Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: FY15 results
Market Cap: £13m; Current Price: 0.7p
Difficult 2015 led to widening loss, production to recommence in June
Revenue US$103k in FY15 from US$0k in FY14.
Cost of sales US$1.6m in FY15.
LBT US$7.7m in FY15 compared to US$0.5m in FY14.
Net debt totalled US$6.2m in FY15 compared to US$1.3m in FY14.
Neil Herbert has stepped down as Non-Executive Director and Werner Swanepoel has stepped down as COO.
Post period end £2.1m was raised by the Company.
NORTHLAND CAPITAL PARTNERS VIEW: 2015 was a difficult year for Premier African Minerals with the ramp up of the open pit suffering from grade issues leading to the suspension of production. Added to this, issues with the processing plant led to delays in production from the underground operations. Despite the problems encountered the Company is now on the verge of building the underground operations to 9,000t per month from June 2016.