TIDMPREM

RNS Number : 4394N

Premier African Minerals Limited

30 September 2021

30 September 2021

Premier African Minerals Limited

('Premier' or 'the Company')

Unaudited Interim Results for the six months ended 30 June 2021

Chief Executive Statement

Dear Shareholders,

It is a pleasure to share with you the unaudited interim results for the six months ended 30 June 2021.

The first six months activity of 2021 (the 'Period') has been extensively reported as post financial year end events in our annual financial statements that were released just a few months ago and in various interim announcements.

I am happy to confirm as we publish these interim results, a few notable achievements including:

-- The reversal of the impairment imposed on Zulu Lithium Private limited ('Zulu'), which has been internally

reviewed in consultation with our external auditor;

-- International spodumene concentrate prices continue to increase and this is most encouraging for our prospects at Zulu;

-- All sample preparation and site analysis equipment has been delivered to Zulu and has been commissioned;

   --      First provisional analysis results from drilling are imminent; 

-- Negotiations proceed regarding RHA Tungsten Private Limited ('RHA') and whilst ammonium para tungstate prices continue to hold above $300 per metric ton unit, there is a strong potential future for RHA, and

-- We continue to engage directly with MN Holding Limited in our focus on cash generative assets.

Financial and Statutory Information

The Group had an operating profit of $3.943 million for the six months ending 30 June 2021. This is due to the reversal of the impairment of the evaluation and exploration assets of Zulu Lithium.

Premier received continued financial support from its shareholders throughout the period.

These interim statements to 30 June 2021 have not been reviewed by the auditors.

Mr. George Roach

Chief Executive Officer

30 September 2021

Forward Looking Statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as 'believe', 'could', 'should', 'envisage', 'estimate', 'intend', 'may', 'plan', 'will' or the negative of those, variations, or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital, and other expenditures (including the amount, nature, and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses, and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged the release of this announcement on behalf of the Company was George Roach.

For further information please visit www.premierafricanminerals.com or contact the following:

 
 George Roach          Premier African Minerals     Tel: +27 (0) 100 201 
                        Limited                      281 
 Michael Cornish       Beaumont Cornish Limited     Tel: +44 (0) 207 628 
  / Roland Cornish      (Nominated Advisor)          3396 
                      ===========================  ===================== 
 Jerry Keen / Edward   Shore Capital Stockbrokers   Tel: +44 (0) 207 408 
  Mansfield             Limited                      4090 
                      ===========================  ===================== 
 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

EXPRESSED IN US DOLLARS

 
                                               Six months    Six months 
                                                       to            to         2020 
 EXPRESSED IN US DOLLARS                        30 June       30 June 
                                                  2021          2020       (Audited) 
                                      Notes         $ 000         $ 000        $ 000 
 ASSETS 
 Non-current assets 
 Intangible assets                      4           4 686             -          120 
 Investments                            5           8 342         7 559        8 342 
 Property, plant and equipment          6              58             -            - 
                                                   13 086         7 559        8 462 
                                             ------------  ------------  ----------- 
 Current assets 
 Inventories                                            1             1            1 
 Trade and other receivables                          419           709            7 
 Cash and cash equivalents                            937             9          727 
                                                    1 357           719          735 
                                             ------------  ------------  ----------- 
 TOTAL ASSETS                                      14 443         8 278        9 197 
                                             ------------  ------------  ----------- 
 
 LIABILITIES 
 Non-current liabilities 
 Financial lease liabilities                            -             -            - 
 Deferred tax                                           -             -            - 
 Provisions - rehabilitation                           90            41          196 
                                                       90            41          196 
                                             ------------  ------------  ----------- 
 Current liabilities 
 Trade and other payables                             497         1 270          505 
 Financial lease liabilities                            -             -            - 
 Borrowings                             7               -         1 255            - 
 Bank overdraft                                         -             -            - 
                                                      497         2 525          505 
                                             ------------  ------------  ----------- 
 TOTAL LIABILITIES                                    587         2 566          701 
                                             ------------  ------------  ----------- 
 
 NET ASSETS                                        13 856         5 712        8 496 
                                             ------------  ------------  ----------- 
 
 EQUITY 
 Share capital                          8          53 835        48 935       52 504 
 Share based payment and warrant 
  reserve                                           2 366         2 366        2 366 
 Revaluation reserve                                  711           711          711 
 Foreign currency translation 
  reserve                                        (12 752)      (12 720)     (12 794) 
 Accumulated loss                                (18 386)      (22 088)     (22 543) 
 Total equity attributed to 
  the owners of the parent company                 25 774        17 204       20 244 
 Non-controlling interest                        (11 918)      (11 492)     (11 748) 
 
 TOTAL EQUITY                                      13 856         5 712        8 496 
                                             ------------  ------------  ----------- 
 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

EXPRESSED IN US DOLLARS

 
                                                       Six months    Six months 
                                                               to            to         2020 
                                                        30 June       30 June 
 Continuing operations                        Notes       2021          2020       (Audited) 
 EXPRESSED IN US DOLLARS                                    $ 000         $ 000        $ 000 
 
