Premier African Minerals Limited (PREM.L) Earnings Call Transcript & Summary

Ladies and gentlemen, thanks very much [indiscernible] myself. I took a wrong drive down[Technical Difficulty] something that [indiscernible] on the way back. [Technical Difficulty] Okay. Maybe just a couple of months, it is a pleasure to see as many people in [indiscernible] , but it's even more astounding and pleasing to see response that we've had as a company to the special resolution that we proposed. I think that it's almost unprecedented in terms of the main [ company ]. We will go through some of it just now, just to see what [Technical Difficulty]. So special welcome to all the shareholders. [Technical Difficulty] Okay. Let me get behind [ Tay ]. I think that you should be able to hear me now. Okay, and a special welcome and he's hiding away to back there somewhere [ Tay ] . And [ Tay ], why don't you come and join us rather closer [indiscernible]. [ Tay ] is a former representative of Canmax and [Technical Difficulty] And he is flying from Malaysia. [Technical Difficulty] So Tay flew in last night. He joins in the meeting, and I'm very, very pleased that he is here. I think everybody is familiar with some of the RNSes and so on and so forth that have been there in recent history. I think we've all worked very hard and very conscientiously in the special things. I think to try to bring them, it kept me in check at times, and I suspect [ Tay ] might have kept some of his other colleagues in check at times to have brought us to where we are today. So we're here for a general meeting. Notice has been issued and published. So, I'm formally to welcome you here. There is a quorum present, and that's wonderful, we don't have to stretch for a quorum. That's key to delight. So we can then proceed with the business of the meeting. There is only one proposed resolution. And before we go to that resolution, if there are any particular questions and comments that people would like to raise now, I'm very happy and I'm looking forward to, I hope, to having a further discussion after we've dealt with the resolution and to deal with where we are and how we're going to go forward. So are there any particular questions? And do I need to read the notice of the meeting? May I take that as read? And if you say bring them somewhere. Thank you. That is James. All right. The resolution is being proposed as a special resolution and requires a majority to be passed. Resolution 1 is a special resolution to approve for a period commencing in 24 months following the date of this AGM, the disapplication of the preemptive provision set out in Regulation [ 1.5 ]of the company's Articles of Association in relation to issue of grant of any right to subscribe or convert any security up to a further 5 billion ordinary shares and to authorize the directors of the company to issue or grant any right to subscribe for or convert any security into shares in accordance with provisions of the resolution. But so the company may make offers in entry into the agreements during the period which would or might require shares be allotted or rights to subscribe for or convert any securities into shares to be granted after the period ends. I'm asking if there are any questions in regard to it? Is the resolution clear or any particular questions? Okay. I'd like to put that to a vote. And I think that I need to say that as Chairman, I hold 7 proxies totaling 11,325,493,976 votes in favor of the resolution, against 184,245,075. [ At discretion, I hold 30,000 ] and against 24 million votes withheld. On a show of hands, every proxy appointed by one or more members has 1 vote, this proxy and Chairman has been appointed by more than one vote. I think we're all familiar with it. What I would like to ask is present here, we have a number of people present in person who I believe have deemed to vote. Could I call for -- how do you want to do it?

With your permission, Mr. Chairman, we have all poll related questions [Technical Difficulty] I will show you the polls and I will check the representation after -- maybe we start and please answer [Technical Difficulty] cast your vote and [Technical Difficulty] On behalf of Canmax Scrutineer [Technical Difficulty].

Thank you very much indeed. Ladies and gentlemen, that can [indiscernible]it. And just going back to some of the statement, only recorded biggest bet we have [ 14,395,661,861 ] in favor and 184,248,057 against, which effectively means based on the shares [indiscernible] voting carried by substantial margin, but more importantly they reflects that 64% of the shares in issue have actually [ bought ]. So for a named company, that's something abnormal. So [Technical Difficulty]. I think every shareholder [ has been in ] outstanding situation. So I am very pleased with that. Brendan is there more formal business we need to consider?

No [Technical Difficulty] record as approved?

Yes. What I do record as a Chair that the resolution is formally approved and has passed. I'd like to move on, if I may, Okay. [indiscernible]

You're okay to close this as a general meeting?

All right. Okay. So let's just move on with a general discussion because I know there's lots and lots of questions to be asked, and I'm sure that people who are listening on this have a number of questions from and I think let me start off by saying that I'm delighted that this vote indicates to us that there is a -- I was going to say a state of union. I don't know whether that's the right word, but there is unanimity of intent and intention between Premier and Canmax. And I think the that is the most single most important thing that comes out of this. It's been a difficult road for both parties. I think I understand fully that Canmax felt aggrieved having prepurchased a significant amount of spodumene, which could not be delivered. Premier is particularly aggrieved that having set up the whole process to get this plant installed, having put our confidence in the company that has put this together, that they have come short in this milling section, on this interface. We've -- we do not feel that we would like to continue. And I think a fair amount of this, if I may say, is going to be covered in much more detail in the earlier part of next week as well. So clearly, we don't like the fact that we sit in a force majeure situation. And we'd much rather have an agreed process of going forward. And I believe that's what Canmax's intention is, and that's what our intention is. And I believe that we need to revise the scheduled delivery to something that the plant actually can achieve based on what is being manufactured and what process [indiscernible] of plant are actually diving into it. So there's a lot of effort that is going into that at this point.

