Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
PREMIER African Minerals Limited has reported an operating loss of US$7,7 million for the six months ended 30 June 2025, weighed down by overheads and administration costs linked to the construction, installation and optimisation of its flagship Zulu Lithium and Tantalum Project in Fort Rixon.
Despite the loss, the resources group remains upbeat about Zulu’s long-term prospects, citing strong resource potential, infrastructure advantages and market access that provide a solid foundation for success.
Managing Director, Mr Graham Hill said the company is now focused on building momentum at Zulu following a transitionary period.
“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,” said Mr Hill.
The mining group’s financials show cash at hand stood at US$29 000 as of 30 June 2025, while total assets exceeded total liabilities by US$5,9 million.
However, current liabilities outweighed current assets by US$54,4 million.
Mr Hill attributed this largely to the US$46,067 million received from the group’s offtake partner as an advance.
“This advance receipt will be settled from proceeds from the sale of SC6 to the offtake partner from production at Zulu Lithium and Tantalum Project (‘Zulu’), or alternatively through the issue of shares into Zulu based on market valuation of US$100 million if not repaid by 31 December 2025,” he said.
On the operational side, the company said recent plant upgrades, including flotation inserts, froth crowders and flow directors, had already delivered a “significant improvement in recoveries”.
Mr Hill confirmed the firm is also engaged in discussions over a potential revised offtake agreement and associated funding package.
“Discussions around a potential revised offtake and associated agreements as noted in recent announcements are progressing and potentially provide a pathway to secure the funding and strategic partnerships needed to realise Zulu’s full potential,” he said.
The Premier African Minerals boss underscored Zulu’s inherent strengths. He noted that Zulu has the resource, the infrastructure and the market access needed for long-term success.
Optimisation is progressing, commercial discussions are advancing and Premier is taking the necessary steps to restore value for shareholders, the managing director added.
“I am greatly encouraged by Zulu’s fundamentals. Fundamentally, all successful mines need an adequate resource and Zulu hosts an excellent resource which is both a SAMREC and JORC compliant Mineral Resource Estimate, as well as important further opportunities in the surrounding area and our various claims that have now been registered within the EPO area.
“Zulu also benefits from excellent infrastructure, utilities, market access and the availability of skilled expertise. These are the building blocks of a successful mine and Zulu has them in place.”
