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Shares of lithium mining company Premier African Minerals Ltd (LON: PREM) soared 44.3% today despite the lack of releases as investor interest in the company spiked higher, triggering the rally.

The latest news from the company was EAS's appointment as its US corporate advisor to help it tap into the US markets, which could help it raise funds from US investors, a practice at which EAS excels.

PREM has a presence in African countries such as Zimbabwe, where it is advancing feasibility studies on the sizeable Zulu Lithium and Tantalum Project in Zimbabwe, which has significant mineral resources.

The company has a stake in a Manganese mining project in Namibia and a potash mining project in Ethiopia. It is considering partnerships with downstream companies that can help it develop and commercialise its mining projects.

Premier African Minerals is currently focused on its lithium project in Zimbabwe, where it is conducting a definitive feasibility study to determine the exact quantity of lithium that can be mined in the area.

The company has a frist-mover advantage in Zimbabwe, given that it has been operating in the country for many years and has weathered some of the massive shocks that the country’s economy has experienced in recent years.

Rising global demand for lithium, a crucial component in rechargeable batteries, leaves the company in an enviable position once it starts producing lithium from its mines.

The demand for lithium is set to accelerate for the foreseeable future, given the trend towards electric vehicles and the huge number of smart devices manufactured that use rechargeable lithium batteries.

Investors seem to have recognised the company’s value proposition given today’s massive rally, but I wouldn’t open new positions at current prices because the prices are a bit overextended.

PREM share price.

Tradingview chart of Premier African Markets share price 05-03-2021

PREM shares surged 44.25% to trade at 0.1030p, rising from Thursday's closing price of 0.0714p.

Should you invest in Premier African Minerals shares? Premier African Minerals shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Premier African Minerals shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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