General questions? When you take this on question basis I think it might be easier.

[Technical Difficulty].

Okay. The fix is coming in phases. And I think I've said this in various RNSes as well. The final fix to bring this to its design throughput is probably going to take until the end of the year. In the interim, the first phase of fixes was to put in this Hydro Classifier and Hydro Classifier has helped but hasn't solved the problems. The second phase, second part of an intermediate phase, is that we are relocating the existing rod mill that Premier owns, which is located in RHA. And we are going to install that at Zulu. Now we can run that rod mill either as a rod mill or we can run it as a ball mill. And it has a significant capacity if it is run as a ball mill and we speed up the motor, it's a robust design. Now that mill to uplift and move and relocate the mill is quite a performance. But I can say that as of yesterday, that mill is on the way to being moved. We have had to disassemble it where it was situated at RHA. That has been done. We've had to get a special frame to get it on to; the road through to RHA is not as good as it used to be. It used to be very good. So there's been a few logistical issues, getting a 50-tonne crane to site and so on and so forth. But I'm very pleased that it is now underway. And this thing has got wheels underneath it at last. Literally and figuratively, it's got wheels under it. But at Zulu, we need to build some fairly significant additional civils to locate the mill. There's different pumping layouts, different flows that need to be put in place and so on. So that work at Zulu is underway right now and because that's underway, and because I felt that trying to run the plant with inadequate throughput was not doing hell a lot more than wear out certain components as opposed to producing to any large extent. If produces, it can produce and has produced some very nice spodumene, but to continue trying to run it while we are busy installing this mill, it doesn't make sense. So at the moment, the entire focus of everybody is getting the mill out of RHA, getting it under wheels on track at the moment, getting the civils in place, getting the moving in slot, getting the additional pump structures in place et cetera, et cetera. So it's a fairly elaborate, maybe that's a wrong word, it's there's a lot of work. It's not difficult work, it's not difficult work, it's not technically challenging or anything like that. It's just there's a lot of work to be done. So that is underway at the moment. Now the kind of production schedules that we're talking about. And these Brendan, I believe, you're going to be publishing?

Different level. Yes.