 Revenue                                                        -             -            - 
 Cost of sales excluding depreciation 
  and amortisation                                              -             -            - 
 expense 
 Depreciation and amortisation                  6               -             -            - 
                                                     ------------  ------------  ----------- 
 Gross profit / (loss)                                          -             -            - 
 Administrative expenses                                    (737)         (567)      (1 269) 
                                                     ------------  ------------  ----------- 
 Operating profit / (loss)                                  (737)         (567)      (1 269) 
 
 Other Income                                                 120            13           74 
 Impairment of intangible assets 
  - Zulu Lithium                                            4 563           (5)          (4) 
 Finance charges                                              (3)          (54)         (88) 
                                                     ------------  ------------  ----------- 
                                                            4 680          (46)         (18) 
                                                     ------------  ------------  ----------- 
 Profit / (Loss) before income 
  tax                                                       3 943         (613)      (1 287) 
 Income tax expense                            10               -             -            - 
                                                     ------------  ------------  ----------- 
 Profit / (Loss) from continuing 
  operations                                                3 943         (613)      (1 287) 
 
 Loss for the year                                          3 943         (613)      (1 287) 
                                                     ------------  ------------  ----------- 
 Other comprehensive income: 
 Items that are or may be reclassified 
  subsequently to profit or loss: 
 Foreign exchange loss on translation                          86            67         (44) 
 Fair value movement on available-for-sale 
  investment                                                    -             -            - 
                                                               86            67         (44) 
                                                     ------------  ------------  ----------- 
 Total comprehensive income 
  for the year                                              4 029         (546)      (1 331) 
                                                     ------------  ------------  ----------- 
 
 Loss attributable to: 
 Owners of the Company                                      4 157         (404)        (859) 
 Non-controlling interests                                  (214)         (209)        (428) 
                                                            3 943         (613)      (1 287) 
                                                     ------------  ------------  ----------- 
 
 Total comprehensive income 
  attributable to: 
 Owners of the Company                                      4 199         (356)        (885) 
 Non-controlling interests                                  (170)         (190)        (446) 
                                                     ------------  ------------  ----------- 
 
 Total comprehensive income 
  for the year                                              4 029         (546)      (1 331) 
                                                     ------------  ------------  ----------- 
 
 Loss per share attributable to owners of the parent 
  (expressed in US cents) 
 Basic loss per share                          11           0.023       (0.004)      (0.007) 
 Diluted loss per share                        11           0.023       (0.004)      (0.007) 
 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

EXPRESSED IN US DOLLARS

 
                    Share       Foreign     Share   Revaluation   Retained          Total   Non-controlling      Total 
                  capital      currency    option       reserve   earnings   attributable   interest('NCI')     equity 
                            translation       and                               to owners 
                                reserve   warrant                               of parent 
                                          reserve 
                    $ 000         $ 000     $ 000         $ 000      $ 000          $ 000             $ 000      $ 000 
 At 1 January 
  2020             48 042      (12 768)     2 366           711   (21 684)         16 667          (11 302)      5 365 
 Loss for the 
  period                -             -         -             -      (404)          (404)             (209)      (613) 
 Other 
  comprehensive 
  income 
  for the 
  period                -            48         -             -          -             48                19         67 
                 --------                                                                                    --------- 
 Total 
  comprehensive 
  income 
  for the 
  period                -            48         -             -      (404)          (356)             (190)      (546) 
 Transactions 
 with Owners 
 Issue of 
  equity shares       893             -         -             -          -            893                 -        893 
 At 30 June 
  2020             48 935      (12 720)     2 366           711   (22 088)         17 204          (11 492)      5 712 
 Loss for the 
  period                -             -         -             -      (455)          (455)             (219)      (674) 
 Other 
  comprehensive 
  income 
  for the 
  period                -          (74)         -             -                      (74)              (37)      (111) 
                 --------  ------------  --------  ------------  ---------  -------------                    --------- 
 Total 
  comprehensive 
  income 
  for the 
  period                -          (74)         -             -      (455)          (529)             (256)      (785) 
 Transactions 
 with Owners 
 Issue of 
  equity shares     3 569             -         -             -          -          3 569                 -      3 569 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 At 31 December 
  2020             52 504      (12 794)     2 366           711   (22 543)         20 244          (11 748)      8 496 
 Profit / 
  (Loss) for 
  the period            -             -         -             -      4 157          4 157             (214)      3 943 
 Other 
  comprehensive 
  income 
  for the 
  period                -            42         -             -          -             42                44         86 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 Total 
  comprehensive 
  income 
  for the 
  period                -            42         -             -      4 157          4 199             (170)      4 029 
 Transactions 
 with Owners 
 Issue of 
  equity shares     1 331             -         -             -          -          1 331                 -      1 331 
 At 30 June 
  2021             53 835      (12 752)     2 366           711   (18 386)         25 774          (11 918)     13 856 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 
 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

EXPRESSED IN US DOLLARS

 
                                        Six months    Six months 
 EXPRESSED IN US DOLLARS                        to            to         2020 
                                           30 June       30 June 
                                              2021          2020    (Audited) 
                                             $ 000         $ 000        $ 000 
 
