REG - Armadale Capital PLC - Result of AGM

Armadale CapitalAnnouncement

20/06/2022 10:45

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RNS Number : 4614P  Armadale Capital PLC  20 June 2022

 

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

20 June 2022

Armadale Capital Plc
('Armadale' or 'the Company')

Result of AGM

Armadale Capital plc (LON: ACP) the AIM quoted investment company focused on
natural resource projects in Africa, held its annual general meeting today and
all resolutions were duly passed.

**ENDS**

 Enquiries:
 Armadale Capital Plc                                  +44 (0) 20 7236 1177

 Nick Johansen, Chairman

 Tim Jones, Company Secretary
 Nomad and broker: finnCap Ltd                         +44 (0) 20 7220 0500

 Christopher Raggett / Seamus Fricker / Teddy Whiley

 

 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
 (https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.armadalecapitalplc.com&esheet=52244720&newsitemid=20200702005192&lan=en-US&anchor=www.armadalecapitalplc.com&index=1&md5=7209221bbf1231bc13f525c3f5835785)
 .

 

 

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
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.armadalecapitalplc.com&esheet=52244720&newsitemid=20200702005192&lan=en-US&anchor=www.armadalecapitalplc.com&index=1&md5=7209221bbf1231bc13f525c3f5835785)
.

 

 

 

 

 

 

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