AIM-listed mining and exploration junior Premier African Minerals Limited has reported an operating loss of US$7.687 million for the six months ended 30 June 2025, largely attributed to ongoing overheads and administrative costs associated with the construction, installation, and optimisation of its flagship Zulu Lithium and Tantalum Project in Fort Rixon, Mining Zimbabwe can report.
By Rudairo Mapuranga
In his first interim statement since formally taking over from long-time CEO George Roach, new Managing Director Graham Hill highlighted that Premier remains firmly focused on unlocking Zulu’s potential.
He, however, said that Premier’s cash at hand during the period fell to just US$29,000, underscoring the financial pressure the company continues to face as it works to stabilise operations. Despite this, he said Premier had received continued support from its shareholders throughout the period, helping sustain progress on optimisation and negotiations around funding.
“The optimisation process is advancing and has already delivered some encouraging results, but further refinements are required, and there can be no assurance that the plant will consistently reach its designed performance within the near term,” Hill said.
Over the past three months, the company has installed flotation inserts, froth crowders, and flow directors, which have already improved recoveries. Work is now underway to improve spodumene grade, with Hill expressing confidence that further refinements supported by the OEM will bring the plant closer to its intended capacity.
Premier also confirmed that its review of a potential secondary flotation plant is nearing completion. Depending on test results, the company may pursue an acquisition either to serve as a primary replacement or as a supplementary unit to expand Zulu’s designed production capacity.
Looking ahead, Hill stressed that securing a revised offtake agreement and complementary funding package remains critical. Negotiations with a major trading house, as previously flagged, are progressing, with further site visits to Zulu expected in the coming weeks.
“Our constructive engagement with the major trading house is ongoing with the shared desire to see this through to final agreement both with Premier and particularly with Canmax,” Hill said, referencing the company’s offtake partner and major creditor.
Despite reporting losses, Hill said Zulu has the fundamentals to succeed, pointing to its SAMREC and JORC-compliant resource, strong infrastructure, market access, and availability of skilled expertise.
“Optimisation is progressing, commercial discussions are advancing, and the Board and I believe that Premier is taking the necessary steps to restore value for shareholders,” he added.
Premier will now look to conclude its optimisation work and secure the critical funding needed to bring Zulu into consistent production, with investors keenly watching whether Hill can stabilise operations and shift the company toward long-term growth.
