29th Sep 2014 08:53
LONDON (Alliance News) - Premier African Minerals Ltd Monday said it swung to a pretax profit and expects to begin production at its RHA Mine in Zimbabwe early next year.
The company swung to a pretax profit of USD1.1 million in the six months ended June 30, from a USD1.2 million loss in the first-half of 2013.
Although the company generates no revenue, it gained USD679,000 and USD2.3m on its disposal of its subsidiary and its investment in a joint venture announced in March, respectively, related to the Danakil potash project in Ethiopia, acquired from AgriMinco and sold to Circum Minerals Limited, which now holds 100% in the project.
It reported cash at the end of June 30 of USD165,000. Premier has received USD2 million of a total of USD4 million receivable from Circum, with further payments expected on November 15, and January 15, 2015, it said.
The board continues to review funding requirements in conjunction with the RHA mine development, that are expected imminently. Further announcements will follow, said the company.
Construction has began at its RHA project, which focuses on tungsten, including a limited version of an open-pit model, with production expected to start at the beginning of next year.
"We look forward to significant progress at RHA in anticipation of first production in the first half of 2015," said Executive Chairman George Roach.
Development at the RHA mine "reflects the changing dynamic of Premier from a brownfield exploration company into a near-term tungsten production company with positive cash flows from operations expected in 2015," Roach added.
Its Zulu project, also in Zimbabwe, is emerging as a significant "next in line" project as soon as RHA is developed, it said.
"We continue to actively review our other projects and opportunities to ensure they comply with our strategies. These may involve further exploration to better define the 'target', disposal, joint development or monetisation, whichever is most efficient," Said Roach.
Premier African Minerals saw its shares rise 10% to 1.49 pence per share Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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