Member Info for tedoby

https://www.herald.co.zw/british-pm-may-hails-ed-vision/

LawrenceH the market seems to be opposed to your views!

The current investments that you regard as "great" have caused KDNC's SP to fall over 60% in 12 months.

Microtan you're correct.

The letters from the Government Ministers constitute "Letters of Intent" and as such are binding as they have a legal status in Contact Law.

The follow up of a signed contract is just confirmation of what's been agreed in the LoI's and is a formality. The protocol is well established and is common practice. Prem and it's lawyers have accepted them as such and have therefore quite rightly acted upon them.

The assertion that the RHA ownership issue hasn't been resolved and agreed is flawed and in itself misleading.

Election results stand.

Court dismissed the Application to have it overturned

Yes it looks as though MDC made a bit of a hash of things. As you say NaPoM "due to lack of 'primary' evidence, likely outcome is that Bg Ed will still be president." What didn't go down very well with the Judges on this point it seems was that MDC didn't ask for the evidence even though it was readily available. Very strange!

Add to that the "secondary evidence" submitted looked weak and unsupported. For whatever reason MDC didn't take the point that the burden of proof rested on the Applicants shoulders.

On points of Protocol it's said that MDC missed the deadlines set for serving the application, didn't serve it on some of the party's they should have and what they did serve was incomplete anyway. But given the case was heard and not dismissed it looks as though the Judges felt "natural justice" should prevail.

My own view is that I doubt we'll see the vote overturned even though the Commission made slight amendments. But we could possibly see the court directing a run off in a few weeks.I personally hope the verdict is that the vote stands. But moreover though I hope we'll see a peaceful conclusion to it whoever wins..

Thanks for you opinion Jeremiah.

Mine is however slightly different. At the point of formalising a j.v, contract to finance Zulu to a DFS the value of the project will be underwritten at $17.1m and Prems holding in it at that point at $12m. The maths and market would confirm that's right for MauCo at the bottom of it's development curve based upon a small fraction of it's potential.

However we're not quite there yet which should tell you that unlike Prospect very very little of Zulu's value is currently recognised in Prems market Cap.

My view is reinforced if you consider that the value of Circum is at least $10m and RHA has to be at least the same even as a non-working mine. Prems MC is currently less than those without counting Zulu.

GLA

Time will tell who's right but I'm expecting a spike in Prems SP on confirmation of a formal jv agreement on Zulu.

It's also worth noting that's Zulu's potential value with a target resource of 120m - 160m tonnes Li20 and growing is far greater than the opportunity Prospect has. How that materialises again only time will tell.

Courtesy of a Cadence shareholder:-

"No decision on ZULU yet - but the fact we haven't pulled out is a good sign! The finance situation is much clearer to us (me at least!) now. We'll likely rollover the CLN in some form or other. I think he said without an equity element, several months holiday period, but at a higher, but still competitive interest rate. Then we will either raise funds for our new ventures by either selling existing assets if they have improved significantly above our buy in, or the BoD believe they are not about to appreciate significantly in the short term. Otherwise we'll raise the (small) funds via the market in stages. The point being each time we raise, it will only be if the new projects (San Luis and Zulu) are showing potential, and therefore our share price should be at a higher price to support the few million I'd expect in each raise. If they aren't we can pull out.

Seems like a plan to me. Now lets get on with it! It would be marvellous to hear good news - for a change! ;-)"

So we know the current plan is to deliverto ore to the ROM pad from three different sources. The underground mine,the open pit and the tailings.

We've been given a reasonable amount of information on the underground mine and the open pit but not very much has been said about the tailings other than it's economic at current prices.

RHA ran some tests in 2016 to determine the grades in the tailings. Does anyone know the results of those tests please?

GLA

1 of 2

So we know that Prem are supporting Cadence going through their due diligence at the moment and the deadline for bringing that to a close is just over a week away. We also know now that the plan is for MauCo to produce Lithium Concentrate initially as it's the quickest route to market. But then move on to produce Lithium Carbonate which is far more lucrative. Those close to the company will also know that moves are already being made to increase the licensed area by as much as two or three fold. All very positive.

As far as I can tell the main restriction to going the Condensate route will be the logistics in transporting the material from the mine to the rail terminal in Bulawayo of to a nearer one if possible. To my mind I can't see it being possible to transport more than around 250kt's/annum given the lorries have a payload 20 tonnes.

Hopefully we'll see the mining plan being to produce far more spodumene than pegmatite initally with it being the more valuable. But only by a small margin it seems. The spodumene floatation results gave 6.5% Li2O content and the pegmatite marginally less at 5.95%. So overall excellent results. Not to mention one of the drill cores giving us no less than 4.5% Li2O which could be one of the best ever recorded anywhere.

If all that's right and keeping the maths simple 250kt's of Concentrate will be processed from around 1.5m t's of ore at just over a 1% grade producing 15kt's of Li2O and from there the 250kt's of 6% battery grade Spodumene Concentrate.

Current off-take agreements for 6% spodumene are being entered into at prices of around $1,000/t. But according to some analysts those prices could treble over the next two to three years. Being conservative if it doubles then the revenue to MauCo during the short Concentrate period would be around $500m annualised. With no corporation tax to pay initally the 2% Royalty will make little difference in the calculation and I believe the credit for the Tantalum would easily cover the small loss attributable to the Metallurgical Recovery rate so no adjustment needed for that either in my view.

