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