Half-year Report

RNS Number : 3101B
Premier African Minerals Limited
30 September 2022
 

30 September 2022

 

Premier African Minerals Limited
('Premier' or the 'Company' or the 'Group')

 

Unaudited Interim Results for the six months ended 30 June 2022

 

Chief Executive Statement

 

Dear Shareholders,

 

It is a pleasure to share with you the unaudited interim results for the six months ended 30 June 2022 (the "Period").

 

The first six months activity of 2022 has been extensively reported as post financial year end events in our annual financial statements that were released just a few months ago and in various interim announcements. Noteworthy is the healthy financial position of the Company.

 

I am happy to provide further updates particularly in regard to Zulu Lithium Private Limited ("Zulu"). This includes:

 

· Commencement of construction activities at site;

· Acceleration of assay results that should see an upgrade to the resource confidence level in the coming months;

· Preparation for mobilisation of the first plant components transportation to site;

· Near completion of geotechnical evaluations for open pit mining;

· Completion of current phase of exploration drilling with total meterage now drilled at Zulu exceeding 35,000 meters; and

· In particular continuing and increasing demand for spodumene maintaining an upward price spiral.

 

At this time, anticipated commissioning date remains quarter 1 of 2023 and within budget, which is fully funded.

 

Financial and Statutory Information

 

The Group incurred an operating loss of US$4.891 million for the Period. This is due to the on-going definitive feasibility study exploration work being conducted at the Group's Zulu Lithium mine in Zimbabwe for the Period. Cash at hand as at 30 June 2022 was $10.197 million.

 

Premier received continued financial support from its shareholders throughout the Period.

 

These interim statements to 30 June 2022 have not been reviewed by the auditors.

 

Mr. George Roach
Chief Executive Officer
30 September 2022


Forward Looking Statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as "believe", "could", "should", "envisage", "estimate", "intend", "may", "plan", "will" or the negative of those, variations, or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital, and other expenditures (including the amount, nature, and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses, and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

 

The person who arranged the release of this announcement on behalf of the Company was George Roach.

 

For further information please visit www.premierafricanminerals.com or contact the following:

 

George Roach

Premier African Minerals Limited

Tel: +27 (0) 100 201 281

Michael Cornish / Roland Cornish

Beaumont Cornish Limited (Nominated Advisor)

Tel: +44 (0) 207 628 3396

John More / Toby Gibbs

Shore Capital Stockbrokers Limited

(Joint Broker)

Tel: +44 (0) 207 408 4090


CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

EXPRESSED IN US DOLLARS

 

 



 Six months to

 Six months to

2021

EXPRESSED IN US DOLLARS

 

 30 June 2022

 30 June 2021

 (Audited)

 

Notes

 $ 000

 $ 000

 $ 000

ASSETS

 




Non-current assets

 




Intangible assets

4

4,686

4,686

4,686

Investments

5

8,342

8,342

8,342

Property, plant and equipment

6

4,345

58

204

Loans receivable

7

859

-

859



18,232

13,086

14,091

Current assets

 




Inventories


21

1

-

Trade and other receivables


370

419

417

Cash and cash equivalents


10,197

937

1,014



10,588

1,357

1,431

TOTAL ASSETS

 

28,820

14,443

15,522






LIABILITIES

 




Non-current liabilities

 




Provisions - rehabilitation


380

90

362



380

90

362

Current liabilities

 




Trade and other payables


3,983

497

586

Borrowings

8

180

-

180



4,163

497

766

TOTAL LIABILITIES

 

4,543

587

1,128






NET ASSETS

 

24,277

13,856

14,394






EQUITY

 




Share capital

9

70,951

53,835

56,113

Share based payment and warrant reserve


2,366

2,366

2,366

Revaluation reserve


711

711

711

Foreign currency translation reserve


(13,170)

(13,131)

(13,018)

Accumulated loss


(24,129)

(18,007)

(19,469)

Total equity attributed to the owners of the parent company


36,729

25,774

26,703

Non-controlling interest


(12,452)

(11,918)

(12,309)






TOTAL EQUITY

 

24,277

13,856

14,394

 

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

EXPRESSED IN US DOLLARS

 

 



 Six months to

 Six months to

2021

Continuing operations

Notes

 30 June 2022

 30 June 2021

 (Audited)

EXPRESSED IN US DOLLARS

 

 $ 000

 $ 000

 $ 000

 





Revenue


-

-

-

Cost of sales excluding depreciation and amortisation expense


-

-

-

Depreciation and amortisation

6

(15)

