, then it really will be take-off!

Hey Bick - I agree with the sentiment but I think GR may well find himself doing a bigger deal which leaves him with cash that he doesn't need for Zulu or the EPO DFS's. I don't want him throwing a few million to MNH, in particular, so he might have a conundrum on what to do.

I reckon that we're heading above 0.3 next week. The assay results should trigger some offers - could range from taking 10% of Zulu to taking out Prem altogether. Any which way you look at this, the sp could be doubling this month, quadrupling in the next few months and then the sky is the limit!
My own preference is to retain 49% of Zulu and GR can then go focus on the EPO area... and that is the BIG prize. Like others, I think we're heading to be a multi-billion pound company within 2 or 3 years!

Yes, Acker - I've added twice now this week and I'm scraping around to find a few more bob to throw in today. I'm thinking that news of the assay results will come later next week or the following week but since Prem is so leaky, we could see a bigger jump imminently!
The tipping point is here!

I don't think that he's got enough support now to do whatever he wants - if there is a good deal on the table (which there will be) which includes either him stepping aside or Prem being the junior partner then it will be major shareholders who decide now.

Had to have a wee laugh at Dazed and Newtrader's comments- they're way wide of the mark.
As for potential jv partners, Neil Herbert (our chairman) has some connections with other international companies... I hope that he is devoting some time to guide GR through this.

Absolutely Acker - the EPO area is the big prize. I reckon that the Chinese and the Australians will be at the front of the q to do a deal on Zulu AND I'm pretty certain that the EPO area will be a major factor in that deal. The rumour yesterday makes perfect sense - if GR can not only get a deal to complete the Zulu DFS and to get one or more other areas in the EPO moving fast then there will be a major re-rate of the sp.
I really hope that we can put GR's stop/start/piecemeal approach behind us and get a partner with the sense and wherewithal to move fast on the EPO area. Will it be best to have a Lithium-focussed JV partner or one who has the capability to address the gold and other minerals that we believe are there?

SK - wouldn't be surprised at all if GR gets a partner who can not only accelerate Zulu but also accelerate the EPO area. It's not just the Chinese who can do that. There is a scramble on and I suspect that every interested party will be looking at how they can develop it all. 1p is just the start... the EPO area is the prize!!!

Nookie - there's the potential for a much, much bigger spike on the announcement of concrete news. Trading would be risky unless folk are happy with a few %.
I suspect that there is some movement from yesterday's position of "no assay results". I personally find it quite interesting that Snowking and Acker have not been posting since this morning's wee rise... something is brewing.

Something is up!

Simply can't see any jv partner thinking it acceptable to be the junior partner in a deal with GR. I certainly wouldn't be unhappy about a deal that gives a professional outfit 51% of Zulu because I think that would provide best value for shareholders.
It would also free up GR to do what he does best and find what Lithium is in the EPO area... this is the bigger prize and we need to get on to this sooner rather than later.

Yes, Bick - as I said, I'd prefer to have the results and a higher sp but the way round that is for the JV partner to have some caveats/conditions in the deal.

Fair comment, Johnny but I think the current conditions make any new assay results almost secondary. I would much rather have the results available and I would much rather have the sp much higher but I think those looking to secure a Lithium supply will be focusing more on being able to do a deal now and not miss out altogether... it sounds madness but I think the scramble will trump any consideration of whether the quality is 1% or 1.1% or 1.2%.

I agree with Snowking - a deal will be done, even without the assays. There is a scramble for Lithium. There might be some caveats included in any deal but there is already a fair amount of proof that there is Li there and that the quality is good. Disappointed that the assays haven't been returned yet but I'm expecting a deal very soon!

Welshy - I've got some sympathy with your post. Almost posted a very bearish, deja vu post during the week but decided not to because of the scramble for lith. I think you've set out why my strong preference now is a JV for Zulu with PREM as the junior partner... 10 months down the road and GR still only has one verified result. GR just does not have the wherewithal to get things done. Because of that I can't see anyone having the appetite to be a junior partner to GR either. Whether it's drilling or LIBS or picking the right lab to do results, he just can't deliver... simply can't understand why we're still waiting if the lab re-opened just after Christmas... what kind of deal did he do with SGS? He has a debilitating habit of doing things on the cheap!
Potential partners will know GR's history and I simply can't see them having any confidence in him running Zulu. They might even look to take Prem out altogether!
Having said that, I think he can get a higher rate per 1% of Zulu if he's also giving up control of Zulu... this might sound ridiculous considering where the sp is but I think GR should be looking for £150-200m for 51% of Zulu. He should return 80% of it to shareholders and use the remaining funds for the EPO area.
If he does any decent deal on Zulu, I think that we can see a bonus with the EPO area beginning to be factored in to the sp.
Yes, I'm pretty bearish about GR but I'm still very bullish about the value that we should get from Zulu. 1p could be hit on rumours of a deal. 1.5-2p on the announcement of a deal!
And "no" I've not been drinking!

I agree Infinity8 - 2m$ for 1% values Zulu at only 200m$... if things go as expected, Zulu is expected to be worth at least double that some time this year. For the potential partner that means that they could double their money... that's a pretty good deal!!

If NH's deal at Atlantic Lithium is anything to go by then there's the possibility of several million for a 10% stake plus an off-take agreement worth many millions!!!