So all of this is going to be updated and published, and I think that's very early now. The kind production changes we took will accommodate for this. And I think that between Canmax and Prem, I think there's an understanding that just so long as Prem achieves what it seems going to achieve this time. And I'm going to stand there with whip behind the plant manufacturers. In fact, more than a whip. I don't know what I'm going to do to them, if they don't deliver this time. So provided that happens, I think that we have a schedule, we have a way forward and so on. I think the next question that comes out of us obviously relates to how do we pay for it. And let me make you the point that there are a couple of facets to how do we pay. The one facet is that CapEx associated with the fixes that need to go in off of the account of the equipment manufacturer. They are not for the account of Prem. So that has to be paid by them. They've acknowledged it, they know they've got to do it, they know what they're in for, et cetera, et cetera. There's a question mark as to whether they can and that will have to be monitored very, very closely. And I will work very closely with them in terms of that to ensure that it is done. So that's from a CapEx perspective. The bigger cost structure, I think, at the moment really relates to OpEx to operating costs because it costs you, especially in the early stages of development of these things, particularly where you busy stripping a pit for a new mine. The amount of material that is stripped away to expose that pit is significant in the early stages. So once you have shaved your pit and you start going down into it, you can sit down and you can plan exactly and conclude then you will be able to deal with this on a stripping ratio of maybe 4, 5 to 1, which is the projection that we had. But right now, because you're opening up a very big wide area, a; b, because the material on surface is weathered, it friable, it doesn't hold, it's not competent rock. Your footprint is so much bigger. Your burns as you come down are so much wider and it's only as you get into the competent rock that you can start looking at the geotechnically approved pit slopes, which are around about 60, 65 degrees, something like that. So it's a pretty steep and it's a good rock once one gets. In fact, it's almost -- the rock is almost too good as we're discovering. It's incredibly competent, it's very hard, as pigment types go which has got its upside and its downside, I might say. But it's on a par, if not slightly higher than some of the Australian pigment types at the moment when it comes to milling. So it has an impact there but there are too -- there are advantages and disadvantages. So in the initial phases, the cost of mining is so much higher. So if you run -- I mean, at times in the early stages, we're talking about stripping ratios 20:1 at times. So every tonne of ore you put on the wrong pit, you're mining another 20 tonnes and at the cost of all in and around about $11, $12 [ bench ]cubic meter. That's fair amount of money, especially when you want to put 100,000 tonnes on a wrong pit, you're moving 1 million tonnes. Much. And that's [indiscernible] use is 2.6. So to give you an idea of how much money is involved just in moving dirt, taking it into the material. So OpEx. OpEx is an issue. That's how one very big OpEx cost, the other incredibly big OpEx cost is diesel because we are dependent entirely on power generation ourselves at this stage. I'm sure we'll go solar at a later stage. But right now, we're entirely dependent on diesel generators. And then the mining fleet runs on diesel. So the diesel consumption I mean is running -- the number is absolutely horrific. You're talking at full production, you will be talking 600,000, 700,000 liters of diesel a month. I'd say you can start looking at some of the operating costs that are associated with running a [ cement slurry ]. Nevertheless, we still have a scenario where as this mine progresses through to its target production, the initial target is 4,000 tonnes, but we think that we're going to take this thing significantly higher and I think some of the fixes we do now. And I think some of the work that we've seen on the quality of some of the spodumene, whether is actually been produced in laboratory, but is replicated into [ supplies ]. I'm pretty comfortable that it's going to go to a significantly higher number than that 4,000 tonnes but even at 4,000 tonne, you can do the numbers in your head, the price at the moment of spodumene is hovering around about $3,000 to $3,500 a tonne. So I think that's quite a fair amount. So I am right in the middle of it. That's pretty well where it is. We'll go into more detail in the basis under which we will proceed in terms of our supply to Canmax. But if one looks at this and if you look at where the big Australian producers are, those that are in production and are going, you'll see that these guys are down in $400 to $500 of tonne, and that's on a CIF China port basis. Can Zimbabwe be higher or lower? I don't know. We just need to see. I'm hoping it's going to get itself right into that ballpark. I really am. In terms of the longer-term forecast for spodumene, there's lots and lots of talk all around. I don't want to get involved too much in speculating where it's going to go. But I do think that we are sitting with reasonable prices through the course of most of next year, certainly. When it settles eventually, I truly -- but I don't think that we're going to see it settling at much below $1,200 to $1,500 a tonne. And if that where it's eventually going to settle, I think by the time this mine is producing very properly and very nicely, I think it supports the fact that this has a very good long-term future.

Yes. Just one thing [Technical Difficulty] come out and production and the forecast going forward. It's just from a shareholder's point of view [Technical Difficulty] at the end of December is the same point again where we miss that [ bar ]. And then it comes to penalties and things like that. So mainly enough consolidation built into the forecast going forward [Technical Difficulty]?

I would always like more being very frank, I think I've been very frank with it. I would have liked more. But I think that what is built into it is as best as we could reasonably expect. I don't think that anything beyond where we are, would have been fair on Canmax and it's really -- that was all we could do to just find somebody else, I don't want me to come and run this set. Really, that's RPO. So I think that it's tough, but it's reasonable. And I think it's where we should be. There'll obviously be much more detail on this...

[indiscernible]

Definitely, you're going to cover all of this.

[Technical Difficulty] Canmax has been very reasonable. They have a wonderful plan going forward with this and there's optionality in terms of products in stock [indiscernible]. So there's a nice form of spectrum. Ultimately, it's on us to regulate. We deliver product. And with initial price, it's reasonable in term of delivery got resolved. We've got no problems and [Technical Difficulty] focus on the ultimate goal, which is generating a value [Technical Difficulty]. So I think it is just really difficult to give the findings of the deal or the restructuring and the footprint. It is still focused [Technical Difficulty] they are not interested in [indiscernible]. They're not interested in Zulu. They're not interested in any of that. They're just on product making. And that's why they have the next few years on shareholders and our shareholders well on the delivery product.

Yes. So you will obviously suppliers. And our content so the good way if they're confident that we can do is I have to.

Yes I have to. The answer to that is, yes, I have to. I think it's in 2 components. The one is technically what needs to be done. And I don't have too much of a problem with what needs to be done technically in broad terms. There's a lot of detail about how you do these things. All sorts of different ways of going about achieving the same end. So, a, technically, definitely they can do. They can fix the problems. The -- that's the first. I think that's the first thing. The second thing is that we have to work together with them to ensure that from a cost perspective that we all come out of this thing in the right place. I'm absolutely committed to that, as are they. We're all committed to the same thing.

Just important to start this thing -- there's a lot of start with -- this is a company made of the stock as much as start looking to the lithium space and and looking to create these modular designs on a huge platform across a lot of . And they really are optimistic that they can get it right because they want to be a front workers in terms of that -- so they don't have technical thing , so much so an investment is the future of that business is very much on how they get to the nuance and how they grow as a major player in introduction and process and obviously those pros and cons. So after take -- I hope you can take some reassurance on that is that really -- the business is a big thing for them.

