Premier African Minerals Share Discussion Threads

[vitec] 13/8/2017 17:48

PREM will never have enough cash to develop Zulu by itself so a JV with Zim Government involvement or a separate listing are the most likely options.

I have already written about George sticking the PREM stake in the ground and at some point accepting an offer that allows the PREM strategy to unfold. I suspect on the 17th it will become clearer when George does his presentation.

I have been giving thought as to why George went down the YA route?. I have concluded expediency played a huge part plus if we had been allowed to purchase more shares through Primary Bid then a huge number of shares would have had to be issued to give the monies required at that time. I have and still do believe that the financing was done in this way because short term it is not going to make a jot of difference.

We are now on the cusp of change. DT has laid out some ball park (conservative) numbers in terms of value. I concur with this value and have written many times that I believe we are valued significantly lower than we should be. The market and AIM in particular is littered with companies that trade below their net asset value. George's job is to correct this before an opportunistic suitor does it for him. This is not now just about Zulu and Circum in my opinion, but also about PREM's ultimate future. PREM has one of the hottest properties in Lithium with a deposit that would rank it 5th in the world and it is improving by the day. Every time the drill bit goes into the ground the acreage gets bigger. How long do you think it will be before a company with very deep pockets wants to have that asset within their portfolio?

If I was in a financial position to strike and I was confident of winning the asset that I wanted, who could dissuade me from wanting to bid for everything and then selling off the bits I did not want? To me, George's job is simple, outline a coherent strategy to investors, (I think we know what this is) execute the strategy and ensure that an opportunistic unwanted suitor does not get their hands on PREM and its intrinsic value BEFORE fair value has been had.

The financing of purchasing more shares in Circum (we are a long way from the target of 12%)also begs the question where is the money going to come from. The YA financing has gone down like a lead balloon, so I cannot see this happening again (but who knows). Could issue a load more shares (but George has stated he does not want to do this). Or you could get a large injection of cash that allows you to develop your strategy. The only place a large injection of cash can come from (without upsetting shareholders or diluting us considerably) is from ZULU. Where else could it becoming from? The 17th is going to be more interesting than ever. If George's presentation goes down very well then I would expect to see a large spike in the share price What then happens is anyone's guess as it maybe taken as an opportunity to raise more finance in the wake of what has been presented.

Whatever happens, I am here for the ride and hope that all LTH's get their just rewards from PREM, as at times it has been a real roller coaster ride but I believe those rewards are in the not to distant future.

[ihavenoclue] 13/8/2017 15:46

andrewsr .... good point .... selling a larger % to have a free carry and also cash to buy the remaining Circum shares would derisk Zulu and allow the extra value of Circum (whenever that may come to fruition)

Perhaps GR could split Zulu from the first asset and then the newly found second formation ?

Regards
IHNC

[andrewsr] 13/8/2017 09:55

I seem to remember Jubilee Platinum had (and still has?) a great platinum resource when I think the price was double current levels and still couldn't manage to do a deal.
I believe GR has interested parties, but if he isn't realistic we could be here in 3 years time arguing about 'what if ....'
I'm still very positive about the next few months for Premier and the current strategy is OK, but hope realism and not greed prevails.

[donald tramp] 13/8/2017 09:29

Had this been any other commodity than Lithium I would be of the opinion that talk of sale of the asset/jv etc vary rarely come to fruition and would agree invariably take for ever.

As this is Lithium there are deals being done left right and centre to secure the supply chain so I don't have any worries whatsoever that Zulu can't be put to bed quite rapidly and easily in the not too distant future.

RNS 7/8/17

George Roach, Premier's CEO, commented: "The current drilling programme has provided in-fill and expansion of the Main Zone, but more importantly, has identified a new zone with potential to exceed the already substantial resources and exploration target of the Main Zone. Samples for assay have been submitted to SGS and results will be published on receipt. These new substantial intersections of pegmatites with visually high-grade Li-bearing mineralisation in the south-east of the claims block area yet again confirm the potential of the Zulu Lithium Project and support the Board's decision to look to add value to Zulu before proceeding with any of the strategic offers Premier has received to date."

[andrewsr] 13/8/2017 08:43

A small % sale may satisfy the desire to buy Circum shares, but it probably wouldn't do much to cash in Zulu.
I think any deal for Zulu would need to be either an outright sale/listing or a JV with a company with deep pockets to easily fund its development. Otherwise, it could take years of feasibility studies to monetise Zulu and the chances of being overtaken by outside events would be very high.

[ihavenoclue] 12/8/2017 20:24

Jungmana12 Aug '17 - 10:49 - 3670 of 3673 2 0
DT - I agree. 2.4p is absolute minimum value here. Maximum I would say 10p ( about £500m market cap).
Take Pilbara minerals as a guidance. They have 156Mt hard rock lithium resource and are valued at near £500m today.
There if Zulu can get to 100Mt resource in 3 months time +circum +rha +tct. Then £500m market cap is very achievable here too.
Exciting 4 months ahead .

============

Hi Jung, yes it is possible. Perfect scenario would be GR doing a deal with a small % of Zulu which would give the cash to buy full allowance of Circum and put a value on Zulu and then for Circum to be sold and all the while RHA quietly ramps up production in the background so could form a perfect storm. Four months may be pushing it though.

Best regards
IHNC

[andrewsr] 12/8/2017 12:42

GR was hoping to include assay results in his presentation on Thursday.