 Net cash outflow from operating 
  activities                               (1 060)       (1 264)        (798) 
                                      ------------  ------------  ----------- 
 
 Investing activities 
 
 Acquisition of property plant 
  and equipment                               (58)             -          (4) 
 Acquisition of intangible assets              (3)             -            - 
 Acquisition of subsidiaries, 
  net of cash acquired                           -             -        (120) 
 Acquisition of investment                       -         (115)        (898) 
 
 Net cash used in investing 
  activities                                  (61)         (115)      (1 022) 
                                      ------------  ------------  ----------- 
 
 Financing activities 
 Proceeds from borrowings granted                -           490          200 
 Net proceeds from issue of 
  share capital                              1 331           893        2 343 
 Finance charges                                 -           (1)          (1) 
 Repayment of finance lease                      -          (34)         (35) 
 
 Net cash from financing activities          1 331         1 348        2 507 
                                      ------------  ------------  ----------- 
 
 Net decrease in cash and cash 
  equivalents                                  210          (31)          687 
 
 Cash and cash equivalents at 
  beginning of year                            727            40           40 
 Net cash and cash equivalents 
  at end of year                               937             9          727 
                                      ------------  ------------  ----------- 
 
 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

   1.    GENERAL INFORMATION 

Premier African Minerals Limited ('Premier' or 'the Company'), together with its subsidiaries (the 'Group'), was incorporated and domiciled in the Territory of the British Virgin Islands under the BVI Business Companies Act, 2004. The address of the registered office is Craigmuir Chambers, PO Box 71, Road Town, Tortola, British Virgin Islands. Premier's shares were admitted to trading on the London Stock Exchange's AIM market on 10 December 2012.

The Group's operations and principal activities are the mining, development and exploration of mineral reserves, primarily on the African continent. The presentational currency of the condensed consolidated interim financial statements is US Dollars ('$').

   2.    BASIS OF PREPARATION 

These unaudited condensed consolidated interim financial statements for the six months ended 30 June 2021 were approved by the Board and authorised for issue on 30 September 2021.

These interim financial statements have been prepared in accordance with the recognition and measurement principles of the International Financial Reporting Standards ('IFRS') as endorsed by the EU.

The accounting policies applied in the preparation of these consolidated interim financial statements are consistent with the accounting policies applied in the preparation of the consolidated financial statements for the year ended 31 December 2020.

The figures for the six months ended 30 June 2020 and 30 June 2021 are unaudited and do not constitute full accounts. The comparative figures for the year ended 31 December 2020 are extracts from the 2020 audited accounts. The independent auditor's report on the 2020 accounts was qualified but included an emphasis of matter relating to going concern.

Going Concern

The Directors have prepared cash flow forecasts for the next 12 months, taking into account working capital and expenditure forecasts for the rest of the Group including overheads and other development costs.

The forecasts include additional equity finance which the directors believe can be met. In the event that the Company is unable to obtain additional equity finance for the Group's working capital, a material uncertainty exists which may cast significant doubt on the ability of the Group to continue as a going concern and therefore be unable to realise its assets and settle its liabilities in the normal course of business.

   3.    SEGMENTAL REPORTING 

Segmental information is presented in respect of the information reported to the Directors. The segmental information reports the revenue generating segments of RHA Tungsten Private Limited ('RHA'), that operates the RHA Tungsten Mine, and Zulu Lithium Private Limited ('Zulu'). The RHA segment derives income primarily from the production and sale of wolframite concentrate. All other segments are primarily focused on exploration and on administrative and financing segments. Segmental results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

As at the reporting date, the company has significant holdings in Zimbabwe. As indicated in the audited annual financial statements, the Zimbabwean government mandated that with effect of 1 March 2019 the only functional currency is the RTGS Dollar. Since the introduction of RTGS Dollars the Zimbabwean inflation rate has gone into hyperinflationary percentages. Hyperinflationary accounting requires a restatement of the local currency assets and liabilities to reflect the effect of the hyperinflation before translating the local currency to the reporting currency. Refer to the audited annual financial statements of 31 December 2020 for more detailed information.

 
                                                                     Exploration 
                                                    RHA Tungsten    Zulu Lithium 
                                                   Mine Zimbabwe        Zimbabwe 
                                    Unallocated          and RHA        and Zulu   Total continuing 
 By operating segment                 Corporate       Mauritius*       Mauritius         operations 
 June 2021                                $ 000            $ 000           $ 000              $ 000 
 