Look, I'll also say this that the technology they've put in -- in terms of the UV sorters is groundbreaking. It has not been used anywhere else. It works. So that in itself I think, says a huge amount for where we're going to go with this. That technology on the UV sorters, interestingly enough, could almost allow one to do a crush and screen of run of mine ore down to -- you'll enjoy this for, I'm sure, from a perspective. You could almost do a run of mine or crushed at, say, , something like that and take anything between 8 and and feed it through the UV sorters and the except could be a spodumene in all form running at 4%, 5%. I mean it's quite unbelievable. That's how efficient this is. So it picks up -- sorry, it picks up all what is -- what actually is the spodumene by association with whatever it is, the manganese or the -- yes, yes, sir?

So the solution essentially be from by the end of the year. What is that -- is it a new level.

If the rod mill that we're moving from RHA, which can be reconfigured on site, to run as a ball mill and we can speed up the mine. On that basis, we can actually get sufficient energy into it to allow us to manage 4,000 ton a month. That's the milling specialists projection. I'm not letting up on having a completely new rod mill as well. Okay. So I haven't left them alone on that one. And then the problematic component, which was the EDS, which was supposed to be a mill, that was where all the problems were. The EDS effectively cannot operate as a mill. That will now operate as a tertiary crusher.

So the solution for RHA mill...

Interim.

And that's what...

Best case scenario, as I put that in, it's in very good condition. We've just replaced the rod mill, the liners and the whole thing is in very good neck. The best case scenario is that thing goes in and operates from sometime late September, mid late September. And suddenly, we can have the full tonnage correctly sized. I don't think we'll be that lucky. But are we going to get a much bigger tonnage too? Yes.

By half of that is for us now or...

Ball mill. No, no, no. The EDS is -- No.

No.

No, it's going to be a tertiary consigned to a tertiary crusher. That's it.

So potentially I mean that as well.

Yes. Yes.

The best water consumption and you are or...

Look, there are a few other things as well. For example, the low-intensity magnetic separator that is in, I'd like to change to a high-intensity max. So if I've been put in a high-intensity unit, I can hopefully pull out a lot of other stuff associated with the high and that hopefully pulls up the tantalum as well. That was what we always intended to do. And if we do that in a wet circuit, it's the easiest of all. It's a case of changing a drum. That's all I have to do, change the drum in the plant. Not today, no. No, not today. As I've said just now, I'm busy at the moment, dealing with the civils and other modifications to get this mill in to allow us to then produce at a proper level.

And in regard to Carmila's deal. Do you have new deal? Or anything to capital changes? So the fundamental relationship has changed. Our product goes to . We say to some key points within the agreement that have allowed us to fund dynamic . So the defect on opening and not an ended in the quarter, so we're not -- but not...

Are we going to have a comprehensive our initial Monday morning, please? Okay. So you're going to have a comprehensive...

But we're looking at production?

Yes. At the tonnages that we want to, the tonnages that we want. I mean that's a big difference. For what it's worth, the -- we've taken the opportunity to refine and revisit all the parameters associated with the flotation. So we've gone back to basics. We've gone back to an array of different reagents. There are so many people who supply these reagents to do this and other thing to collect the spodumene or the petalites.

that we would grow schedule. I think that's an instant, which if that can change point.

It's a fair point. It's a fair point.

I think what my shine is optimistically in terms of the original agreement that we put out, that was really challenged. so the only key fundamental is trying to slight tweak on price as you know. So there's a tweak in the price of making this and first and early delivery share. But otherwise, you can rely on once ready within the market. But you would take something on Monday, we had to report on Monday as signed late yesterday. So but yes, and that's why there's a release year, takes absolutely right. In essence, not really just an element of security about we can't run the bush shareholders. The $35 million. We can't get around that, and that supports our company and our project. We've got to give that and then a to ensure that they say that we can't get away from this. And that's why that's getting closely the rest of the greatest focuses on delivering the target production levels, et cetera. However, the ramp-up is a little bit different. But otherwise, it's fundamentally so.

Okay. Sorry, there are a few tweaks. The one relates to pricing structure on some of the products, which is not unfair to other party. In fact, it's almost the hedges for both projects, as I think about. So that's one. The other is on quantum and time. That's the other. Otherwise, you're required to produce the same specification of spodumene, which I'm comfortable we can do, et cetera, et cetera, et cetera.

Then going to the maintenance as create the essence of it. All of our 4,000 we know with some of the new we have reached sort of under the upgrade, potentially going beyond 4,000 tons, which is where we all want to be. And that's not including any versatility beyond 3 years with all the ongoing exploration within, et cetera, which is currently also massive then we're not even get to talk about because we just spoke to this in fixing the probably in the latest from that only.

