Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Premier African Minerals Ltd (LON: PREM) rallied 10% as the mining company continues drawing investor attention to its latest corporate presentation.
The Africa-focused mining company has been tweeting about the contents of its latest corporate presentation detailing the mineral resource estimates of its key projects, such as the 526,000 tonnes of lithium carbonate equivalent at its Zulu lithium project.
The mining company also informed investors that the maiden resource estimate only covered 35% of the Zulu claim’s 3.5-kilometre surface strike length.
PREM shares are set to benefit from the resurgent demand for critical metals such as lithium following the slump occasioned by the coronavirus pandemic in 2020, with experts warning that the projected demand spike had kicked off.
However, investors should be aware that the mining company is still in the exploration stages in all its projects. As a result, it will take some time before the company is ready to start producing lithium at its Zulu mine.
Premier African Minerals has other projects within Zimbabwe, which are the Tinde project, a fluorite & barite project, the Katete rare metals project, and the RHA Tungsten project.
While PREM’s prospects are pretty promising, they are likely to miss out on the initial spike in demand for crucial metals until the company start producing lithium and the rest of the critical metals outlined in its corporate presentation.
As a short-term trader, I would not be buying PREM shares at current prices, given that they are in the middle of a broad trading range. Instead, I would wait until the shares either break above the upper resistance level or fall to the support level, which offer better trade setups.
*This is not investment advice.
Premier African (PREM) share price.
PREM shares rallied 10% to trade at 0.22p, rising from Friday’s closing price of 0.20p.
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