Premier African Minerals Limited today announced an operating loss of US$7.687 million for the six months ended June 30, 2025, as the company grapples with continued overhead and administration costs associated with the slow start-up and optimisation of its flagship Zulu Lithium mine in Zimbabwe.
Managing Director Graham Hill confirmed that while the business is focused on building momentum, there can be "no assurance" that the Zulu plant will consistently reach its designed performance capacity in the near term. The company’s unaudited interim results were released September 30.
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The majority of the six-month loss is attributed to the ongoing expenses related to the construction, installation, and refinement of the Zulu plant. Cash on hand as of June 30, 2025, stood at a low US$0.029 million, with the company relying on continued financial support from shareholders. Despite the financial shortfall, Mr. Hill expressed encouragement regarding the mine’s fundamentals, noting that Zulu hosts an excellent SAMREC and JORC compliant mineral resource and benefits from strong infrastructure.
The immediate challenge remains the processing plant, which has suffered from underperformance stemming from its original design and build. The company has, however, made progress over the past three months through "optimisation steps" including the installation of flotation inserts, froth crowders, and flow directors, which have already resulted in a "significant improvement in recoveries." Adjustments are still required to improve spodumene grade, and Mr. Hill remains confident that further gains will be achieved with continued refinements supported by the Original Equipment Manufacturer.
A crucial element to unlocking Zulu’s full potential is the ongoing discussion around a revised offtake agreement and a complementary funding package. The company confirmed that negotiations with the major trading house referenced in previous announcements are advancing, with a shared desire between all parties, including Canmax, to finalize a strategic agreement. Further site visits to the Zulu project are anticipated in the coming weeks. Premier also stated that a review of the secondary flotation plant is nearing completion. Based on the outcome of a current test run, the company will decide whether to acquire the secondary plant to either operate in a primary capacity or supplement existing production capacity.
Hill concluded by assuring shareholders that despite the transitional challenges, the company is taking the necessary steps to restore value, focusing on Zulu's robust resource and advancing negotiations across its wider portfolio, including RHA Tungsten.
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