By Elena Vardon
Premier African Minerals shares shed 17% on Thursday after the company said that due to modifications needed at its Zulu Lithium and Tantalum project in Zimbabwe, its first shipment to Canmax Technologies will be delayed and near-term production will be impacted.
At 0809 GMT, shares were down 0.13 pence at 0.64 pence.
The London-listed miner, which focuses on southern Africa, said it will miss the May 30 agreed date for the first shipment of spodumene concentrate to Canmax and now expects to deliver it in June. It said Canmax can chose to cancel the agreement and require that the prepayment plus interest is settled within 90 days.
The company said this is due to its plant supplier advising it to undertake remedial action to optimise the plant. After the optimisation modifications, which are now expected to be completed in the fourth quarter, production from spodumene float circuit is expected to increase by 25%, it said. The optimisation costs will be borne by the plant supplier, it added.
Pending completion of the work, production of concentrate to June is expected to be 1,376 tons. Production for July and August is seen at 1,137 tons per month, rising to 2,359 tons in September, 3,577 tons in October and 4,471 tons from Dec. 1.
“At present concentrate prices and production at these current levels to the end of August, the company expects Zulu to operate profitably,” Chief Executive George Roach said. He added that alternative further funding–beyond its recent share placements–may be needed if there are any more significant shipment delays.
Write to Elena Vardon at elena.vardon@wsj.com
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