-

(17)

Gross profit / (loss)

 

(15)

-

(17)

Administrative expenses


(4,861)

(742)

(2,409)

Operating profit / (loss)

 

(4,876)

(742)

(2,426)






Other Income

9

3

120

133

Reversal of Impairment of intangible assets -
Zulu Lithium


-

4,563

4,563

Finance charges


(18)

(3)

(18)



(15)

4,680

4,678

Profit / (Loss) before income tax

 

(4,891)

3,938

2,252

Income tax expense

10

-

-

-

Profit / (Loss) from continuing operations

 

(4,891)

3,938

2,252






Profit / (Loss) for the year

 

(4,891)

3,938

2,252

Other comprehensive income:

 




Items that are or may be reclassified subsequently to profit or loss:





Foreign exchange loss on translation


(64)

236

182



(64)

236

182

Total comprehensive income for the year

 

(4,955)

4,174

2,434






Loss attributable to:

 




Owners of the Company


(4,660)

4,152

2,690

Non-controlling interests


(231)

(214)

(438)



(4,891)

3,938

2,252






Total comprehensive income attributable to:

 




Owners of the Company


(4,812)

4,271

2,922

Non-controlling interests


(143)

(97)

(488)






Total comprehensive income for the year

 

(4,955)

4,174

2,434






Loss per share attributable to owners of the parent (expressed in US cents)

 

Basic loss per share

11

(0.026)

  0.036

  0.020

Diluted loss per share

11

(0.026)

  0.036

  0.020


CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

EXPRESSED IN US DOLLARS

 

 


Share capital

Foreign currency translation reserve

Share option and warrant reserve

Revaluation reserve

Retained earnings

Total attributable to owners of parent

Non-controlling interest("NCI")

Total equity

 

$ 000

$ 000

$ 000

$ 000

$ 000

$ 000

$ 000

$ 000

At 1 January 2021

52,504

(13,250)

2,366

711

(22,159)

20,172

(11,821)

8,351

Loss for the period

4,152

4,152

(214)

3,938

Other comprehensive income for the period

119

119

117

236

Total comprehensive income for the period

-

119

-

-

4,152

4,271

(97)

4,174

Transactions with Owners

 








Issue of equity shares

1,416

1,416

1,416

Share issue costs

(85)

(85)

(85)

At 30 June 2021

53,835

(13,131)

2,366

711

(18,007)

25,774

(11,918)

13,856

Loss for the period

(1,462)

(1,462)

(224)

(1,686)

Other comprehensive income for the period

113


113

(167)

(54)

Total comprehensive income for the period

113

(1,462)

(1,349)

(391)

(1,740)

Transactions with Owners

 








Issue of equity shares

2,423

2,423

2,423

Share issue costs

(145)

(145)

(145)

At 31 December 2021

56,113

(13,018)

2,366

711

(19,469)

26,703

(12,309)

14,394

Profit / (Loss) for the period

(4,660)

(4,660)

(231)

(4,891)

Other comprehensive income for the period

(152)

(152)

88

(64)

Total comprehensive income for the period

-

(152)

-

-

(4,660)

(4,812)

(143)

(4,955)

Transactions with Owners

 








Issue of equity shares

15,782

15,782

15,782

Share issue costs

(944)

(944)

(944)

At 30 June 2022

70,951

(13,170)

2,366

711

(24,129)

36,729

(12,452)

24,277


CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

EXPRESSED IN US DOLLARS

 

 

EXPRESSED IN US DOLLARS

Six months to

Six months to

2021

 

30 June 2022

30 June 2021

(Audited)

 

$ 000

$ 000

$ 000

 




Net cash outflow from operating activities

(1,327)

(897)

(2,640)





Investing activities

 







Acquisition of property plant and equipment

(4,328)

(221)

-

Acquisition of intangible assets

-

(3)

(3)

Loans advanced

-

-

(859)





Net cash used in investing activities

(4,328)

(224)

(862)





Financing activities

 



Proceeds from borrowings granted

-

-

180

Net proceeds from issue of share capital

14,838

1,331

3,609





Net cash from financing activities

14,838

1,331

3,789





Net decrease in cash and cash equivalents

9,183

210

287





Cash and cash equivalents at beginning of year

1,014

727

727

Net cash and cash equivalents at end of year

10,197

937

1,014

 

 

 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

1.  GENERAL INFORMATION

 

Premier African Minerals Limited ('Premier' or the ''Company'), together with its subsidiaries (the 'Group'), was incorporated and domiciled in the Territory of the British Virgin Islands under the BVI Business Companies Act, 2004. The address of the registered office is Craigmuir Chambers, PO Box 71, Road Town, Tortola, British Virgin Islands. Premier's shares were admitted to trading on the London Stock Exchange's AIM market on 10 December 2012.

