Member Info for steward1

Dilute at a premium, chanlf? Who is the fantacist now?

Chanlfc - I'd be happy to hear what your explanation is for the delay?

It seems that every week is a big week for PREM!!

We're in June now and still no news on drilling... has GR been straight with us? And there's no dilution yet! I'm guessing the two are linked... I don't think that they're in a position to start drilling (could be weeks or months away) and they don't need any funds because they're not spending anything yet.

GR has quoted the previous price for the DFS and I wouldn't be surprised if the drilling team have told GR that he needs to think again.

It's a pretty sad state of affairs that we have, allegedly, one of the world's premier deposits of lithium and we can't get a DFS done!

Over 10 weeks since the EPO was granted and two months since the DFS was 'initiated' and still no report on drilling starting. We're at least 1 month behind on the DFS timescale now and there's no information on when the drilling is going to start.

And to back up this evidence of delay, there is no dilution yet... if there was work happening, GR would need to pay for it and he would need to dilute. Or is it that the drilling team have downed tools because GR is refusing to pay them?

It's a mess and this is only the first few weeks!

Happy Friday everyone!!!

Spot on, Acker.
We're in another PREM hiatus yet again!
Snowking has referred to lots of companies wanting to give PREM money and a finance deal... just can't see how that will happen anytime soon. GR has committed to shareholders that 100% will be retained through to the end of the DFS... I think that should mean that he does the dilution via existing shareholders... it would be another betrayal by GR if he does some deal and hands over some of PREM to someone else in return for cash.
And I doubt very much if RHA is compelling enough an asset to give PREM a return - if this is the finance deal that Snowking is referring to then it's bound to be an anti-climax.
And remember, GR will want some funds for running costs... give us a plan, sort out the dilution, get drilling on the DFS, remove the uncertainty and then there is something to move on from.

I don't accept that GR is a victim of circumstance - rewind to when he previously had cash for a DFS and what did he do with it???? RHA - it was GR who pulled the plug because he couldn't deliver within the agreement already made.
Good news for me would be that drilling has started and a revised plan has been put in place to catch up on the delay - don't think that is going to happen. It would help to have a clear plan on how GR intends to spend 5 billion shares but I suspect I wouldn't like it. Good news would be that all other assets have been sold to concentrate on Zulu. Good news would be that GR has stepped aside.

Hi Dr Jekyll - I think we're all in the dark... there's been one positive piece of news from PREM in the last 4 years (EPO)... everything else has been disappointing. Take last week's update from the AGM. We do know that the start of drilling has been delayed. We know that we're not getting any return from MNH anytime soon. We know that there's going to be a dilution imminently with more to follow. I would draw a straight line between the drilling delay and the lack of a dilution. I think GR isn't or doesn't need to pay out just now because no-one is currently working on the DFS., therefore he doesn't need to dilute yet.
I'm not sure what positive news you're thinking that might come along??

There's a dilution on its way - why should people be buying in now?

I disagree with Snowking a lot but I don't doubt his integrity... what was that all about!!!!

Anyway... another day without funding/dilution news... probably means that there's still no progress on drilling and no need for cash!!!

Snowking - you refer to "too many options". GR decided to go alone for the DFS and any deal is months down the line for future phases... any funder or potential jv partner will want to see the results of the DFS.
The dire position of PREM is not just about "too many options" and communication (although, that is a major issue!), it is about a complete failure to execute any plan in any reasonable timescale. As I've said before, GR should be moving heaven and earth to execute the DFS but he appears completely impotent and can't bring any influence to bear on getting drilling started (similarly with MNH ).
OK, we might be waiting to hear how many shares he's going to dilute and at what price but it's not looking good and there's little evidence that anything is going to move the sp up to make the dilution more palatable. In fact, the longer he waits to dilute, the more the sp will drift down.
It's all deja vu and why you guys in your group are not calling for a change in leadership really puzzles me????

Snowking,
I admire your confidence... I'll try to have a sensible exchange.
You do make a lot of assertions that imply that you have the inside track... e.g. your comments regarding Prem's financial position. Unfortunately, we don't have any up to date financial information from GR to verify what you're saying. Given that we've just had an AGM, it's a sad state of affairs. We also don't know the exact status of the DFS and the spend - GR might have enough money for a while but that might simply be because there's no drilling happening that he has to pay for. You've also said the second half of the DFS will not be paid for through a dilution - not sure why GR then needs headroom of 5 billion shares!
With your group representing 20% of shares, why are you not putting pressure on GR to either move on or start providing clear, meaningful information?
I think we all believe that there is a lot of lithium in the ground but it seems that getting it out of the ground is moving further and further away. Having had the expectation of the DFS being completed by May/June next year, I think we're now looking at autumn next year at the earliest...
In my mind the 1st thing that would help the sp (other than GR resigning) is if GR took some action to speed up the DFS rather than present a rather impotent position as he did on Friday. Similarly, he seems rather impotent regarding MNH... he needs to be setting out what action he is taking/can take... is there some legal action that he can take?
RHA is clearly not a done deal and I guess that any potential, off-take partner is driving a hard bargain. Personally, given it's history and need for modification, I'd say that the chances of a good deal are very low. Even if a deal is done, I'd be surprised if it moves the sp much... again, the history of RHA doesn't fill anyone with confidence.
Talk of interest and deals for Zulu has been going for at least the 4 years that I've been interested in PREM... right now, there isn't any need.
PREM should be in a much better place than it is... but I'm putting that broken record on again, GR needs to step aside - there'll be at least 1 bag in that.