So with annual revenue at $500m and costs adjusted from the scoping study we could be looking at an "earnings" figure of at least $300m. From there using a P/E ratio of say 10 we get a Market Cap of $3bn for MauCo based upon an earnings metric. If Prem enters a 50/50 jv finally we therefore get to a notional contribution to Prems MC of $1.5bn.

Lastly if Prem has 9bn shares in issue say Prems share price contribution form MauCo in the short period Lithium Concentrate is being produced would be $0.165 or approximately 12.5p at today's currency exchange rate in around 2 years time.

2 of 2

Be that as it may as I say the Carbonate route is more lucrative by far. This route a 2m tonne ROM /annum would produce 20kt's of Li2O which is roughly 50kt's LCE. A projected annual revenue then could be 50k x $35k = $1.75bn if market price for LCE doubles. AISC's along with other costs (AIC's) are likely to be no more than $750 m/annum or so which would give MauCo a Market Cap of almost $1bn. Feeding 50% of that back into Prem from a 50/50 jv that would give Prem net "earnings" of $500m/annum . Then assuming a P/E of 10 is reasonable again and with say 10bn shares in issue that represents a MC of $5bn which would give Prem a SP contribution of about 37.5p. again using an earnings metric.

AIMHO & GLA

1 of 2

So we know that Prem are supporting Cadence going through their due diligence at the moment and the deadline for bringing that to a close is just over a week away. We also know now that the plan is for MauCo to produce Lithium Concentrate initially as it's the quickest route to market. But then move on to produce Lithium Carbonate which is far more lucrative. Those close to the company will also know that moves are already being made to increase the licensed area by as much as two or three fold. All very positive.

As far as I can tell the main restriction to going the Condensate route will be the logistics in transporting the material from the mine to the rail terminal in Bulawayo of to a nearer one if possible. To my mind I can't see it being possible to transport more than around 250kt's/annum given the lorries have a payload 20 tonnes.

Hopefully we'll see the mining plan being to produce far more spodumene than pegmatite initally with it being the more valuable. But only by a small margin it seems. The spodumene floatation results gave 6.5% Li2O content and the pegmatite marginally less at 5.95%. So overall excellent results. Not to mention one of the drill cores giving us no less than 4.5% Li2O which could be one of the best ever recorded anywhere.

If all that's right and keeping the maths simple 250kt's of Concentrate will be processed from around 1.5m t's of ore at just over a 1% grade producing 15kt's of Li2O and from there the 250kt's of 6% battery grade Spodumene Concentrate.

Current off-take agreements for 6% spodumene are being entered into at prices of around $1,000/t. But according to some analysts those prices could treble over the next two to three years. Being conservative if it doubles then the revenue to MauCo during the short Concentrate period would be around $500m annualised. With no corporation tax to pay initally the 2% Royalty will make little difference in the calculation and I believe the credit for the Tantalum would easily cover the small loss attributable to the Metallurgical Recovery rate so no adjustment needed for that either in my view.

So with annual revenue at $500m and costs adjusted from the scoping study we could be looking at an "earnings" figure of at least $300m. From there using a P/E ratio of say 10 we get a Market Cap of $3bn for MauCo based upon an earnings metric. If Prem enters a 50/50 jv finally we therefore get to a notional contribution to Prems MC of $1.5bn.

Lastly if Prem has 9bn shares in issue say Prems share price contribution form MauCo in the short period Lithium Concentrate is being produced would be $0.165 or approximately 12.5p at today's currency exchange rate in around 2 years time.

2 of 2

Be that as it may as I say the Carbonate route is more lucrative by far. This route a 2m tonne ROM /annum would produce 20kt's of Li2O which is roughly 50kt's LCE. A projected annual revenue then could be 50k x $35k = $1.75bn if market price for LCE doubles. AISC's along with other costs (AIC's) are likely to be no more than $750 m/annum or so which would give MauCo a Market Cap of almost $1bn. Feeding 50% of that back into Prems from a 50/50 jv that would give Prem net "earnings" of $500m/annum . Then assuming a P/E of 10 is reasonable again and with say 10bn shares in issue that represents a MC of $5bn which would give Prem a SP contribution of about 37.5p. using an earnings metric.

AIMHO & GLA

Thanks Ivybush and thanks for being candid too.

I think China regards Zimbabwe as being "open for business" so lets hope it's a new beginning for the country and they manage to change there as you say.

GL

Thanks observer and I can understand your concern. I hope it all works out well.

As you say it looks like a great opportunity. In my view MauCo as a new company will be very undervalued initially.

GL

As a shareholder in Prem can I ask what the general feeling is here about the opportunity of investing jointly in Zulu please?

Thanks beforehand for any feedback.

GLA

Excellent Charlie! I didn't know that.

Thank you again.

Charlie your posts today are excellent. Thank you!

Can you disclose your source of information please. If there are links to it that would also be great.

NaPoM - excellent details and information. Thank you!

NaPoM look at the Credence HofT.

Providing it's crystallised within the next few weeks there should be no need to issue more equity unless it's accretive. Cadence will be paying back MauCo's "Prem loan" with every payment from the schedule agreed with Cadence if you read the RHS.

GR isn't stupid despite what some might think. But that's all in the eyes of the beholders. So SHH! Just in case word gets out.

Exactly 2857mal! Freedom of speech is a good thing and we should all be for it. Providing it's lawful that is.

The problem he had was he couldn't differentiate and didn't know where to draw the line!

Just my observation.