Premier African Minerals Share Discussion Threads

[moljen] 04/1/2019 08:50

Watchlist is probably best place to keep it as far less costly than actually owing shares in it - for such an awesome company the share price only seems to respond in one direction. As a study in confirmation bias though it's actually quite fascinating.

[aidenabettin] 04/1/2019 01:31

No probs. I have it on watchlist alert so will keep an eye on it to see what happens if anything. Very interesting though to have an identical company name registered and in the same sector of PREM by a teacher who knows the region through education and not mining

[napom] 04/1/2019 01:18

It costs £15 to register a business...why dont you ask the guy who registered it. Nothing to do with the conpany or members of the board.

[aidenabettin] 04/1/2019 01:06

You seem to know whats going on with PREM through your concert party yet wont comment on the private company that was registered in August..Why was it formed?

[napom] 04/1/2019 01:03

Since the group was formed, we have made the company reduce the directors salary significantly and half of it is taken in shares which to my knowledge has not been taken up otherwise we would hear about it via RNS. Why do you think the company has lasted this long without a raise?? If working capital is required, the company has promised us that a placing will be the last thing on their mind as the share price is too low to raise. Access to arc shares are there if needed for short term capital. The anticipated IPO for NewCo will be enough to fund PREM for 2019...getting funding from the Zim govt is icing on the cake..but the cake itself is Circum IPO due to happen in 2019..need to happen soon to meet their self imposed deadline for production...research new magazine article published in Nov 18 if you need proof. The board knows that a group wih a significant holding is watching their every move and will not tolerate any more disregard for its shareholders.

[napom] 04/1/2019 00:42

For balance, Im not happy that holders have been made to wait and see their holdings disappear just for RHA. GR will probably argue that he didnt know that the govt would take its time to resolve the equity issue. For me this is no excuse as there should have been a plan B. But we are where we are and new investors have an excellent opportunity as the share price has reached the botttom. Many holders who Im associated with will not sell at this low share price ..no matter how the trolls spins it. Our holdings (15%) together with GR & associates (8+%) combined at 25%+. Other holders I know who are not part of the group hold about 7%+. Significant holders with 50m, 70m, 100m and 160m are holding for he big pay day. Why listen to a troll like Val who has admitted that he doesnt hold PREM at all?

[aidenabettin] 04/1/2019 00:39

Why has a private company been registered?.https://beta.companieshouse.gov.uk/company/11502726

[napom] 04/1/2019 00:29

If the govt can fund RHA back into production and the amount Im hearing is huge..this will make NewCo a lot easier to fund and less of a dilution to PREM holders. The 20% required to pay for KME assets is not convertible for 2 years.

[napom] 04/1/2019 00:12

Zim Govt has issues with the lack of foreign currency access to its people. It doesnt mean that they dont have the money to invest in companies like PREM. The budget, which has come into effect in the new year, will give prem funds (indicated on the 24th Dec RNS) to bring the rha mine back into production.

[valhalla2017] 03/1/2019 13:16

Tedoby - we definitely do have opposing views on prem :). the thing is that my issue is not with your opinion (as you can see I take the time to read them/think about them) but that the whole concept of prem at this point is just a falsehood. I honestly believe that GR has misled the market and that the information in the RNS is very economical with the truth.

As a result, your posts which are based on the RNSs and the information provided by the company don't reflect the reality of prem because unfortunately due to GR, the information he provides to the market does not accurately reflect the realities of the company.

I have talked to GR several times, attended several of the investor events etc...and I can tell you that there are many many inconsistencies in what he says and what later occurs. Anything from misleading investors about RHA progress, to cash in the bank, to this deal with KME. I'm sure you know but it was KME at RHA back in 2017 when GR was telling us that it was going to be profitable. Then it turns out it is not profitable. Under normal circumstances someone is responsible - either GR for poor oversight or KME for misleading GR. well what happens 11 months later. GR is still CEO and he awards KME with 20% of prem to work on RHA again. The thing is that GR has never been transparent about KME because he knows it looks bad.

And if you look at the recent issues with the doctors/nurses and the small sums involved you realize that the gov't honestly doesn't have any hard currency. They are not putting money into a junior mining project whatever GR says.

I work with two large import/export banks on a fairly regular basis. And honestly haven't seen one equity loan to a junior mining company. Maybe Afreximbank really does have different criteria/risk rations...

That Circum update msg on the LSE board that was removed was mostly true. I know for a fact that the debt portion is not complete - and yet GR has alluded and allowed investors to believe it is because most shareholders hope that once the debt portion is done then the next step is IPO. but if GR was honest and said that the debt portion is not done, well then there is no certainty when the IPO will take place.

