Share Name Share Symbol Market Type Share ISIN Share Description
Premier African Minerals Limited LSE:PREM London Ordinary Share VGG7223M1005 ORD NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.0075 -5.26% 0.135 0.13 0.14 0.1475 0.1325 0.1425 196,786,085 09:52:39
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.1 -6.1 -0.1 - 11

Premier African Minerals Limited Unaudited Interim Results to 30 June 2019

30/09/2019 4:00pm

UK Regulatory (RNS & others)


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RNS Number : 2051O

Premier African Minerals Limited

30 September 2019

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

30 September 2019

Premier African Minerals Limited

('Premier' or 'the Company')

Unaudited Interim Results for the six months ended 30 June 2019

Premier African Minerals Limited, the AIM quoted multi-commodity mining and resource development Company focused on Southern Africa announces its unaudited interim results for the six months ended 30 June 2019.

CEO'S STATEMENT

The first six months of 2019 (the "Period") has been extensively reported as post financial year end events in our annual financial statements and various announcements released via the Regulatory News Service (as summarised further in Note 11 below). Whilst we continue to be encouraged by recent events in Zimbabwe and particularly by the commitment of National Indigenisation and Economic Empowerment Fund ("NIEEF") to ensure additional Zimbabwean local currency ("RTGS Dollars") funding is available to bring RHA Tungsten Pvt Ltd ("RHA") back to production, NIEEF must now start expeditiously meeting their agreement to provide the additional funds needed for RHA to achieve an early return to operational status. Similarly, I strongly believe that the Mining Affairs Board will finally conclude the ongoing process for the grant for an Exclusive Prospecting Order ("EPO") for an extension of the Zulu Lithium and Tantalum project ("Zulu") tenements strictly over the known strike extensions.

Whilst the financial strain on the Company over the past 6 months has been substantial, the cost cutting and commitment from our entire Company and consultants has been admirable. At the same time, the challenging capital markets for the junior mining sector continue to depress our market capitalisation to the extent this is now well below the value of our assets.

As has been reported, Premier recently concluded a share-based loan agreement with MN Holdings Limited ("MNH"), the owner and operator of the Otjozondu Manganese Mine in Namibia ("OM"). This loan is intended to be used to acquire plant and equipment that would see a substantial ramp up of the existing production and revenues of OM. The owners of OM have been absolutely clear that it is their desire to see OM in a public vehicle, and Premier would potentially suit their purpose should they wish to approach us at any stage.

I will in any case encourage closer cooperation between OM and Premier and will report any further developments in this regard.

Zulu Lithium and Tantalum Project

Zulu Lithium is a large and high-quality lithium development opportunity and obtaining the EPO surrounding the current claim blocks is in my view essential for the development of Zulu. Added scale coupled with the quality of the deposit identified to date is likely to open the way to other partners to jointly share the funding costs for the planned definitive feasibility study ("DFS") as previously announced. The fundamentals of this deposit remain unchanged. Under the assumption that we are granted the EPO, the Company together with its auditors can look at re-assessing the impairment charge currently placed over Zulu.

RHA Tungsten Mine

Work has commenced on electrification of RHA and construction for the new substation is now underway. NIEEF is committed to the provision of additional finance to continue the recommissioning process. And once again, the Company together with its auditors will re-assess the impairment charge currently placed over RHA.

Other Zimbabwe Projects

Premier maintains claims to a number of other prospective projects in Zimbabwe. These include Tinde Fluorspar, and Rare Earth Elements at Katete Minerals Limited. Whilst RHA and Zulu are taking centre stage in this period under review, these other projects remain potentially attractive in the Board's view.

Board and Management Changes

I again express my appreciation to Michael Foster who accepted the Chairmanship and has assisted us through the past 18 months. Mr Foster has recently resigned to pursue other career opportunities and we wish him well in his future endeavours and I refer to our announcement of the 23 September 2019. I am delighted that Neil Herbert has re-joined our board and his associations with OM have not gone unnoticed. Further board and management changes are expected as we seek to bolster the leadership team and, in the lead up to those and for a strictly limited period, I have agreed to return to the Chairman's role. My views on separation of the functions, are well known, as is my commitment to find a CEO.

Funding

During the six months ended 30 June 2019 the Company issued 161,986,000 shares in settlement of $0.71 million owed to current trade payables.

Outlook

Prospects for RHA have improved but a return to production is expected to take more time than initially envisaged. Our views on Circum Minerals Limited ("Circum") have not changed and in fact, in my opinion, outlook may be stronger, particularly when the fundamentals of the project are viewed in the context of the present market conditions.

Zulu lithium is a large and high-quality asset and the current deposit is fundamentally sound, however the project requires the granting of the EPO to attract funding for the next phase of development.

The best prospects for Premier in my view, lie as noted above in any possible future approach from OM.

As a final note, I would like to take this opportunity to extend my gratitude to our shareholders, directors, advisors and consultants for their continued support, commitment and confidence in Premier during this transitional phase.

