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Auditors doubt Premier’s going concern status

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Auditors doubt Premier’s going concern status

Premier African Minerals (Premier) auditors MAH Chartered Accountants have cast doubts on the lithium miner’s ability to continue as a going concern after it incurred heavy losses and net current liabilities.

The group reported a loss before and after tax of US$5,803 million for the year ended December 31, 2022 against a profit of US$2,29m realised in 2021. The loss before and after tax includes administration expenses amounting to US$4,622m.

The total comprehensive loss for the year was US$13,646m against a profit of US$2,150m realised in the prior period. Again, the firm’s financial position was made worse by the termination of the offtake agreement it had with Canmax Technologies Co. Under the deal, Premier secured US$35m prefunding to enable the construction and commissioning of a large-scale pilot plant which has capacity to produce nearly 50 000 tonnes of spodumene concentrate annually. The mining firm was required to supply spodumene concentrate to Canmax by May 30, 2023, but failed due to various reasons. Again, it failed to meet the June 25, 2023 deadline. This resulted in the company issuing the force majeure notice to Canmax, effectively suspending all obligations under the agreement, including those associated with Premier and any consequences associated with it.

“We draw attention to note 5 in the financial statements, which indicates that the group is loss making and has net current liabilities,” the auditors said in their audit report accompanying the firm’s financial results.

“In addition, the group is in dispute with Canmax, who have submitted a purported notice of termination of the offtake agreement and have required the group to settle the prepayment amount of US$34,7 million within 90 days of June 25, 2023. However, the group has been advised that this notice of termination has no force or effect.

“As stated in note 5, these events or conditions, along with the other matters as set forth in note 5, indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.”

Going concern refers to a company’s ability to make enough money to stay afloat or to avoid bankruptcy.

In his statement contained in the report, Premier acting chairperson and chief executive George Roach said the group would use its reasonable endeavours to work with Canmax during the period of force majeure to seek a remedy. However, he said any dispute pertaining to the offtake agreement, including the force majeure, will be resolved in Singapore through arbitration which is expected to take over 12 months for the matter to be both heard and adjudicated on based on the nature of the dispute.

“In the event that the group is unable to either resolve the status of Canmax or find an alternative offtake and marketing partner to settle the Canmax prepayment amount plus interest and Zulu fails to meet its revised production targets, then a material uncertainty exists which may cast significant doubt on the ability of the group to continue as a going concern and therefore be unable to realise its assets and settle its liabilities in the normal course of business,” he said.

Premier owns RHA Tungsten, Zulu lithium and tantalite projects in Zimbabwe. It also has assets in Namibia and Ethiopia.

Source: Zim Independent

Zimbabwe gold buying prices 13 July 2023

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Zimbabwe gold buying prices 13 July 2023

Fidelity Gold Refinery (FGR) official gold buying prices Thursday 13 July 2023. See the Zimbabwe gold buying prices today.

SG 90% AND ABOVE US$59.34/g
SG ABOVE 85% BUT BELOW 90% US$58.71/g
SG ABOVE 80% BUT BELOW 85% US$58.08/g
SG ABOVE 75% BUT BELOW 80% US$57.46/g
SAMPLE BELOW 10g BUT ABOVE 5g US$56.51/g
FIRE ASSAY CASH US$59.65/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily about world market prices.

Gaika Mine for sale

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Gaika Mine for sale

Duration Gold has engaged CBZ Capital as an exclusive advisor in preparation for the sale of Gaika Mine in Kwekwe.

Duration Gold, which also runs Vumbachikwe in Gwanda and other early-stage exploration projects, took the decision to streamline its operations despite already having invested over US$10 million at Gaika.

“Duration’s strategic decision to streamline its operations has come after wide consultations including its shareholders, which include five major international investors and the Ministry of Mines which is striving to meet the grand US$12 billion target set by the government,” said Duration Gold.

“The decision is timely as Duration Gold has invested heavily in the project and accomplished its primary goal of advancing the Gaika exploration project from a small historic, but abandoned, gold mine up the “Exploration Value Curve” to a critical decision point for the Company, the Nation and the local community.”

A 2022 project scoping study conducted by South African-based VBKOM project Managers revealed encouraging results with projections of 85,000 ounces per year.

The report also proposes an Open Pit Mine for Gaika at a cost of US$175 million, for a twelve-year mine life.

Having been commissioned in 1894, Gaika was one of the country’s first mines alongside neighbouring Globe and Phoenix after colonial rule commenced in 1890.

New Zimbabwe

Blanket’s Eroica ore body in encouraging drilling results

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Blanket’s Eroica ore body in encouraging drilling results

Drilling results at Caledonia Mining Corporation Plc-owned Blanket Gold Mine which targets depth extension to the Eroica ore body indicate that the ore body continues at depth with grades and widths being generally better than expected.

