Premier African Minerals shares down on interim results

Multi-commodity mining and resource development company Premier African Minerals announced its unaudited interim results for the six months to 30 June on Tuesday afternoon, with revenue of $0.13m rising from $0.1m in the year to December 2015, and nil revenue in the first six months of last year.

The AIM-traded firm’s operating loss for the period was $2.8m, widening from $1.5m in the 2015 interim period.

Its board said the first six months of 2016 saw significant progress toward diversification of the group and real value generation for shareholders.

“Our company is in a state of transformation, from exploration and development, dependent on equity placements and with associated risk exposure, to one of production and revenue and value generation,” said executive chairman and CEO George Roach.

“Premier is fortunate to have three distinct business opportunities that each independently have company making potential and credentials, in addition to the potential of our investment in Circum Minerals.”

Roach said the Zulu Lithium project has the potential size to place Premier into the mainstream of lithium development.

“Drilling is currently underway and with our in-country operational expertise, core management, sample preparation capability and using laboratories in South Africa, we expect a rapid turnaround in results.”

He explained that the RHA Tungsten Mine was “always intended” to be an underground mine.

“The suspension of the open pit operations last year and the decision to accelerate development of underground mining through re-equipping of the existing adits and shaft systems presented a rapid re-entry to underground mining.

“Ore has been delivered to surface and this has allowed limited resumption of production, in conjunction with ongoing plant upgrades undertaken at the cost of the supplier.

“New mesh panels have been installed in the crusher circuit screens and this completes the outstanding requirements from the equipment suppliers,” Roach said.

Looking ahead, the board said Premier was in a “transformation stage” with ongoing development at RHA, drilling at Zulu Lithium and the expected imminent closing of TCTIF in Mozambique.

“In the medium term, the board believes that this will generally de-risk the company and should permit less dependence on expensive equity based financing,” Roach said.

“At the same time, and with the operating capability that Premier now has developed, Premier will remain vigilant in terms of new opportunities that may become available.”

At 1119 BST, shares in Premier African Minerals were down 6.85% at 0.4p.