Is there light at the end of the tunnel for Premier African Minerals after losing 99% of its share price value? Today’s jump would suggest some investors think there is.
Premier African Minerals has an outstanding resource; the problem has always been that they’ve failed to get their act together on the surface.
But the lithium miner says work on its new Xinhai flotation plant at the Zulu Lithium project in Zimbabwe is progressing well, with commissioning edging closer as on-site fabrication and infrastructure work advances.
The bulk of recent activity has centred on labour-intensive site fabrication, all carried out by Premier’s engineering team under guidance from a specialist Xinhai installation engineer.
The tailings tank is now in place, while electrical switchgear is due for factory testing this week ahead of delivery and installation on site. The mining contractor has also returned and begun dewatering the pits in preparation for a selective mining programme to resume.
Alongside the build-out, the company is streamlining the plant layout.
Previously installed sorting equipment has been deemed redundant after operational review, adding unnecessary costs in power, labour and maintenance.
New conveyor chutes are being fabricated to bypass the sorters entirely, while further modifications will route pipework around a thickener and certain pumps that had caused problems in the past. Management framed the changes as part of a broader push to simplify operations, improve reliability and reduce running costs ahead of commissioning.
Preparations are underway for the arrival of Xinhai’s commissioning engineer, and Premier is continuing to build out its processing team. The water supply dam remains at full capacity following good seasonal rainfall, providing a stable resource for commissioning and ongoing operations.
Graham Hill, Managing Director, said: “We are very pleased with the progress being made on site, particularly given the labour-intensive nature of the fabrication and modification work currently underway. The team has responded well to the technical requirements of the Xinhai Flotation Plant design, and the level of on-site execution has been encouraging.
“Importantly, we are not only advancing installation but also refining and simplifying the plant configuration to support more reliable and efficient operations going forward. This work is critical in positioning Zulu Lithium for sustainable performance once commissioning is complete.
“While there remains work to be done, we are building momentum across both the new Xinhai Flotation Plant and operational readiness, and we look forward to providing further updates as we move closer to commissioning.”
Long-suffering investors have heard similar positive messages from Premier before. Time will tell whether they can deliver.