xcoder - I'm well aware of the 14 month timescale. I meant Sept/Oct next year (or did I mean 2023?).
The logic of retaining 100% of PREM is OK if value is not eroded in the meantime and if the DFS can be delivered on time and within cost. We're already behind on the DFS and there are big questions about the cost of the DFS which haven't been answered by GR. The sp has already fallen back about 2/3 since the EPO announcement. If you're not familiar with Prem's very chequered history then I would do some research, if I were you.

Oops... some technical problem there. Thought my first post hadn't registered!

DFS isn't going to plan, is it? I'd be surprised if the DFS is completed before Sept/Oct... the longer GR takes to dilute (they need to pay for the DFS), the longer the DFS is going to take. It'll be months before there's any positive news and, imho, the sp will continue to drift lower and the cost of the DFS, in terms of shares that need to be issued, will increase. The cost of having GR as CEO isn't just his salary - it's the dilution cost as well!! It's long past time for him to step aside.

Already, the DFS isn't going to plan... I'd be surprised if it is completed by Sept/Oct next year. Can't see any upside info for some months.
If GR wants the best for Prem and the share price, he should step aside. I reckon that the DFS is going to cost at least double the number of shares than it should because of GR's poor decisions and management - it isn't just his salary!
The longer he takes to dilute, the longer the DFS is going to take, I'd suggest. He should be moving heaven and earth to get this done... just isn't happening.

Snowking - I think what we don't understand is why folks are defending GR.

Sorry about your loss, Phil.

Very disappointing. GR himself was unusually downbeat and looked a bit fatigued. Drilling on the Zulu DFS hasn't started and he can't give a date for it starting... as well as logistics, there's some other resource definition work required...which hasn't been mentioned before. MNH - that sounds really worrying now.. there still isn't any info coming back from them. RHA - modifications required and off-take partners want more detailed info before deciding whether to go for it.

It seems that PREM isn't in a great place just now.

Acker - there are probably a few scenarios where 5 billion may not be enough. What about this one? The DFS is already behind and could get further behind... results are delayed... and the hoped for sp increase is kicked down the road. The shares being issued in this first batch will go to the drilling team... what are they going to do with them...they're going to sell them and the downward pressure on the sp continues. A few months down the road (without any results), the drilling team need paid again... this time, they'll need more shares because the sp is lower, they sell them....
Meantime, GR is panicking - he needs to do something.... he's got headroom so he'll find another "jam tomorrow" asset... dilute... sp drops... so on and so on! He buys some more MNH and all of a sudden he doesn't have anymore headroom left to finish the Zulu DFS!
GR is absolutely the issue here and the biggest risk to the benefits of the Zulu not being realised. You can see from the above scenario that, even with a pretty good but yet-to-be-proved asset, we might get nowhere.
And the above is exactly why the market has taken the sp down from the high 0.4's after the EPO extension to 0.15...

Well - here we are on the morning of the AGM where our illustrious leader is expecting to be handed another 5 billion shares to spend. We don't have an up to date annual report to consider... we don't have any financial update... we don't know the true status of MNH or RHA... we don't know if the drilling has started on the DFS or not... we don't have the comprehensive update that GR promised and, worryingly, we don't have any detailed information on why GR needs 5 billion shares... we're completely in the dark.
Will we be any more informed by the end of the day - I doubt it!
Why are we in the dark? Apart from having a incompetent CEO, I suspect if we knew the real position with much of the above, it would be bad news or we would not support the decisions GR is making (no surprise there). I suspect that GR will get his 5 billion shares and that we'll see a dilution after hours/Monday morning.
The above points to GR's difficulty in getting any deals - why would any potential jv partner get into bed with GR? Why would any lender lend GR any cash? And to top it all, we've got a CEO who refuses to stand aside.
So... I suspect that we'll get a dilution over the weekend between 0.12 and 0.14. Beyond that, the uncertainty around the other assets and a potential dilution for MNH and/or RHA will hold the sp back. There's already some doubt about the scope of the DFS and I wouldn't be surprised if there is another dilution to allow the scope to be extended. It will be months before there are any results from the DFS and no potential jv partner is going to do a deal when they don't know what or how much is in the ground.
There will be another infamous Prem sp drift... and all the while, we'll be getting the "jam tomorrow" playbook from GR.
It's a mess!!!