 Result 
 Revenue                                      -                -               -                  - 
 Operating (income) / loss                (659)             (45)            (32)              (736) 
 Other Income                               119                -               -                119 
 Impairment of RHA                            -                -               -                  - 
 Reversal of impairment 
  of Zulu Lithium                             -                -           4 563              4 563 
 Finance charges                              -              (3)               -                (3) 
 Loss before taxation                     (540)             (48)           4 531              3 943 
 Assets 
 Exploration and evaluation 
  assets                                    123                -           4 563              4 686 
 Investments                              8 342                -               -              8 342 
 Property Plant and equipment                 -                -              58                 58 
 Inventories                                  -                1               -                  1 
 Trade and other receivables                271                8             140                419 
 Cash                                       937                -               -                  - 
 Total assets                             9 673                9           4 761             13 506 
                                   ------------  ---------------  --------------  ----------------- 
 Liabilities 
 Other financial liabilities                  -                -               -                  - 
 Borrowings                                   -                -               -                  - 
 Bank overdraft                               -                -               -                  - 
 Trade and other payables                   373              121               3                497 
 Provisions                                   -               90               -                 90 
                                   ------------  ---------------  -------------- 
 Total liabilities                          373              211               3                587 
                                   ------------  ---------------  --------------  ----------------- 
 Net assets                               9 300            (202)           4 758             12 919 
 
 Other information 
 Depreciation and amortisation                -                -               -                  - 
 Property plant and equipment 
  additions                                   -                -              58                 58 
 Costs capitalised to intangible 
  assets                                      3                -               -                  3 
 
 
                                                                     Exploration 
                                                    RHA Tungsten    Zulu Lithium 
                                                   Mine Zimbabwe        Zimbabwe 
                                    Unallocated          and RHA        and Zulu   Total continuing 
 By operating segment                 Corporate       Mauritius*       Mauritius         operations 
 June 2020                                $ 000            $ 000           $ 000              $ 000 
 
 Result 
 Revenue                                      -                -               -                  - 
 Operating (income) / loss                (503)             (60)             (4)              (567) 
 Other Income                                 -               13               -                 13 
 Impairment of RHA                            -              (5)               -                (5) 
 Impairment of Zulu Lithium                   -                -               -                  - 
 Finance charges                           (51)              (3)               -               (54) 
                                   ------------  ---------------  --------------  ----------------- 
 Loss before taxation                     (554)             (55)             (4)              (613) 
 Assets 
 Exploration and evaluation                   -                -               -                  - 
  assets 
 Investments                              7 559                -               -              7 559 
 Inventories                                  -                1               -                  1 
 Trade and other receivables                707                2               -                709 
 Cash                                         1                8               -                  9 
                                   ------------  ---------------  --------------  ----------------- 
 Total assets                             8 267               11               -              8 278 
                                   ------------  ---------------  --------------  ----------------- 
 Liabilities 
 Other financial liabilities                  -                -               -                  - 
 Borrowings                               1 255                -               -              1 255 
 Bank overdraft                               -                -               -                  - 
 Trade and other payables                 1 080              189               1              1 270 
 Provisions                                   -               41               -                 41 
                                   ------------  ---------------  --------------  ----------------- 
 Total liabilities                        2 335              230               1              2 566 
                                   ------------  ---------------  --------------  ----------------- 
 Net assets                               5 932            (219)             (1)              5 712 
 
 Other information 
 Depreciation and amortisation                -                -               -                  - 
 Property plant and equipment                 -                -               -                  - 
  additions 
 Costs capitalised to intangible              -                -               -                  - 
  assets 
 
 
                                                                     Exploration 
                                                    RHA Tungsten    Zulu Lithium 
                                                   Mine Zimbabwe        Zimbabwe 
                                    Unallocated          and RHA        and Zulu   Total continued 
 By operating segment                 Corporate       Mauritius*       Mauritius        operations 
 December 2020                            $ 000            $ 000           $ 000             $ 000 
 
 Result 
 Revenue                                      -                -               -                 - 
 Operating loss / (income)              (1 073)            (185)            (11)           (1 269) 
 Other income                                                 74                                74 
 Impairment of RHA                            -              (4)               -               (4) 
 Finance charges                           (61)             (27)               -              (88) 
 Impairment of Zulu                           -                -               -                 - 
                                   ------------  ---------------  --------------  ---------------- 
 Loss before taxation                   (1 134)            (142)            (11)           (1 287) 
                                   ------------  ---------------  --------------  ---------------- 
 Assets 
 Exploration and evaluation 
  assets                                    120                -               -               120 
 Investments                              8 342                -               -             8 342 
 Inventories                                  -                1               -                 1 
 Trade and other receivables                  2                5               -                 7 
 Cash                                       722                5               -               727 
                                   ------------  ---------------  --------------  ---------------- 
 Total assets                             9 186               11               -             9 197 
                                   ------------  ---------------  --------------  ---------------- 
 Liabilities 
 Other financial liabilities                  -                -               -                 - 
 Borrowings                                   -                -               -                 - 
 Bank overdraft                               -                -               -                 - 
 Trade and other payables                   356              147               2               505 
 Provisions                                   -              196               -               196 
                                   ------------  ---------------  --------------  ---------------- 
 Total liabilities                          356              343               2               701 
                                   ------------  ---------------  --------------  ---------------- 
 Net assets                               8 830            (332)             (2)             8 496 
 
 Other information 
 Depreciation and amortisation                -                -               -                 - 
 Property plant and equipment 
  additions                                   -                9               -                 9 
 Costs capitalised to intangible              -                -               -                 - 
  assets 
 

* Represents 100% of the results and financial position of RHA whereas the Group owns 49%.