Mr. George Roach

CEO and incoming Chairman

30 September 2019

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.

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. 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:

 
 Fuad Sillem                Premier African Minerals     Tel: +44 (0)7734922074 
                             Limited 
 Michael Cornish / Roland   Beaumont Cornish Limited     Tel: +44 (0)2076283396 
  Cornish                    (Nominated Advisor) 
                           ===========================  ======================= 
 Jerry Keen / Edward        Shore Capital Stockbrokers   Tel: +44 (0)2074084090 
  Mansfield                  Limited 
                           ===========================  ======================= 
 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

EXPRESSED IN US DOLLARS

 
                                            Six months   Six months 
                                                    to           to        2018 
 EXPRESSED IN US DOLLARS                       30 June      30 June   (Audited) 
                                                  2019         2018 
                                    Notes        $ 000        $ 000       $ 000 
 ASSETS 
 Non-current assets 
 Intangible assets                    4              -        4 426           - 
 Investments                          5          6 263        6 603       6 263 
 Property, plant and equipment        6              -            -           - 
                                                 6 263       11 029       6 263 
                                           -----------  -----------  ---------- 
 Current assets 
 Inventories                                         4            -          26 
 Trade and other receivables                        25          208          53 
 Cash and cash equivalents                       1 192           91          16 
                                                 1 221          299          95 
                                           -----------  -----------  ---------- 
 TOTAL ASSETS                                    7 484       11 328       6 358 
                                           -----------  -----------  ---------- 
 
 LIABILITIES 
 Non-current liabilities 
 Other financial liabilities                         -           70          34 
 Provisions - rehabilitation                       173          994         983 
                                                   173        1 064       1 017 
                                           -----------  -----------  ---------- 
 Current liabilities 
 Bank overdraft                                      1          302         288 
 Trade and other payables                          856        2 480       2 957 
 Other financial liabilities                        65           56          60 
 Borrowings                           7            685          534         213 
                                                   105        3 372       3 518 
                                           -----------  -----------  ---------- 
 TOTAL LIABILITIES                                  68        4 436       4 535 
 
 NET ASSETS                                      7 416        6 892       1 823 
                                           -----------  -----------  ---------- 
 
 EQUITY 
 Share capital                        8         46 550       44 665      45 873 
 Share based payment and warrant 
  reserve                                        2 366        2 223       2 366 
 Revaluation reserve                               711          854         711 
 Foreign currency translation                    1 772            -           - 
  reserve 
 Accumulated loss                             (34 249)     (28 689)    (34 423) 
                                           -----------  -----------  ---------- 
 Total equity attributed to the 
  owners of the parent company                  17 150       19 053      14 527 
 Non-controlling interest                      (9 734)     (12 161)    (12 704) 
                                           -----------  -----------  ---------- 
 
 TOTAL EQUITY                                    7 416        6 892       1 823 
                                           -----------  -----------  ---------- 
 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

EXPRESSED IN US DOLLARS

 
                                                      Six months   Six months 
                                                              to           to        2018 
                                                         30 June      30 June 
 Continuing operations                        Notes         2019         2018   (Audited) 
 EXPRESSED IN US DOLLARS                                   $ 000        $ 000       $ 000 
 
 Sales                                                         -          166         168 
 Sundry revenue                                 9          1 548            -           - 
 Revenue                                                   1 548          166         168 
 Cost of sales excluding depreciation 
  and amortisation                                          (23)        (262)       (179) 
 Depreciation and amortisation                  6              -            -           - 
                                                     -----------  -----------  ---------- 
 Gross income / (loss)                                     1 525         (96)        (11) 
 Administrative expenses                                 (1 123)      (1 299)     (2 834) 
 Foreign exchange losses                       10       (18 258)            -           - 
 Operating income / (loss)                              (17 856)      (1 395)     (2 845) 
 
 Fair value movement on available-for-sale 
  investment                                                   -            -          47 
 Impairment of PPE - RHA                                       -            -       (196) 
 Impairment of current assets 
  - RHA                                                        -            -        (48) 
 Impairment of intangible assets 
  - Zulu Lithium                                               -            -     (4 563) 
 Finance charges                                            (68)         (87)       (153) 
                                                     -----------  -----------  ---------- 
                                                            (68)         (87)     (4 913) 
                                                     -----------  -----------  ---------- 
 Income / (Loss) before income 
  tax                                                   (17 924)      (1 481)     (7 758) 
 Income tax expense                            11              -            -           - 
                                                     -----------  -----------  ---------- 
 Income / (Loss) from continuing 
  operations                                            (17 924)      (1 481)     (7 758) 
 
 Income / (Loss) for the year                           (17 924)      (1 481)     (7 758) 
                                                     -----------  -----------  ---------- 
 Other comprehensive income: 
 Items that are or may be reclassified 
  subsequently to profit or loss: 
 Foreign exchange translation                              5 506            -           - 
  variance 
 Fair value movement on available-for-sale 
  investment                                                   -          143           - 
                                                           5 506          143           - 
                                                     -----------  -----------  ---------- 
 Total comprehensive income for 
  the year                                              (12 418)      (1 338)     (7 758) 
                                                     -----------  -----------  ---------- 
 
