Premier African Minerals Share Discussion Threads

[barnetpeter] 15/9/2017 10:53

good news lol and the sellers rule.

Just so much dilution.....so many new shares issued.

[1madmarky] 15/9/2017 09:42

Thanks Ed, was running it around my brain thinking wtf! Cheers

[edgein] 15/9/2017 09:33

Put it this way, its much better to produce 5500tn of profitable ore at 0.47% than 7000tn of profitable ore at 0.2% assuming the recoveries are roughly equal as you're looking at around twice the contained metal.

Regards,
Ed.

[edgein] 15/9/2017 09:27

Mad marky,

Yes that is exactly correct, AISC has gone up as its now a purely underground operation, therefore breakeven tonnage has gone up even with the higher grade. Now once you reach that tonnage the over and above to reach max plant capacity is much higher grade therefore after breakeven its much more profitable. Exceptionally so in this case where pit material averages around 0.2 and underground material averages as of today around 0.47% up from between 0.3-0.4%. That's highly positive increase in the overall grades for the underground ore and for the cash flow from this operation. Its changed the mine plan to focus on the high grade material first. So great news as RHA is to reach optimised production just next Q at a time when tungsten prices are flying. Hopefully that clarifies my previous post for you.

Regards,
Ed.

[1madmarky] 15/9/2017 09:15

Ed post 4457, i really don't follow your logic. AISC have gone up, breakeven tonnage has gone up. But as the grades have gone up, the amount you produce has gone up...
I guess if we are significantly past breakeven volume the profit would accelerate faster. But so far optimisation has been tourtously slow. Volume has been too low to breakeven even at the 3000mtu volume. So not the best news IMHO. Fingers crossed by Xmas they will have sorted their lives out.

[edgein] 15/9/2017 09:08

Vitec,

Not sure I really go along with conspiracy theories, secret worlds etc. If all the financing shares were sold at this level and the staged financing occurs at 0.7p or above imo someone would be out of a job. Yeah the circum seller was around for a while with over 200m shares, they're probably all gone as if they want to sell Circum shares on the cheap they probably also didn't want to hold 200m+ PREM either. But I cannot answer for them. Other than that it now looks like daily churn today.

Regards,
Ed.

[vitec] 15/9/2017 08:52

Ed, I agree that it could be a dangerous strategy but these guys work in a secretive world where they have no concern other then for themselves.

All of the sellers of Circum shares that have received PREM shares have sold under market value.

I am not convinced that there is not a background seller and that it is not connected to the YA deal. I, of course stand to be corrected but from what I can see the only outstanding shares are the 685 million that now does not have a 30 day lock in attached. I will bow to your superior knowledge if you are aware of other unaccounted shares.

Regards

Vitec

[donald tramp] 15/9/2017 08:50

edgein post 4457

good post.

[edgein] 15/9/2017 08:48

Mike yes perfect storm of producing tungsten from RHA and proving up huge tonnage at Zulu. Price has a lot of catching up to do even for RHA alone.

Regards,
Ed.

[edgein] 15/9/2017 08:47

Bill,

You'll find that it costs more to run an underground operation than an open pit. Read the RNS'. Plan was to run open pit and mix it with some of the underground mine. However the above plan suggests its all now underground because of the high grades, therefore AISC increases for a purely underground operation. However its much better to produce ore averaging 0.47% than ore from the pit at just 0.2% especially when the tungsten price is flying. This is very +ve, yes breakeven rises slightly but profitability can rise hugely when average grades are almost 0.5% and high grades at just over 0.6%. I haven't seen one AIM miner producing grades at this level, WRES for example are producing from a European (higher AISC than Africa) at grades less than 0.1%.

Regards,
Ed.

[mike_f] 15/9/2017 08:42

Lithium price up again for the 4th consecutive day to $138. An increase of 58% this year alone.