Yes. Anything about the quality grades and empowers on Monday. Follow on question about the deal in when there's also 6 weeks ago or 7 weeks ago whatever that. The idea was that potentially and that's proven provider and the additional funds. Right now, we did a deal to take more people originally. I think it's -- I know we don't do it within the tariffs , but then the OpEx, right? Is that going to be test clarified on Monday? Or is that secular?

Look, there will be some clarification on that. But I think the point being is we haven't delivered a including the subscription have put better part in well as the trend. They have given us an ability to show a positive message to the market, that will be all on the same page. We want this projects to work and other income as best as they can that allow us to now focus on how we fund the company moving forward .

In summary, let me say, I don't think it's appropriate right now at this moment for PREM to expect candidates to meet any further costs now. I think that when this RHA mill is installed, runs, producers to design and so on and when there is sufficient product to specification that is available, I believe it will be a different situation of Canmax. And I would then be at a point where I would be prepared to go to Canmax saying here you go. There's your first 1,000 tons. Here, it's been inspected. It's whatever it is. Everything about it is done. But if we're going to sit and wait for a site LC to be paid, after upturn in China port, that's going to add a lot of other problems to where we are. So can we please have an interim payment? So that -- and I don't think there's going to be an issue. Sorry, I'm not trying to talk you into a corner. But at that point in time, I'll feel a hell of a lot better about going and ask. That's what I'm trying to say.

Throughout the discussions and trying to rotate among us as being very good comments and continue to support providing that . It's always been the same message on getting .

Yes, sir.

You've seen the support of your shareholders of the . So if you were going to that, when you go the shareholders for as an option will then tend to support that plan.

I think it's the right thing to do, Brendan?

Looking at the...

Corporate sector. Can you tell me how we go about this.

It would be not for a rights issue or something to that stage. Looking at these kind of fund raises is always something you can always look at taking to shareholders. The underlying issue with these types of fundraises is if you don't get someone to underwrite of surprise and you're not getting the range, you could see the adverse on it. So it's a case of making sure we're confident enough to shareholders was and agree that both in and without going to when you ask someone to put money on the tables and another, there's a group that more supports but the group that won't support I mean we, as a company, need to say to you guys, our shareholders, is it fair to those shareholders who's stuck with the story, what have some new kinds of portfolio, but we all know where the world is at the moment. So we're going to get that balance , but it's just finding that fine sheet balance. We see where the markets are at the moment, everyone knows the it's raising money on call it at the moment. Is it not necessarily the right thing to do right now in line with market expectations equally in line with the . You're asking you to invest again from August. Should we as a company with the authorities to get .

Just let me just add to that. With this resolution cost, okay, PREM is in a position where it could consider any approach from anybody, anybody. I mean; I've -- from my own sources, do you want to talk about where I have more margin. I'm talking about what happens. Everyone is aware of this.

Yes, you've given the company facilities has taken the 3 months.

Well, so that's going to be recompensed somehow, someway, and that goes to part of an underwriting.

Anyway look at something, that's definitely something, if it is something to consider.

Yes. Personally, my view is that I would welcome any investment -- any investment approach, any shareholder, I would welcome you, anyway.

And just one way of dealing with it is you've got a great institutional investor at the moment is to try and push a few more institutional investors in the sense the institutional bank joining the rises. It becomes a lot easier. But Canmax at 13%. In time, we'd love to get them more in terms of their investment commitment . But at the moment, we lagged a core sale of, say, 35% to 40% institutional claim to do risk because retail investment is so important to do, but with retail investment comes volatility. That's just a another retailer business.

It also brings liquidity, which is also one of the reasons why you see people investing.

Fundamentals for us.

Again -- making sure, again, step back and looking to grow with opportune period here we were sitting during the past quarter of 2024 to be being important target. We are now saying that it's possible that we could be there by October.

Depending on how the small performance and what it does, it may happen. It may happen by the end of October. I'm not sure.

Yes. But we at some point in this is to say, suffice to say...

Well, sorry, sorry, if it could be on the side of Christmas because if we still have to put in the new mill new larger ball mill, that still has a longer lead time associated.

On the whole part of it you're taking down for a while?

Unfortunately, that's at the heart of the interface between the crushing circuit and the flotation circuit.

We're still obviously a stable 4,000 a month.

No.

Until the...

Until that no operates attribute.

Can I also ask another question which relates to communications.

Yes.

We are a shareholder's desperate all this you know on information. And we appreciate all the new team to communicate frankly within the bounds of what you're able to say. We are also getting information from other sources. It's notably as far who's CEO and other technical ops. So given interviews and so on, which have been really interesting from our point of view. Since that communication channel with PREM's blessing? Or is it something you have to put out the ?

