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IMO, the most likely option would be Canmax taking £1.5m in shares at 10% below Vwap(20) as negotiated in the new contract.

It's a matter of when and not if the plant produces SC6.

If the plant doesn't reach SC6 optimisation in time (Given the feed grades and float plant manufacturer- IMO, it will), then it's by no means a negative result.

Prem is now producing SC-graded spodumene at the correct grade sizing. So, salable product in bulk. I foresee Canmax taking it regardless, as its refining set-up handles all grades. SC6 is just more efficient. If not, there are plenty of buyers waiting. Therefore, good cash flow.

On another note:

It has been good to see KOD starting to revalue after sorting its issue. Still, a long way to go.

I noticed the future planned plant lacks a flotation circuit - It will be built sometime after the central section, which will be constructed in a year or so. I see 2025 to finish commissioning for KOD.

They have 10Mt net resources to them. £100m market cap. So, £10M per Mt (pre-production valuation).

Putting Prem back in Kods position - No plant, Year + of work and things to go wrong:

Prem have 20MT net. @ £10m per MT

= £200m or 0.81p equvilent valuation.

Or (This is technically debatable; consider the prepayment as debt and add it to the EV and neglect cash on hand)

= 0.66p

That would be a pre, plant and production stage analogue read across.

Prem has its plant, buyer and is finishing optimisation now—expansion plans and resource upgrades in the midst.

I've also just seen that the Arcadia mine in Zimbabwe got bought out for £14.6M per Mt.

There is No development and only a resource estimate.

These are just a few analogues highlighting how undervalued prem is even with the current production uncertainty.

With Prem in production the valuation will be a lot higher than the examples above. Production always forces a valuation re-rate due to FCF. Cash is king.

Have a look at the difference in valuation of explorers vs producers in this space.

Reversion to mean is a matter of time.

There seems to have been a lot of fear mongering and misinformation around this stock.

IMO & DYOR

Raaydaar,

You didn't answer my question?

Is this your ‘X’ account?

https://x.com/orbiradarman?s=21&t=x7jSf4uKpkEb1QjiK7BngA

The lunacy is consistent with your posts - Truthfully, it is rarely seen at this extreme, even on LSE - Hence you came to mind.

Someone noted that Kodal's asset is 10MT of Li to them post-deal.

Valuing Kod at £10m per MT

Prem currently has ~21MT.

The risk discount is way overstated for Prem. Kodal has a long way to go - More permits, plant build, commissioning, etc. Prem is arriving at production shortly.

Agree Acker,

I was subject to much trolling when first posting here. I’m sure you remember.

However a basic level of due diligence should be done before posting (mis)information as a factual statement in the public domain.

Some are so blatantly idiotic that they can't be posted with sincerity. Often company liable statements.

A lot of snakes in the grass.

Open and reasoned debate, information gathering and sharing, questions etc are the BB purpose.

Agree Brabs,

A lot of absurd waffle posted in the public domain— It’s apparent many have no idea how the company works or even the sector.

Raaydaar, is this your ‘X’ account?

https://x.com/orbiradarman?s=21&t=x7jSf4uKpkEb1QjiK7BngA

The lunacy is consistent with your posts - Truthfully, it is rarely seen at this extreme, even on LSE - Hence you came to mind.

Water under the bridge, Acker.

Talking of M&A: IMV

Prem is in an excellent position now, and the risk discount is significantly over-stated (IMO)- Longer term view.

It's worth valuing prem against similar companies.

I don't know how many people follow the general Li market closely and what other companies they hold, but it may be interesting for some to look at the recent Li M&A rush- The current Azure bid by SQM, etc. Also, Liontown (Frustrated bid) and Arcadia a little time ago.

IMV, If anyone takes over Prem Zulu now, it's Canmax in one form or another. Although at a later date.

They won't accept a minority stake in a takeover and hence frustrate it, as Gina Rhinehart is doing to SQM at Azure. They would likely have no seat on the board, thus no say in where future shipments go or the company's running. They won't accept that and would frustrate or counterbid.

Look at Azure - Prospective resources, no development, Aus-based. SQM were stake building at around 25-50c. 20% stake. The takeover bid came in at $2.20-$2.50 region. Got knocked back, re-bid at $3.50-$3.5— currently still there. It's an interesting deal structure, also for M&A buffs. Let's see if Gina will frustrate the bid.

