Premier African Minerals Share Discussion Threads

[mike_f] 06/6/2017 15:00

RUHEL, because? Even a simpleton can see the chart has solid support at .5p... this will gradually creep up over time. Clearly a seller, just need them to finish. GLA

[ruhel] 06/6/2017 14:56

Surprised, a lot of sells after such a good rns, might drift back to 0.40/0.45 imo

[billthebank] 06/6/2017 11:50

Value £23m Stunned partic after today's news.Clearly we have a seller holding this down.Cannot think of any other treason.Lets hope as the news today sinks in we will see a move towards .7p

[dr jekyll] 06/6/2017 10:21

He is best filtered imho.

[vitec] 06/6/2017 10:16

I am surprised you haven't told us it is going to be suspended

[thehitman1] 06/6/2017 10:10

Typical aim, nothing worth holding, take your 10% and be happy.

[vitec] 06/6/2017 10:07

Plenty of sellers at the moment but where the share price is now is a resistance point for further weakness. I expect a re-rate over the coming weeks along with some positive research notes now there is more "meat on the bones" to talk about.

[vitec] 06/6/2017 10:04

George will look at how he can maximise shareholder value. Some of the options available are to sell outright, sell and retain a stake, joint venture or develop it wholly. I think the last one will take to much money so think one of the first three is likely.

[edgein] 06/6/2017 10:03

Vitec,

Agreed. There's certainly a number of companies out there that are trading well below where they should be. Yeah the market can take days to react properly to some news and can randomly re-rate at any point from this.

Andrew, I wouldn't be surprised, lithium is hot right now and deals have been done recently with other AIM listed companies. Its only a matter of time before PREM have an offtake agreement in place for Zulu, grades are super and the resource is world class.

Regards,
Ed.

[andrewsr] 06/6/2017 09:56

I thought they said that they had a few companies interested in the Zulu asset, so IMHO a deal is more likely than full development by Premier, so perhaps more a question of whether that's now they have a maiden resource or after further drilling.

[vitec] 06/6/2017 09:55

There are many listed companies that trade below their net asset value. A few probably have more cash then their MCap. The reality is the market does get it wrong but for the time being (at least) the market believes the valuation is fair. I like you disagree with this and will wait to see full value (or what I believe is full value) rather then trade in and out for a quick profit. Many will tell you that is the way to trade but there is a flow of good news to come and this can change the share price in an instant. The MM's are having fun today and making their profits on balancing sells and buys but I think in the coming days and weeks interest in PREM will solidify and there will be many wanting to buy. To have one world class asset is great but to have stake in two is absolutely fantastic.

[edgein] 06/6/2017 09:48

Vitec,

I disagree with your analysis slightly, some companies value in their assets to an extent before funding. SOLG an obvious example, no where close to funded to development and still a long way off any production. Cap of 600m due to the extent of their intersects. Imo £30m cap would be quite modest for the RHA asset (production and $20m owed to us) and the potash. Imo the $4bn odd of lithium as Jung pointed out should alone give us a market value of £60-100m compared to peers in the lithium market. So even a discounted modest value would put the sum of all parts at around twice the current cap before funding to development. The RHA mine puts us ahead of the other lithium explorers as it gives us cash flow for expo on Zulu.

I don't think that the market is even as good as you describe, its currently valuing assets at much less than their real current value. If M&A kicks off within the lithium sector (we recently had the chinese taking 20% of KOD and Japanese taking a portion of BCN) then they need to put a realistic value on lith in the ground. 500k tn at this early stage of expo is a lot of value in the ground. The current stock market is grossly under-valuing many companies. Getting into these companies early will pay off.

Regards,
Ed.

