24th Jun 2015 08:53
LONDON (Alliance News) - Premier African Minerals Ltd Wednesday reported a significantly narrower pretax loss in 2014 after it booked fewer impairments and sold its interests in AgriMinco Corp.
The southern and western Africa-focused commodity company reported a USD537,000 loss in 2014, narrowing from a EUR4.8 million loss in 2013. The company does not currently generate any revenue.
The loss narrowed because in 2013 it booked USD2.1 million in impairments, compared to only USD137,000 in 2014, alongside a USD3 million gain on the sale of its stake in the joint venture and its interest at a corporate level in AgriMinco Corp.
"Our focus during 2014 and into the first half of 2015 has been on the implementation of the low-capital, open pit strategy at RHA that now sees this project in production," said the company.
The RHA tungsten project is in Zimbabwe and is operated by Premier African, which holds a 49% stake in the project.
"During the year ahead we will continue to optimise the open pit operations and plan to develop the underground model to reserve status and start planning work on the Phase 2 development and implementation of the underground mining operations," said Chairman and Chief Executive George Roach.
"In addition, we will look to develop the Zulu project (also in Zimbabwe) and will continue to look for opportunities to develop our other assets within the parameters of the group's cash position," he added.
At the end of December, the company reported a cash balance of EUR174,000. However, the company also announced in a separate statement Wednesday that Darwin Strategic Ltd has exercised 35 million of its 40 million warrants at an exercise price of 1.25 pence per share for a total consideration of GBP437,500, which in turn should bolster its cash position.
Premier African shares were down 6.2% to 2.58 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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