Rudairo Mapuranga

Deep-level drilling at Blanket Mine was suspended several years ago due to underground logistical constraints and the impact of Covid-19 on contractor operations. Following completion of the Central Shaft and related infrastructure, deep-level drilling resumed in January 2023 and is currently focussed on the Eroica orebody where a cross-cut has been mined to allow optimal access to drill the deeper zones of the steeply-dipping orebody.

Approximately 5,600m of drilling were completed between January 1, 2023 and May 30, 2023 approximately a further 12,900m is planned for the remainder of 2023.

According to Caledonia Chief Executive Officer Mr Mark Learmonth, approximately 5,600 meters of drilling was completed between January 2023 and the end of May 2023 with the results of the drilling campaign showing encouraging grades.

“I am delighted with the results of the drilling campaign so far. In particular, the grades are very encouraging when compared to the historically achieved mining grades from Eroica which have been approximately 4-5g/t. The Central Shaft and related infrastructure are vital not only to increase production but to give us the capacity to restart exploration with a view to extending the life at Blanket Mine. We have invested heavily in Blanket Mine in the last 7 years, including investment in 2023 (which will be continued in 2024) in a new tailings facility with an anticipated life of approximately 14 years, to create a mine infrastructure which can sustain production beyond the current production horizon.

“These results are very encouraging and we look forward to receiving results from extension drilling at the Blanket ore bodies and also from the next phase of drilling,” Learmonth said.

At the Eroica zone, drilling from an exploration drive on the 750m level of the mine has focussed mainly on converting inferred resources to indicated resources, in addition to drilling areas outside of inferred resources as the mineralization extends to a depth, between 850m and 1150m below surface.

This is above the bottom of the new Central Shaft and therefore any resources that are identified in this area will be served by the planned Central Shaft infrastructure.

Overall, the results confirm the Eroica zone persists to depth as earlier modelled, and, encouragingly, the results indicate that grades and widths are significantly higher than previously thought.

In addition, the deepest hole drilled in the programme, hole ERC750EX2214, returned strong intersections some 120m vertically beneath the current inferred resource, which returned true widths of 5.78m grading 8.18grams per tonne(“g/t”) gold and 8m grading 7.7g/t gold. The zone also remains completely open below these intersections.

These results, along with the results of further planned exploration, will be reflected in a revised mineral resource statement which will be published in due course.

Jena to Commission fresh air rescue team

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Jena to Commission fresh air rescue team

As part of its strategy to reduce fatalities, Kuvimba Mining House (KMH) owned Gold mine, Jena Mines, lost time due to injuries and casualties which has led to the mine assembling a fresh air team which will be commissioned soon, the mines Safety, Health, Environment and Quality (SHEQ) Manager Tatenda Hapanyengwi said.

Speaking to Mining Zimbabwe on the sidelines of the Mine Rescue Association of Zimbabwe (MRAZ) Westzone Quarterly training exercise held at Metallon Corporation Zimbabwe’s Bulawayo Mining Company (BMC) last week, Hapanyengwi said Jena Mines’ rescue team attended the exercise for them to have an understanding of how teams operate practically.

“We have noticed recently that statistics have been rising in terms of fatalities and lost time injuries due to hazards associated with mining. In terms of us being prepared, we decided that we should have a team that is readily available for our mine and other Mines around large or small.

“We came here to learn as a new team on how to respond in terms of call-outs for emergencies. The first thing that we learnt is that Proto is an important team in the mining industry every mine should have a team on its own to reduce casualties, save lives and safety preparedness,” Hapanyengwi said.

He also said that if commissioned, the team is going to be one of the top contenders in upcoming rescue competitions.

“Our team is young, motivated, highly intelligent and with all this training and all this effort we are putting in the idea prepare them such that when the time comes they will be ready. I guarantee you that Jena Mines is going to produce one of the best teams in Zimbabwe,” he said.

AMSZ technical visit to Enhance Tailings Safety & Environmental Protection

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AMSZ technical visit to Enhance Tailings Safety & Environmental Protection

The Association of Mine Surveyors of Zimbabwe (AMSZ) is taking a proactive approach to ensure the safety and environmental protection of Tailings Storage Facilities (TSFs) in Zimbabwe.

In an effort to educate its membership on the technical requirements for building a new TSF, the AMSZ will conduct a technical visit at the Mimosa TSF facility phase 4 on Thursday the 13th of July 2023.

TSFs are reservoirs that store mine tailings, which are the fine-grained waste materials produced during the processing of ore or coal. Improper storage of these tailings can lead to serious safety, health, and environmental hazards. The AMSZ recognizes the importance of proper tailings storage and is committed to equipping stakeholders with the necessary knowledge and skills to mitigate these risks.

