Premier African Minerals (AIM: PREM) has reported encouraging early results from the upgraded flotation plant at its Zulu Lithium and Tantalum Project in Zimbabwe, although optimisation work has been temporarily halted after the operation exhausted its available ore stockpile.
The company said the upgraded flotation circuit has delivered its strongest operating performance to date, with internal laboratory testing producing lithium concentrate grades exceeding 5% lithium oxide and peak grades of up to 5.58% Li₂O. Management believes the results demonstrate a significant improvement in concentrate quality and overall plant stability compared with the previous processing configuration.
However, commissioning was cut short after the plant processed almost all of the approximately 6,000 tonnes of ore available for testing. Limited mining activity, driven by funding constraints, meant there was insufficient feedstock to continue the optimisation programme.
Premier now intends to rebuild ore inventories before restarting the plant. The company plans to accumulate enough ore to support around 30 days of continuous operation, which management believes is essential to fully optimise the flotation circuit and evaluate long-term plant performance. Current mining activities are expected to provide sufficient ore for operations to resume during July.
Alongside operational progress, Premier confirmed it is holding constructive discussions with strategic partner Canmax Technologies regarding a further extension of the Long Stop Date under their existing prepayment and offtake agreement. Canmax is currently reviewing the latest commissioning data as part of those negotiations.
The Long Stop Date governs the deadline by which Premier must either deliver sufficient spodumene concentrate or repay the advance funding received from Canmax. While no agreement has yet been reached, management said discussions remain positive and both parties are working towards a mutually acceptable solution.
The company is also exploring options to sell some of the concentrate produced during commissioning, subject to obtaining the necessary approvals and contractual consents. Any sales would provide an opportunity to generate additional cash flow, although Premier stressed there is no certainty that such transactions will proceed.
Looking ahead, the company remains focused on publishing its audited 2025 financial results by 30 June. The accounts are at an advanced stage of preparation, with completion dependent in part on the outcome of the ongoing discussions with Canmax.
For investors, the update provides encouraging evidence that the plant upgrades are delivering materially improved lithium concentrate grades. The next key milestones will be the successful recommencement of continuous operations in July and the outcome of negotiations with Canmax, both of which are likely to play a significant role in determining the project’s path towards commercial production.