   4.    INTANGIBLE EXPLORATION AND EVALUATION ASSETS 
 
                                          Exploration 
                                         & Evaluation 
                                               assets    Total 
                                                $ 000    $ 000 
 
 Opening carrying value 1 January                   -        - 
  2020 
 Expenditure on Exploration and                     -        - 
  evaluation 
 Closing carrying value 30 June                     -        - 
  2020 
 Transfer to property, plant and                    -        - 
  equipment 
 Expenditure on Exploration and 
  evaluation                                      120      120 
 Closing carrying value 31 December 
  2020                                            120      120 
 Expenditure on Exploration and 
  evaluation                                        3        3 
 Reversal of Impairment                         4 563    4 563 
 Closing carrying value 30 June 
  2021                                          4 686    4 686 
                                       --------------  ------- 
 

During 2020 the company acquired a portfolio of hard-rock lithium assets located in Zimbabwe and Mozambique (six months to 30 June 2021: $ 0.03 million, year to 31 December 2020: $ 0.120 million) from Lithium Consolidated Limited ('Li3').

During the period to 30 June 2021 $4.563 million was the reversal of impairment for Zulu. (six months to 30 June 2019: $ Nil, year to 31 December 2020: $ Nil).

Exploration work conducted on Zulu during prior periods indicated that both lithium and tantalum recovery may be a viable option. The Group views this project as strategic and exploration work will be continued in the future, cash flow permitting.

   5.    INVESTMENTS 
 
                                                 Manganese   Total 
                                        Circum    Namibian 
 Available-for-sale:                  Minerals    Holdings 
                                     ---------  ----------  ------ 
 Closing carrying 31 December 2019       6 263       1 181   7 444 
 Fair value adjustment                       -         115     115 
 Closing carrying 30 June 2020           6 263       1 296   7 559 
 Shares acquired                             -         783     783 
 Closing carrying 31 December 2020       6 263       2 079   8 342 
 Shares acquired                             -           -       - 
 Closing carrying 30 June 2021           6 263       2 079   8 342 
                                     ---------  ----------  ------ 
 
 
 Reconciliation of movements in 
  investments 
 Carrying value at 31 December 
  2019                                   6 263       1 181   7 444 
 Acquisition at fair value                   -         898     898 
                                         6 263       2 079   8 342 
 Acquisition at fair value                   -           -       - 
 Carrying value at 31 December 
  2020 and 30 June 2021                  6 263       2 079   8 342 
                                     ---------  ----------  ------ 
 

Premier's investment in Circum Minerals Limited ('Circum') was designated as FVOCI as such is required to be measured at fair value at each reporting date. As Circum is unlisted there are no quoted market prices. The fair value of Circum shares was derived using the previous issue price and validating it against the most recent placing price on 11 May 2021. The shares are considered to be level 3 financial assets under the IFRS 13 categorisation of fair value measurements. We continue to hold 5 010 333 shares in Circum currently valued in total at $6.263 million.

Premier's investment in MN Holdings Limited ('MNH') is classified as an FVOCI as such is required to be measured at fair value at the reporting date. As MNH is unlisted there are no quoted market prices. The Fair value of the MNH shares as at 30 June 2021 and 31 December 2020 was based on the latest transactions and supported by an external evaluation conducted by Bara Consulting.

   6.    PROPERTY, PLANT AND EQUIPMENT 
 
                                 Mine Development    Plant and     Land and   Total 
                                                     Equipment    Buildings 
                                            $ 000        $ 000        $ 000   $ 000 
 Cost 
 At 1 January 2020                          1 670        2 981          101   4 752 
 Foreign Currency Translation 
  effect                                    (644)        (257)         (71)   (972) 
 Additions                                      -            -            -       - 
 At 30 June 2020                            1 026        2 724           30   3 780 
 Foreign Currency Translation 
  effect                                     (82)         (39)            6   (115) 
 Transfer from Capital Work                     -            -            -       - 
  in Progress 
 Additions                                      -            9            -       9 
 At 31 December 2020                          944        2 694           36   3 674 
 Foreign Currency Translation 
  effect                                      (8)          (3)          (2)    (13) 
 Additions                                      -           58            -      58 
 At 30 June 2021                              936        2 749           34   3 719 
                                -----------------  -----------  -----------  ------ 
 
 Accumulated Depreciation and 
  Impairment Losses 
 At 1 January 2020                          1 670        2 981          101   4 752 
 Foreign Currency Translation 
  effect                                    (644)        (257)         (71)   (972) 
 Charge for the year                            -            -            -       - 
 At 30 June 2020                            1 026        2 724           30   3 780 
 Exchange differences                        (82)         (39)            6   (115) 
 Charge for the year                            -            -            -       - 
 Impairment of RHA                              -            9            -       9 
 At 31 December 2020                          944        2 694           36   3 674 
 Foreign Currency Translation 
  effect                                      (8)          (3)          (2)    (13) 
 Charge for the year                            -            -            -       - 
 Impairment of RHA                              -            -            -       - 
 At 30 June 2021                              936        2 691           34   3 661 
                                -----------------  -----------  -----------  ------ 
 