AMSZ President Gabriel Mwale highlighted the two presentations that will be given during the visit, focused on survey requirements for building a new tailings storage facility and constructing a penstock for the new TSF before commissioning.

“We will have two presentations. We are going to discuss the Survey requirements for building a new Tailings storage facility. What are the survey controls? Building penstock for the new TSF before commissioning. The building of new walls. New rains and the citing of important works, ” Mwale said.

Mwale emphasized the significance of the technical visit, stating that it will help stakeholders understand the requirements for establishing a proper storage facility for tailings. By providing information and discussing topics such as survey controls for building a new TSF and the construction of penstock, the AMSZ aims to reduce potential hazards and ensure the safety of workers and the environment.

The first presentation will delve into the survey requirements for building a new TSF, specifically focusing on the necessary survey controls. This session will provide valuable insights into the precise measurements and techniques required to ensure the proper construction of a safe and efficient tailings storage facility.

The second presentation will address the building of a penstock for the new TSF before commissioning. Participants will learn about the construction of new walls and the importance of accommodating rainfall and other environmental factors. Siting important works will also be discussed, highlighting the critical considerations that must be made during the planning and construction phase of the TSF.

This will be the Association of Mine Surveyors of Zimbabwe (AMSZ)’s second technical visit this year as the Association moves to demonstrate its commitment to promoting responsible mining practices.

Bikita Minerals Breaks Ground with New Gravity Separation and Flotation Plants, Launching Trial Productions

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Bikita Minerals Breaks Ground with New Gravity Separation and Flotation Plants, Launching Trial Productions

Bikita Minerals is pleased to announce that it has successfully completed and officially commenced trial productions on the new Gravity Separation Plant (Petalite) and Flotation plant (Spodumene).

The company initiated the new Gravity separation plant (Petalite) with an annual capacity of 2 million tons (petalite concentrate) through its own funds and raised capital, with construction work starting in 2022 based on the existing beneficiation plant at the Bikita mine.

The plant has a processing capacity of 220tph, an average product grade is 3.9% Li₂O and is expected to produce 480 000 tons of petalite annually.

The newly constructed Flotation plant (Spodumene) also comes with an annual capacity of 2 million tons (spodumene concentrate).

Once the Bikita Minerals Lithium Mine expansion project reaches its production capacity, it is expected to produce 300,000 tons of high-quality chemical-grade spodumene concentrate annually.

The flotation plant has a processing capacity of 330tph, and average product grade is 5.0-5.5% Li₂O.

Commencement of the beneficiation production lines will further enhance the company’s lithium concentrate supply capability and company’s future business performance.

Bikita Minerals under the new owners Sinomine Group has invested over USD 300 million towards plant expansion and exploration.

The new plants will create an additional 1000 jobs and the company projects to generate USD 500 million from exports in 2023.

Women, youths and Warvets awarded Mashava reservations

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Women, youths and Warvets awarded Mashava reservations

The Cabinet of Zimbabwe has approved a proposal through which part of the Mashava Reservations held by the Ministry of Mines and Mining Development will be allocated to eleven syndicates three of them being solely for the youths, women and war veterans.

Rudairo Mapuranga

On Tuesday, the Minister of Information Senator Monica Mutsvangwa said the government is determined to extend the participation of communities in the mining sector. She said the Syndicates will supply chrome ores to Zimbabwe Zhongxin Smelting Company (ZZSC) in Mashava with a capacity to generate nearly US$88 million and create 200 jobs.

“Cabinet approved a proposal through which part of the Mashava Reservations held by the Ministry of Mines and Mining Development will be allocated to eleven syndicates. These syndicates will be from each of the eight administrative districts of Masvingo Province with three other syndicates being solely for youth, war veterans and women to supply chrome ores to Zimbabwe Zhongxin Smelting Company (ZZSC). The company is a new ferrochrome smelting project based in Mashava, Masvingo Province with the capacity to generate about US$88 million and create 200 jobs locally,” Hon Mutsvangwa said.

She also said that as part of broadening community participation, the Cabinet was requested by traditional leaders to acquire mining titles in reserved areas.

“Following the boom in the mining sector, Government has seen it fit to broaden the participation of communities in the sector. To that end, Cabinet wishes to advise the nation that it granted the request by the following traditional leaders to acquire mining titles in reserved areas for the benefit of their communities: Tefra Mining Syndicate (Chief Marange), Goromonzi Mining Trust (Three Chiefs Rusike, Chinamora, Chikwaka), Chinamhora Mining Syndicate (Chief Chinamhora), Chiwara Mining Syndicate (Chief Chiwara), Bere SP Mining Syndicate (Chief Bere); and Budiriro Mining Syndicate (Chief Chiweshe). Cabinet further granted the request by War Veterans for mining titles,” Mutsvangwa said.

