Premier African Minerals Ltd (LON: PREM) share price rallied 5.26% despite the company’s lack of significant project updates.
The lithium mining company’s last announcement was an update on the Zulu drilling campaign. However, it is yet to reach an agreement regarding the future funding of the remaining DFS programme.
The lithium miner said that it was still in negotiations with interest parties considering a direct investment in the project in exchange for a minority stake but was yet to reach a definitive agreement.
Premier African Minerals share price has risen 255.8% since January, driven by positive investor sentiment and the company’s positive progress since the year started.
PREM recently generated $3.943 million in profits during the six months ended June 30, 2021, revering the $0.613 million loss reported in a similar period last year.
At the time, the company revealed that it had acquired the necessary equipment to prepare samples and continue the analysis work at its Zulu mine.
Since March, PREM shares have been trading sideways and have been unable to break out of the range for over six months.
However, as all investors know, a trading range is typically followed by a breakout, which could occur in either direction.
So far, all factors point to a breakout higher given the lithium miner’s positive prospects as it looks to unlock the next phase of its operations.
Premier African Minerals is also looking to expand its operations into Namibia with the ultimate goal of acquiring cash-generating projects in the country.
The company has been highlighting various aspects of its projects on its Twitter feed stoking investor interest. Most of the information is coming from its investor presentation updated in June this year.
Meanwhile, long term investors may find PREM’s share price quite attractive, but there is no guarantee that we shall get a positive breakout soon.
*This is not investment advice. Always do your due diligence before making investment decisions.
PREM share price.
Premier African Minerals shares surged 5.26% to trade at 0.20p, rising from Tuesday’s closing price of 0.19p.
Should you invest in Premier African Minerals shares?
PREM shares are traded on the London stock exchange's AIM market (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 PREM shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies.