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.
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.