[billthebank] 15/9/2017 08:41

sorry guys I am clearly missing something Has anyone looked at May RNS break even was 3000 tonnes. I am at a loss in more ways than one

[edgein] 15/9/2017 08:37

Vitec,

Again that would be a dangerous strategy. For example what happens if PREM do get past breakeven point earlier than expected with the rising ore grade and increased APT price. Then follow up with more results at Zulu and Zulu SE and for example you've sold most of your 695m shares around this level then to find the financing allows shares to be place at 0.7p or above. On good news these can do over 1bn volume as we saw again recently when they discovered Zulu SE! Dangerous strategy to forward sell many of these. GR could pull the trigger on a Zulu deal at any time, he almost did when we just had 35% of the strike drilled and no Zulu SE! gonna be an interesting end to the year from both RHA and Zulu. Perhaps even APT could be $350-400/Mtu by then.

Regards,
Ed.

[edgein] 15/9/2017 08:30

To have the underground resource now averaging almost 0.5% tungsten is super. No other AIM tungsten miner that I've seen comes close to that for production. THR does but its not in production yet in the USA.

Regards,
Ed.

[vitec] 15/9/2017 08:29

Donald, we have had this conversation before about a predator. This could be the strategy. Build up the assets and then let someone else have the hassle of making the assets work.

RHA is a case in point. Look how difficult it has been to optimise the mine and 20 million US dollars later it still is not working profitably.

The Mcap is far to low. We all know that but if I was seriously interested in purchasing the whole of PREM I would still wait until I had a clearer picture of what is going on with the assets. Companies that are undervalued by the market all of a sudden become valuable when a bid arrives as it flushes out other bidders or a reevaluation takes place. If you were a bidder what would you bid? 50% above the SP, 100% above the SP, 200% above the SP? If you are a listed company with shareholders you need to have a compelling argument to spend their money by paying such a premium.

The truth is any of our assets now RHA, Zulu or Circum are worth the whole of the Mcap of Prem as we stand. As we re-rate each of these assets will bring a valuation to the table and will increase substantially the Mcap.

The share price is suffering because there is still a background seller. If I had 685 million shares, knowing that a low share price helps my cause and makes me money then I would be selling some of these shares into the market in the knowledge that I will profit long term by taking a short term loss. As seen, small blocks of shares brings the share price down. The MM's know that if they let the share price go there will be a flood of selling. Until the seller has finished and their agenda has been served we will not in my opinion see any significant headway. I take you back to the last time the share price surged. We had a RNS to say that Darwin had sold all of their shares followed by news of drilling at Zulu. End result was the share price rose from .35p to 1p over the course of two sessions.

It is clear to me that once the overhang has cleared and with positive news the share price will start to make significant headway. Until that time, sadly I think we will be mired unless we get a stellar RNS regarding Zulu.

[edgein] 15/9/2017 08:26

Read the release mine will be optimised in Q4 for max production. Both grades increased substantially with samples now between 0.5-0.6% up from the best grades in the past at about 0.42%. Like GR commented much easier to get the operations profitable from higher APT prices and higher grades. To focus on the high grade underground over the pit operation is a wise move when APT is this high. The more concentrate they can get from the same amount of processed ore the better. Running the mine on 0.6% ore rather than 0.2% from the pit is a smart move right now.

Regards,
Ed.

[doctor 69] 15/9/2017 08:24

Dodge , too inpatient , this will be up a lot b xmas

[billthebank] 15/9/2017 08:24

In May

Breakeven production of wolframite occurs at 3,000 mtu per month and the plant has already achieved and exceeded this production level but not yet on a sustained basis.

[billthebank] 15/9/2017 08:24

In May

Breakeven production of wolframite occurs at 3,000 mtu per month and the plant has already achieved and exceeded this production level but not yet on a sustained basis.

[sleveen] 15/9/2017 08:22

To keep feet on ground if APT price is $310 then the WO3 60% concentrate price will be around $240 per contained MTU.

[bushranger] 15/9/2017 08:19

From my reading RHA still yet to be profitable? Cash from this was touted to be rolling in months ago, will it ever be substancially profitable?? Are we about to see another dilution to buy more Circum. I would not be suprised!

[donald tramp] 15/9/2017 08:11

I know you hear all these stories all day long on AIM about take over target etc etc, but surely we are sitting ducks down here.

[cambradjones] 15/9/2017 08:11

And another 11% rise wiped out in mins. Frustrating.