Source - LSE Regulatory
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 Limited

Tel: +27 (0) 100 201 281

Michael Cornish / Roland Cornish

Beaumont Cornish Limited (Nominated Advisor)

Tel: +44 (0) 207 628 3396

Jerry Keen / Edward Mansfield

Shore Capital Stockbrokers Limited

Tel: +44 (0) 207 408 4090

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

EXPRESSED IN US DOLLARS

 

 

 

 Six months to

 Six months to

2020

EXPRESSED IN US DOLLARS

 

 30 June 2021

 30 June 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 to

 Six months to

2020

Continuing operations

Notes

 30 June 2021

 30 June 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 capital

Foreign currency translation reserve

Share option and warrant reserve

Revaluation reserve

Retained earnings

Total attributable to owners of parent

Non-controlling interest('NCI')

Total equity

 

$ 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

EXPRESSED IN US DOLLARS

 Six months to

 Six months to

2020

 

 30 June 2021

 30 June 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.

 

By operating segment

Unallocated Corporate

RHA Tungsten Mine Zimbabwe and RHA Mauritius*

Exploration Zulu Lithium Zimbabwe and Zulu Mauritius

Total continuing 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

 

By operating segment

Unallocated Corporate

RHA Tungsten Mine Zimbabwe and RHA Mauritius*

Exploration Zulu Lithium Zimbabwe and Zulu Mauritius

Total continuing 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

-

-

-

-

 

By operating segment

Unallocated Corporate

RHA Tungsten Mine Zimbabwe and RHA Mauritius*

Exploration Zulu Lithium Zimbabwe and Zulu Mauritius

Total continued 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 Equipment

Land and Buildings

Total

 

$ 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 2021

30 June 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 2021

30 June 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 1st 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 to

Six months to

31 December

 

30 June 2021

30 June 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

 

 

basic earnings per share ('000)

17 865 523

11 455 420

13 167 281

 

 

 

 

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 Study (2017)

Updated Scoping Study

(2021)

Revenue

 

 

 

 

 

Spodumene Concentrate Sales Price

US$ / t conc

800

1 000

1 150

1 300

Petalite Concentrate Sales Price

US$ / t conc

400

400

400

400

Average Concentrate Sale Price

US$ / t 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

C1 Operating Costs

US$ / t 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 £1,000,000 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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