TIDMACP
RNS Number : 0764B
Armadale Capital PLC
29 September 2022
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
29 September 2022
Armadale Capital Plc
('Armadale' the 'Company' or the 'Group')
Interim Results
Armadale, the AIM quoted investment company focused on natural
resource projects in Africa, is pleased to announce its unaudited
interim results for the six months ended 30 June 2022.
Highlights
During the half year Armadale's primary focus was on securing
project development funding for the Mahenge Liandu Graphite project
while advancing the permitting and local community engagement. The
Company also expanded its presence following the grant of an
exploration license covering 19.99 square kilometers.
In March, the Company, pursuant to environmental compliance
requirements of the mining license, successfully completed the in
stallation of a weather station and has commenced the monthly
collection of data. The station records data at 5 second intervals
and covers all weather parameters including temperature, pressure,
wind, moon phase, humidity, solar radiation and rainfall.. All data
is automatically uploaded to the cloud. This will assist with the
planning of the mining operations on the Project.
In addition, the Company has also installed a total of 7 stream
gauges and one barotroll in the water streams located at the mine
site in March 2022 which will be used for hydrological studies. The
devices record 3 parameters which are temperature, pressure and
depth at 5 second intervals.. The data from all devices are being
manually downloaded at a frequency rate of once per month.
As Part of the ongoing FEED study, the Company cleared pads for
geotech drilling at the proposed plant Site and tailing dam
location.
The pad clearance activity was completed at site in the proposed
Plant site and Tailing Storage Facility areas. 10 pads were cleared
at the tailing storage facility area and 6 pads were cleared at the
plant site area as a part of geotechnical studies and the Company
is now preparing for Diamond Drilling in the proposed areas.
Furthermore, the test pitting program has been completed at the
proposed plant site, tailing storage facility and the access road
areas. A total of 41 test pits with 3 meters depth have been
excavated, DCP tested, strata logged, sampled and backfilled. 11
pits have been excavated at plant site, 25 pits excavated at
tailing storage facility and 5 pits excavated at the access road to
the mine site.
The Company has received an encouraging level of interest in
funding the Mahenge Liandu Graphite project and has advanced its
discussions with a number of potential finance partners with
respect to securing project development funding for the
project.
Grant of Prospecting License PL 119961/ 2022
The company was granted the prospecting license PL 119961/ 2022
by the ministry of minerals on 28(th) June 2022, for the
exploration of graphite minerals. The license area comprises of
19.99 square kilometers, located at Isongo and Liandu villages of
Ulanga District, in Morogoro Region.
The cash position at 30 June 2022 was GBP1,723,000 and the
average monthly cash burn is about GBP30,000, including annual
audit costs.
FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2022
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2022
Unaudited
Six months ended
30 June 30 June
2022 2021
GBP'000 GBP'000
Administrative expenses (151) (157)
Change in fair value of investments (1) 139
Finance costs - (9)
Loss before taxation (152) (27)
Taxation -
-------------------- -------------------
Loss after taxation (152) (27)
Other comprehensive (loss)/income
Items that may be reclassified to
profit or loss:
Exchange differences on translating
foreign entities (57) 2
-------------------- -------------------
Total comprehensive loss attributable
to equity holders of the parent company (209) (25)
==================== ===================
Pence Pence
Loss per share attributable to equity
holders of the parent company (note
3)
Basic and fully diluted (0.03) (0.01)
==================== ===================
Consolidated Statement of Financial Position
At 30 June 2022
Unaudited Audited
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Assets
Non-Current assets
Exploration and evaluation assets 5,010 4,556 4,727
Investments 79 421 138
5,089 4,977 4,865
Current assets
Trade and other receivables 60 559 150
Cash and cash equivalents 1,723 562 886
------------- ------------- ----------------
1,783 1,121 1,036
------------- ------------- ----------------
Total assets 6,872 6,098 5,901
============= ============= ================
Equity and liabilities
Equity
Share capital (note 4) 3,321 3,237 3,275
Share premium 25,076 23,148 23,906
Shares to be issued 286 286 286
Share option and warrant reserve 610 972 925
Foreign exchange reserve 9 129 66
Retained earnings (22,473) (22,376) (22,636)
------------- ------------- ----------------
Total equity 6,829 5,396 5,822