 

The Group's operations and principal activities are the mining, development and exploration of mineral reserves, primarily on the African continent. The presentational currency of the condensed consolidated interim financial statements is US Dollars ("$").

 

2.  BASIS OF PREPARATION

 

These unaudited condensed consolidated interim financial statements for the six months ended 30 June 2022 were approved by the Board and authorised for issue on 30 September 2022.

 

These interim financial statements have been prepared in accordance with the recognition and measurement principles of the International Financial Reporting Standards ("IFRS") as endorsed by the EU. 

 

The accounting policies applied in the preparation of these consolidated interim financial statements are consistent with the accounting policies applied in the preparation of the consolidated financial statements for the year ended 31 December 2021.

 

The figures for the six months ended 30 June 2021 and 30 June 2022 are unaudited and do not constitute full accounts. The comparative figures for the year ended 31 December 2021 are extracts from the 2021 audited accounts. The independent auditor's report on the 2021 accounts was unqualified.

 

Going Concern

 

The Directors have prepared cash flow forecasts for the next 12 months, taking into account working capital and expenditure forecasts for the rest of the Group including overheads and other development costs.

 

The forecasts include additional preproduction finance which the directors believe can be met. In the event that the Company is unable to obtain additional preproduction finance for the Group's working capital and capital expenditure requirements, 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.

 

3.  SEGMENTAL REPORTING

 

Segmental information is presented in respect of the information reported to the Directors. The segmental information reports the revenue generating segments of RHA Tungsten Private Limited ("RHA"), that operates the RHA Tungsten Mine, and Zulu Lithium Private Limited ("Zulu"). The RHA segment derives income primarily from the production and sale of wolframite concentrate. All other segments are primarily focused on exploration and on administrative and financing segments. Segmental results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

 

As at the reporting date, the company has significant holdings in Zimbabwe. As indicated in the audited annual financial statements, the Zimbabwean government mandated that with effect of 1 March 2019 the only functional currency is the RTGS Dollar. Since the introduction of RTGS Dollars the Zimbabwean inflation rate has gone into hyperinflationary percentages. Hyperinflationary accounting requires a restatement of the local currency assets and liabilities to reflect the effect of the hyperinflation before translating the local currency to the reporting currency. Refer to the audited annual financial statements of 31 December 2021 for more detailed information.

 

By operating segment

Unallocated Corporate

RHA Tungsten Mine Zimbabwe and RHA Mauritius*

Exploration Zulu Lithium Zimbabwe and Zulu Mauritius

Total continued operations

June 2022

$ 000

$ 000

$ 000

$ 000

 





Result

 




Revenue

-

-

-

-

Operating loss

1,756

47

2,976

4,779

Other income

-

-

(3)

(3)

Finance charges

-

18

-

18

Reversal of Impairment of Zulu

-

-

-

-

Loss before taxation

1,756

65

2,973

4,794

Assets

 




Exploration and evaluation assets

108

-

4,563

4,671

Investments

8,312

-

-

8,312

Inventories

-

1

20

21

Trade and other receivables

26

3

341

370

Cash

10,005

13

164

10,182

Total assets

19,353

17

9,391

28,761

Liabilities

 




Borrowings

(180)

-

-

(180)

Trade and other payables

(3,975)

(8)

-

(3,983)

Provisions

-

(380)

-

(380)

Total liabilities

(4,155)

(388)

-

(4,543)

Net assets

15,198

(371)

9,391

24,218






Other information

 




Depreciation and amortisation

-

-

15

15

Property plant and equipment additions

-

-

347

347

Costs capitalised to intangible assets

(12)

-

-

(12)

 

 

By operating segment

Unallocated Corporate

RHA Tungsten Mine Zimbabwe and RHA Mauritius*

Exploration Zulu Lithium Zimbabwe and Zulu Mauritius

Total continuing operations

June 2021

$ 000

$ 000

$ 000

$ 000

 





Result

 




Revenue

-

-

-

-

Operating loss

535

45

37

617

Other Income

(119)

-

-

(119)

Impairment of Zulu Lithium

-

3

-

3

Finance charges

-

-

(4,563)