[doctor 69] 12/8/2017 11:55

Any idea what we at hoping for this week , ref rns. Are they testing the % lithium in new samples ,

[donald tramp] 12/8/2017 11:45

Also just re-read the CV of Stephen Dattels Chairman of Circum Minerals, he's very used to playing in the £billion league building and selling companies out. Our Circum shares are a very safe bet and we also have a shared director, what more insight could you possibly ask for. Some people moan about the share swap, they don't have a clue!

[jungmana] 12/8/2017 10:49

DT - I agree. 2.4p is absolute minimum value here. Maximum I would say 10p ( about £500m market cap).Take Pilbara minerals as a guidance. They have 156Mt hard rock lithium resource and are valued at near £500m today.There if Zulu can get to 100Mt resource in 3 months time +circum +rha +tct. Then £500m market cap is very achievable here too.Exciting 4 months ahead .

[ianbag] 12/8/2017 09:22

Very conservative DT. I recall the LSE post where it was rumoured that one of the offers was around £50m for Zulu but that GR believed that was way too low. I am sure it will get interrogation on Thursday evening!

[doctor 69] 12/8/2017 09:09

Donald t , the figures look a reasonable way to look . Next week sounds interesting

[donald tramp] 12/8/2017 08:21

1/1/18 (conservative approach)

Zulu £50m
Circum £50m (no more shares purchased)
RHA £10m (only throwing off £100k month profit)
Everything else £1m

£111 m/cap, so share price of 2.4p

Simple numbers but in my eyes it's a simple equation of risk/reward and where we are sat now at £26M there is very limited downside risk, but the potential for very substantial upside that could make my figures above look paltry, but best to keep ourselves grounded.

Quite easy to see why the PREM team think this could 10 bag within 12 months.

[cambradjones] 11/8/2017 22:56

Think we did well to end the day flat.Roll on next week.

[mike_f] 11/8/2017 13:56

Very glad assays weren't released today, miserable day on the markets.

[cambradjones] 11/8/2017 13:27

10 million trade gone through, showing as a sell again but who knows.Strange that we have not had any intraday movement yet.

[mike_f] 11/8/2017 11:28

Quite a few million bought today actually just all below mid so show as sells!

[doctor 69] 11/8/2017 11:20

yes , many of the sells are buys . i bought 500k

[fund1] 11/8/2017 11:15

As anybody bought today?

[andrewsr] 11/8/2017 11:10

How would a separate listing for Zulu work - would that result in a pro-rata share issue to Premier shareholders or a cash sum (minus costs?) for Premier to be distributed as they wished? Thanks.

[dr jekyll] 11/8/2017 10:52

Cracking post DT. I like your style.

[frost1] 10/8/2017 21:07

European tungsten price up 9%.

[mike_f] 10/8/2017 21:05

We are dragonboy, assays due imminently. Tomorrow or Monday for the release IMO.

[donald tramp] 10/8/2017 20:26

Stephen Dattels Chairman of Circum Minerals

Just read his CV, and we share a common director.

He will be wanting a piece of Zulu, directly or indirectly, it's right up his street, watch this space.

Stephen Dattels is a seasoned senior mining executive and resource financier who has founded and/or financed numerous mining ventures in several continents in diverse commodities including gold, LITHIUM, uranium, copper, nickel, iron ore, coal and potash with Circum. He is also an active investor in oil and gas exploration in Africa and was one of the founders of two successful private African oil and gas exploration companies, Signet Petroleum Ltd. and Regalis Petroleum Ltd. Mr. Dattels is currently Joint Chairman of Fast Forward Innovations Limited, a director of LSC Lithium Inc. and the Co-Founder of Circum Minerals Ltd.

Mr. Dattels was a senior executive and director of Barrick Gold Corporation during its formative years, when it grew from a capital base of US$10 million to a market capitalization of US$2 billion when he left in early 1987. Since leaving Barrick, notable companies he founded include International Pursuit Corporation, which was active in mineral exploration in Southeast Asia; International Gold Resources Corporation, which developed and sold the Bibiani mine in Ghana; Caledon Resources PLC, which owned and sold the Cook coking coal mine in Australia; Oriel Resources PLC, which developed and sold a nickel and chrome mine in Kazakhstan to Mechel Steel Group for US$1.5 billion; UraMin Inc., an explorer and developer of uranium assets in Africa which was sold to Areva for US$2.5 billion; Polo Resources Limited, a natural resources investment company which has invested in uranium, coal and gold assets in Africa, Australia and Asia; West African Minerals Corporation, an African iron ore development company; and Regent Pacific Group Limited, a natural resources investment company.

Mr. Dattels has also provided directly or indirectly early stage funding for numerous resource companies through various investment vehicles, the most notable of which was Kalahari Minerals PLC which controlled Extract Resources Ltd., which developed the Rossing South uranium deposit in Namibia and subsequently sold the asset to two Chinese Government controlled entities for US$2.2 billion. One of such investment vehicles, Polo Resources Limited also owned 10% of Extract Resources Ltd. during its development stage.

Mr. Dattels is currently active as Chairman of Regent Mercantile Holdings Limited, a private investment company. Mr. Dattels has a Bachelor of Arts degree from McGill University, a law degree (cum laude) from the University of Western Ontario and has completed the program for Management Development at Harvard.