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Some might be prepared to take that, Watcher36 but I'd suggest 2-2.5p for Zulu alone. That gives Prem the funds to go to town on the EPO area. Alternatively, I think another 2p for the EPO area would be acceptable.

Watcher36 - I don't think that it's in the Chinese mentality to be seen to have 'lost' and they will want something to save face. In the circumstances, I don't think GR should give them anything and that will prompt the bid. More than that, I'd be shocked if they wanted to continue with GR... I think that they'd rather take control and drive it themselves. In fact, I think their original intention was to tie GR in knots and get Zulu/Prem on the cheap.

The next question is how much and who else then joins in. I'm hoping that GR isn't in the mood to sell Prem.

Seems that some folk on here are choosing to forget that Canmax have NOT walked away from the offtake agreement... they have only opted to hand back the prepayment agreement.

It's interesting that we haven't heard anymore from Canmax regarding legal action, etc... they're between a rock and a hard place. If they take a wrong move then they could lose the off-take agreement too and that would leave them in dire straits.

If they come back to the negotiating table then GR, in the interests of his shareholders, should insist on a better deal than the original terms.

However, I think Canmax will be preparing a bid... Li3 look like a strong contender to take Canmax's place!

I see you're over at Clon too, Hasiba... a rally happening there. Which is going to multibag first?

As others have said, I wouldn't be surprised at all if the Canadians behind Li3 get in on Prem/Zulu. Prem already have 50% of the Li3 JV and have very good relations with GR. Given the events of the last couple of weeks, GR could be excused for thinking that a Canadian partnership for Prem/Zulu/EPO is a good way forward.

I don't know if this helps or even if I'm correct but my understanding is that there are two agreements - an offtake agreement for 50% of output and, separately, a prepayment agreement. The FM suspends both. Canmax have kept the offtake agreement but have walked away from the prepayment agreement (one complication here is that the FM supposedly prevents them from walking away).

The agreements that Canmax have are with Prem and not with Zulu... Zulu is a separate entity and, importantly, can do what they like with the spod.

If Canmax contend the FM agreement or do not engage with Prem then it can stay in place until resolved through arbitration/courts... that's where the 12 months has been mentioned. Meantime, as GR has emphasised, Zulu has its own responsibilities to its shareholders... hence, they may well choose to sell the spod to whoever they want to. In reality, I don't think they will.

I think this, if my understanding is correct, is where GR has been particularly clever and has tied up Canmax.

Heading for 0.7 this week but could go all the way back to 1p... looking very strong.

Mikeepikee1017 - we get bought out and we'll receive a load of cash or shares in the company that is buying us... depends how they do it.

I'm wondering if we'll hear news later this year or early next year on more serious work in the EPO area. The beauty of what they're proving now at Zulu is that they can move much, much more quickly to production in any new development area. And, because of the FM/Canmax situation, GR should have funds to do it without needing funding from anywhere else. It is all coming together... just hope that we can stay independent!

Of course, Acker - there's so much going on.

Watcher - I agree. Even with the 'bad' news from last week, I've never been so confident in Prem.

I'm going to stick my neck out and suggest that if there's any positive activity on funding and/or another off-take partner then we'll shoot past 1p.

If there's a bid for Zulu or Prem (which I think that there's some chance of that happening) then we'll be at least between 2p and 3p.

Yep, I agree, Acker/Watcher - if they hit 50% nameplate this month (which I think they will), it's 1p!

I think so, Acker, but the key for me is that they get it working as it is intended to and at the rate that they expect.

I'd like to see an update at the end of next week (hopefully, that last lorry will have arrived and it's all installed) and then an update at the end of the month confirming that they're running at 50% nameplate. They did make it sound easy and straightforward or am I wrong?

Good question, Acker. Given that we'll be half way through the month before they start production again (with whatever teething problems with the new equipment), I'm assuming that it will be less. The rate at which it runs might be 50% of nameplate but it might not be at the grade and, of course, it's only half the month.

Btw, I thought Mark did a great job on that interview and with GR. He's getting more direct with his questions.

Acker - yes, I agree BUT...

I've got a pet hate of people sidestepping their culpability by blaming others, e.g. border delays, public/religious holidays.

There's also something that doesn't sit quite right with me with people giving the impression that solutions to issues are straightforward and easy when they didn't anticipate the issues in the 1st place.

It also feels like that there have been delays building up for months without us being told.

Clearly, the initial plan didn't allow for any delays whatsoever so one has to hope that the plan from here-on-in has some contingency built in.

Oh and did you notice that the video was clearly edited at one point - perhaps, the Stark boys were being a wee bit too gungho!

Fair comment Shiny.

Just finished watching - I do appreciate these Stark guys have got some confidence about getting the right grade and to 125% in 6 months BUT we are sitting where we are because of their issues. What I took from the interview is that the delays were down to border issues (as of Friday, one truck was still sitting there... it will be just our luck for it to be the critical one!) and that there was always going to be a phase of optimisation (which is going to last another 6 months). I've got a wee bit of sympathy for Canmax's response now - clearly, they were not convincing enough for the Chinese.

Let's see how they get on in the next week.

I really didn't like the comment that there has been 'unnecessary concern' around the plant... sp more than halved and nameplate is months away!!

Experiencing border delays between Zim and South Africa. 6 months to get to 125% nameplate production.