 Income / (Loss) attributable 
  to: 
 Owners of the Company                                   (9 567)      (1 075)     (6 809) 
 Non-controlling interests                               (8 357)        (406)       (949) 
                                                     -----------  -----------  ---------- 
                                                        (17 924)      (1 481)     (7 758) 
                                                     -----------  -----------  ---------- 
 
 Total comprehensive income attributable 
  to: 
 Owners of the Company                                  (15 388)        (932)     (6 809) 
 Non-controlling interests                                 2 970        (406)       (949) 
                                                     -----------  -----------  ---------- 
 
 Total comprehensive income for 
  the year                                              (12 418)      (1 338)     (7 758) 
                                                     -----------  -----------  ---------- 
 
 Loss per share attributable 
  to owners of the parent (expressed 
  in US cents) 
 Basic loss per share                          12         (0.13)       (0.01)       (0.1) 
 Diluted loss per share                        12         (0.13)       (0.01)       (0.1) 
 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

EXPRESSED IN US DOLLARS

 
                    Share       Foreign     Share   Revaluation   Retained          Total   Non-controlling      Total 
                  capital      currency    option       reserve   earnings   attributable          interest     equity 
                            translation       and                               to owners           ("NCI") 
                                reserve   warrant                               of parent 
                                          reserve 
                                                                                           ----------------  --------- 
                    $ 000         $ 000     $ 000         $ 000      $ 000          $ 000             $ 000      $ 000 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 At 1 January 
  2018             44 158             -     2 393           711   (27 614)         19 648          (11 755)      7 893 
 Loss for the 
  period                -             -         -             -      1 075          1 075             (406)        669 
 Other 
 comprehensive 
 income for 
 the period             -             -         -             -          -              -                 -          - 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 Total 
  comprehensive 
  income for 
  the period            -             -         -             -      1 075          1 075             (406)        669 
 Transactions 
 with Owners 
 Issue of 
  equity shares       564             -         -             -          -            564                 -        564 
 Share issue 
  costs              (56)             -         -             -          -           (56)                 -       (56) 
 Share based 
  payments              -             -     (170)             -          -          (170)                 -      (170) 
 At 30 June 
  2018             44 666             -     2 223           711   (26 539)         21 061          (12 161)      8 900 
 Loss for the 
  period                -             -                       -    (7 884)        (7 884)             (543)    (8 427) 
 Foreign                              - 
 exchange 
 translation 
 variances              -                       -             -          -              -                 -          - 
 Other 
 comprehensive 
 income for 
 the period             -             -         -             -          -              -                 -          - 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 Total 
  comprehensive 
  income for 
  the period            -             -         -             -    (7 884)        (7 884)             (543)    (8 427) 
 Transactions 
 with Owners 
 Issue of 
  equity shares     1 274             -         -             -          -          1 274                 -      1 274 
 Share issue 
  costs              (67)             -         -             -          -           (67)                 -       (67) 
 Share based 
  payments              -             -       347             -          -            347                 -        347 
 Warrant 
  options 
  cancelled             -             -     (204)             -          -          (204)                 -      (204) 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 At 31 December 
  2018             45 873             -     2 366           711   (34 423)         14 527          (12 704)      1 823 
 Loss for the 
  period                -             -         -             -    (9 567)        (9 567)           (8 357)   (17 924) 
 Foreign 
  exchange 
  translation 
  variances 
  through OCI           -         1 772         -             -      9 741         11 513            11 327     22 840 
 Other 
 comprehensive 
 income for 
 the period             -             -         -             -          -              -                 -          - 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 Total 
  comprehensive 
  income for 
  the period            -         1 772         -             -        174          1 946             2 970      4 916 
 Transactions 
 with Owners 
 Share issue 
  costs              (33)             -         -             -          -           (33)                 -       (33) 
 Share based 
  payments            710             -         -             -          -            710                 -        710 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 At 30 June 
  2019             46 550         1 772     2 366           711   (34 249)         17 150           (9 734)      7 416 
                 --------  ------------  --------  ------------  ---------  -------------  ----------------  --------- 
 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

EXPRESSED IN US DOLLARS

 
                                            Six months    Six months     Year to 
                                                    to            to          31 
                                               30 June       30 June 
                                                  2019          2018    December 
                                                                            2018 
 EXPRESSED IN US DOLLARS                        $ '000        $ '000      $ '000 
                                           (Unaudited)   (Unaudited)   (Audited) 
 
 Net cash outflow from operating 
  activities                                     1 090         (775)     (1 558) 
                                          ------------  ------------  ---------- 
 
 Investing activities 
 
 Acquisition of property plant 
  and equipment                                      -             -       (196) 
 Acquisition of intangible assets                    -         (135)       (272) 
 Proceeds on sale of investment                      -             -         243 
 
