Premier African Minerals (LON:PREM) is now fully funded to move its RHA tungsten project in Zimbabwe into production next month (June), said broker Northland, which has started covering the shares.
The firm agreed a £1.65mln convertible loan facility with financier Darwin last month to complete the mine build.
Analyst Dr Ryan Long said: "The open pit will have an estimated life of twenty-two months producing around 120,000mtu of tungsten.
"The funds generated from the open pit operation will be used to cover corporate overheads, delayed capex and as a contribution towards the cost of developing the larger underground operation at RHA.
"This underground operation is expected to result in the production of around 100,000mtu per annum for over twelve years," he noted.
The broker kicked off coverage with a 'speculative buy' stance.
Yesterday, the firm said it expected to produce concentrate from the flagship project , in which it holds a 49% stake, by the end of the first week of June.
The process plant has been delivered and offloading has been completed.
Premier African shares eased 10.53% to 2.125p.