Premier African Minerals Share Discussion Threads

[1madmarky] 03/7/2017 11:52

I am also hoping for a sale, maybe retain 10%, but at the moment it's a commodity in demand so monetise ASAP , as you never know what is around the corner.

[edgein] 03/7/2017 10:41

Mad,

Was thinking the same thing. Since discussions are well advanced for a Zulu partner (expected this month) and they're getting the most encouraging mineralisation in cores to date (from the unreleased ongoing drilling) then they hopefully will stay suspended until these negotiations conclude. Then only current shareholders will benefit. Hopefully instead of a partnership they'll sell the $bns of lithium straight off, a few hundred million would do the trick, especially as lith price is expected to head north by year end.

Regards,
Ed.

[1madmarky] 03/7/2017 10:30

Who needs a fad diet....... just invest in an aim company!
Would be nice if it stays suspended until we have something concrete wrt zulu or circum.
Oh well back to the day job

[bushranger] 03/7/2017 09:53

Regardless of how difficult they are, missing the deadline for the accounts is a huge red flag.

[edgein] 03/7/2017 09:52

Donald,

"These are expected to complete toward the end of August 2017 and we then expect to see production accelerate to the predicted levels of up to 10,000 metric ton units per month in the later part of 2017."

All of the upgrades for RHA are to be complete by the end of August. Once complete that allows for the increase of production up to 10,000tn per month. Peak production isn't anticipated until Q4. But with all upgrades complete by end of August its likely the acceleration will be very rapid. Even though we're owed in excess of $20m by our partners in the mine, this while a very good asset, is only a distraction to the events at Zulu. Good to see grades coming in at currently 35% higher than anticipated and that there's not problem in demonstrating profitability and production of a 60% concentrate.

"During the optimisation process to date, the mine has demonstrated the capability to operate at profitable production levels on an instantaneous basis."

The main event is Zulu though, not just moving towards full production after end of August:

"Ongoing drilling at Zulu has yielded most encouraging mineralisation in the core and we confidently await assay results in the expectation that this will expand the compliant resource and add substantially to our initial confidence in this world class deposit."

"Premier is involved in evaluation of proposals for the future development of Zulu and expects to conclude the negotiations during July 2017. Zulu already ranks in the top 12 lithium pegmatite explorations and we confidently expect this region to challenge the largest deposits of this nature in the world as exploration progresses."

Regards,
Ed.

[billthebank] 03/7/2017 09:40

Sorry guys but Although some are dressing today's RNS as good news it clearly is not.Problems clearly at TH A .Look at previous RNS 're ramping up production.Also don't like the comment a drain on our cash flow!! At least there will not be a placing.Non dilutive financing sounds good.Hopefully not Darwinesque again.As for Zulu does sound interesting but do remember it is ZIMBABWE. Circum looking good but Manyana.Looking forward to the interesting news being excellent news 're Zulu but I am cautious after today.Personally believe this will get hammered on opening if done this month unless this issue was already in the the ether and thus the selling reason? Personally as a holder NOT HAPPY

[shapido] 03/7/2017 09:34

When I first invested, many moons ago, it was about RHA, and GR has not delivered, I dont think he ever will.Will have to wait for Zulu line u said, I'm so underwater in this, can't be helped, but wait.

[donald tramp] 03/7/2017 09:28

For avoidance of doubt:

"By its nature, the optimisation process is not necessarily a time of continuous operation and this has been the case at RHA. Certain issues have been identified during the optimisation phase and these are in the process of being attended to. These include minor upgrades to certain components to allow continuous operation at the higher tonnages now possible following the commissioning of the X-ray sorting system. These are expected to complete toward the end of August 2017 and we then expect to see production accelerate to the predicted levels of up to 10,000 metric ton units per month in the later part of 2017. Whilst attainment of this production level remains dependent on continuity of grade and plant recovery, the experiences we have had over the past two years and the developments in our resource estimations and underground mining, add a level of confidence to this expectation. RHA has been a drain on cash resources but we continue to believe that this is at a turning point and we expect positive cash flows from this operation later in 2017."

[vitec] 03/7/2017 09:16

Shapido it is not now about RHA. It's about Zulu and Circum. News about Zulu, a company making asset will come before any news about RHA. Reading between the lines, George is very happy about how things are panning out and our rewards for our patience will be coming in the not too distant future.

[vitec] 03/7/2017 09:01

Minor upgrades will be completed by end of August with production ramping up thereafter into the later part of 2017

[shapido] 03/7/2017 09:01

We all know what q4 2017 means right, q1 2018, jam, jam jam, then the whole cycle starts again

[donald tramp] 03/7/2017 08:58

Edgein.

