Premier African Minerals Share Discussion Threads

[vitec] 31/7/2017 19:21

This is what George wrote in his annual statement to shareholders.

"I can assure you that as your chairman, and someone who has a significant shareholding in PREM, I am completely motivated to make sure all the funding arrangements we secure are designed to lead to the creation of value, rather than depress value. I take the opportunity of this year's annual report to make this point to both our existing shareholders and also to any new potential shareholders and that as we progress and develop value in our assets, finance through debt will become the preferred option."

He maybe a muppet in some shareholders minds and he maybe incompetent in the way this has been handled but he has far more at stake than any other individual shareholder. If he has got this wrong it is going to cost him a hell of a lot of money. I do not know George personally, so I cannot make a judgment regarding his truthfulness, I have to take him at his word. If this was coming from a CEO who owned no or little shares in the company I would feel considerably more uncomfortable. We need to remember that only last week the share price was languishing at 0.35.

[bittorrent] 31/7/2017 19:12

"Demand for other key battery ingredients, such as graphite and lithium carbonate, is also outstripping supply. The current shortage of lithium has seen prices double since 2015. Global lithium demand was 184,000 tonnes in 2015, with battery demand accounting for 40%. Analysts at Deutsche Bank expect demand to increase to 534,000 tonnes by 2025, with battery manufacturers accounting for 70%. Lithium deposits are found mostly in China and Bolivia."

[jungmana] 31/7/2017 18:48

Kirton- there is no way any placee would have shorted at 1p.

[billthebank] 31/7/2017 18:46

Had time to read the RNS now. Not exactly straight forward now is it? I was invested in WTI and thought they were the best thing since sliced bread until I noticed that we couldnt afford to service the debt unless the price of copper stayed at a reasonably high level. Needless to say it didnt! I exited and managed to get out reasonably well. Funnily enough their share price rose by more than 20% today and why is that at long last the price of copper is moving northwards!!!

So what have we here? well we have just given security to our new lenders and they are charging us 18%. Are we mad? Please explain to me who in their right mind would borrow money at credit card rates? Really guys who would do that?I know African potash need I say more? Actually there terms were worse but not a lot worse. Totally ridiculous.

Ok it is our intention to repay the debt back over 12 months. No mention of any arrangement fee but in light of the complexity of this repayment program it wont be small change. How much is that going to cost. Right repayments monies are being held aside and it is anticipated that £275K will be released on a monthly basis and if you notice this is linked to our share price. If the share price is below the subscription price of 0.77p then that spells trouble and already if we had to pay our first payment this month and our share price stayed at its current level for 10 days we would only receive £275k - (£275k X(0.77-0.52(approx)) ie approx £207K. Now YA has agreed subject to certain conditions to lend us $2.9M in two tranches and if we fail to make our monthly repayment YA will then have the right to convert any debt owing at a price value of 90% of the share price over a 5 day weighted period. Now if that happens and heaven forbid that it does we are totally stuffed as our share price will simply struggle to recover and we could be in a vicious downward spiral. IMO George did not look at all comfortable in the above pro active video and I believe that is because he did not expect such an adverse reaction to the RNS released today. Could be wrong but that is how it seemed. So definitely squeaky bum time. The question I ask myself is how long is a PEA likely to take as I believe this is so so important. Regarding RHA I believe that this is not as clear cut as first advised. From memory we were talking about in full production by Q3 but I will double check that. Now we are talking Q4 and of course the second tranche of money is kind of dependant on RHA getting its act together

At the beginning I said who in their right mind would borrow money at 18%? Well George you may have an agreement to build a stake in Circum but IMO we have our fingers in too many pies and we should just focus on RHA and ZULU. If there is a deal on the table then we should take it because you know what old son this could all go horribly wrong. Personally I am locked in now as today share price reaction has caught me completely unawares and it is only now that I have had the chance to catch up, Not a happy investor as George this is not what you and your company led us to believe was going to happen. Anyone think my glass is currently half empty? please please please place a positive spin on this as I need to hear good news!!!!!!!!!