Azure has a prospective 100mt to 240mt grading at 1.0 – 1.5% Li2O. The current bid equates to a £820M market cap. To reiterate, they don't even have a resource yet. The same happened to Aracadia, which is closer to home for Prem.

Big money is chasing lithium assets at the moment. Some interesting stake-building tactics are happening in Aus.

Prem Vs nearly any other Li company I know of is incredibly discounted. It will revert to mean.

The prospective resources for Prem are around 80MT, unless others have further data?

Hi Sprint,

That's correct; the ore is sorted to improve grades before grinding and then flotation. (A few more stages, but that's the gist)

Surprisingly there’s not been much discussion on the feed, sorting and grinding circuit upgrades from STARK. There’re significant and will have a meaningful impact on performance and economics.

The problem was getting consistent grind size from the mill, and it struggled with the moisture content of the grinds re-feed circuit.

Stark has solved the milling problems and, in addition, added a Hydrosizer (Good piece of kit) and, even better, a UV sorter.

The UV sorter was made in collaboration with another company and is the first of it’s kind. It runs in sequence with the XRT sorters - The results are proving to be excellent.

For perspective, average feed grades are generally 1-1.5%, this can then be floated off to be SC6.

STARK indicates that the sorter is proving material in the range of 3-6%. I.e. SC3 to SC6. That’s world-class standard feed grades from such a small plant. Impressive stuff. I’m sure people are going to recognise the significance of this in hindsight.

Those grades are saleable as is. (+ Mag sep etc). This is the first run of the new sorters and mill, which has been successful, so the good news for holders is that prem is producing (Subject to RNS) saleable grade spodumene. It's not SC6, but it's still a valuable commercial product.

Now there’re optimising the float circuit to get SC6 (5.5%). The float circuit floats off the mica first and then floats the spodumene, it takes time to find the correct operating parameters, as every ore body is different—aeration rate, regnant mix, feed rate and, agitation rate, etc.

The inconsistent feed sizing from the last mill led to problems in the Mica float - It’s difficult to adjust for the right chemical density/composition for too considerable a variation in particulate size - This should now be resolved.

The rest is all about tuning. But as confirmed by Stark it’s producing spodumene. So, it’s just about time now. The float plant is from an excellent supplier.

It’s just a matter of time now; hopefully, no more unforeseen items in the short term.

Your carrying on yesterday is your answer Acker.

It is good to see you finally talking some sense though.

ColonPolyp…Is that you Acker?

Great link auriss. Thanks for sharing.

Acker,

My triggered snowflake,

Believing what exactly?

They say comedy is about timing Acker,

“I’ll let you get back to your trolling and clogging up the board with you nonsense”

Your’re a living irony. Showing your true colours now.

Acker

Grow up, I’m sharing company-relevant information for those reading the BB who are invested or researching.

I’ll let you get back to your trolling and clogging up the board with you nonsense. Re-read my post regarding iq / Business acumen etc.

Yes that's Eleanor she was(is?) commissioning the plant at Zulu.

She’s stating the sorters are producing Sc3 to Sc6 grade - Confirming what GR said in the SGM that they were seeing SC4 to Sc5 out of the sorters. (Pre flotation circuit)

All saleable grade.

Takes some of the heavy lifting away from the float circuit.

For perspective that's a world-class feed grade.

STARK are pulling out all the stops.

Talking about the XRT and UV sorters fitted at Zulu.

https://www.linkedin.com/posts/eleanore-forner_mining-oresorting-spodumene-ugcPost-7123204873348628480-6Aas?utm_source=share&utm_medium=member_desktop

The director buys were chicken scratch vs their salary. Just enough to bait in the punters.

What's the current cash position MAJ?

Try going back further MAJ.

I aim to be realistic. Money is’t made by wishful thinking. If the facts change so does my outlook.

I was very bullish on Eco (Still am longer term), but they’ve led us up the garden path.

What I state is logical. Like I say, let's wait and see.

Here we all were wondering who could be selling at such low levels - It was the CEO and his chums!

Yes, for the free share options that they self-issued - For performance… here we are at 54p.

You can pay the costs and tax in cash, not by selling shares you think will be worth more.

BOD is a joke.

It's around £180k. I think that's significant at this distressed price level.

It comes on the heals of a previous director selling.

Looking at it the other way - taking it to be not much - Why not use cash on hand (they’re paid handsomely) rather than sell shares you think will double?