Member Info for tedoby

LockedIn unfortunately I'm not in a position to argue at the moment. Or defend my views would that I could.

I've already given my understanding of the $6m in detail and you yours. We both differ and I'm ok with that.

One of us will be seen closer the fact in the fullness of time. But for now whilst I respect your view we'll have to agree to disagree I'm afraid.

Many thanks for the link mushty. Very interesting.

LockedIn I think item 3 applies and that shouldn't been seen as unreasonable in my view.

I don't believe items 1& 2 are a precondition to the $6m finance though.

AIMHO

GLA GS's

Thanks chip. That's how I read it. I think something may be lost in the translation though.

What the article doesn't say is the process may have limited success due to the climate and other issues. But the narrower market will know all that.

Thanks Molgen. I see that and agree with the points you're making. We're bound to see the market changing for lots of reasons and I don't see that necessarily as a bad thing.

It's more the wording in the article I'm having trouble with. It just doesn't make sense to me. Surely the point China should be making is the saving in costs their new process will achieve against the normal brine extraction processes.

Instead the article seems to be associating the saving using the new process to the market prices of LCE which seems odd.

This is a copy and paste from the article which is lost on me. Can someone explain it any better please?

"A Chinese government report claims the new process has made the cost of extracting lithium 15,000 yuan (US $2,180) per ton. That’s a huge dropoff from standard international prices for lithium, which often range from $12,000 to $20,000 per ton."

The electricity supply to the mine has no bearing on the 100 day milestone whatsoever. None!

When the mine re-starts power will be provided either via a permanent connection to the existing power line with a backup generator that would be switched on in the event of a power cut. Or alternatively by two generators. One primary and one again as a standby.

There's an upgrade needed to the existing switchgear so there's sure to be a lead time for it. The cost from memory is about $500k but that's budgeted for and in the $6m. The power requirement is about 150KVA per phase and it's obviously three phase.

This isn't rocket science so I don't see why it's such a concern. Or am I missing something?

AIMHO

GLA GS's

chip. I absolutely agree with all you're saying in your last post.

All aspects!

Thanks chip. I'm aware of the Study but nevertheless the link is very useful.

I'm not saying the design parameters in document are wrong. It's the conclusion you've derived from it that's incorrect as I see it. You posted this yesterday. Viz:-

" Mal, 7 days generator running at RHA is 32000L
Price of fuel in Zim $3:11 a litre.
Just under a $100000 a week. Not wonder we didn’t make any money at RHA"

I'll try to explain and hopefully we can move on. What your conclusion assumes is that both the primary generator was in use together with the back up generator and both were running at maximum output every minute of the day seven days a week when the mine was put on c&m over fifteen months ago.

chip the reality is only one would have been working and it would have be running and at much less than it's designed maximum. Added to which the mine wasn't operating anywhere near 24/7. It was closed for two days a week anyway.

When RHA's power comes from the grid it may decide to have a standby generator such as the ones listed . But if it did it would be wrong to conclude that the standby generator is going be costing $50k/week in fuel.

Lastly you shouldn't take today's fuel prices and apply them historically and say. "Not wonder we didn’t make any money at RHA" The prices and costs you should be applying in your appraisal should be those prevailing at the time.

So I'm sorry but I don't accept the generators fuel costs as justification for saying " Not wonder we didn’t make any money at RHA". I very much doubt that's the case and it's wrong to imply it's going to be the case in the future.

If the proven costs from the day say I'm wrong of course I'll apologise.

AIMHO

GLA GS's

kelladee FWIW I believehe Government are unlikely to invest in RHA and transfer the money without there being some appendices being in place that facilitate post contract governance.

I can't say for sure but it's not unreasonable to imagine the Government needing a statement on how the $6m will be managed and who will be managing it. What the $6m is for and an analysis of the costs in elemental terms. A further cost analysis in currency terms with there being at least three currencies in the mix. Cash flows are also likely to be required for the investment period and more importantly a mechanism for reporting against all these aspects.

Again I imagine you will know this but since the MA execution Prem as Manager under the MA will have been busy preparing these appendices for the Government to agree and incorporate.

I'm guessing it's a process that could perhaps take around four weeks or so. Right now I would say the balls in the Governments court and subject to their workload could be concluded anytime soon.

To imagine there's a problem with the finance is naive and far too premature.

AIMHO

GLA GS's

EXMEX would you mind re-posting the "interesting figures" please. I seem to have missed those!.

Many thanks.

GLA GS's

chip you need to go and lie-down in a dark room after that one!

What size generator uses 42galls/hour? That's the best part of a gallon a minute!

What currency are you using?

And what type of diesel have you based it on?

Moreover what point are you so desperate to make?

ALA GS's

or not. As the case maybe!

"RHA is located approximately 20km south-east of Hwange and 270km north of Bulawayo in the prospective multi-commodity Kamativi Tin Belt in north-west Zimbabwe. The Project has excellent infrastructure with electrical power available from a ZESA power line.."

"Situated in the North Western part of Zimbabwe, Hwange Power Station is the largest coal-fired power station with 920MW installed capacity which comprises of 4x120MW and 2x220 MW units."

GLA GS's

Exactly MrMagoo31

The RHS is confirming Prem will be drilling Zulu!

If differences currently under discussion with KME can be concluded satisfactory then the drilling company will be KME . If they can't then the drilling will be done by ano.

GLA GS's

Wolf:-"And a kindly reminder... The 6 Mill injection from the Zim Gov doesn't in anyway have a impact on PREMs running cost!"

Prems c&m costs will stop when the mine re-starts.

Also Prem should receive around $100/month as a management fee and rental income from day one.

Wolf. Ostensibly I believe there are two different types of drilling we need to do to get Zulu to DFS The diamond drilling of 20km or so and quite separately the boreholes needed to establish Zulu's ground water table.

Providing the hard access routes and hardstandings for the rigs are laid well using suitable stone and the right geotextile membrane there's no reason why the diamond drilling can't continue in the rainy season if we have to.

The borehole drilling is slightly different. We should endeavour to get that completed in the dry season to avoid any run-off rainwater affecting the water table readings.

Hope this helps a little.

GLA all genuine shareholders.

I might be wrong but I think the fact that the Government have entered into a binding agreement on the funding will have an an impact on Prems negotiations with KME to the good.

A commitment like that changes the risk profile on the "shortfall" issue completely. Prems liquidation of some or all of it's shares in Circum may be an option and I hope it is. But I believe the door has been opened for other solutions too now.

The signing of the new MA and a binding finance agreement on RHA was a positive step change in my view. The fact that we didn't proceed with the liquidation of RHA when we could have but chose to say committed will have stood us in good stead as well.

AIMHO

GLA genuine shareholders

Wolf I'm thinking of Zulu in the medium and longer term when I say the Government may well be involved.

Right now the BOD'd need to get the drills turning and move to DFS. That should be dealt with as a priority.

I'm sorry for not explaining that very well.

GLA genuine shareholders

Jeremiah99 -" I would like to see the Zim govt take a stake. "

I think that's ever likely and it would have lots of added value. Not least of all with the current EPO application and financing.

GLA genuine shareholders.

There's a clear valuation method for RHA set out today for Prems Accountant and it's Auditors to use!

We should see the RHA impairment in accounts adjusted without delay!

GLA all genuine shareholders.