(4,563)

Loss before taxation

416

48

(4,526)

(4,062)

Assets

 




Exploration and evaluation assets

123

-

4,563

4,686

Investments

8,342

-

-

8,342

Inventories

-

-

-

-

Trade and other receivables

270

8

-

278

Cash

936

-

-

936

Total assets

9,671

10

4,622

14,303

Liabilities

 




Borrowings

-

-

-

-

Trade and other payables

(370)

(121)

(3)

(494)

Provisions

-

(90)

-

(90)

Total liabilities

(370)

(211)

(3)

(584)

Net assets

10,041

221

4,625

14,887






Other information

 




Depreciation and amortisation

-

-

-

-

Property plant and equipment additions

-

-

59

59

Costs capitalised to intangible assets

3

-

-

3

 


By operating segment

Unallocated Corporate

RHA Tungsten Mine Zimbabwe and RHA Mauritius*

Exploration Zulu Lithium Zimbabwe and Zulu Mauritius

Total continued operations

December 2021

$ 000

$ 000

$ 000

$ 000

 





Result

 




Revenue

-

-

-

-

Operating loss

1,543

107

779

2,429

Other income

(122)

(11)

-

(133)

Finance charges

-

18

-

18

Reversal of Impairment of Zulu

-

-

(4,563)

(4,563)

Loss before taxation

1,421

114

(3,784)

(2,249)

Assets

 




Exploration and evaluation assets

123

-

4,563

4,686

Investments

8,342

-

-

8,342

Inventories

-

1

-

1

Trade and other receivables

11

5

401

417

Cash

919

2

92

1,013

Total assets

10,254

8

5,260

15,522

Liabilities

 




Borrowings

(180)

-

-

(180)

Trade and other payables

(557)

(28)

-

(585)

Provisions

-

(362)

-

(362)

Total liabilities

(737)

(390)

-

(1,127)

Net assets

9,517

(382)

5,260

14,395






Other information

 




Depreciation and amortisation

-

-

17

17

Property plant and equipment additions

-

-

220

220

Costs capitalised to intangible assets

3

-

-

3

 

* Represents 100% of the results and financial position of RHA whereas the Group owns 49%.

 

4.  INTANGIBLE EXPLORATION AND EVALUATION ASSETS

 



Exploration & Evaluation assets

 Total

 


$ 000

$ 000

 




Opening carrying value 1 January 2021

 

120

120

Expenditure on Exploration and evaluation


3

3

Reversal of Impairment


4,563

4,563

Closing carrying value 30 June 2021

 

4,686

4,686

Expenditure on Exploration and evaluation


Closing carrying value 31 December 2021

 

4,686

4,686

Expenditure on Exploration and evaluation


Closing carrying value 30 June 2022

 

4,686

4,686

 

During the period to 30 June 2021, $4.563 million was the reversal of impairment for Zulu.

 

5.  INVESTMENTS

 


Vortex /

Manganese

Total

 

(Circum

Namibian

 


Minerals )

Holdings

 


$ 000

$ 000

$ 000

Available-for-sale:

 



Closing carrying 31 December 2020

6,263

2,079

8,342

Shares acquired

-

-

-

Closing carrying 30 June 2021

6,263

2,079

8,342

Shares acquired

-

-

-

Closing carrying 31 December 2021

6,263

2,079

8,342

Shares acquired

-

-

-

Closing carrying 30 June 2022

6,263

2,079

8,342









Reconciliation of movements in investments

 



Carrying value at 31 December 2020

6,263

2,079

8,342

Acquisition at fair value

-

-

-

Carrying value at 30 June 2021

6,263

2,079

8,342

Acquisition at fair value

-

-

-

Carrying value at 31 December 2021 and 30 June 2022

6,263

2,079

8,342

 

During the six months ended 30 June 2022, Premier sold its shares in Circum Minerals Limited ('Circum'), together with other minority shareholders, to Vortex Limited ('Vortex') in exchange for an equal value investment in Vortex. Premier's investment in Vortex / Circum was designated as Fair Value through Other Comprehensive Income. As such the investment is required to be measured at fair value at each reporting date. As Vortex / Circum is unlisted there are no quoted market prices. The fair value of Vortex shares was derived using the previous issue price of Circum shares and validating it against the most recent placing price on 11 May 2021. The shares are considered to be level 3 financial assets under the IFRS 13 categorisation of fair value measurements. Premier continues to hold 5 010 333 shares in Vortex / Circum currently valued in total at $6.263 million.