And lastly (cause this is a marathon of a msg. apologies!)Prem has no money at the moment. what do you think is going to happen in the next couple of weeks. GR will do the only thing he knows how to do. He will do a placement at some massive discount so he can continue collecting a salary and keep the lights on. I heard in mid-Dec that GR was sussing out various options for a placement. tbh honest I'm surprised we havent seen it yet. either no one wanted to bite or the discount they were offering was staggering. not exactly reassuring...

[tedoby2] 03/1/2019 10:45

No Val. I'm not close to GR and neither am I a member of any of the groups of investors that have formed so I'm never likely to have any different information than any shareholders of normal ranking.

I think you will agree that you and I have opposing views on Prem. That's fairly clear to me anyway but it's not necessarily a bad thing in some ways. I'm able to respect your opinion even though I may not agree with it sometimes and I hope I wouldn't be asking you for too much to ask you to show me the same courtesy.

I was aware of the relationship between the pit and the existing shaft at RHA by the way. But as I see it if the new incline is constructed timely it isn't going to cause a problem and in any event there's at least one civil engineering solution to it if needed.

Thanks too for your thoughts too on Afreximbank. Perhaps needless to say mine that mine are quite different.

[valhalla2017] 03/1/2019 10:01

Tedoby - I might be wrong (since I' not familiar with Afreximbank) but most export/import credit agencies don't really do equity. and when they do, they definitely don't do equity in junior/exploration mining companies. And on top of that, they usually don't do straight lending on commodities. it would have to be tied the purchase of goods/services and prem is a miner. and technically it's not a miner but a junior exploration company.

Is there something specific that GR has mentioned to you with respect to the involvement of Afreximbank?

[tedoby2] 02/1/2019 22:15

This link may be of interest



GLA sincere holders.

[valhalla2017] 02/1/2019 14:56

tedoby - I think you missed out a crucial element from the rns's. GR states that " any significant extension to the open pit in an easterly direction will interfere with the existing vertical shaft".

also, all this Zim gov't to fund RHA. The Zim gov't does not have two nickels to rub together. but let's imagine it did. The NEWCO proposal that is on the table indicates that the Zim gov't will only get to keep 10% of prem's current stake of RHA (which will further get diluted once NEWCO lists). Can't see the Zim gov't agreeing to that. So is GR trying to renegotiate the NEWCO structure now without informing shareholders? and how does KME feel about all of this. I would assume they agreed to certain valuations based on the original % splits...

I know folks like to say things like 'Zim gov't to fund RHA' but as you can see from the complete lack of buying following that mention from prem, the market realizes that GR is grasping at straws and trying to muddy the waters so he can get his placement off and continue enjoying his lifestyle.

[doctor 69] 02/1/2019 12:48

Tedoby Awesome Thanks for the analysis

[tedoby2] 02/1/2019 10:22

We have been told that both Prems and KME have completed their DD and regardless of the Governments position both have agreed to proceed to a formal framework agreement. We were also told that when all conditions are met, the transaction will result in a direct distribution of Newco shares on a pro rata basis to holders of Premier shares when shareholder consent is granted, and Newco shares are admitted to trading whilst at the same time retaining their shares in Prem which effectively be Circum at the moment.

Both parties have shown signs of considerable confidence in starting the formal process before the official sign off by the Government and at the same time the parties have effectively removed the “Governments” action off the critical path. So as it stands although it’s frustrating right now it’s simply not affecting Newco’s time-line.

I also believe that drilling and mapping the mines resources has been on going and Prem must now be in a position to be able to complete a comprehensive analysis if that hasn't been done already. That will no doubt be critical information needed for in the Newco process which along with RHA’s revised ownership confirmation should allow a fair valuation to be assessed for the mine.

From what’s been identified and can can be extrapolated we know that the ore strike in the pit runs generally on a line of latitude with grades being the weakest furthest from the underground shaft but improving significantly in a direction towards it We also know that the grades improve significantly again as the deeper ore blocks are identified both in the pit and in the underground mine.

What the current Bara report and the minimalist cost appraisal tells us is that taking the worst case the mine will be profitable at today’s costs and values by just extracting from the exposed ore blocks in underground mine and as far as it went the report has done what was called for. That is to demonstrate that in the worst case scenario RHA can be profitable in it's simplest guise and give the owners the confidence needed to bring the mine back into production.

So the drilling campaign will have to delineated the ore bodies both on plan and depth which should then enable a reasonable valuation of RHA to be made, But perhaps more importantly to enable the design of the new pit walls to be finalised and to develop a best value mining plan overall.