Neither. It's not done with PREM's blessing. They are an independent company, what they choose to communicate and as communicated. And I've made it very clear to them that they mustn't come to me and say, "Can I please sent them saying XYZ? Because I'm not going to." They know exactly the rules under which we operate, they know exactly how we are regulated. And they must stay within those. I can't be there policemen on a continuous basis. They are a private company that operates out of Germany and Mauritius and various other places. They must be responsible themselves. I -- that's on the one side of it. On the other side of it, I understand as a company that they need to get a message. And I think that that's what they're trying to do. And to the extent they want to get a message, that must get a message. They just mustn't complicated to our lives. They mustn't prejudice relationships that we have. They mustn't be factory wrong. They mustn't deal with anything that is not in the public domain. They know all of this. They've been written to you very, very seriously and very carefully about it.

I think what's important to you going to rely on the branch at the stock coming from you can rely on that . We have our shares to communicate and invest on. We currently use -- saw currently uses platform to communicate information on PREM's. If you get a coming out of stock, it's not being communicated by PREM. We just consider it with very advance.

After a person or certain staff, on the pacing and the action to expect exploration and expect for us to then product .

I didn't invite anybody. Yes, I could have. But I mean, where we are, we're in discussing this milling interfaces, wide open and in the public domain. Everybody knows about that. That is there. That's been the cause of the problem underlying our issues between PREM and Canmax. That's there. Whatever they wish to or need to say that they must say it, it doesn't change the fact that in the front end of the plant, their UV sorting that they've put in is revolutionary and groundbreaking. And I will not be surprised to see that UV resorting much more widely used in pigment types in the future. In fact, I'll be very surprised. If there aren't already people looking to install it. So I think that's fine. That's part of their business. And I think technically, that use is and what they've done there, I think, is groundbreaking stuff.

So I can present to work there, UV sorter that have proven to work it, get up and work in that space.

I was always happy when I first heard this. I mean it does what it's supposed to do. Not that it -- sorry, not that it has to do a huge amount because the way this deposit is shaping up as we are now getting through the weather areas and getting into competent ore, the way this deposit is shaping up is looking very, very good. So we have exactly as we always felt, significant spodumene zones, sorry.

[indiscernible].

The UV sorter didn't go in immediately, because it wasn't ready to go in. That was the issue. There was a lot of development there. The principles of that UV sorting had not been used in mining before. This is the first time it's being used in mining. And the overall framework that this thing is mounted in, is a fairly delicate device have to be turned into something that could withstand all particles hammering against it. And the dust that goes with it and the vibrations of [ screens ] inside. So there was a fair bit of work to be done. That's the reason that was [ late. ] It was always going to be [ NHS. ] It's going to go in late.

[indiscernible].

Everything is working in the [ on-site lab ] now by the atomic absorption unit, which is installed and has had to go back to the supplier for -- I don't know what was wrong with, it wasn't reading properly. But I anticipate that in the next 7 to 10 days that, that will be back on the site. The XRD is working very well. We are getting consistent results now. So we can look at a sample of spodumene concentrate. We can put it under the XRD, and we can say this thing is sitting with 70% to 75% spodumene. And it's got 1% lepidolite and maybe 1% mica and so on. And we can do those things.

[indiscernible].

No, no, no. That's almost immediate. It takes -- taking the sample, the sample has to be homogenized to mold very finely. And we've now got to the stage -- we've got to a lot of refining on this thing. But you use a laboratory [ ball mold, ] and this little [ ball mold ] just keeps on chugging away until eventually you end up with this particle at less than 20 micron. And then suddenly, you get consistency on your XRD results. So it is a learning process as well, but it's working very well.

This delay that has happened, how does that affect the population in terms of [indiscernible]?

Yes, ongoing with the OpEx. It's part of the OpEx, it's ongoing.

[indiscernible] also being the away [ since it ] was designed. 25 families in [indiscernible]. However, there were only 6 in the essential areas. So as we move along with progress in development and many generation, we can't look the [indiscernible]. But we managed to make a that cost to set but it remains on [indiscernible].

We'll be building new family homes for a while. It's widely, very well received. I mean, things like that dam that has been built and the various other things that have happened there are very, very well received.

[indiscernible].

I am not sure whether stock had finally placed an order for it or not. I know it's specified, and I've seen -- I saw the specification on Friday, yesterday.

And their projections [indiscernible] this end of the year.

