RNS for Production start and £££! Days away.8 Feb 2024 09:39
Just a week or so from the RNS to say production has started and the £££££££££ are rolling in. Well done to all involved. This is going to multibag within a few weeks.
Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) told investors it remains on track to see the Zulu lithium and tantalum project in Zimbabwe into production in late February.
The company today gave a broad update on its operations at Zulu including upgrades to plant equipment – including the installation of color-based detection for UV sorters, along with a new thickener.
Such improvements are expected to enhance the removal of waste material and improve the efficiency of the floatation process.
Next, a custom-built ball mill is set to arrive from South Africa by the end of January 2024.
“The entire focus of our company is on our Zulu project and unless there are unforeseen circumstances that I have overlooked, and provided our plant suppliers deliver as expected, we remain on target to produce late in February 2024,” chief executive George Roach said in a statement.
At the same time, the company noted that it is anticipating a new resources statement during the current quarter, to feature tonnage of lithium-bearing spodumene.
It also discussed the company’s internal budgeting for the project, though they have not been independently verified, pointing to a predicted average production cost on a mine gate basis of $800 per ton of SC6 (spodumene).
The company said that after allowing for freight charges, estimated at $152 per ton, it expects the standard product to be marginally profitable – albeit the company also anticipates it will produce a higher grade spodumene product with lower levels of iron, and such a concentrate product “currently attracts a substantial price premium” which is said can buffer presently low SC6 pricing.
The company, meanwhile, added: “It is likely that additional funding will be needed in the near term. Premier's contractors and suppliers are assisting and alternatives to equity-based funding are under investigation.
“With a project as well advanced as Zulu with a fully developed mine, and market in place, this remains the only significant obstacle.”
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