Sign up Australia
Proactive Investors - Run By Investors For Investors
Why invest in PREM?
Premier African Minerals Ltd: THE INVESTMENT CASE

Premier African’s extensive mineral portfolio provides exposure to a wide range of commodities

Lithium and tungsten have been to the fore of late, but there are plenty of other strings to Premier African's bow
Premier African’s extensive mineral portfolio provides exposure to a wide range of commodities
Chief executive George Roach

Extensive Zimbabwe portfolio…

Premier African Minerals Ltd (LON:PREM) has five projects in Zimbabwe, the producing RHA tungsten mine, the Katete rare earths project, the Zulu lithium project, the Tinde fluorspar project and the Lubimbi xenotime project.

Of these, RHA and Zulu have been at the fore of Premier African’s recent efforts, although lately there has been something of a hiatus at RHA as it requires further funding and Premier is now negotiating about the indigenization conditions.

At Zulu though, continuing intercepts of high grade lithium have now taken Premier to the point where it is now planning to list it into a new vehicle. Highlights from the latest drill results include 3.8 metres at 1.70% LiO2, 5.55 metres at  1.13% LiO2, and 6.29 metres at 1.04% LiO2.


… complemented by assets in Togo, Benin and Mozambique


In Togo Premier African has the Pagala zinc project, the Haito nickel project, the Kara- Niamtougou uranium project and the Dapaong gold project. In Mozambique Premier African holds the Catapu limestone project, and in Benin it holds the Benin Speciality Minerals project, which is prospective for tantalum, tourmaline and aquamarine.


Investment portfolio adds value


Premier African also holds investments in two companies with assets in Africa. The first is Circum Minerals Ltd, which owns the Danakil potash project in Ethiopia. The second is a stake in Casa Mining Ltd, a privately-owned exploration company that has a 71.25% interest in the 1.5mln ounce Akyanga gold project in the Democratic Republic of Congo.


Chief executive George Roach upbeat on Zulu, cautiously optimistic on a deal for RHA


“Even though we made significant progress at RHA during the last quarter of 2017, the mine did not meet the guidance of profitable production during fourth quarter, 2017,” said chief executive George Roach.

“Premier has previously stated that unless RHA traded profitably during December 2017, Premier would not provide further financial support to RHA. Accordingly, Premier is immediately approaching our 51% partner in RHA to assist in facilitating a long-term solution for RHA.”

Part of the issue, suggests Roach, is that while Premier is the sole funder for RHA, its ownership only amounts to 49% under indigenization laws, and that’s making it harder for Premier to generate a return on what might otherwise be a profitable investment.

Talks are ongoing though, and with a  new regime in place that’s apparently more friendly to business, there are grounds for optimism.

Meanwhile, at Zulu, the picture is much clearer.

"Whilst Premier continues with discussions with several parties in regard to development of our Zulu asset, it is clear that we need to separate Zulu from Premier to see the real value in this asset unlocked and a proposed separate listing will be the first step in this process," says Roach.


View full PREM profile View Profile

Premier African Minerals Ltd Timeline

Related Articles

Picture of pilot plant
April 05 2018
An impressive pre-feasibility study features a pre-tax valuation of $227 million for start-up capital expenditure of $65 million.
KSZ holds potential for world class base and precious metals deposits
maps of the Torrens Copper Project in South Australia
March 20 2018
The company's shares have increased six-fold from their low of 0.6 cents in 2017.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use