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Northland Capital Partners View on the City - Premier African Minerals & Alexander Mining.

Northland Capital Partners View on the City - Premier African Minerals & Alexander Mining.

PREMIER AFRICAN MINERALS (LON:PREM)

SECTOR – MINING

RATING – SPECULATIVE BUY*

MARKET CAP – £11.6m

CURRENT PRICE – 0.16p#

ANALYST – BARRY GIBB

 

Year-end Dec

2016A

2016A

 

 

 

Revenue ($m)

0.1

0.4

No forecasts provided

EBITDA ($m)

(1.8)

(6.7)

Adj. pre-tax Profit ($m)

(5.9)

(19.6)

Adj. EPS (c)

(0.2)

(0.3)

DPS (c)

-

-

Net Cash/(Debt) ($m)

(8.9)

(2.9)

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited provides commissioned research coverage to Premier African Minerals and therefore this information should be viewed as a Marketing Communication.

 

Amendment of Loan Agreement

 

NORTHLAND VIEW

  • Premier announced that its Board has reached an agreement to amend the terms of the existing loan agreement entered with a company owned by a Trust of which CEO and Executive Chairman, George Roach, is a beneficiary for gross value of US$300,000 as announced on 5 June 2018.
  • The initial maturity of 60 days was extended until 30 November 2018, as announced on 27 June 2018. The Loan is secured against the Company's shareholding of 6,128,822 shares in ARC Minerals Limited and the Company had agreed to underwrite any reasonable shortfall following the sale of the shares, should this be necessary. At the last closing Arc's market price of 3.55p, the value of the Security was approximately £0.217 million.
  • The lenders have now agreed to cancel the Security in return for the grant of conversion rights with respect to the entire Loan amount. The Company has agreed therefore that the Loan can be converted into new ordinary shares at any time on or before the maturity date at the lesser of the Volume Weight Average Price for the five trading days immediately prior to the date of conversion or the closing price of the Premier's shares on the day preceding this announcement.

Despite being a minor point, such clarification was necessary given the significance of the transaction proposed on 7th November.  Subject to shareholder approval, the proposal intends to accelerate a return to production at RHA and commence the work needed to complete the proposed DFS at the Zulu Lithium Project.  In effect, when the equity in RHA Tungsten Mine is adjusted as is indicated by the Zimbabwean Government, Premier shareholders will on completion hold a substantially similar stake in the Project, whilst ongoing operating costs should be reduced while also effectively ring-fencing the shareholding in Circum.  Moreover, the development of Premier's mineral assets will be de-risked by the inclusion of KME assets, thereby creating greater potential shareholder value in the long term.  Importantly from this point, further announcements and formal confirmations might also shortly be expected with regard to the anticipated RHA Mine equity resolution.

 

COMPANY DESCRIPTION

Premier African Minerals is a multi-commodity exploration and development company with assets located across Africa. Its holds a 49% operator interest in the RHA Tungsten Mine, and 100% interest in the Zulu Lithium Project, both in Zimbabwe.

 

 

Alexander Mining (LON:AXM)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £2.1m

CURRENT PRICE – 0.11p#

ANALYST – BARRY GIBB

 

Year-end Dec

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.6)

(0.4)

Adj. pre-tax Profit (£m)

(0.6)

(0.4)

Adj. EPS (p)

(0.08)

(0.03)

DPS (p)

-

-

Net Cash/(Debt) (£m)

(0.4)

0.5

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close.*Northland Capital Partners acts as Nomad and Broker to Alexander Mining and therefore this information should be viewed as a Marketing Communication.

 

From Yesterday:  'HyperLeach' Patent Granted in Europe

 

NORTHLAND VIEW

  • Alexander has received notification that its MetaLeach Limited subsidiary has been granted a patent for a Method of Oxidative Leaching of Sulfide Ores and/or Concentrates in Europe, patent number 2435590.  The patent describes a method for leaching one or more target metals from a sulphide ore and/or concentrate containing such. 
  • MetaLeach's HyperLeach® process, although less advanced in its commercialisation progress than AmmLeach®, has very significant potential for application.  HyperLeach® is a hydrometallurgical process which has been developed by MetaLeach for the extraction of metals, especially copper, zinc, nickel, cobalt, molybdenum and rhenium from sulphide ore deposits and concentrates.  The process utilises chlorine based chemistry to solubilise metals from ores under ambient temperature and pressure conditions and can be operated as either heap leach or tank leach.
  • Metaleach has initiated the process of validating the patent in Germany, Poland and Turkey.  These member states were identified as key jurisdictions that represent opportunities for the HyperLeach® process.  MetaLeach anticipates that the patent will be validated in these individual member states, providing an effect patent term of 20 years from the effective date of 26 May 2010 (being the date of original filing).

Another important step forward.  Alexander’s technologies have the potential to revolutionise the extraction processes for many base metals deposits by reducing costs, and hence enhancing operating margins, at the mine site.  Both its, AmmLeach® (patent pending) and HyperLeach® are environmentally friendly, cost effective processes for the extraction of base metals from amenable ore deposits and concentrates allowing the production of high value products, such as metal powder or sheets.  Trails now underway, include one at the SISP facility, which is projected ultimately to be able to treat about 100,000 tonnes per annum of such ores, producing a final commercial output of electrolytic zinc metal.  From such projects, Alexander expected to be able to receive a gross sales revenue royalty based on the value of the output its technologies produce. 

 

COMPANY DESCRIPTION

Alexander Mining is a mineral processing technology business, seeking to commercialise its leaching technologies.

 

 

 

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

DISCLAIMER

This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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