 Net Book Value 
 At 30 June 2020                                -            -            -       - 
 At 31 December 2020                            -            -            -       - 
 At 30 June 2021                                -           58            -      58 
 
   7.    BORROWINGS 
 
                                            30 June       30 June 
                                               2021          2020        2020 
                                        (Unaudited)   (Unaudited)   (Audited) 
                                              $ 000         $ 000       $ 000 
 
 Loan - G. Roach                                  -           442           - 
 Loan - Regent Mercantile                         -           387           - 
 Loan - B. Roach                                  -           132           - 
 Convertible Loan Notes - Riverfort, 
  D-Beta, YA                                      -           294           - 
                                                  -         1 255           - 
                                       ------------  ------------  ---------- 
 
 Reconciliation of movement in 
  borrowings 
 As at 1 January                                  -           715           - 
 Loans received (1) (2)                           -           490           - 
 Accrued interest                                 -            50           - 
                                       ------------                ---------- 
 Total                                            -         1 255           - 
                                       ------------  ------------  ---------- 
 
 Current                                          -         1 255           - 
 Non-current                                      -             -           - 
                                                  -         1 255           - 
                                       ------------  ------------  ---------- 
 

Borrowings comprise loans from a related party and a non-related party.

(1) As at 30 June 2021 $nil million was outstanding to George Roach. In March 2020 the Company entered into a secured $0.200 million Loan Agreement and related Subscription Agreement with a company owned by a Trust of which George Roach is a beneficiary at 10% interest per annum. In July 2020 $0.206 million was settled by issue of 232,647,763 ordinary shares and in October 2020 the balance of $0.237 million was settled by issue of 456,291,154 ordinary shares.

This loan was unsecured with no fixed terms or repayment and bearing interest at 3% per annum.

   8.    SHARE CAPITAL 

Authorised share capital

At the Annual General Meeting held on 5th August 2019, the shareholders approved the following:

1) the removal of the restrictions on the number of no-par value ordinary shares of a single class that the Company is authorised to issue; and

2) for the period commencing twenty-four (24) months following the date of the above general meeting, the disapplication of the pre-emption provisions in Company's articles of association in relation to the issue of up to six billion and five hundred million (6 500 000 000) ordinary shares.

The total number of voting rights in the Company on the 30 June 2021 was 18 418 009 831.

Issued share capital

 
                                                            Number of 
                                                               Shares       Value 
                                                                 '000       $ 000 
                                                        -------------  ---------- 
 As at January 2020                                        11 266 071      51 035 
 
 Shares issued for direct Investment                          669 304         898 
                                                        -------------  ---------- 
 As at 30 June 2020                                        11 935 375      51 933 
 
 Shares issued under subscription 
  agreement                                                 2 874 513       1 541 
 Shares issued on conversion of 
  loan                                                      1 108 057         894 
 Shares issued on conversion of 
  fees                                                      1 875 064       1 224 
 As at 31 December 2020                                    17 793 009      55 592 
                                                        -------------  ---------- 
 
 Shares issued for direct Investment                          625 000       1 417 
 As at 30 June 2021                                        18 418 009      57 009 
                                                        -------------  ---------- 
 
 Reconciliation to balances as stated in the consolidated 
  statement of financial position 
 
                                                Issued    Share Issue       Share 
                                                                          Capital 
                                         Share Capital          Costs     (Net of 
                                                                           Costs) 
                                                $ '000         $ '000      $ '000 
 
 As at 31 December 2019 - Audited               51 035        (2 993)      48 042 
 Shares issued                                     893              -         893 
 As at 30 June 2020                             51 928        (2 993)      48 935 
 Shares issued                                   3 664           (95)       3 569 
 As at 31 December 2020 - Audited               55 592        (3 088)      52 504 
 Shares issued                                   1 417           (86)       1 331 
 As at 30 June 2021                             57 009        (3 174)      53 835 
                                       ---------------  -------------  ---------- 
 
   9.    OTHER INCOME 
 
                                    30 June       30 June 
                                       2021          2020        2020 
                                (Unaudited)   (Unaudited)   (Audited) 
                                      $ 000         $ 000       $ 000 
 
 NIEEF refund of expenses                 -             -           - 
 Reversal of prescribed debt            120            13          74 
                               ------------  ------------  ---------- 
 NIEEF funding received                 120            13          74 
                               ------------  ------------  ---------- 
 

10. FOREIGN EXCHANGE GAINS AND LOSSES

As indicated in note 3. Segmental Reporting, the company has significant holdings in Zimbabwe. With effect from the 1(st) of March 2019, the Zimbabwean government mandated that the only functional currency is RTGS Dollar. Since the introduction of RTGS Dollar the currency has devalued from the introductory rate of RTGS Dollar 1: $ 1 to RTGS Dollar 85.4234 at 30 June 2021 (RTGS Dollar 57.3582 - 30 June 2020). This currency has continued to devalue. As defined in IAS29, the Zimbabwean economy is considered to be hyperinflationary. As most of the group's Zimbabwean assets have been impaired the result in liabilities are adjusted for the hyperinflationary effect. This leads to a net gain on translation into the reporting currency. For further information refer to the audited financial statement of 31 December 2020.

