REG - Contango HoldingsPLC - Audited Final Results for the Year to 31 May 2022

Contango HoldingsAnnouncement

30/11/2022 07:00

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RNS Number : 0023I  Contango Holdings PLC  30 November 2022

Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

30 November 2022

Contango Holdings Plc

("Contango" or the "Company")

 

Audited Final Results for the Year Ended 31 May 2022

 

Contango Holdings Plc, the London listed natural resource company developing
the Lubu Coal Project in Zimbabwe ("Lubu Project"), is pleased to announce its
audited results for the year ended 31 May 2022.

 

A copy of the full report and accounts can be found at this link,
http://www.rns-pdf.londonstockexchange.com/rns/0023I_1-2022-11-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0023I_1-2022-11-29.pdf) , and
will be uploaded shortly to the Company's website at
www.contango-holdings-plc.co.uk (http://www.contango-holdings-plc.co.uk) .

 

Highlights

 

·    Commencement of initial mining at the Lubu Project at the end of Q1
2022, with further development at site post-period.

·    Focus remains on an initial 10,000 tonnes per month of production
before further ramp up to 300,000 tonnes per annum during 2023

·    Secured a first offtake partner, AtoZ Investments (Pty) Ltd, for
10,000 tonnes of washed coal per month post period. Additional coking coal
offtake discussions underway.

·    Logistics and export solutions being finalised ahead of thermal coal
production and sales in H1 2023.

·    Advancement of coke production strategy and offtake negotiations also
underway ahead of targeted coke production in H2 2023.

·    £7,500,000 raised post period end - Contango is now fully funded for
both its coking and thermal coal strategies and expects to use non-equity
alternatives for the funding of its coke strategy.

·    Additional value upside from Garalo-Ntiela Gold Project - potential
gold resource increased to 1.8Moz in 2021 and exploration work ongoing to
better understand its full resource potential.

 

Carl Esprey, Chief Executive Officer of Contango Holdings, said:

 

"Contango is now fast approaching the landmark transition into becoming a cash
generative mining company, and importantly, is fully funded to deliver its
first two profit centres from coking coal and thermal coal. Our operation at
Lubu is nearing its final stages of maiden coking coal production and sales,
with first sales now expected to occur in Q1 2023. Whilst the Company had
hoped to reach this milestone by year end, delays in import clearance for
certain key capital items, including the wash plant, has extended the
timetable slightly.

 

"However, excellent progress at site continues to be made in expectation of
delivery of the wash plant and surface miner. Moreover, we are fully
capitalised and well-funded to meet our objectives. This is also providing a
very strong position in our ongoing discussions with additional offtakers and
I would expect to provide an update on this in the near term.

 

"Given the demand for Contango's products the Company will now also set about
expanding the planned footprint of the pit to enable increased production
capacity. This positive development is to be funded out of existing cash
resources following our £7.5 million capital raise earlier this quarter.

 

"With this in mind, 2023 is shaping up to be a year of operational and
financial delivery, and I look forward to sharing our developments with
shareholders over the coming weeks and months."

 

**ENDS**

 

For further information, please visit www.contango-holdings-plc.co.uk or
contact:

 

 Contango Holdings plc                   E: contango@stbridespartners.co.uk

 Chief Executive Officer

 Carl Esprey

 Tavira Financial Limited                T: +44 (0)20 7100 5100

 Financial Adviser & Broker

 Jonathan Evans

 St Brides Partners Ltd                  T: +44 (0)20 7236 1177

 Financial PR & Investor Relations

 Susie Geliher / Charlotte Page

 

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