Premier African Minerals Share Discussion Threads

[doctor 69] 04/1/2018 13:45

Just bought another 3 million

[mrphiljones] 04/1/2018 12:07

Good honest post wally I wish you well Sir.....

[mike_f] 04/1/2018 12:03

Well said Wally, I'm still confident value will out here. It's been 1 step forward 2 steps back, I get the feeling that is about the turn the other way round very soon. GLA

[cambradjones] 04/1/2018 11:54

I wonder if george is waiting until after he has visited rha before this supposed conference call. He needs to be up to date with whats been happening before answering probing questions.Looking better today.

[mike_f] 04/1/2018 11:40

All trades at .27p are buys, hoping we'll be back in the .3p's soon as the sell off was way overdone. More news due on RHA.

[dr jekyll] 04/1/2018 10:26

IHNC.

Two very sound and sensible posts from you earlier which I am pleased to see got a lot of recommendation ticks including mine. Like Mike I agree with your thoughts and suspect that George is not the complete fool that some seem to think he is particularly where RHA is concerned. I can see this rising fairly quickly if 1. We get better and more detailed news on RHA soon and 2. If we lose the big seller from the last few months. The latter has been the biggest dampener on the share price imho as those who have watched the daily trades can testify. Keep up the good posts IHNC as they add some positivity to those of us seriously underwater.

[minja19] 04/1/2018 10:16

tick up overdue ffs

[jungmana] 04/1/2018 09:51

I can assure everyone here that George feels your pain too. Remember he has a lot of his own money invested here at prices far higher. Also he has his name, record and reputation at stake here and is trying to do the right thing for prem shareholders.

[jungmana] 04/1/2018 09:31

Here is George's email address if any of you want to vent your feelings and thoughts to him. I do commmunicate with [e-mail]

[wallyjumblat] 04/1/2018 09:26

Cant make out if this was manufactured or not, getting pretty sick of being of being a mushroom now. When will they ever monetize any of these assets?

[ihavenoclue] 04/1/2018 08:33

My thoughts is that we had a big seller and the drop cleared them out and so hence the rise.

All IMHO
Regards
IHNC

[ihavenoclue] 04/1/2018 08:32

Should never have been this low so well done to people who had the spare cash to buy more at this level

[jungmana] 04/1/2018 08:31

Rha alone warrants our market cap right now. Add world class zulu lithium and circum and this is worth at least 1.5p (£100m market cap) imo.

[minja19] 04/1/2018 08:24

bounce to 32 on the cards today ... maybe more

[cambradjones] 04/1/2018 08:23

We need to turn it around today and close blue.

[minja19] 04/1/2018 08:16

strong buying from the off

[mike_f] 04/1/2018 08:07

12M buy just popped up :) bodes well

[andrewsr] 04/1/2018 07:45

I would have thought the government pays their share of the costs recovered from revenues, but Prem carries the losses and the government pays back their share of the loss at a later date (adding to their debt). So I think the losses would the same with or without the government, but without the government there could be an injection of capital potentially from a new partner.

[1hopper] 03/1/2018 22:58

Surely the 51/49 split is on the profit and not the turnover. Isn't that why PREM has the first $20m profit clause?

[ihavenoclue] 03/1/2018 20:56

The above backs up what I was thinking and would be good to be available for this conference call.

This is the way that I see RHA and may be simplistic but it is how I view it ...

A company has a mine and has 49% ownership and the government has 51% and that is how the sales of the product are split. So let's say an item was worth £1,000 a tonne so the company got £490 per tonne and the government £510 per tonne. That is the Mugabe way which is more towards state ownership.

Now say the costs to the company to produce the product was £500 per tonne. So for each tonne they produce they make a loss of £10 per tonne. So very difficult for foreign companies to make any profit under that system.

Now say the 51% law is dropped, and we know it is going to be, to instead have a royalty system of say 15% (I have seen 5 - 15% before in other areas of the world). So now the company gets £850 a tonne and when you take away profits of £490 a tonne the £10 loss per tonne becomes £360 tonne profit. So a huge difference.

Why would the Zimbabwee government choose that option ? Well at the moment they have huge resources but a 51% system that hardly anyone would want to produce by as it strangles the chance to get any profit. So rather than 51% of a few assets they get 15% of a LOT of assets and Zimbawee and it's people can be allowed to profit.

Now say we had a company that was trying to make a profit under the 51% rule when they knew that was going to be changed but further down the line. Surly if that company went to the government and said "We want to do business in Zimbawee but the current system is choking us ... can we renegotiate now rather than close that asset" wouldn't the government agree to that as soon as possible ?

If that is the case, as some have mentioned, that may be why no figures were given on how close to profitability they were so as to not weaken their hand in the negotiations ?

Now I may be wearing my rose tinted specs to some people but I do not think we were far off making profit but I would also want to bring talks forward to make profitability easier without having to ramp up production at all ?

I may be wrong and I may lose out but I really do think RHA will be sorted within a month or so with a better deal with Zimbabwe and then Zulu will be derisked and everything will get a lot easier.

I have put my money where my mouth is and I wish every other long term holder all the best for 2018 :)

Best Regards
IHNC

[ihavenoclue] 03/1/2018 20:42

Coped from twitter piece that driver101 put in ...

"chris
@christheseaace
·
8h
#PREM on LSE.
Today 11:45Just had a call with George. He wants full ownership of RHA as wants to add a partner.

With regards to Zulu he reiterated that full benefit will be passed on to prem holders.

Shareholders conference call along with RNS being arranged as we speak"

[mike_f] 03/1/2018 19:55

Well said ihnc, we are looking at things under a very similar light. Although GR is a bit of a loose cannon and doesn't always make the right decisions I feel he does have the best of intentions and that is reflected in the size of his holding in the company. Sitting tight for now. GLA

[berber1] 03/1/2018 19:54

Most companies in socialist systems such as Zims make losses. The same case as in china until it started drifting towards a market economy. Then the value of those old companies became very valuable. Those companies were snapped up by some shrewd investors and made huge profits. May be this may happen with RHA,fingers crossed we may get something out ofs however GR tactics are questionable.
My concern is the timing of this unexpected RNS, with a negative spin from GR.Either he is an idiot or did it on purpose for some tactical reason which I still cannot understand. Let us hope that he has good reasons for that as so far he has shown to be of shareholders side ( Mind you he is at putting his foot in it}. Everybody knew that RHA has been like a sieve for a long time and was not expected to turn a profit by end 2017 nor any time soon I certainly did not expect it. Anyway I am in PREM because of Zulu, even with this one I think he has started extending the string, let us hope that it is smoke and mirrors. GLA (we all need it)