 Net cash used in investing activities               -         (135)       (225) 
                                          ------------  ------------  ---------- 
 
 Financing activities 
 Repayment of borrowings                             -             -        (25) 
 Proceeds of loans granted                         468           300         300 
 Repayment of warrant liability                      -         (204)       (204) 
 Net proceeds from issue of share 
  capital                                            -           507       1 415 
 Finance charges                                  (64)           (1)        (38) 
 Repayment of finance lease                       (29)          (36)        (71) 
 
 Net cash from financing activities                375           566       1 377 
                                          ------------  ------------  ---------- 
 
 Net decrease in cash and cash 
  equivalents                                    1 465         (344)       (406) 
 
 Cash and cash equivalents at 
  beginning of period                            (272)           134         134 
 Net cash and cash equivalents 
  at end of period                               1 193         (210)       (272) 
                                          ------------  ------------  ---------- 
 

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 2019 were approved by the Board and authorised for issue on 30 September 2019.

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 2019.

The figures for the six months ended 30 June 2018 and 30 June 2019 are unaudited and do not constitute full accounts. The comparative figures for the year ended 31 December 2018 are extracts from the 2018 audited accounts. The independent auditor's report on the 2018 accounts was qualified but included an emphasis of matter - relating to Provision - rehabilitation and going concern.

Going Concern

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

The forecasts include additional equity finance which the directors believe can be met. In the event that the Company is unable to obtain additional equity finance for the Group's working capital, 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. For the purposes of the current period, segmental information has been changed to separately report the revenue generating segments of RHA, that operates the RHA Tungsten Mine, and Zulu Lithium. 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 has mandated that with effect of 1 March 2019 the only functional currency is RTGS Dollar. Since the introduction of RTGS Dollars the Zimbabwean inflation rate has gone into hyperinflationary percentages. As of the date of this report, hyperinflation accounting in terms of IAS29 has not been implemented, as the overall effects did not have a material effect on the interim financial statements. The annual financial statements for the year ended 31 December 2019 will, of necessity, must include hyperinflationary accounting for the company's Zimbabwean assets.

 
                                                                     Exploration 
                                                    RHA Tungsten    Zulu Lithium 
                                                   Mine Zimbabwe        Zimbabwe 
                                    Unallocated          and RHA        and Zulu   Total continuing 
 By operating segment                 Corporate       Mauritius*       Mauritius         operations 
 June 2019                                $ 000            $ 000           $ 000              $ 000 
 
 Result 
 Revenue                                  (600)            (948)               -            (1 548) 
 Operating (income) / loss                  103           17 078             673             17 854 
 Fair value movement on 
  investment                                  -                -               -                  - 
 Fair value movement on 
  warrant options cancelled                   -                -               -                  - 
 Impairment of RHA                            -                -               -                  - 
 Impairment of Zulu Lithium                   -                -               -                  - 
 Finance charges                              4               64               -                 68 
 Loss before taxation                       107           17 142             673             17 922 
 Assets 
 Exploration and evaluation                   -                -               -                  - 
  assets 
 Investments                              6 263                -               -              6 263 
 Inventories                                  -                4               -                  4 
 Trade and other receivables                  -                9               -                  9 
 Cash                                       348              844               -              1 193 
 Total assets                             6 611              857               -              7 469 
                                   ------------  ---------------  --------------  ----------------- 
 Liabilities 
 Other financial liabilities                  -             (65)               -               (65) 
 Borrowings                               (685)                -               -              (685) 
 Bank overdraft                               -                -             (1)                (1) 
 Trade and other payables               (1 006)            1 864             (2)                856 
 Provisions                               (173)                -               -                  - 
                                                                                  ----------------- 
 Total liabilities                      (1 865)            1 799             (3)                105 
                                   ------------  ---------------  --------------  ----------------- 
 Net assets                               4 746            2 656             (3)              7 574 
 
 Other information 
 Depreciation and amortisation                -                -               -                  - 
 Property plant and equipment 
  additions                                   -              196               -                196 
 Costs capitalised to intangible 
  assets                                      -                -             272                272 
 
 
                                                                     Exploration 
                                                    RHA Tungsten    Zulu Lithium 
                                                   Mine Zimbabwe        Zimbabwe 
                                    Unallocated          and RHA        and Zulu   Total continuing 
 By operating segment                 Corporate       Mauritius*       Mauritius         operations 
 June 2018                                $ 000            $ 000           $ 000              $ 000 
 
