Pants ... adding value (Cash Cow for ZIM GOV)21 Oct 2020 15:44
Below is just some of the headlines... invested millions on Joint ownership with ZIM GOV, that never paid their fair share of the costs
from one disastrous decision followed by another at a cost to shareholders, taking wages to deliver what?
Initially dived in here in Feb-17, just look at the price since then.
I believe the assets have potential, the corrupt jurisdiction is the issue.
George Roach, chief executive, said the US$6mln of funding is expected to see RHA back in production later this year and allows for upgrades that will see major operating cost reductions.
A provisional implementation process had been agreed with NIEEF, he added.
Premier retains ownership of the plant and equipment at the mine and is reappointed as the manager for a further five years.
“The investment from NIEEF will be structured as share capital and Premier will simultaneously capitalise an equivalent amount from Premier's existing loan account.
“In my opinion, this represents both an equitable solution and a good time for the Zimbabwean Government to invest directly in this project.“
Premier holds a 49% interest in RHA and is the operator.
Premier African Minerals Limited (LON:PREM) will remain focused this year on acquiring assets that can generate cash and identifying high-value exploration targets.
The multi-commodity mining and natural resource development company focused on Africa has had a frustrating time with its investments in the RHA Tungsten project and the Zulu Lithium and Tantalum Project in Zimbabwe.
In its results statements covering 2019 and the first six months of 2020, the company said its recently acquired 19% interest in MN Holdings, the operator of the Otjozondu Manganese Mining Project in Namibia, represented the company’s re-emergence from “shrink” mode.
The group continues to hold 5mln shares in Circum Minerals, currently valued at around US$6.26mln. Circum has undergone a change of management control and has undertaken a review of the previous studies with the specific intention of reducing capital expenditure, accelerating time to build and improving the internal rate of return. Circum has indicated that preliminary reports should be available in October 2020, final reports in Quarter 1 of 2021 and re-energised discussions targeted to a “liquidity event” possible from as early as October 2020, dependent on preliminary results.
Premier posted a loss before tax of US$1.21mln for 2019, versus a loss the previous year of US$7.76mln (when the value of its investment in the Zulu project was written down by US$4.56mln).
In the first half of 2020, the group saw its loss before tax narrow to US$649,000 from US$17.92mln in the first half of 2019, when it recorded US$18.26mln of foreign exchange losses in its accounts.
“Premier's focus should be on assuring cash generation on the one hand and high-grade exploration on the other and your board of directors is determined to move in this direction,” said George Roach, the
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