[vitec] 06/6/2017 09:18

Ed, I agree but it takes money to develop the assets and that is what the market is looking at. The way I see it RHA provides cash flow for the day to day running of the business. The Circum stake when sold will provide additional finance to develop Zulu. This will then underpin this world class asset and put PREM in a position to decide what is best to maximise revenue, profits and shareholder value. As always the cream does rise to the top and as frustrating as it is seeing the share price where it is PREM is a far stronger company asset wise and financially then it was when the share price rose to 3 pence plus. Once we start to see further evidence and transparency as to how the company is performing you will get investors buying for the story rather than a quick profit. The days have gone where the market stupidly rates a company on the basis of what it is going to do some time in the future without any evidence of how that future is going to be financed. You only have to watch Dragon's Den and see how some owners value their businesses on the basis of future revenue and profits and they are dispatched quickly. The market is working on the basis of today and a little bit of the future. As confidence grows that the promises made and potential are being kept and extracted then the share price will grow significantly.

[mike_f] 06/6/2017 09:18

It really is Edgein, I can only assume there was some very hot money in here and those people have sold up as they haven't got the patience to hold for the real gains. I'm still convinced we'll move higher this week, mcap way too cheap in comparison to assets.

[edgein] 06/6/2017 09:06

When you consider what the partners owe us from the developed producing RHA tungsten mine and the massive potash asset then the world class lithium resource here is free in the cap, its madness. :)

Regards,
Ed.

[vitec] 06/6/2017 08:33

Posters may have thought I intended to sell. This is one I am adding. I have accumulated a lot of shares and see this as a good bet in the longer term. I have always said that from time to time I purchase a block of shares to trade. The difficulty with this is timing and invariably you get it wrong so I just accumulate when I think the share price has gone down to far. This maybe a steal at the price today but I don't have a crystal ball. All I can do is look at all the evidence that has been provided and try and read between the lines and make a better informed decision rather than a stunning or poor decision as to where I think the future of the share price lays. GLA

[dr jekyll] 06/6/2017 08:22

Ditto vitec. Am sitting tight here and I also expect to see the share price moving up over the next few days. The early selling seems quite common these days.

[mike_f] 06/6/2017 08:19

We will see some large delayed buys showing in an hour who will be soaking up the 10%ers. Early morning volatility, afternoon we'll rise further. GLA

[vitec] 06/6/2017 08:13

The MM's are paying .5911p so they want stock. I have been caught before selling into the news whilst those that understand what is going on sit on the sidelines. I have been doing this for more years then I care to remember and this is definitely one to sit back and wait for the rewards, however long it takes.

[mike_f] 06/6/2017 08:10

Yes, early morning sell on news brigade, expecting this to rise further today and throughout the week with new investors coming onboard.

[jungmana] 06/6/2017 08:09

Prem is worth at least 2p (£100m market cap) right now.World class Zulu, circum, rha,tct

[vitec] 06/6/2017 08:08

Market and PI's have reacted as usual with the normal "take a quick profit". Once the dust has settled and their is a better understanding of the news my expectation is the share price will rise further.

[edgein] 06/6/2017 08:03

Wow, massive, simply massive. 500k tn of LCE at around $9k per tn. They also think that there's upside of 60-80m tn compared to maiden resource of 20m tn! So no wonder they think its world class it could be 3-4 times larger than this! $4bn+ is a lot of lithium and a lot of tantalum. Do we really need to get it 3-4 times larger? :)

Regards,
Ed.

[vitec] 06/6/2017 07:55

I agree in the short to medium term this maybe the case. With a world class asset and lack of finance you tend to use it as security. Darwin and the like only lent money to PREM on the back of the stake in Circum (another world class asset)not on RHA. RHA should provide the ongoing cash flow to fund the other projects but I suspect Zulu is going to need more money than the RHA cash flow can provide. Anyway let us bask today in the good news. The future will take care of itself. George has a lot to gain personally from this working so I am sure he will look after all of our interests!

[mike_f] 06/6/2017 07:50

That's the thing vitec, with RHA now in production we shouldn't need to raise more finance for the further drilling campaign. That is where a lot of explorers get hit but we should see blue sky from here. Only a 1/3rd explored so far. Remains a long term hold and add in my book. GLA