Premier African Minerals (PREM) H1 2024 earnings summary

Executive summary

• Zulu Lithium and Tantalum Project commissioning delayed due to comminution circuit design issues, with spodumene section not yet operational as of June 2024.

• Strategic options for Zulu include potential sale, joint venture, or installation of an additional float plant, requiring $400,000 and three months for integration.

• Significant debt incurred at Zulu; further funding required for recommencement of operations and to address group-level creditors.

• Special General Meeting planned to seek additional disapplication authorities for funding flexibility.

Financial highlights

• Operating loss of $12.027 million for the six months ended 30 June 2024, mainly due to overheads and costs at Zulu.

• Cash at hand as of 30 June 2024 was $0.243 million.

• Revenue for the period was $0; gross loss of $7.747 million.

• Basic and diluted loss per share was $0.043, compared to $0.032 for the same period last year.

• Net cash outflow from operating activities was $8.203 million; net cash from financing activities was $9.978 million.

Outlook and guidance

• Multi-option approach for Zulu's future, including sale, joint venture, or self-funded plant installation.

• Additional funding and creditor settlements are required for ongoing operations and strategic flexibility.

• Going concern basis depends on successful execution of strategic options and shareholder support.