 Result 
 Revenue                                      -            (166)               -              (166) 
 Operating loss                             893              501               -              1 394 
 Fair value movement on 
  investment                                  -                -               -                  - 
 Fair value movement on 
  warrant options cancelled                   -                -               -                  - 
 Impairment of RHA                            -                -               -                  - 
 Impairment of Zulu Lithium                   -                -               -                  - 
 Finance charges                             19               68               -                 87 
 Loss before taxation                       912              569               -              1 481 
 Assets 
 Exploration and evaluation 
  assets                                      -                -           4 426              4 426 
 Investments                              6 603                -               -              6 603 
 Inventories                                  -                -               -                  - 
 Trade and other receivables                 19              189               -                208 
 Cash                                        86                2               3                 91 
 Total assets                             6 708              191           4 429             11 328 
                                   ------------  ---------------  --------------  ----------------- 
 Liabilities 
 Other financial liabilities                  -            (126)               -              (126) 
 Borrowings                               (534)                -               -              (534) 
 Bank overdraft                               -            (302)               -              (302) 
 Trade and other payables               (1 114)          (1 365)             (1)            (2 480) 
 Provisions                                   -            (994)               -              (994) 
                                                                                  ----------------- 
 Total liabilities                      (1 648)          (2 787)             (1)            (4 436) 
                                   ------------  ---------------  --------------  ----------------- 
 Net assets                               5 060          (2 596)           4 428              6 892 
 
 Other information 
 Depreciation and amortisation                -                -               -                  - 
 Property plant and equipment                 -                -               -                  - 
  additions 
 Costs capitalised to intangible 
  assets                                      -                -             135                135 
 
 
                                                                     Exploration 
                                                    RHA Tungsten    Zulu Lithium 
                                                   Mine Zimbabwe        Zimbabwe 
                                    Unallocated          and RHA        and Zulu   Total continuing 
 By operating segment                 Corporate       Mauritius*       Mauritius         operations 
 December 2018                            $ 000            $ 000           $ 000              $ 000 
 
 Result 
 Revenue                                      -            (168)               -              (168) 
 Operating loss                           1 791            1 053               -              2 844 
 Fair value movement on 
  investment                               (47)                -               -               (47) 
 Fair value movement on 
  warrant options cancelled                   -                -               -                  - 
 Impairment of RHA                            -              244               -                244 
 Impairment of Zulu Lithium                   -                -           4 563              4 563 
 Finance charges                              7              146               -                153 
 Loss before taxation                     1 751            1 443           4 563              7 757 
 Assets 
 Exploration and evaluation                   -                -               -                  - 
  assets 
 Investments                              6 263                -               -              6 263 
 Inventories                                  -               26               -                 26 
 Trade and other receivables                 15               38               -                 53 
 Cash                                         2               11               2                 16 
 Total assets                             6 280               75               2              6 358 
                                   ------------  ---------------  --------------  ----------------- 
 Liabilities 
 Other financial liabilities                  -             (94)               -               (94) 
 Borrowings                               (213)                -               -              (213) 
 Bank overdraft                               -            (288)               -              (288) 
 Trade and other payables               (1 313)          (1 645)               -            (2 957) 
 Provisions                                   -            (983)               -              (983) 
                                   ------------  ---------------  --------------  ----------------- 
 Total liabilities                      (1 526)          (3 009)               -            (4 535) 
                                   ------------  ---------------  --------------  ----------------- 
 Net assets                               4 754          (2 934)               2              1 823 
 
 Other information 
 Depreciation and amortisation                -                -               -                  - 
 Property plant and equipment 
  additions                                   -              196               -                196 
 Costs capitalised to intangible 
  assets                                      -                -             272                272 
 

* Represents 100% of the results and financial position of RHA Tungsten (Private) Limited ("RHA") whereas the Group owns 49%.

   4.     INTANGIBLE EXPLORATION AND EVALUATION ASSETS 
 
                                                Exploration 
                                               & Evaluation 
                                                     assets     Total 
                                                      $ 000     $ 000 
 
 Opening carrying value 1 December 2018               4 291     4 291 
 Expenditure on Exploration and evaluation              135       135 
 Closing carrying value 30 June 2018                  4 426     4 426 
 Transfer to property, plant and equipment          (3 044)   (3 044) 
 Impairment of Exploration and evaluation 
  assets                                            (1 382)   (1 382) 
 Closing carrying value 31 December 2018                  -         - 
 Expenditure on Exploration and evaluation                -         - 
 Closing carrying value 30 June 2019                      -         - 
                                             --------------  -------- 
 

Exploration and evaluation assets at 30 June 2019 (and 30 June 2018 and 31 December 2018) relate to the Zulu Lithium and Tantalite Project ("Zulu") located in Zimbabwe.

During the period to 30 June 2019 $ Nil million was capitalised to the Zulu (six months to 30 June 2018: $0.135 million, year to 31 December 2018: $ Nil).

Exploration work conducted on Zulu during the period indicated that both lithium and tantalum recovery may be a viable option. The Group views this project as strategic and exploration work will be continued in the future, cash flow permitting.