The fact remains that there are savings on "Cash Costs" of around 25% anticipated from KME being the operators of the mine which will help in any appraisal.

I had thought that in the longer term there was very little doubt the inclined mechanised shaft to extract from the underground mine would have come into play as will improving ore grades extracted from new stopes at depth.However my thoughts on it have now been changed by the Governments potential offer of finance. The Government's offer although possibly subject to certain criteria must have been sincere otherwise why would they have made it especially and significantly when it hadn't been applied for or even mentioned by Prem.

Finance from the Government if significant is likely to change the mining plan and we may well see the option and timing of constructing the new underground incline being favoured and brought forward. Both the MOI and the MOM will recognise the importance of doing that I've no doubt and optimisation is almost certain to feature in the finance discussions.

But that's not the only implication the finace support could have. Subject to timing and how much obviously but it could make the whole process of forming Newco virtually a "fait accompli" from a financing perspective. Viz from the 7th November 2018 RNS "The Acquisition is conditional, inter alia, on Newco raising up to US$6 million, in either debt or equity, with such assistance as may be required from Premier, at or prior to listing to support the immediate re-commencement of underground mining." It should certainly ease the pressure on that precondition at the very least.

When the time comes to reassess the value at RHA in the coming weeks I’m hoping that there will be sufficient data to place a reasonably accurate value on the mine the proposed 16.000t's/month ROM milestone in Newco being within 6 months after the re-commencement of mining operations and to value RHA the IPO point too.

The 16,000t’s/month ROM at RHA should produce at least 5,000t's Mtu’s APT/month. The underground mine rate should be around 6,000t’s/month at roughly 0.55% grade and the other 10,000t’s/month from either or both the pit and the tailings should produce grades of not less than 0 25%. The saving on cost with KME as the operator should reduce the break-even point to around 1,500 Mtu’s APT/month.

If all of that’s about right we’re looking at a monthly net profit of $600 and an annualised profit of over $7m at todays prices. Applying the earnings metric that would give RHA a Market Cap of $70m using a p/e ratio of 10. In the likely event of the "spin - off" and Prems current shareholders retaining 50% to 60% of RHA's value that a notional and representative Market Cap of around $40m which at the current exchange rate and with 8bn shares in issue say (for simple maths) that would represent a share price contribution of 0.4p from RHA using todays criteria around the end of Q2 this year.

Forward projections but using todays criteria the mine should achieve it's designed ROM rate of 40,000t’s/month with a 0.35% grade from the 3 combined sources. At that stage using the same earnings metric that would give RHA a Market Cap of close to $250m applying the same p/e ratio of 10. Again if Prems current shareholders retain 50% to 60% of RHA's value that a notional and representative Market Cap of around $140m which at today's exchange rate and with 8bn shares in issue that would represent a share price contribution of 1.40p again using current criteria in little more than a years time.


AIMHO

GLA sincere holders.

[wallyjumblat] 01/1/2019 20:36

Oh that explains a lot I will filter him.

[ihavenoclue] 01/1/2019 20:03

Val used to indulge in meaningful debate with other derampers on lse but then it turned out that several of them were himself so he ran in shame to here where he now just has conversations with himself. You are not supposed to get emotionally attached to a share ... Val has gone wayyyyyy past that :)

[frost1] 01/1/2019 15:52

I seldom look at this anymore as discussion forum has been destroyed by Val's constant rantings.

[maock] 01/1/2019 12:20

I see the thread has been taken over by the idiot val.

[valhalla2017] 31/12/2018 19:49

my buy in price is .03ish. I have a cool 500 quid set aside. have to say when I started I would have never believed my posts would have such an impact on the share price I'm thinking a couple more months of posting and I should be able to get my buy-in price. anyway, off to enjoy the festivities. happy new year folks!

[wallyjumblat] 31/12/2018 16:46

Val,

You seem obsessed with this Company, are you invested ?

[valhalla2017] 31/12/2018 10:49

How happy is GR re the economic slowdown in China? Over the moon!!! Now he has a built-in excuse he will feed shareholders as to why Circum is delayed. He can easily now run on 'these are tough (and unexpected) market conditions but prem is committed to finding innovative solutions to move the company forward'. And by innovative GR means doing placements to pay for some useless drilling at RHA. and for all his wisdom and guidance he'll collect a cool 300k again.

[valhalla2017] 30/12/2018 18:44

One more day until prem runs out of working capital. What will GR do? Oohhh. The anticipation!!

[valhalla2017] 30/12/2018 18:44

One more day until prem runs out of working capital. What will GR do? Oohhh. The anticipation!!