============= ============= ================
Current liabilities
Trade and other payables 43 96 79
Loans - 606 -
Total liabilities 43 702 79
============= ============= ================
Total equity and liabilities 6,872 6,098 5,901
============= ============= ================
Unaudited Consolidated Statement of Changes in Equity
For the period ended 30 June 2022
Share Share Shares Share Foreign Retained Total
Capital Premium to be Option Exchange Earnings
GBP'000 GBP'000 Issued Reserve Reserve GBP'000 GBP'000
GBP'000 GBP'000 GBP'000
Balance 1
January
2021 3,208 22,348 286 762 127 (22,406) 4,325
Loss for the
year - - - - - (333) (333)
Other
comprehensive
loss - - - - (61) - (61)
------------ ------------ ------------ ------------ ------------- ------------- ------------
Total
comprehensive
loss for the
year - - - - (61) (333) (394)
------------ ------------ ------------ ------------ ------------- ------------- ------------
Issue of
shares and
warrants 67 1,558 - 266 - - 1,891
Transfer on
exercise
of warrants - - - (103) - 103 -
Total other
movements 67 1,558 - 163 - 103 1,891
------------ ------------ ------------ ------------ ------------- ------------- ------------
Balance 31
December
2021 3,275 23,906 286 925 66 (22,636) 5,822
Loss for the
period - - - - - (152) (152)
Other
comprehensive
loss - - - - (57) - (57)
------------ ------------ ------------ ------------ ------------- ------------- ------------
Total
comprehensive
loss for the
period - - - - (57) (152) (209)
------------ ------------ ------------ ------------ ------------- ------------- ------------
Issue of
shares 46 1,170 - - - - 1,216
Transfer on
exercise
of warrants - - - (315) - 315 -
Total other
movements 46 1,170 - (315) - 315 1,216
------------ ------------ ------------ ------------ ------------- ------------- ------------
Balance 30
June 2022 3,321 25,076 286 610 9 (22,473) 6,829
============ ============ ============ ============ ============= ============= ============
The following describes the nature and purpose of each reserve
within shareholders' equity:
Reserve Description and purpose
Share capital Amount subscribed for share capital at nominal
value
Share premium Amount subscribed for share capital in excess of
nominal value, net of allowable expenses
Shares to be issued Share capital to be issued in connection
with historical acquisition
Share option and warrant reserve Cumulative charge recognised
under IFRS2 in respect of share-based payment awards
Foreign exchange reserve Gains/losses arising on re-translating
the net assets of overseas operations into sterling
Retained earnings Cumulative net gains and losses recognised in
the statement of comprehensive income
Consolidated Statement of Cash Flows
For the period ended 30 June 2022
Unaudited Audited
Six Months ended Year ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Loss before taxation (152) (27) (333)
Change in fair value of investments 1 (139) (8)
Finance costs - 9 11
(151) (157) (330)
Changes in working capital
Receivables 30 9 1
Payables (31) (33) (39)
------------ ------------ ----------------
Net cash used in operating activities (152) (181) (368)
============ ============ ================
Cash flows from investing activities
Expenditure on exploration and
evaluation assets (345) (157) (399)
Sale of listed investments 58 - 152
Net cash used in investing activities (287) (157) (247)
============ ============ ================
Cash flows from financing activities
Proceeds from share issues 1,276 648 1,249
Net cash from financing activities 1,276 648 1,249
============ ============ ================
Net increase/(decrease) in cash
and cash equivalents 837 310 634
Cash and cash equivalents at
1 January 2022 886 252 252
Cash and cash equivalents at
30 June 2022 1,723 562 886
============ ============ ================
Notes to the unaudited condensed consolidated financial
statements
For the period ended 30 June 2022
1. Incorporation and principal activities
Country of incorporation
Armadale Capital Plc was incorporated in the United Kingdom as a
public limited company on 19 August 2005. Its registered office is
1 Arbrook Lane, Esher, Surrey, KT10 9EG.
Principal activities
The principal activity of the Group during the period was that
of an investment company.
2. Accounting policies
2.1. Statement of compliance
The financial information for the six months ended 30 June 2022
and 30 June 2021 is unreviewed and unaudited and does not
constitute the Group's statutory financial statements for those
periods within the meaning of Section 434 of the Companies Act
2006. The comparative financial information for the year ended 31
December 2021 has been derived from the Annual Report and Accounts,
which were approved by the Board of Directors on 20 May 2022 and
delivered to the Registrar of Companies. The report of the Auditors
on those accounts was unqualified and did not contain any statement
under Section 498 of the Companies Act 2006.