   5.     INVESTMENTS 
 
                                          Circum   Arc Minerals 
 Available-for-sale:                    Minerals         Mining     Total 
                                       ---------  -------------  -------- 
 Opening carrying value 2018               6 263            196     6 459 
 Shares acquired                               -              -         - 
 Fair value adjustment                         -            144       144 
 Closing carrying 30 June 2018             6 263            340     6 603 
 Fair value adjustment                         -           (97)      (97) 
 Shares disposed                               -          (243)     (243) 
 Closing carrying 31 December 2018         6 263              -     6 263 
 Fair value adjustment                         -              -         - 
 Closing carrying 30 June 2019             6 263              -     6 263 
                                       ---------  -------------  -------- 
 
 Reconciliation of movements in 
  investments 
 Investment in Circum Minerals 
  Limited - 15 May 2014                    1 400              -     1 400 
 Fair value adjustment - February 
  2015                                     1 100              -     1 100 
 Fair value adjustment - June 2015         1 500              -     1 500 
 Investment in Casa Mining Limited             -            250       250 
                                       ---------  -------------  -------- 
 Opening carrying value 2017               4 000            250     4 250 
 Acquisition at fair value                     -             50        50 
 Acquisition at fair value 2017            2 936              -     2 936 
 Issue of Premier shares                   1 216              -     1 216 
 Fair value adjustment - 31 December 
  2017                                   (1 889)          (104)   (1 993) 
                                       ---------  -------------  -------- 
 Opening carrying value 2018               6 263            196     6 459 
 Fair value adjustment - 31 December 
  2018                                         -             47        47 
 Sale of shares                                -          (243)     (243) 
                                       ---------  -------------  -------- 
 Carrying value at 31 December 
  2018 and 30 June 2019                    6 263              -     6 263 
                                       ---------  -------------  -------- 
 
 

Premier's investment in Circum Minerals Limited ('Circum') was designated on 1 January 2018 as FVOCI as such is required to be measured at fair value at each reporting date. As Circum is unlisted there are no quoted market prices. The fair value of Circum shares was derived using the previous issue price and validating it against the most recent placing price on 30 April 2019. The shares are considered to be level 3 financial assets under the IFRS 13 categorisation of fair value measurements. We continue to hold 5 010 333 shares in Circum currently valued in total at $6.263 million.

   6.     PROPERTY, PLANT AND EQUIPMENT 
 
                                 Mine Development    Plant and     Land and     Total 
                                                     Equipment    Buildings 
                                            $ 000        $ 000        $ 000     $ 000 
 Cost 
 At 1 January 2018                          8 408        4 115          852    13 375 
 Additions                                                                          - 
 At 30 June 2018                            8 408        4 115          852    13 375 
 Additions                                      1          195            -       196 
 At 31 December 2018                        8 409        4 310          852    13 571 
 Additions                                      -            -            -         - 
 Foreign Currency Translation 
  effect                                  (6 540)      (1 395)        (724)   (8 659) 
 At 30 June 2019                            1 869        2 915          128     4 912 
                                -----------------  -----------  -----------  -------- 
 
 Accumulated Depreciation and Impairment 
  Losses 
 At 1 January 2018                          8 408        4 115          852    13 375 
 Charge for the year                            -            -            -         - 
 At 30 June 2018                            8 408        4 115          852    13 375 
 Charge for the period                          -            -            -         - 
 Impairment of RHA                              1          195            -       196 
 At 31 December 2018                        8 409        4 310          852    13 571 
 Charge for the period                          -            -            -         - 
 Foreign Currency Translation 
  effect                                  (6 540)      (1 395)        (724)   (8 659) 
 At 30 June 2019                            1 869        2 915          128     4 912 
                                -----------------  -----------  -----------  -------- 
 
 
 Net Book Value 
 At 30 June 2018                                -            -            -         - 
 At 31 December 2018                            -            -            -         - 
 At 30 June 2019                                -            -            -         - 
 
   7.     BORROWINGS 
 
                                                 30 June       30 June 
                                                    2019          2018        2018 
                                             (Unaudited)   (Unaudited)   (Audited) 
                                                   $ 000         $ 000       $ 000 
 
 Loan - G. Roach                                     216           534         213 
 Loan - Regent Mercantile                            350             -           - 
 Loan - B. Roach                                     119             -           - 
                                                     685           534         213 
                                            ------------  ------------  ---------- 
 
 Reconciliation of movement in borrowings 
 As at 1 January                                     213           216         216 
 Loans received                                      468           300         300 
 Loans repaid through conversion 
  to equity (1) (3)                                    -             -       (300) 
 Offset of loan against receivable                                   - 
  (2)                                                  -                         - 
 Repayment                                             -             -        (25) 
 Debt settlement                                       -             -           - 
 Implementation fee                                    -             -          15 
 Accrued interest                                      4            18           7 
 As at 30 June / 31 December                         685           534         213 
                                            ------------  ------------  ---------- 
 
 Current                                             685           534         213 
 Non-current                                           -             -           - 
                                                     685           534         213 
                                            ------------  ------------  ---------- 
 

Borrowings comprise loans from a related party and a non-related party.

