PREMIER AFRICAN MINERALS (LON:PREM)
SECTOR – MINING
RATING – SPECULATIVE BUY*
MARKET CAP – £8.9m
CURRENT PRICE – 0.12p#
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: Interim update on RHA Indigenisation Equity Resolution
NORTHLAND VIEW
- Premier yesterday provided an interim update on developments with the proposed resolution of the equity arrangement at RHA Tungsten Private Limited (‘RHA’) in which Premier holds a 49% interest and is the operator.
- Premier was advised on 19 November 2019 by the Ministry of Industry, Commerce and Enterprise Development that its proposal to resolve the equity status at RHA would be tabled for a decision at the Cabinet meeting of the Government of Zimbabwe. This was held on 20 November 2018. Release of the minutes of this meeting made no reference to RHA's matter and the Board have been told subsequently that the matter was not discussed. Premier now understands from the Ministry that the proposal will be presented in the next cabinet meeting, which it believes is scheduled for the early part of next week.
- CEO George Roach noted: "Apart from the ongoing support we have received from the Minister of Mines, I personally met with the previous Minister of Industry Commerce and Enterprise Development on 4 July 2018 when I was told by previous Minister that this matter required only a sign off from the President, which was expected within days.”
In the absence of a positive conclusion (or hope for one within a realistic timetable) the Board suggests it will first seek direct intervention from the President before proceeding with ‘any other lawful alternative’. This is a binary situation, but nevertheless the signs are good. President Emmerson Mnangagwa’s visit to the 2018 World Economic Forum (WEF) in Davos effectively opened a new political chapter and dispensation to Zimbabwe. The issue of indigenisation was elaborated, specifically recognising the need to revisit legislature to align it with investors’ interests. It states in particular, that international operators are now free to negotiate investment in the mining sector, excluding just two minerals (diamonds and platinum). With confidence in RHA’s commercial opportunity rising while also remaining central PREM’s proposed major restructuring, much hinges on the outcome.
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.