PREMIER AFRICAN MINERALS (LON:PREM)
SECTOR – MINING
RATING – SPECULATIVE BUY*
MARKET CAP – £12.7m
CURRENT PRICE – 0.18p#
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.
From Yesterday: Ministry Requests Extension in order to Conclude RHA’s Equity Restructuring
NORTHLAND VIEW
- Premier African Minerals yesterday provided an update on the status of the proposed restructuring of RHA Tungsten Private Limited, the owner of RHA Tungsten Mine in Zimbabwe in which Premier currently has a 49% interest. Following the announcement of 15 October 2018, in which the Zimbabwean Ministry of Industry, Commerce and Enterprise Development indicated that the process of restructuring of RHA Tungsten Private Limited would be concluded before the end of October, the Company yesterday received a formal request for a further 48 hours in order to conclude the RHA restructuring proposal.
- While any such delays are disappointing, the news provides further evidence that Emmerson Mnangagwa, who replaced Robert Mugabe as president of Zimbabwe in November 2017, is determined to ensure his country remains ‘open for business’ and that his Government continues to implement measures designed to attract and sustain international investment. In March 2018, for example, Mnangagwa scrapped indigenisation laws for virtually all activities except diamond and platinum mining, thereby removing local ownership requirements for most businesses. He has also actively courted investment in the mining industry together with additional plans to support growth including an Investment and Business Facilitation Bill, which proposes to reduce the time it takes for investors to start a business in Zimbabwe, along with plans to partially privatise up to 35 state owned firms.
Light at the end of the tunnel. Premier’s CEO was already on record saying he imminently expected some advancement in these legal negotiations, save for which the Company would need to look to other legal processes to secure overall control. This statement appears to confirm the readiness of the Zimbabwean Ministry to reach a conclusion which, in turn, provides hope for international shareholders that they will receive some payback for their investment along with compensation for loss of potential revenue.
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.