1) On 15 September 2015, George Roach provided a $0.300 million loan direct to Premier for the use at RHA. The loan is unsecured and accrues interest at a rate of 3% per annum. As at 28 March 2017, the loan and accrued interest totalled $0.309 million. On 28 March 2017 the Company announced that it had amended the terms of the existing loan agreement ("Loan") with George Roach through the grant of conversion rights. The Board granted conversion rights in respect of the Loan, which can now be converted into new ordinary shares at a price of 0.5p per new ordinary share.

2) On 4 June 2018, the Company entered into a loan with a company owned by a Trust of which George Roach is a beneficiary, for a gross value of $0.300 million.

The Loan is non-interest bearing and has a maturity date, 30 November 2018, and will provide additional general working capital while the Company looks to bring finality to the negotiations currently underway in respect of both Zulu Lithium Private Limited (Zulu) and RHA. The Company will repay the entire Loan, including all fees within five days following the maturity of the Loan. The Loan carries an implementation fee of $0.015 million (5%) and a redemption fee of $0.015 million (5%), collectively the fees ("Fees"). The terms and conditions of the Loan contain a negative pledge provision in respect of the Company relating to certain types of indebtedness and standard events of default. The Loan is not convertible, nor does it include share-based repayment or warrants.

3) On 21 June 2019, Brendan Roach provided a GBP0.084 million ($0.118 million) loan direct to Premier for the use at the company. The loan is unsecured and accrues interest at a rate of 8% per annum.

4) On 26 June 2019, the Company entered into a loan with a Regent Mercantile for a gross value of $0.350 million. The loan is secured against Circum shares and bears interest at 10% per annum. and is repayable within 3 months with the option to extend it for additional periods of 3 months.

   8.     SHARE CAPITAL 

Authorised share capital

At the Annual General Meeting held on 5th of August 2019, the shareholders approved the increase in authorised share capital to 11.5 billion (30 June 2018 7 billion and 31 December 2018 9 billion) ordinary shares of no par value.

The correct issued ordinary share capital of the Company is 11,003,778,580 ordinary shares (as opposed to the 11,003,778,500 Ordinary Shares announced on 27 September 2019).

Issued share capital

 
                                            Number 
                                         of shares 
                                            $ '000    $ '000 
 
 As at 1 January 2018 - Audited          6 574 967    46 960 
 Shares issued on warrant exercise         250 000       563 
 As at 30 June 2018                      6 824 967    47 523 
 Shares issued under subscription 
  agreements                               416 667       975 
 Shares issued on conversion 
  of loan                                  142 045       300 
 As at 31 December 2018 - Audited        7 383 679    48 798 
 Shares issued to settle trade 
  payables                                 161 986       710 
                                      ------------  -------- 
 As at 30 June 2019                      7 545 665    49 508 
                                      ------------  -------- 
 

Reconciliation to balance as stated in the consolidated statement of financial position

 
                                             Issued    Share Issue    Share Capital 
                                      Share Capital          Costs          (Net of 
                                                                             Costs) 
                                             $ '000         $ '000           $ '000 
 
 As at 31 December 2017 - Audited 
  restated                                   46 960        (2 802)           44 158 
 Shares issued                                  563           (56)              507 
 As at 30 June 2018                          47 523        (2 858)           44 665 
 Shares issued                                1 275           (67)            1 208 
 As at 31 December 2018 - Audited 
  restated                                   48 798        (2 925)           45 873 
 Shares issued                                  710           (33)              677 
 As at 30 June 2019                          49 508        (2 958)           46 550 
                                    ---------------  -------------  --------------- 
 
   9.    SUNDRY REVENUE 
 
                                Six months   Six months 
                                        to           to        2018 
                                   30 June      30 June 
                                      2019         2018   (Audited) 
                                     $ 000        $ 000       $ 000 
 
 Reversal of prescribed debt           600            -           - 
 NIEEF funding received                948            -           - 
                                     1 548            -           - 
                               -----------  -----------  ---------- 
 

10. FOREIGN EXCHANGE LOSSES

As indicated in note 3. Segmental Reporting, the company has significant holdings in Zimbabwe. With effect from the 1(st) of March 2019, the Zimbabwean government has 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: $ 1 to RTGS Dollar 6.622 as at 30 June 2019. This currency has continued to devalue in the period to 30 September 2019.

The effect on the financial statements has been an exchange loss of $18.258 million in the period to 30 June 2019 (30 June 2018 and 31 December 2018 $ Nil) on the conversion of certain US Dollar denominated loans owed by the group's Zimbabwean subsidiaries to other companies within the group.

11. TAXATION

There is no taxation charge for the period ended 30 June 2019 (30 June 2018 and 31 December 2018: 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 liability

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.

12. 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.

