Premier African Minerals Ltd (LON: PREM) shares rallied 9.1% after reporting a profit of $3.943 million for the six months ended June 30, 2021, compared to the $613,000 loss reported in a similar period last year.
The company noted that its profit was primarily derived from the reversal of the impairment charges on Zulu Lithium company, which was reviewed internally and in collaboration with the firm’s auditors.
Premier noted that it was still in negotiations regarding the RHA Tungsten Private Limited (‘RHA'), given that it owns 10 of the 50 mineral claim blocks at the mine, with the remaining 40 being under option.
The company noted that ammonium para tungstate prices are still trading above $300 per metric ton unit. The miner also promised to release the provisional analysis results from its ongoing drilling operations soon.
Premier also revealed that all the equipment needed to prepare samples and continue the analysis work at Zulu had arrived and was already commissioned, ready to kick start operations.
The company continues to negotiate with MN Holdings Limited in Namibia to acquire cash-generating assets.
From a technical perspective, PREM shares are trading in the upper end of a sideways trading range that has been in place since late March this year.
While there is no clear trading opportunity at the time, we are likely to get a move lower to touch the bottom support level. A break above the resistance level would trigger a new rally phase.
*This is not investment advice.
PREM share price.
PREM shares rallied 9.09% to trade at 0.24p, rising from Wednesday’s closing price of 0.22p.
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