Yes. Yes, I might say that we've used an independent milling consultant. He's based out of Australia, who is one of -- just one or two leading consultancies worldwide when it comes to milling and milling design. And that work has been done in terms of the material, the various tests that have been done, the drop weight test and this, that and array of these tests. All of those test rates has been done. The results have been presented and he has come up with a mill design and said that will work. He has also indicated that in terms of the RHA mill that we are relocating that he believes -- he won't comment on this one, he believes that if we speed up the motor, which we can do, I mean, the motor, the RHA mill was always overcapacity. So if we speed up the motor and to change it from a rod mill to a ball mill and use the strange -- you've seen the strange side of balls [indiscernible] and we use these things instead of a conventional ball. His view is that, that would actually give us the capacity we want. I'm -- I mean, let me be absolutely candid with this thing. My question marks on the milling circuit. And we step back to where we originally were with the EDS model. When you break down this material, material that is broken down into two smaller particle becomes unrecoverable. So whatever is a minus 25-micron traction is unrecoverable, okay? The milling with a way in which you mill determine how much of this material you use. So at the moment, using a ball mill, it is estimated that the amount of material will be around about 20% in this minus 25-micron traction. Okay. That represents 20% of this potential spodumene you can recover. So if you can have a different kind of milling configuration that cuts the [ slides, ] it improves your recovery. And that goes back to the original concept of the EDS model was project, because the intention was to mill in a different way to mill through attrition rather than conventional ball mill. So there are trade-offs all the way down the line with every single one of these things.

[indiscernible] volatility should be just -- that's [indiscernible], right? [indiscernible] So there should be less issues with the milling section versus [indiscernible].

Yes.

Size is more exact. More on reference.

Yes. But again, it comes down to exactly what are the hardness indexes and this and that and all the rest of that or what size ball? What shape of ball? It goes on and on and on. And there are so many technical parameters associated with it. It's quite rough, but the answer is yes. [indiscernible] generally what's used. I don't think it's necessarily what should be used, because I don't think it gives you your base recoveries.

[indiscernible].

Yes. No, no, no, no. Taking this mill out, they got to replace and they've got to put the circuit back.

That milling system on our [indiscernible] that mold is [indiscernible].

Bren, when you say those are redundant in some ways, but you can't operate RHA without a milling center. So in removing this mill from our RHA [indiscernible] replacement. Now that's part of the discussion is not to focus on that one. So we're going to see if there's more food.

[indiscernible] the energy cost, how much [ is served ]?

Significant. The -- it could cover a huge amount of the electricity generation. It's not going to cover anything in terms of the mining ops at the moment. But on the electricity generation, [indiscernible] an 3 -- [ 100,000 ] meters of diesel.

So we've done a lot of [indiscernible], so we're at the moment [indiscernible] talking about it [indiscernible].

The solar plant that goes into Zulu is going in on somebody else's CapEx budget. And they can send us a bill once a month, and we'll pay them something for using electricity. Less frankly, [indiscernible], I'm sorry.

And I think the consideration of solar is the battery sector, which is that we run in so many day time [indiscernible] we were in this set up as a hybrid approach. But if you want to go to battery storage [indiscernible]. So we kind of [indiscernible]

[indiscernible].

I don't think you have much to say about it. We think that [indiscernible] we think [indiscernible] was staying the same, and we work on that brand [indiscernible] and I think that we see it as a challenging goal. So we're happy with the amazing country. We know what are we, and finally, we have been [indiscernible].

It is quite good, and they do have old things there, which is quite surprising at times and the political [ elite ] acknowledge it too, Sorry, yes?

Since we're getting into rather broader topics. Can I ask you about the recent announcement by [indiscernible], you're going to comment on their latest press release?

It was yesterday?

Yes.

Okay. Look, I think that -- but before we had this view that some of those pegmatites in that maturity area are outstanding. I was prepared to go with the 50-50 on them for a couple of reasons, not the least of which is that we were so stressed -- stretched in terms of our own management that we weren't giving it sufficient attention. Secondly, the people who come in, I know very well and are very good. And thirdly, that in the background, they will chase and develop this thing. So I think the results are indicative of what we will see when we drill as being exemplary. When you can surface trench as they have done and in the withered areas pull up some of the grades that they've pulled on, okay? Where it's withered, that says to me, you start going down here, and you've got some seriously good mineralization to come. So the drill, the first rig, I believe, is turning at the moment. And start with the second one, and to whatever [indiscernible]. The rigs are turning. I think it's an outstanding deposit. I think it's another Zulu if you want a real direct personal view of this thing, that's what I think it is. Yes and we'll...

[indiscernible] or soon?

Sooner. They're in a wonderful position. They can do it sooner, and they can write in the back of the mistakes we made.

[indiscernible].