11. TAXATION

There is no taxation charge for the period ended 30 June 2021 (30 June 2020 and 31 December 2020: Nil) because the Group is registered in the British Virgin Islands where no corporate taxes or capital gains tax are charged. However, the Group may be liable for taxes in the jurisdictions of the underlying operations.

The Group has incurred tax losses in Zimbabwe; however, a deferred tax asset has not been recognised in the accounts due to the unpredictability of future profit streams.

Contingent liability

The Group operates across different geographical regions and is required to comply with tax legislation in various jurisdictions. The determination of the Group's tax is based on interpretations applied in terms of the respective tax legislations and may be subject to periodic challenges by tax authorities which may give rise to tax exposures.

12. LOSS PER SHARE

The calculation of loss per share is based on the loss after taxation attributable to the owners of the parent divided by the weighted average number of shares in issue during each period.

 
                                       Six months    Six months 
                                               to            to   31 December 
                                          30 June       30 June 
                                             2021          2020          2019 
                                      (Unaudited)   (Unaudited)     (Audited) 
 
                                           $ '000        $ '000        $ '000 
 
 Net profit / (loss) attributable 
  to owners of the company ($'000)          4 157         (404)         (859) 
 
 Weighted average number of Ordinary Shares 
  in calculating 
                                                                       13 167 
 basic earnings per share ('000)       17 865 523    11 455 420           281 
 
 Basic earnings / (loss) per share 
  (US cents)                                0.023       (0.004)       (0.007) 
 

As the Group incurred a profit for the period (2020: loss), there is no dilutive effect from the share options and warrants in issue or the shares issued after the reporting date.

13. EVENTS AFTER THE REPORTING DATE

   1)            RHA Tungsten Private Limited ('RHA') 

In August, Premier completed a new conceptual underground Conceptual Mine Plan for RHA ('Conceptual Mine Plan') in conjunction with technical assistance from independent South African mine planning consultants, Bara Consulting Proprietary Limited, geological consultants Shango Solutions and metallurgy and process engineer Multotec Process Equipment Proprietary Limited.

The objective of this Conceptual Mine Plan was to assess the potential impact of returning RHA to production and assess whether RHA can generate a return on Premier's investment to date. The Conceptual Mine Plan established that RHA through the underground could target a return to production at a rate of 6,000 tons per month with a projected life of mine of 10 years. The indication was that the peak funding requirement would be US$2.5 million with a payback within 16 months.

   2)            Zulu Lithium Private Limited ('Zulu') 

In July, Premier commissioned the second drilling rig is on site. Despite the Covid-19 related lockdowns and travel restrictions in the Southern African Development Community region, Zulu continued to make positive progress in the drilling program that is central to Zulu's Definitive Feasibility Study ('DFS').

In August, Premier confirmed that it remains on track with its plans to prepare Zulu's DFS in line with previously reported timelines.

On the 16 August, Premier published an updated Zulu Scoping Study to reflect the current Spodumene selling prices, together with current costings. The results of the updated scoping study, together with a comparison to the scoping study (2017) is set out in the table below:

 
 Description                             Units          Scoping        Updated Scoping Study 
                                                      Study (2017)             (2021) 
 Revenue 
                                     -------------  --------------  --------  -------  ------- 
                                        US$ / t 
 Spodumene Concentrate Sales Price        conc                 800     1 000    1 150    1 300 
                                     -------------  --------------  --------  -------  ------- 
                                        US$ / t 
 Petalite Concentrate Sales Price         conc                 400       400      400      400 
                                     -------------  --------------  --------  -------  ------- 
                                        US$ / t 
 Average Concentrate Sale Price           conc                 688       832      940    1 048 
                                     -------------  --------------  --------  -------  ------- 
 Total Revenue                           US$'M               1 095     1 325    1 497    1 669 
                                     -------------  --------------  --------  -------  ------- 
 Operating Costs 
                                     -------------  --------------  --------  -------  ------- 
 C1 Operating Costs                      US$'M                 773       837      837      837 
                                     -------------  --------------  --------  -------  ------- 
 C1 Operating Costs                   US$ / tonne             56.2      60.9     60.9     60.9 
                                     -------------  --------------  --------  -------  ------- 
                                        US$ / t 
 C1 Operating Costs                       conc               485.5     525.6    525.6    525.6 
                                     -------------  --------------  --------  -------  ------- 
 Capital Cost 
                                     -------------  --------------  --------  -------  ------- 
 Surface Infrastructure                  US$'M                15.0      16.2     16.2     16.2 
                                     -------------  --------------  --------  -------  ------- 
 Concentrate Processing Plant            US$'M                24.4      26.4     26.4     26.4 
                                     -------------  --------------  --------  -------  ------- 
 Mining                                  US$'M                 2.5       2.7      2.7      2.7 
                                     -------------  --------------  --------  -------  ------- 
 Tailings Dam                            US$'M                 5.6       6.1      6.1      6.1 
                                     -------------  --------------  --------  -------  ------- 
 Indirect Cost                           US$'M                 2.4       2.6      2.6      2.6 
                                     -------------  --------------  --------  -------  ------- 
 Contingency                             US$'M                14.2      15.4     15.4     15.4 
                                     -------------  --------------  --------  -------  ------- 
 Total Capital Cost                      US$'M                64.0      69.3     69.3     69.3 
                                     -------------  --------------  --------  -------  ------- 
 Financial Metrics 
                                     -------------  --------------  --------  -------  ------- 
 Pre-Tax NPV10                           US$'M                 127       207      292      377 
                                     -------------  --------------  --------  -------  ------- 
 Pre-Tax IRR                               %                  85.9     112.4    144.3    176.0 
                                     -------------  --------------  --------  -------  ------- 
 Post-Tax NPV10                          US$'M                  92       151      215      279 
                                     -------------  --------------  --------  -------  ------- 
 Post-Tax IRR                              %                  65.0      85.3    109.5    133.4 
                                     -------------  --------------  --------  -------  ------- 
 Payback Period                          Years                   2         2        2        2 
                                     -------------  --------------  --------  -------  ------- 
 Peak Funding Requirement                US$'M                - 38      - 42     - 42     - 42 
                                     -------------  --------------  --------  -------  ------- 
 Operating Margin                          %                  27.7      35.1     42.3     48.0 
                                     -------------  --------------  --------  -------  ------- 
 

