Here are my thoughts about the near PSC future. I would highly...

Here are my thoughts about the near PSC future.
I would highly recommend watching all the three latest interviews with our MD Sam Hosack, the Market Herald, the Earning Review/Equity Axis and the Goldinvest one.

Sinomine:
They are our loyal equity partner, have taken recently all their right shares and are commited to invest further US$ 10 Mio. Their investment breakeven point is at 0.49 AUD per share as calculated in my previous post.
But, they are also our offtake partner and they will buy from us 41% of our lithium spodumene and lithium petalite production for the first 7 years.

So we have a remaining part of 59% of our spodumene and petalite to be sold to Sibelco and/or Uranium One.

Uranium One:
They have entered the MOU with us in the 12th of December 2019 with a 90 days exclusivity period for an equity investment and an offtake of at least 51% of our lithium production. Back then it was not specified whever this include only spodumene or petalite as well.

As Sam mentioned in one of the interviews, PSC is a very small company and we adapted to the new-Covid-situation and challenges quick. But Covid affected our partners and on the 27th April 2020 PSC agreed to a request by the Uranium One Group to extend their exclusivity under the terms of the MOU to 10th August 2020.
Now, you can see the new situation in two ways.
The one way is, like some shareholder here and that is totally fine, that the 10th of August past, there is now offtake, no equity investment and not even a market update.
My personal other view on this is, that we got a market update even before the 10th of August. On the 6th of July 2020 we got an update that we have Renaissance Capital as our Mergers&Aquisition advisor. Of course it is not an offtake and equity investment by 10th of August, but I think this "upgrade" is absolutely more worth. Sam mentioned in the interviews that this is a strong signal that they want to buy us! And therefore I am very pleased to wait a bit more and hope we experience the same thing that happend with Kidman Resources and Wesfarmers.

I am also happy that on the 6th of July announcement the management decided to close the shortfall offer, despite of enquiries, and did not dilute our shares even more. It is a strong signal to me that they are confident of achieving our goals in the near future.

Sibelco:
They entered the MOU with us on 15th April 2020 with an exclusiv periode of time for an offtake of our ultra low iron petalite till 1st of June 2020 and extended the MOU to the 1st of September 2020.
"... Whilst Prospect and Sibelco have agreed not to deal with any other party in relation to the supply of ultra low iron petalite, nothing in the MOU prohibits Prospect from continuing discussions with the Uranium One Group..."

Sam mentioned in the interviews that this introduced competitive tensions between Uranium One and Sibelco would help us to achieve the best market pricing, which according to Benchmark Minerals Intelligence should be for our ultra low iron petalite a 60% premium to the spodumene prices.

Sam also mentioned that the offtake with Sibelco would be the largest petalite offtake agreement globally. He also mentioned that the key commercial terms are agreed and that the binding offtake agreement imminent is.

Afreximbank:
Afreximbank was mandated on the 17th December 2019 to arrange and syndicate a US$143 Mio. project finance debt facility, of which they would US$75 Mio.
Sam mentioned that Russia is a memberstate of Afrexim and that he sees an alignment between Uranium One/Rosatom and Afreximbank as Prospect is progressing the development of Arcadia.

When Sam was asked when they will achieve all these goals and start building the mine, he answered that they believe this will happen in 2020!

Here are the next steps I would like to see:

• DFS economics update - after the almost double petalite recovery and the suitable spodumene for the glass & ceramics market
• Sibelco binding offtake agreement for our petalite
• Uranium One binding offtake for spodumene and equity investing
• Afreximbank CAPEX funding
• Uranium One buys Prospect

And as always.
This is my personal opinion only and it is not financial advice. Do your own research.