27th Jul 2018 10:39
LONDON (Alliance News) - Premier African Minerals Ltd on Friday reported a significantly widened loss in 2017 as it progressed on various projects across Africa.
The company's shares are currently suspended from trading, as it failed to meet the June 30 deadline to release its results for 2017.
Premier African's pretax loss widened to USD19.6 million for 2017 from USD5.9 million pretax loss for 2016, mainly due to a USD9.8 million impairment of its RHA tungsten project in Zimbabwe.
Revenue totaled USD368,000 versus USD135,000, which come from an off-take agreement at RHA as well as the sale of forestry products in Mozambique.
During the year, Premier African completed a scoping study at its Zulu lithium project in Zimbabwe and also compiled a maiden mineral resource, though progress at RHA was more difficult. Production was stopped post-year end and the asset was impaired.
However, it may reverse this, the company said, given increased demand for tungsten and better prices.
Looking forward, Premier African said it believes the market for lithium and tungsten will be strong in 2018, with the plan being to finish a feasibility study for Zulu and restructure RHA.
A week ago, the company split its chief executive and chairman functions. Senior Non-Executive Director Michael Foster moved to interim chair, while George Roach remains as chief executive.
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