Premier's investment in MN Holdings Limited ('MNH') is classified as an FVOCI as such is required to be measured at fair value at the reporting date. As MNH is unlisted there are no quoted market prices. The Fair value of the MNH shares as at 30 June 2022 and 31 December 2021 was based on the latest transactions and supported by an external evaluation conducted by Bara Consulting.

 

6.  PROPERTY, PLANT AND EQUIPMENT

 


Mine Development

Plant and Equipment

Land and Buildings

Total

 

$ 000

$ 000

$ 000

$ 000

Cost

 




At 1 January 2021

1,085

2,758

61

3,904

Foreign Currency Translation effect

(149)

(9)

(27)

(185)

Additions

At 30 June 2021

936

2,749

34

3,719

Foreign Currency Translation effect

(40)

(76)

(8)

(124)

Transfer from Capital Work in Progress

Additions

206

15

221

At 31 December 2021

896

2,879

41

3,816

Foreign Currency Translation effect

(72)

(198)

(13)

(283)

Additions

4,328

4,328

At 30 June 2022

824

7,009

28

7,861






Accumulated Depreciation and Impairment Losses

 



At 1 January 2021

1,085

2,758

61

3,904

Foreign Currency Translation effect

(149)

(67)

(27)

(243)

Charge for the year

At 30 June 2021

936

2,691

34

3,661

Exchange differences

(40)

(2)

(7)

(49)

Charge for the year

At 31 December 2021

896

2,689

27

3,612

Foreign Currency Translation effect

(72)

(27)

(12)

(111)

Charge for the year

15

15

At 30 June 2022

824

2,677

15

3,516






Net Book Value

 




At 30 June 2021

58

58

At 31 December 2021

190

14

204

At 30 June 2022

4,332

13

4,345

 

7.  LOANS RECEIVABLE

 


30 June 2022

30 June 2021

2021

 

(Unaudited)

(Unaudited)

(Audited)

 

$ 000

$ 000

$ 000

 




Outback Investments (Pty) Ltd

414

414

Otjozondu Mining (Pty) Ltd

445

445


859

859





Reconciliation of movement in loans receivable

 



As at 1 January

859

Loans advanced

859

Repayment

-

Accrued interest

Total

859

859





Current

859

859

Non-current


859

859

 

The above loans are made to a subsidiary and a related party of MN Holdings (Pty) Ltd and are held at amortised cost.

The purpose of the Outback Investments Pty Ltd loan was to enable MNH to lease and acquire the remaining extent of the Ebenezer No 377 Farm which contains untreated tailings facilities from the Purity Mining Project as announced on the 8th of July 2019. The loan will be forgiven following the uninterrupted use of the farm land for the treatment of the tailing facilities for a period of up to 10 years. During this period Premier has rights to these tailings facilities. The loan is interest free. The loan is only repayable upon default by Outback Investments.

The loan to Otjozondu Mining is to assist with funding the day to day operations and is in accordance with the RNS of 31st August 2021. Premier has provided a loan of $265,000 which bear interest of 20% and is repayable in instalments of $25,000 per shipment of manganese shipped from Namibia. The balance of $180,000 has been provided interest free as it is linked to the loan from Neil Herbert, further details of which are set out in note 8 below.

 

8.  BORROWINGS

 

 


30 June 2022

30 June 2021

2021

 

(Unaudited)

(Unaudited)

(Audited)

 

$ 000

$ 000

$ 000

 




Loan - Neil Herbert

180

180


180

180





 



(Unaudited)

(Unaudited)

(Audited)

 

$ 000

$ 000

$ 000

 




Reconciliation of movement in borrowings

 



As at 1 January

180

Loans received

180

Accrued interest

Total

180

180





Current

180

180

Non-current


180

180





 

Borrowings comprise loans from a related party and a non-related party. Loans from a related party are further disclosed in Note 32, Related Party Transactions.

Neil Herbert made available a loan of US$180,000 to the Company. Under the terms of the Director Loan, the loan is both unsecured and will not attract any interest and is repayable in full by the Company on the signing of a new off-take agreement at Otjozondu. The purpose of the Director Loan is to provide funding to Premier to allow an amendment to the Otjozondu Loan while Premier, acting collectively with Otjozondu, looks to secure the best possible off-take funding package.

At 30 June 2022 the off-take funding had not been secured and Mr Herbert has agreed to the deferment of the repayment of the loan until such off-take agreement has been secured.

