Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: RHA update
Market Cap: £11m; Current Price: 0.65p
Continues to move towards commercial underground production
Premier African Minerals is nearing completion of re-equipping the 120m vertical shaft and first ore from the 870 level is expected at surface in April.
Concreate grades are improving from the ore extracted from 926 level and shipments are expected to resume shortly.
Positive operational cash flow from RHA (before capex and working cap) expected after first ore is processed from the 870m level and the upgrades to the crushing circuit are installed this month.
NORTHLAND CAPITAL PARTNERS VIEW: Premier African Minerals is continuing to move towards commercial underground production at the RHA Tungsten Project, though the re-equipping of the vertical shaft at the RHA has taken longer than expected but is now nearing completion. The upgrades to the crushing circuit is being completed by consultant Appropriate Process Technologies and at its expense, the upgrades should take less than two weeks once the equipment is on site.