SECTOR: MINING
PREMIER AFRICAN MINERALS (LON:PREM)
SECTOR – MINING
RATING – SPECULATIVE BUY*
MARKET CAP – £11.6m
CURRENT PRICE – 0.15p#
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 Friday: Director's Loan Conversion Terms
NORTHLAND VIEW
- Last Friday morning, Premier announced that the Board had agreed to amend the terms of the existing loan agreement with a company owned by a Trust of which CEO and Executive Chairman, George Roach, is a beneficiary, by granting conversion rights with respect to the entire Loan amount in return for cancellation of the Loan's security over the Company's shareholding of 6.1m shares in ARC Minerals.
- The Company agreed that the Loan can be converted into new ordinary shares at any time on or before the maturity date (30 November 2018) at the lesser of the 5-day VWAP immediately prior to the date of conversion or the closing price of the Premier's shares on the day preceding the announcement.
- Later the same day, Premier received a conversion notice for the entire US$300,000 principal amount and therefore issued 142,045,455 new ordinary shares at an issue price of 0.16p per Conversion Share, which, when issued, will rank pari passu in all respects with Admission itself expected on 16 November.
- The CEO will then have a direct/indirect interest in an aggregate in 618.8m ordinary shares representing 8.4% of the enlarged issued share capital which will then total 7,381,648,492 ordinary shares .
Effectively a minor detail point when compared with the Company’s major 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 prospectively ring-fencing their shareholding in Circum. 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, investors are seeking further transactional detail together with Government confirmation 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.