Premier African Minerals Share Discussion Threads

[donald tramp] 05/8/2018 20:10

And whilst no one will believe me I got out roughly level, and so glad I did. If by some Merlin moment this comes good for those still invested I genuinely wish them the best.

[donald tramp] 05/8/2018 20:08

The Bull

Why would anyone want to short it down here-??:-??:??

tedboy, your numbers look great, unfortunately history has shown us that there are plenty of Co's where you could have posted equally as good numbers across the mining sector on AIM, the problem is the majority end up nowhere due to inept or corrupt management.

[tedoby2] 03/8/2018 14:03

Talking about this going nowhere here's a thought:-

From the Webinar we know that Prem are supporting Cadence going through their due diligence at the moment. We also know that the plan is for MauCo to produce Lithium Concentrate initially as it's the quickest route to market. But then move on to produce Lithium Carbonate which is far more lucrative. Those close to the company will also know that moves are already being made to increase the licensed area by as much as two or three fold. All very positive moves

As far as I can tell the main restriction to going the Condensate route will be the logistics in transporting the material from the mine to the rail terminal in Bulawayo. To my mind I can't see it being possible to transport more than around 250kt's/annum given the lorries can carry 20 tonnes.

If that's right and keeping the maths simple 250kt's of Concentrate will be processed from around 1.5m t's of ore at a 1% grade producing 15kt's of Li2O and from there the 250kt's of 6% battery grade Spodumene Concentrate.

Current off-take agreements for 6% Spodumene are being entered into at prices of arround $1,000/t. But according to some analysts those prices could treble over the next two to three years. Being conservative if it doubles then the revenue to MauCo during the short Concentrate period would be around $500m annualised. With no Corporation tax to pay the 2% Royalty makes little difference to the calculation and I believe the credit for the Tantalum would easily pay for the small loss attributable to the Metallurgical Recovery rate so no adjustment needed here either in my view

So with annual revenue at $500m and costs adjusted from the scoping study we could be looking at an "earnings" figure of at least $300m. From there using a P/E ratio of 10 we get a Market Cap of $3bn for MauCo based upon an earnings metric and if Prem enters a 50/50 jv we therefore get to a notional contribution to Prems MC of $1.5bn.

Finally if Prem has 9bn shares in issue say Prems share price contribution form MauCo in the short period Lithium Concentrate is being produced would be $0.165 or approximately 12.5p at today's currency exchange rate in around 2 years time.

Be that as it may as I say the Carbonate route is more lucrative by far.This route a 2m tonne ROM /annum would produce 20kt's of Li2O which is roughly 50kt's LCE. A projected annual revenue then could be 50k x $35k = $1.75bn if market price for LCE doubles. AISC's along with other costs (AIC's) are likely to be no more than $800m/annum or so which would give MauCo a Market Cap of almost $1bn. Feeding 50% of that back into Prems from a 50/50 jv that would give Prem net "earnings" of $500m/annum . Then assuming a P/E of 10 is reasonable and with say 10bn shares in issue that represents a MC of $5bn which would give Prem a share price contribution of about 37.5p. using an earnings metric.

So not really that much potential here at 25,000% increase in roughly 3 years from just one of Prems assets after all I suppose. Nevertheless food for thought.

AIMHO & GLA

[the bull] 03/8/2018 09:29

short it then big boy

[the bull] 02/8/2018 13:10

bad timing on my additions yesterday, next week I am expecting great things from George Roach

[shinyleather] 02/8/2018 12:57

Thank goodness, in one afternoon they managed to put the country back months.

[dodge city] 01/8/2018 15:24

Violence is already breaking out in Zim, it's only a matter of time before they are eating each other and Roach meets his end.

[the bull] 01/8/2018 12:08

added another 2M

[jungmana] 01/8/2018 11:20

The Bull, what Zulu deal? You call kdnc a deal? That's a failure imo.

[the bull] 01/8/2018 11:18

Should have waited to add. At this price, the zulu deal hasn't really been factored in. RHA news next, fold it or sign the bloody paperwork immediately i.e. next week

[mrphiljones] 01/8/2018 09:47

Lol three rolled shorts imho

[doctor 69] 01/8/2018 09:43

Interesting 28 million sells just gone through

[doctor 69] 01/8/2018 08:00

Shown as sell

[doctor 69] 01/8/2018 08:00

My buy of 1 m

[doctor 69] 31/7/2018 14:55

Buying continues

[babbler] 31/7/2018 14:07

Nice round buys. 3 mil 4 mil etc.

[tedoby2] 31/7/2018 13:21

As far as Prems cash position is concerned it's interesting to note that Zulu Lithium Mauritius Limited ("MauCo")
start to repay its $4m loan from Prem "Premier Loan" together with any interest on receipt of the Investments Amounts from Cadence Minerals Limited in accordance with the payment schedule on a pro-rata basis.

Quote:-

"The Parties have acknowledged that at the date of the Heads of Terms an aggregate amount of US$4,064,374.88 has been advanced by Premier to MauCo ("Premier Loan") and the Parties have agreed that the Premier Loan and any interest due under the Premier Loan will be offset on a pro rata basis against the Investment Amounts paid by Cadence to MauCo."

So MauCo will obviously need to pay for the work to get to DFS as well as the loan. But that explains the difference between costs suggested for the DFS of just over $2m to the latest just over $5m. The 5m investment isn't just to cover the cost of the DFS it's to pay back Prems loan too.

The repayments should make quite a nice contribution to Prems income and more than likely negates to need for dilution in the near to medium term other than any that may be be required for growth which no savvy investor should object to.

[shinyleather] 31/7/2018 12:50

Might linger on til September if no definite overall result in the polls. No one will want to take the gamble of investment til they know which way it will go.

[doctor 69] 31/7/2018 12:22

Some buying here

[jungmana] 31/7/2018 11:41

O/ t check out RBD. Is worth a good look. I think an easy 2 bagger within the next 6 months as lots happening there in that period.Dyor as always

[jungmana] 30/7/2018 14:12

The best thing that could happen here is for George to go. Anything else is a smoke screen.Kdnc! Partner for Zulu? My Lord! What a let down