This condensed set of financial statements has been prepared in
accordance with IAS 34 'Interim Financial Reporting' as adopted by
the European Union. This condensed set of financial statements
should be read in conjunction with the annual financial statements
for the year ended 31 December 2021 which have been prepared in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the United Kingdom.
The accounting policies adopted are consistent with those of the
annual financial statements for the year ended 31 December 2021 as
described in those annual financial statements.
In respect of new financial reporting standards which came into
effect for reporting periods beginning on 1 January 2022, the
Directors consider that their implementation has no material effect
on the financial information presented in this statement.
2.2. Going Concern
The financial statements have been prepared on the going concern
basis as, in the opinion of the Directors, there is a reasonable
expectation that the Group will continue in operational existence
for the foreseeable future. The Company's ability to continue as a
going concern and to achieve its long term strategy of developing
its exploration projects is dependent on further fundraising.
During the period, a total of GBP1,276,000 was raised from warrant
exercises (see note 4). At 30 June 2022, the Group had cash of
GBP1,723,000.
2.3. Exploration and evaluation assets
These assets are recorded at cost and are amortised over their
expected useful life on a pro rata basis of actual production for
the period to expected total production.
2.4. Investments
Investments are stated at fair value.
3. Loss per share
The calculation of loss per share is based on a loss of
GBP152,000 (2021, GBP27,000) and on 560,588,302 (2021, 480,763,732)
Ordinary Shares, being the weighted average number of Ordinary
Shares in issue during the period.
There was no difference between basic loss per share and diluted
loss per share as the Group reported a loss for the period.
4. Share capital
During the period, 48,868,969 warrants were exercised providing
proceeds of GBP1,276,000.
**S**
For further information, please visit the Company's website
www.armadalecapitalplc.com , follow Armadale on Twitter
@ArmadaleCapital or contact:
Enquiries:
Armadale Capital Plc
Tim Jones, Company Secretary +44 (0)20 7236 1177
------------------------
Nomad and broker: finnCap Ltd
Christopher Raggett / Seamus Fricker /Edward
Whiley +44 (0)20 7220 0500
------------------------
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU No. 596/2014) which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
Notes
Armadale's wholly-owned Mahenge Liandu Graphite Project is
located in a highly prospective region, with a high-grade JORC
compliant indicated and inferred mineral resource estimate
announced February 2018 - 59.5Mt at 9.8% TGC. This includes 11.5Mt
@ 10.5% Measured 32.Mt Indicted at 9.6% and 15.9Mt at 9.8% TGC,
making it one of the largest high-grade resources in Tanzania.
The work to date has demonstrated the Project's potential as a
commercially viable deposit, with significant tonnage, high-grade
coarse flake and near surface mineralisation (implying a low strip
ratio) contained within one contiguous ore body.
The Company's updated Definitive Feasibility Study (June 2020)
confirmed Mahenge as a long-life low-cost graphite project with a
US$430m NPV and IRR of 91% based on a two-stage expansion strategy
comprising:
-- Stage One - processing plant and infrastructure at a nominal
design basis rate of 0.4-0.5 Mt/pa to produce a nominal 60,000t/pa
graphite concentrate in the first three years of production
-- Stage Two - a second 0.5 Mt/y plant and associated additional
infrastructure doubling throughput to 1 Mt/y from Year 5 of
operation
The DFS shows that Armadale can be a significant low-cost
supplier to the graphite industry with the potential to generate
pre-tax cashflows of US$985m over an initial 15 year mine-life and
scope for further improvement as this utilises just 25% of the
current resource, which remains open in multiple directions.
Projected timeline to first production is expected to be
approximately 10-12 months from the start of construction and the
capital cost estimate for Stage 1 is US$39.7m, which includes a
contingency of U$S4.1m or 15% of total direct capital cost, with a
1.6 year payback for Stage 1 (after tax) based on an average sales
price of US$1,112/t. Stage 2 expansion is expected to be funded
from cashflow.
More information can be found on the website
www.armadalecapitalplc.com .
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END
IR BCGDCLGDDGDI
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