 
                                     Six months    Six months     Year to 
                                             to            to          31 
                                        30 June       30 June    December 
                                           2019          2018        2018 
                                    (Unaudited)   (Unaudited)   (Audited) 
 
                                         $ '000        $ '000      $ '000 
 
 Net loss attributable to owners 
  of the company ($'000)                (9 567)       (1 075)     (6 809) 
 
 Weighted average number of Ordinary Shares 
  in calculating 
 basic earnings per share ('000)      7 413 376     8 392 279   6 954 725 
 
 Basic loss per share (US cents)         (0.13)        (0.01)       (0.1) 
 

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

13. EVENTS AFTER THE REPORTING DATE

   13.1        Corporate matters 

On the 8 July 2019 Premier announced a strategic loan of $1.35 million with an annual interest of 10% to MNH. The loan to OM is intended to enable the purchase of signi cant additional plant and equipment from the nearby Purity Mine currently under liquidation, to allow OM to steadily increase production and revenues. The Company and Cambrian Limited have entered into a secured $1.35 million loan agreement with MNH, with a maturity date of 1 October 2021.

The annual interest rate payable by MNH on the outstanding loan amount is 10% per annum. In accordance with the Loan Agreement, Cambrian has already provided $350,000 in cash to MNH and Premier will provide the remaining $1 million in the form of 1,763,668,430 new ordinary Premier Shares conditionally issued to the equivalent value of $1,000,000 at an issue price of 0.045p, being the Premier closing share price on 5 July 2019. The Loan Shares will be subject to an orderly market agreement such that they may subsequently only be sold by MNH through the Company's broker to ensure an orderly market is maintained. With e ect from 1 January 2020, and on the rst trading day of every month thereafter until the Maturity Date, MNH will repay a minimum of 10% of all outstanding amounts under the Loan to the Lenders.

On the 28 August 2019 Premier announced the Completion of Loan the into MNH whereby under Premier's existing share authorities on the date of issue of the Loan Agreement, Premier could only issue 1,009,889,850 of the Loan Shares for a value of GBP454,450. Following the approval by shareholders to increase the Company authorised share capital, as announced on the 6 August 2019, the Company settled the balance of the 753,778,580 Loan Shares at a value of GBP339,200 at the Issue Price ("Second Loan Shares"). The Second Loan Shares will be subject to an orderly market agreement such that they may subsequently only be sold by MNH through the Company's broker to ensure an orderly market is maintained.

On the 4 September the Board of Premier reported that the Company and Regent Mercantile Holdings Limited ("Regent") have agreed to extend the repayment terms of the convertible loan note for $350,000 entered into on the 21 June 2019. Premier will have until 31 January 2020 to repay the principal amount including any interest under the Loan Agreement. The Loan Agreement will continue to be secured over 350,000 shares of Circum held by Premier.

On the 27 September 2019 the Company concluded a direct subscription GBP250,000 before expenses at an issue price of 0.02 pence per new ordinary share.

   13.2        Consultants 

On the 8 July 2018 Premier appointed Neil Herbert, the Chairman of OM, and Peter Cunningham as consultants to Premier. These appointments were part of the process of enhancing the Company's executive team and creating opportunities to assist Premier in the restructure and diversi cation of country and commodity risk I have been discussing and have alluded to for some time now.

The Company further announced on the 28 August 2019 the Neil Herbert had agreed to be appointed as director of the Company.

   13.3        RHA 

On the 8 July 2019 Premier reported that there are developments at RHA as set out in their recently published accounts. RHA has not received the full amount of $ 6 million committed in agreement by the NIEEF but received 6 million RTGS Dollars.

On 17 July 2019 Premier confirmed an order to electrify RHA has been given, Zimbabwe Electricity Supply Authority ("ZESA") has been requested to commence essential works immediately. NIEEF is committed under the new Management Agreement to provide an equivalent of $6 million and NIEEF has acknowledged that the RTGS Dollars funding provided to date will be supplemented to the extent this is reasonably necessary to bring RHA back to production.

   13.4        Circum 

On 30 August 2019 Premier announced that the Board of Directors have decided to adopt a formal Board policy in respect of its investment in Circum ("Circum Policy"). Premier bene cially owns 5,010,333 shares in Circum which, as reported in the Company's audited report and accounts for the year ended 31 December 2019, currently have a carrying value of $6,262,916.

Under the Circum Policy, providing the proceeds of the liquidity event is greater than $6,262,916 in respect of the Company's entire current holding in Circum ("Circum Interest"), then the Board of Directors would convene a general meeting at which shareholders will be asked to approve the disposal of the Circum Interest ("Circum Disposal"). Conditional on the approval of the Circum Disposal, Premier will rst repay all existing debts and liabilities incurred in the ordinary course of business as at the date of the liquidity event of the Circum Interest.

Shareholders will be further asked to approve either of the following options to facilitate a fair and equitable distribution to Premier's shareholders of its Circum Interest;

a) Direct distribution to existing shareholders by way of either a share dividend, share buyback scheme or such other scheme of arrangement that would be the most reasonably tax e cient for shareholders; or

b) The retention by the Company of the disposal proceeds to allow Premier to investment into existing or new projects of Premier.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR CKKDNQBKDBCN

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