I think the value of that thing is completely understated. I really, really -- I don't know, and I don't know what might want to do with it. Whether, there's lots of conversation. Whether we should bring Li3, the company where it should come to [indiscernible], for example, and let it on an aim environment, buyout our interest and do a distribution to shareholders, something along those lines. That's the sort of thing I'd quite like to see happen. At least get something back to all of us who've sat with money and invest for so long. So that's one of the thoughts on this thing. And I think there's some series where you're going to come on. I don't think that they're getting what they should, where they are located and which [ every exchange ] it is on [ Tier 6 ]. We'll see. But it's got some very strong shareholders behind it, that I won't say. There also is a very interesting character sitting behind that one. And I don't think that one is being appreciated in Premier share price at all. Anyway personal reviews, let me emphasize. What else? [indiscernible] more to eat.

[indiscernible].

I managed to expect something.

I know you have a presentation [indiscernible].

So look, I'll say the following. There's resource model here, and there's a model there.

[indiscernible].

No. So just as an internal number. Ourselves, we've -- we're now up to 42,500 meters that's been drilled across all of it. A fair amount of in the South and we did the adjacent North [ pit ], which is what we're mining at the moment, what we're focused on. We've just completed a spread of holes intended to take the resource down to below 200 meters in depth. And all of these have come in with -- looks really good. It was always open. We always expected that this was purely quite confirmatory. Shango resources who are doing and continue to take in as we get results, taking the main wire frames, et cetera, et cetera, et cetera, are reasonably comfortable that is going to be extended to below 200. Internally, we believe that, at the moment, predominantly in the south [ pits ], which is what we're mining in the indicated category, only indicated. This is purely internal and what my ideas are telling me is that it's probably somewhere in the region of 8 million to 10 million in the indicated category. That excludes inferred and excludes other pits elsewhere and so on. So that -- and that would be at 1%, probably 1% plus a bit. So that comfortably supports what we're doing with that mining plant at the moment, very, very comfortably supports it. We plan to mine less than 1 million tons per annum. It's about 700,000 tons, I believe it is per annum, is what we want to put on there. So if -- without extending or anything, there's a very, very comfortable trial plus, whatever it is years, contained within it. But that's always what we've said. So what to me is more important, what's much more important to me is that the resource is about 80% to 85% spodumene and about 15% [indiscernible]. And that, to me, is much, much more [indiscernible]. And I think, [ Tay ], you probably from [ Gen X ] perspective, appreciate that one. There isn't petalite. We're not mining petalite, we don't have it. And the plant is designed to separate spodumene from a petalite on [indiscernible]. That's what it's designed to do. Flotation work that we've been looking at lab scale ourselves internally, comfortably gives us [indiscernible] 6.5 plus very, very comfortable. So -- but we've always been there. That was the published test from Anzaplan. We're using -- we're validating exactly what Anzaplan did in 2017 when we go into this. We're getting the same confirmed results using the same reagent mix. And so all of this, what it does is just adds so much more comfort and confidence to when this milling thing is resolved.

A quick question. [indiscernible].

Yes. Yes, there is. There's a mining lease application in -- I don't know. I don't have an update on it. I think that we're looking to convert a significant part of that area into a long-term mining lease. There are significant other pigment types that exist that -- I think that area is going to be under exploration in 20 years' time. That, frankly, is our [indiscernible]. I just don't think it's going to stop. I think Zimbabwe is going to be there.

[indiscernible]. We invest in about for the next 3 to 5 years, just catching [ the mines ] [indiscernible] it's a huge amount of ground. We find that stretch as well beyond where the actual clients occur. So it requires [indiscernible]. It's a very big decision and that's the time that -- that's why just be [indiscernible].

Is it likely to be a production start [indiscernible]?

I think that's [indiscernible] at the moment, they just want to see us [ ship in ]. I think all of those things goes to a point where we're getting our wells at [ disruption ] still [ not hit any concentrate ]. So it's all of those things [indiscernible]. The moment you [indiscernible] that dollar of profit, total fund strategy [indiscernible] than [ sorry ] and the resource we have a long consistent inventories.

I might add that I hear in the background that we aren't [indiscernible] anyone to kind of not producing as was anticipated. And the other one is [indiscernible] is not produced as it was anticipated at the other day. So I don't know where that one goes.

[indiscernible] focus on mining, but will this be somebody [indiscernible] to the company?

No. No, the ban or what was prohibited was in run-of-mine ore that has not been processed to any extent. We're processing into a concentrate. And that ban does not extend to concentrates. It extends to run-of-mine ore. There's a lot of high-grade areas in Zimbabwe where you can hand comp, and you can pick up significant amounts of ore that are at a reasonable rate. And you might get 2, 3, 4 [indiscernible], where it might be usually lower than you take. And there is market for that.

The restrictions [indiscernible] set. But we also know that under [indiscernible] the legislation to actually go to the minister and seek a special application to allow the export of [indiscernible]. And there are two sides [indiscernible]. So is there to deal with some of it in view on line [indiscernible] there is total loss [indiscernible]. The whole idea is [indiscernible].

Guys, thanks very much. I mean, I don't know there's more food left there, but whatever there is, grab.