9.  SHARE CAPITAL

 

Authorised share capital

 

The total number of voting rights in the Company on the 30 June 2022 was 22 418 009 831.

 

Issued share capital

 



 '000

$ 000

As at January 2021

 

17,793,009

55,592

 




Shares issued for direct Investment


625,000

1,417

As at 30 June 2021

 

18,418,009

57,009

 




Shares issued for direct Investment


500,000

1,364

Shares issued for direct Investment


500,000

1,059

As at 31 December 2021

 

19,418,009

59,432

 




Shares issued for direct Investment


3,000,000

15,782

As at 30 June 2022

 

22,418,009

75,214

 


 Issued

 Share Issue

 Share Capital

 

 Share Capital

 Costs

 (Net of Costs)

 

 $ '000

 $ '000

 $ '000

 




As at 31 December 2020 - Audited

55,592

(3,088)

52,504

Shares issued

1,417

(85)

1,332

As at 30 June 2021

57,009

(3,173)

53,836

Shares issued

2,423

(146)

2,277

As at 31 December 2021 - Audited

59,432

(3,319)

56,113

Shares issued

15,782

(944)

14,838

As at 30 June 2022

75,214

(4,263)

70,951





 

 

10.  OTHER INCOME

 


(Unaudited)

(Unaudited)

(Audited)

 

$ 000

$ 000

$ 000

 




Profit on disposal of PPE

3

Reversal of prescribed debt

120

133


3

120

133





 

 

11.  FOREIGN EXCHANGE GAINS AND LOSSES

 

As indicated in note 3. Segmental Reporting, the company has significant holdings in Zimbabwe. With effect from the 1st of March 2019, the Zimbabwean government mandated that the only functional currency is RTGS Dollar. Since the introduction of RTGS Dollar the currency has devalued from the introductory rate of
RTGS Dollar 1: US$ 1 to RTGS Dollar 370.9646 at 30 June 2022 (RTGS Dollar 85.4234 - 30 June 2021). This currency has continued to devalue.  As defined in IAS29, the Zimbabwean economy is considered to be hyperinflationary. As most of the group's Zimbabwean assets have been impaired the result in liabilities are adjusted for the hyperinflationary effect. This leads to a net gain on translation into the reporting currency. For further information refer to the audited financial statement of 31 December 2021.

12.  TAXATION

 

There is no taxation charge for the period ended 30 June 2022 (30 June 2021 and 31 December 2021: Nil) because the Group is registered in the British Virgin Islands where no corporate taxes or capital gains tax are charged. However, the Group may be liable for taxes in the jurisdictions of the underlying operations.

The Group has incurred tax losses in Zimbabwe; however, a deferred tax asset has not been recognised in the accounts due to the unpredictability of future profit streams. 

Contingent liablity 

 

The Group operates across different geographical regions and is required to comply with tax legislation in various jurisdictions. The determination of the Group's tax is based on interpretations applied in terms of the respective tax legislations and may be subject to periodic challenges by tax authorities which may give rise to tax exposures. 

 

13.  LOSS PER SHARE

 

The calculation of loss per share is based on the loss after taxation attributable to the owners of the parent divided by the weighted average number of shares in issue during each period.

 

 


30 June 2022

30 June 2021

2019

 

(Unaudited)

(Unaudited)

(Audited)

 





$ '000

$ '000

$ '000

 




Net profit / (loss) attributable to owners of the company ($'000)

(4,660)

4,152

2,690





Weighted average number of Ordinary Shares in calculating



basic earnings per share ('000)

17,865,523

11,455,420

13,167,281





Basic earnings / (loss) per share (US cents)

(0.026)

0.036

0.020





 

 

As the Group incurred a loss for the period (2020: profit), there is no dilutive effect from the share options and warrants in issue or the shares issued after the reporting date.

 

 

14.  EVENTS AFTER THE REPORTING DATE

 

1)  Corporate matters

 

In August, the Company concluded the definitive transaction documents in respect of the Marketing and Pre-Payment Agreement with Suzhou TA&A Ultra Clean Technology Co. Ltd to provide a pre-payment against future sales invoices in the amount of US$34,644,385 to enable the construction and commissioning of a large-scale pilot plant at Zulu. To date Premier has received approximately $24 million of this pre-payment.

 

Further in August, the Company received a payment of US$250,000 from Li3 Resources Inc. in exercise of their option to acquire a 50% interest in Premier's hard-rock lithium assets located in the Mutare Greenstone Belt in Zimbabwe.

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