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