Premier African Minerals Share Discussion Threads

[mike_f] 12/12/2017 10:02

Bill, IMO that is saying to JV partners give me a good offer or we'll look to go it alone. All part of the negotiation process.

[billthebank] 12/12/2017 09:59

With all this talk re jv did anyone notice this comment? Confused

''we are encouraged by the changing environment in Zimbabwe, particularly that under new proposals related to Lithium mining, we will be encouraged to develop to Lithium Carbonate production and may retain sole ownership of the entire project.''

[mrphiljones] 12/12/2017 09:54

Lol spell checker,good luck with it Sir....😀

[edgein] 12/12/2017 09:46

Molatov,

Not exactly, you're left with a company with a tiny cap and two world class assets that recently raised $6m. Lots of assays to come, they've been drilling continuously on Zulu throughout 2017 and only drip fed a few spectacular assays to date with lots more to come. As dodge pointed out no more raising for RHA expected in 2018. Personally with recent events in Zimbabwe and them keep to attract investment coupled with the quality of Zulu I see this as far from a gamble.

Regards,
Ed.

[vitec] 12/12/2017 09:44

Phil, I think the word you were looking for is dilution but you are probably right writing delusion. It is easy to get deluded. I am happy to buy and hold. All I am doing is writing my opinion and possibly expressing that of others.

I could give you chapter and verse of how a CEO will attempt to build a company with other peoples money. The reason I initially invested was because George was the largest shareholder and I figured that what he believed was in his own best interest would probably be in mine. An alignment of goals so to speak.

Zulu is a monster and is getting bigger by the day. At some point, PREM needs to do a deal otherwise someone may take that option away and buy the whole of PREM for a song and LTH's will not see the massive benefit that this can and should provide.

[edgein] 12/12/2017 09:42

Vitec,

Well it'll be a good lesson to learn for some if they get over-exposed to any one stock. They should hold somewhere between 10-15, PREM isn't even close to my biggest holdings either. Key always has been buy companies that assets far exceed the cap, too many on AIM do the opposite of that.

The fact that we've raised millions towards the end of 2017 ($6m October/November) to fully upgrade RHA and to get it to planned production is a great move forward for RHA. As dodge pointed out no more placings for RHA next year and beyond as that'll be covered by tungsten shipments. Happy days I say. Traders not happy with that, no worries I hope they make a bigger % on their next trades.

Regards,
Ed.

[dodge city] 12/12/2017 09:36

Placing imminent imo.

[mrphiljones] 12/12/2017 09:34

Vitec nobody made you buy and hold you could have sold long before you did,quite how you thought they could move to this point without much delusion is beyond me fella,good luck with your next investment.....

[molatovkid] 12/12/2017 09:33

The problem for short term traders is that you are now left with PREM doing a deal with a partner or a takeover. That reduces it to a gamble - which people dont look ready to take.

[vitec] 12/12/2017 09:28

The point I am making about RHA is very similar to how some investors view a share. Plough money in, hope it will come good. It doesn't so plough more money in and hope it comes good and keep repeating the cycle on the basis that you reached the "point of no return" where you have already taken on a huge risk so a little bit more won't hurt.

Zulu and Circum will happen in time but getting RHA sorted, optimised and profitable has to be the priority. The share price tells you everything you need to know, the market is underwhelmed.

[dodge city] 12/12/2017 09:27

"Premier does not expect to provide any significant financing for future RHA operations after the 31 December 2017"

So another placing in the pipeline between now and 31st Dec.

No wonder the share price hasn't moved.

[chesty1] 12/12/2017 09:23

Folks diving in first thing won't be happy now!!!

[edgein] 12/12/2017 09:10

Wally,

Don't think it would have made much difference. PREM is one of the most liquid stocks on AIM. Look at the volume since October! Sellers taking their small % profits on news, very common on AIM especially on heavily traded stocks like this. It may take a deal that reflects the value of Zulu for a sustainable rise or a new lith discovery somewhere on the licence for another spike etc.

Regards,
Ed.

[edgein] 12/12/2017 09:05

Nicos,

Was the target not 6,000tn per month. That's what's been planned for some time. I can't remember seeing anywhere that we were to produce 20,000tn per month. World consumption is around 700,000tn of tungsten per annum, your numbers seem way too high. RHA is good but its not that good! Production like that would have the Chinese worried or climbing all over PREM. I think its 6,000tn target.

Regards,
Ed.

[vitec] 12/12/2017 09:03

Nicos, you are probably right. For memory breakeven is about 4.5k tonnes based on the Tungsten price. The issue I have is when is this going to occur. We keep on getting more and more promises and more and more dilution. As Jerry Maguire would say "show me the money"

[edgein] 12/12/2017 09:02

Vitec,

Don't think the jam will arrive tomorrow, think the jam may arrive in H1 '18. Not sure that the jv will be done and dusted this side of the new year, but you never know as you say talks been going on for some time. GR may want to emphasise his point about zulu with more assays before the deal gets done. But plenty of jam then imo, jam enough for everybody. Well those that still hold. Fair do's fella, you don't like the progress that's been made on RHA to date, others are quite content at us scheduled to hit full production this month. Would you really have wanted a deal for Zulu by July last year? Before they encountered Zulu SE and before they encountered "spectacular" grades? That was a shrewd move by Georgie to get Zulu proven up much further, it was estimated at 40-60Mt before Zulu SE now its 120-160Mt estimate. Good work from George on the drilling and expo front, much stronger position to negotiate now rather than jumping the gun in July.

Regards,
Ed.

[donald tramp] 12/12/2017 09:02

Vitec, fair post and I like to hear your balanced view point but your last paragraph regarding investing in RHA is not really relevant is it, because nobody would have invested $20m in rha if Zulu had come first, but that isn't the way things panned out.

I've not been here as long as you, but you have to remember that this has all been done with no money and the only way to get to this point was to raise and that's very very painful for LTH's.

I felt exactly the same pain in another stock before it eventually came good.

[nicosevos] 12/12/2017 08:59

RHA has the capacity to shift up to 20k tons/month, so I read somewhere.
Break even 6k tons/month......
tmk
Edit, correct me if I'm wrong.

[vitec] 12/12/2017 08:48

Potential and promises mean nothing. Revenue and profit is where it is at. I know the story and understand the assets, that is why I remain strongly invested. However, anyone looking in could be forgiven for thinking this is a "jam tomorrow" company that continually promises but does not deliver. When I started investing in PREM there were 700 million or so shares, that has now ballooned to over 6 billion.

George implied that we were going to have a deal for Zulu by end of July. It is now nearly the end of December. He has continually gone on about a liquidity event at Circum and for memory has been stating this throughout 2016 and 2017. Promises regarding RHA have been just that promises (and these have been broken). Before I hear you all howl why I am so negative, I am trying to give a balanced view and don't want to gloss over that the market has mistreated us and does not understand what PREM is about. There has been plenty of opportunity to understand the assets over the last six months and how they have developed, to appraise the value of PREM. The market has decided that it needs more solid evidence before it gets carried away and allows the share price to run upwards.

2018 should be pivotal but I, like many thought that the last 3 to 4 months would be pivotal as well! As stated, I remain invested albeit a little more frustrated but also excited as to what Zulu will deliver. If PREM was about RHA I would have been long gone. You can dress RHA up anyway you want but I still think this has been a massive drain on PREM and its shareholders. I will leave you with this thought. If Zulu had come first and then George was given the opportunity to invest in RHA do you think he would have given it a second thought? 20 million US dollars into Zulu would have meant that the massive dilution that we have suffered would never have occurred and I can safely say that the share price would be significantly higher. I want to be proven wrong about RHA but as yet my concerns have not been alleviated. GLA

[donald tramp] 12/12/2017 08:32

Please show me where I have said 1p by Xmas dodge. No I haven't now run along with your fowl tongue and switch on your morning television viewing of Jeremy Kyle, in your bed sit that stinks of stale tobacco, with a plasma stuck mid way up the wall and wires dangling everywhere, smoke stained net curtains and disgusting grease marks on the single chair in the middle of the room where your head rests day in day out.

I'll be either in my pile in Shropshire or my Penthouse in the Med right on the beach.

Of course you won't believe that but am I bothered.

[edgein] 12/12/2017 08:32

Vitec,

Because RHA is good, a solid asset as it progresses to full planned production this month but Circum and Zulu are world class. Circum has an NPV of $2.4bn gross, Zulu is looking like it will surpass that easily as a small part of it is worth $719m for LCE development which GR mentioned yet again. The focus is LCE production. So the share price has some catching up to do with our assets. RHA fully developed, no more upgrades needed and heading for full production, I'm quite happy with that given the current tungsten price.

Regards,
Ed.

[edgein] 12/12/2017 08:27

David,

Specsavers, it was below 0.3p recently after the primary bid, some where rubbing their hands together this morning as they sold cheaply at 0.45p. But many of us are waiting for GR to farmout this world class asset and for our next 1p plus spike, 2 of those have happened in the last 12 months. Next one is pretty much inevitable. For those that don't think the share price goes any where just look at the chart! More spectacular assays George, keep the pressure of SGS to get them out we've been drilling continuously this year so we know they're sitting on plenty. I guess GR may give us some more assay results before concluding the jv but you never know.

Regards,
Ed.