Notes:

Note 1: The NPVs are shown for the gross value of the Zulu Project.

Note 2: All NPV values extracted from the Updated Scoping Study have been rounded to the nearest whole M.

Note 3: The peak funding requirement has been calculated on a yearly basis and represents the peak at the end of year 2. As production is assumed to commence in year 2, the actual peak funding requirement during the year will be higher.

Note 4: Source - Updated Scoping Study.

Note 5: The Updated Scoping Study is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves. The Updated Scoping Study referred is based on preliminary technical and economic assessments. It is preliminary in nature, and includes Inferred Mineral Resources which are insufficient to provide certainty that the conclusions of the Updated Scoping Study will be realised

On the 17 August 2021, Premier concluded a direct equity raise of GBP1,000,000 before expenses at an issue price of 0.2 pence per new ordinary share for ongoing use at the Zulu DFS and general working capital.

On the 2 September 2021, Premier confirmed that 1,000 meters had now been completed. The Company further confirmed the following:

-- Six Diamond holes had now been completed with planned 20,000 meters of diamond core drilling including

sample   collection for test work. 
   --       Good intersections of visible spodumene mineralisation had continued to be encountered. 

-- One rig will be dedicated from September to larger diameter core recovery for metallurgical, mineralogical,

and geotechnical test work.

   --       Third rig expected on site in October 2021. 

Premier confirmed that works on Zulu's Exclusive Prospecting Order ('EPO') to date has included collation of historic data, initial surface mapping and inspection, and is progressing with ground based geophysical data gathering and compilation of a detailed remote sensing study, including hyperspectral imaging to identify possible spectral features of pegmatite intrusions and to discriminate the lithium-bearing pegmatites from the host rocks.

Premier believes that this approach has the potential to generate additional exploration targets over the EPO.

   3)            MN Holdings Limited ('MNH') 

Otjozondu Off-Take Partner

In August, Otjozondu Mining (Proprietary) Limited ('Otjozondu') issued their existing off-take partner with 90-days' notice, the contract will terminate on 18 November 2021. Otjozondu remains in ongoing discussions with its existing off-taker on improved commercial terms including the required expansion capital to assist with existing mining operations.

Premier is equally in advanced discussions with other potential off-take partners to assist Otjozondu in securing the best possible financial terms from its future off-take partner.

Otjozondu Loan

Premier provided a US$260,000 loan direct to Otjozondu for use at Otjozondu Manganese Mining Project in Namibia ('Initial Amount'). The secured loan with an interest rate of 20% per annum is repayable in US$25,000 instalments on each shipment of Manganese commencing from the beginning of September 2021.

Premier further agreed to increase the Initial Amount by US$180,000 ('Extension Amount') thereby increasing the total loan amount to US$440,000. Premier further agreed that the repayment term of the Initial Amount will only commence on the first shipment of manganese following the signing of a new off-take agreement.

The parties have further agreed that the Extension Amount will be immediately repayable on the signing of the new offtake agreement from proceeds from the new off-take agreement.

Director Loan

Mr Neil Herbert made available a loan of US$180,000 to the Company. Under the terms of the Director Loan, the loan is both unsecured and will not attract any interest and is repayable in full by the Company on the signing of a new off-take agreement at Otjozondu or 90 days following signing of the Director Loan, whichever occurs sooner.

The purpose of the Director Loan is to provide funding to the Premier to allow an amendment to Otjozondu Loan while Premier, acting collectively with Otjozondu, looks to secure the best possible off-take funding package.

ENDS

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END

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(END) Dow Jones Newswires

September 30, 2021 02:00 ET (06:00 GMT)

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