Have you read the RNS, nowhere does it say production from RHA expected to be up towards max around end of August!!

[edgein] 03/7/2017 08:27

Very interesting comments for the finals, shame about the slight tech issues giving the short term delay in publication. So we've the possibility of completing a deal on Zulu this month and it currently ranks in the top 12 in size, potentially much larger when they get results from the remaining 65% of strike length not included in the maiden resource report. So no wonder they're in discussions at present. Won't be surprised if the company in question is Chinese or Japanese. Also good to see that RHA going as planned and production expected to be up towards max around end of August. Circum making good progress on its world class pot ash asset too! Very good report, we just need it out. :)

Regards,
Ed.

[mike_f] 03/7/2017 08:11

Delay on accounts not great but what a superb update on events:CEO, George Roach commented: "We did not anticipate the complexities that would be associated with certain valuations required for audit purposes, nor a requirement for independent valuations of Darwin Loan Notes, particularly as these had all been converted shortly after 31 December 2016. We deeply regret this delay, which should be resolved in a matter of days. We have published extractions from my statement to be contained in the financials to provide updates on various projects and I have just a few comments to add. Premier is involved in evaluation of proposals for the future development of Zulu and expects to conclude the negotiations during July 2017. Zulu already ranks in the top 12 lithium pegmatite explorations and we confidently expect this region to challenge the largest deposits of this nature in the world as exploration progresses. In regard to RHA, it is important to note that the plant is running and production continues. In Mozambique, it is pleasing to note that whilst TCT is self-sustaining, the issue of cutting licenses to registered concession holders following a period of national suspension, should see exports accelerate and profits in line thereof. I have also noted that with the Group developing as it is, future financings would focus on non-dilutive debt transactions as far as possible."Looks like Zulu may have a partner sooner rather than later :)

[tidy 2] 03/7/2017 08:01

Hope so for holders. Atb.

[pauliewonder] 03/7/2017 07:53

Yes it's poor that they couldn't get the accounts out but only a few days delay. Second RNS confirms review for ZULU and possible own listing. Could see major upside regarding ZULU after the review

[vitec] 03/7/2017 07:53

Tidy I would agree with you that this is PREM all over. However, they have noted how the market and PI's would react to waking up to a suspension by issuing the Chairman's statement prior to publication (states within days this will happen. Having read the statement I am happy to see that everything is progressing and my expectation is that when the shares come back from suspension they will rise on the back of that statement. If PREM has the ambition to be a much bigger company then getting things like the publication of the accounts right and on time is an absolute must. Let's face it, its not an event that happens that you don't have control over, you know the date it has to happen well in advance!

[tidy 2] 03/7/2017 07:43

Classic incompetent Roach.

[gavinbell] 01/7/2017 10:54

we are too cheap and very low mcap compares to our huge assets and producing assets too. I spoke to broker recently and they said they not aware of any placing. they are not surprised share price is a bit low, acknowledging that summer lul hence low volume and large spread.

my take is that, there are many traders here and hence share price swinging when they jumping in and out. derampers will find excuse by spreading placing rumours, even though they is none at the moment.

I for one, will be adding more next week as good news is coming very very soon. it may surprised some here.

[highly geared] 30/6/2017 16:17

Absolute steal at these levels. As very well articulated above, Prem should be 5x the current share price. Once the market gets confirmed news on RHA sustained production and debt repayment, this will fly.
Zulu is moving slowly but will be a world class resource in due course.

[1madmarky] 30/6/2017 10:19

2 * 1 share trades

[tedoby2] 30/6/2017 10:04

At Nameplate & Steady-state of 10,000 mtu's/month APT RHA should be shipping approximately 160 tonnes of Wolframite/month at near 70% grade now the new sorter's on line

Given a lorry carries a 20 tonnes payload so we should be making 8 deliveries a month at that stage.

The annual revenue should be roughly $26m and the profit should be around $12m/annum or $1m /month even taking into account payments to an off-taker whether it's Noble or another.

With 4.5bn shares in issue that equates to an EPS of $0.0027 and given a LOM of around 40 years we should be looking at a P/E of at least 10 to give us a share price of $0.027 At today's exchange rate that gives us a share price around 2.3p.

The debt we're owed by our mining partner should take 3 years or so to pay back at the above rate unless an alternative agreement is reached. So until then and based on the fundamentals at today's prices and based we should be looking at a share price of circa 2p for from RHA alone.

Nameplate & Steady-state is scheduled to be achieved in less than 8 weeks and I understand we are on schedule.Commercial Production could be announced any time between now and then.

AIMHO

GLA