Premier African Minerals (PREM) H2 2023 earnings summary

Executive summary

• Completed Zulu Lithium and Tantalum Project plant, but faced major operational setbacks due to ore sorting and milling deficiencies, delaying production and impacting cash flows.

• Raised $17.542 million in net funds through share issues to support Zulu commissioning and development.

• RHA Tungsten mine remains fully impaired and under care and maintenance, with no new funding since July 2019.

• Focus remains on stabilising Zulu operations and exploring value in other assets, including manganese and gold projects.

Financial highlights

• Reported a loss before and after tax of $20.813 million for 2023, compared to a $5.803 million loss in 2022.

• Gross trading loss before depreciation and amortisation was $3.805 million (2022: $nil).

• Administrative expenses rose to $10.645 million (2022: $4.622 million).

• Finance costs increased to $5.818 million (2022: $nil).

• Total comprehensive loss for the year was $21.312 million (2022: $13.646 million).

• No dividend recommended for the year.

• Cash and cash equivalents at year-end were $0.542 million (2022: $9.627 million).

• Investment in property, plant, and equipment reached $53.234 million (2022: $35.997 million).

Outlook and guidance

• Zulu plant expected to reach design throughput and recovery targets after installation of a new scrubber unit in July 2024.

• Anticipates increased production capacity and longer mine life at Zulu based on updated resource estimates.

• Plans to address RHA, MNH, and Vortex project statuses and seek high-value exploration targets.

• Ongoing support from offtake and prepayment partner, with flexibility to seek alternative funding.