AI, Graduates inclusion highlighted ZINIRE AGM

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AI, Graduates inclusion highlighted ZINIRE AGM

Embracing artificial intelligence (AI) and allowing graduates and students space to express themselves in the Rock Engineering field were key takeaways at the just-ended Zimbabwe National Institute of Rock Engineering (ZINIRE) Annual General Meeting (AGM) and Symposium held in Bulawayo last week.

Rudairo Mapuranga

AI and big data have been widely used in computer science and data science, but they are still in their infancy in rock engineering.

There is no complete set of theories and systems that combine the theoretical problems of rock engineering with machine learning. AI methods have successfully been used to solve various problems in the rock mechanics field and they performed better than the traditional empirical, mathematical or statistical methods. However, their practical applicability is still an issue of concern as many of the existing AI models require some level of expertise before they can be used because they are not in the form of tractable mathematical equations. Thus some advanced AI methods are still yet to be explored.

Speaking at the AGM at Holiday Inn Hotel in Bulawayo ZINIRE Vice President Omberai Mandingaisa said it was of importance for the Rock Engineering sector to start absorbing graduates into the rock engineering field to allow the proliferation of AI.

“On artificial intelligence, we need to start absorbing graduates into the rock engineering field. We need to give those youngsters space. It is something which can be done from a mining industry perspective. I have run a couple of projects with students, it has been amazing, rock engineering and AI can be great if we allow students to be innovative.

Patrick Mushangwe who attended the event asked Mandingaisa about the fear of people and engineers losing due to the introduction of AI because it might eventually take over the industry.

Mandingaisa said, “AI will not take over rock engineering model calibrations, it will be useful complimentary in data collection and decision making in the mining field.”

“AI will always follow the human mind and the human mind keep evolving, AI will only evolve as the human mind does and brings in more computational power to the process. What will change are the current roles that we have currently for example the job of an engineering geologist is fast being replaced by geotechnical engineers,” Mandingaisa said.

It was also suggested that ZINIRE needs to partner with the Zimbabwe School of Mines to create AI products that suit the Artisanal and Small-Scale Mining industry.

Speaking to Mining Zimbabwe on the sidelines of the event ZINIRE President Renius Tirivabaya said the institute was not going to be ignorant of changes happening in the industry through technology therefore it was going to work with institutions of higher learning and service providers to embrace AI.

“We can’t also be ignorant of the changes that are happening in terms of technology. We will talk about AI, machine learning and other things. The best strategy is to develop skills in these areas which we should do by trying to influence the curriculum at our local institutions such that they incorporate such training in terms of data analytics, AI, machine learning all those things. We also need to partner with our suppliers of technology to be able to develop appropriate technology for the sector that incorporate these principles such that they help us to win our wall against fall of ground incidents,” he said.

PRECIOUS STONES TRADE ACT of Zimbabwe

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PRECIOUS STONES TRADE ACT of Zimbabwe

CHAPTER 21:06 PRECIOUS STONES TRADE ACT

Acts 8/1978, 1/1982, 22/2001 (s. 4), 10/2007.

In this Act:

– “Deal” in relation to precious stones means to buy, sell, barter, pledge, exchange, give or receive, or offer or expose for sale, barter, pledge, or exchange, or engage in any other transaction whatsoever.
– “Holder of a mining location” refers to the person in whose name the mining location is registered. In the case of a deceased person, a company in liquidation, or any person under a legal disability, it means the executor, administrator, liquidator, trustee, tutor, curator, or other person who has the administration or control of the property of the person in whose name the location is registered.
– “Inspector of mines” means an inspector of mines appointed under the Mines Act.
– “Licence” means a licence issued in terms of section seven.
– “Licensed dealer” means a dealer licensed under section seven.
– “Mines Act” refers to the Mines and Minerals Act [Chapter 21:05].
– “Mining commissioner” means a mining commissioner appointed under the Mines Act.
– “Mining location” means a mining location registered under the Mines Act.
– “Minister” means the Minister of Mines or any other Minister to whom the President may assign the administration of this Act from time to time.
– “Permit” means a permit issued under section eight.
– “Permit holder” refers to the holder of a permit.
– “Postal article” means any letter, parcel, packet, newspaper, or any other article in the course of transmission by post or intended to be transmitted by post.
– “Precious stones” means rough or uncut diamonds, rough or uncut emeralds, or any other substance which is declared to be precious stones for the purposes of this Act under subsection (2). [Definition substituted by section 2 Act No. 10 of 2007]
– “Secretary” means the Secretary of the Ministry for which the Minister is responsible.
– “Tributor” means the lessee or assignee of the rights of the holder of a mining location.

(2) The Minister may, by notice in a statutory instrument, declare any substance to be precious stones for the purposes of this Act.

Download the PRECIOUS STONES TRADE ACT

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