The Premier African Minerals Ltd (LON: PREM) share price gapped 14.29% higher after releasing its interim results for the six months ended 30 June 2023. The company reported a loss of US$7.166 million for the period as it has yet to generate revenues.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company could not meet its production target as it encountered significant challenges well-reported during the previous four months. The firm also reminded investors that its relationship with its partner, Canmax Technologies Co. Ltd, came under severe duress during the period.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
However, Premier African Minerals (PREM) is ready to put the past far behind it after installing the RHA mill and restarting operations in late September 2023. The company now expects to meet its shipment production target in November 2023.
The company also noted that using the RHA mill only allowed it to hit 50% of its production target. Hence, it now expects the delivery of another mill to help it meet the total design throughput. The company expects the new mill to arrive in Q4 2023 and plans to install and commission it in early Q1 2024.
PREM intends to take a two-week installation shutdown period that it is planning to coincide with the festive period in Q4 2023 to install the second mill. Furthermore, the company attributed its H1 loss to administration costs and ongoing overheads associated with installing, constructing and optimising the Zulu Lithium mine in Zimbabwe.
The company also issued an update about the Zulu Lithium mine, where it posted a video showing that the plant had started operation. The video proves that the RHA mill is operational, and the company has started the much-awaited production.
George Roach, the Premier African Minerals CEO, said: Dear Shareholders, I believe this will be the last time I potentially report Interim Results that do not include details of cash generative operations. The six months to 30 June 2023 have been difficult, and this has been widely reported in various announcements over the past 4 months. The plant did not achieve nameplate throughput production as per the original design, and our relationship with Canmax Technologies Co. Ltd (“Canmax“) came under severe duress.”
PREM share price.
The PREM share price gapped 14.29% to trade at 0.56p from Thursday’s closing price of 0.49p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.