Premier African Minerals Posts $7.7 Million Loss, Focuses on Zulu Lithium Optimisation and Funding Talks
AIM-listed Premier African Minerals Limited has reported an operating loss of US$7.687 million for the six months ending 30 June 2025, largely driven by ongoing overheads, construction, and optimisation costs at its flagship Zulu Lithium and Tantalum Project in Fort Rixon, Zimbabwe.
This marks the first interim statement by new Managing Director Graham Hill, who formally succeeded long-time CEO George Roach.
Hill reaffirmed that Premier remains committed to unlocking Zulu’s long-term potential despite significant financial challenges.
Premier’s cash position dropped to just US$29,000 during the reporting period, highlighting the company’s liquidity strain.
However, Hill noted that continued shareholder support has enabled progress on both optimisation efforts and ongoing funding negotiations.
“The optimisation process is advancing and has already delivered encouraging results, but further refinements are still required.
There can be no assurance the plant will consistently achieve its designed performance in the near term,” Hill cautioned.
Over the past quarter, Premier installed flotation inserts, froth crowders, and flow directors, which have improved recoveries.
Work is now focused on enhancing spodumene grade, with support from the plant’s OEM expected to bring operations closer to target capacity.
In addition, Premier’s review of a potential secondary flotation plant is nearing completion. Depending on test outcomes, the company may either acquire a replacement primary unit or add a supplementary system to expand Zulu’s production capacity.
Looking ahead, Hill emphasised that securing a revised offtake agreement and complementary funding package is critical.
Negotiations with a major trading house are ongoing, with further site visits to Zulu planned in the coming weeks.
“Our constructive engagement with the major trading house continues, with a shared goal of finalising agreements involving both Premier and our offtake partner Canmax,” Hill said.
Despite reporting losses, Hill expressed confidence in Zulu’s fundamentals, citing its JORC- and SAMREC-compliant resource, established infrastructure, and skilled workforce.
“Optimisation is progressing, commercial discussions are advancing, and the Board and I believe Premier is taking the necessary steps to restore value for shareholders,” Hill added.
With optimisation work underway and funding talks progressing, investors remain focused on whether Premier can stabilise operations, secure financing, and deliver sustainable production growth from Zulu in the months ahead.
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