[donald tramp] 31/7/2017 18:22

I'm part with you vitec, he was up against a time frame to buy the Circum shares and as there are multiple interested parties in Zulu if he commences with this PAE it just puts the pressure on them that if they are going to strike a deal you better up the ante as if you don't come close to what we want we will just start the ball rolling ourselves to evaluate and the price will go up further, so he's got the money to buy the Circum shares and excess required.

They don't even know roughly long the PAE is going to take, the reason being is that they haven't really done much about it. First question you would ask whoever is involved with that would be how much and how long. This is all a veiled threat to put the pressure on the interested parties.

I wouldn't be surprised at all to see a rns in the not too distant future that Zulu is sold.

[vitec] 31/7/2017 18:01

I don't think so hitman. My expectation is that the extra work will be carried out at Zulu and this will add substantially to the value. George will then be keen to do a deal and extract as much value from Zulu as possible so he can continue to invest in Circum. He does not have 2 years to do this as the distressed Circum sellers are wanting to sell now. Once it becomes clear that Zulu is worth considerably more than the whole of the MCap of PREM it will rise and I suspect it will rise fast akin to what we saw last week. My time scale is somewhere between 3 months and 1 year but I do not have a crystal ball and I could be way off the mark.

As NY Boy has said if you are not a distressed seller, can invest more funds into PREM you will be rewarded in time if you are not in a hurry. 2p has always been my benchmark and I would at that point top slice. With 690 million extra shares coming onto the market we need large volumes traded each day to allow the seller to sell the stake they have. As long as there are willing buyers I see the share price stabilising but could spike on positive news from Zulu.

I like most posters are exasperated with the news today but having watched the interview with George I can see why PREM have done what they have done and I am a little more comfortable with it even though I have taken a huge paper loss to my portfolio.

[kirtonender9] 31/7/2017 18:01

Jungmana I should imagine the placees are quite happy. They no doubt shorted the stock at 1p. Talk abt a guaranteed 30% gain.

[ny boy] 31/7/2017 17:17

It bothered how long it takes, big gains can come in days, weeks, months years, different stocks, different agendas

Managed to buy 0.5p, happy with that, as don't need to sell in the short term

[thehitman1] 31/7/2017 17:12

waiting for 2p here could take another 2 years maybe??.

[jungmana] 31/7/2017 17:02

Edgein - anyone with a 3 months view here and not 3 days should at least get 100% profit from 0.50p.The quick profit traders are the reason for the plunge and I think should slowly bounce from here.

[edgein] 31/7/2017 16:46

Thanks Vitec, had missed that. Interesting interview. Gonna take a while longer than folks had recently hoped but the company is in a strong position to move Zulu forward.

Regards,
Ed.

[ny boy] 31/7/2017 16:31

Added more stock@ 0.55p ffs, cheap as chips!

Same with CHAL

[vitec] 31/7/2017 16:27

Ed, go up a few posts and you will find it

[edgein] 31/7/2017 16:26

Hi Vitec,

Have you got a link to the interview please? Thanks in advance.

Regards,
Ed.

[vitec] 31/7/2017 16:07

Ed, look at the interview.

[vitec] 31/7/2017 16:03

Whose Colin? are you sure you are on the right BB. You are not on the XTR BB!!

[sigora] 31/7/2017 16:02

jusr the mere mention of ya has washed away all the momentum from last few days well done colin

[edgein] 31/7/2017 16:00

It was certainly a mixed bag that RNS, placing price quite good. Increasing holding in Circum, excellent. Putting back deal on Zulu until its fully appraised, excellent, get multiples of the price once increased from 20Mt to 80Mt+. Using YA not so bloody good, 18% interest on the funding and a 90% VWAP also not so bloody good!

Regards,
Ed.

[vitec] 31/7/2017 15:54

George in the interview has stated that he believes the value in PREM is Zulu and Circum and that even though RHA and TCT are part of the portfolio that is not where the real value lays. It was a good interview and as long as you are willing to accept what George has said and stay invested, then you should get your rewards in time

[aussieb3] 31/7/2017 15:39

Seller coming In now