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Premier African puts frustrating period behind it as it looks to re-emerge from its shell

2019 was the most frustrating year to date at RHA, while the Zulu project is still waiting for an exclusive prospecting order so Premier is anxious to get some new irons into the fire.

Premier African Minerals Ltd -

Premier African Minerals Limited (LON:PREM) will remain focused this year on acquiring assets that can generate cash and identifying high-value exploration targets.

The multi-commodity mining and natural resource development company focused on Africa has had a frustrating time with its investments in the RHA Tungsten project and the Zulu Lithium and Tantalum Project in Zimbabwe.

In its results statements covering 2019 and the first six months of 2020, the company said its recently acquired 19% interest in MN Holdings, the operator of the Otjozondu Manganese Mining Project in Namibia, represented the company’s re-emergence from “shrink” mode.

The group continues to hold 5mln shares in Circum Minerals, currently valued at around US$6.26mln. Circum has undergone a change of management control and has undertaken a review of the previous studies with the specific intention of reducing capital expenditure, accelerating time to build and improving the internal rate of return. Circum has indicated that preliminary reports should be available in October 2020, final reports in Quarter 1 of 2021 and re-energised discussions targeted to a “liquidity event” possible from as early as October 2020, dependent on preliminary results.

Premier posted a loss before tax of US$1.21mln for 2019, versus a loss the previous year of US$7.76mln (when the value of its investment in the Zulu project was written down by US$4.56mln).

In the first half of 2020, the group saw its loss before tax narrow to US$649,000 from US$17.92mln in the first half of 2019, when it recorded US$18.26mln of foreign exchange losses in its accounts.

“Premier's focus should be on assuring cash generation on the one hand and high-grade exploration on the other and your board of directors is determined to move in this direction,” said George Roach, the chief executive officer of Premier.

Quick facts: Premier African Minerals Ltd

Price: 0.049 GBX

AIM:PREM
Market: AIM
Market Cap: £6.64 m
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