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RNS Number : 1517E Jangada Mines PLC 13 September 2024
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining
13 September 2024
Jangada Mines Plc
('Jangada' or the 'Company')
Interim Results
Jangada Mines plc, a natural resources company with interests in Brazil and
elsewhere, is pleased to announce its unaudited Interim Results for the period
ended six months to 30 June 2024.
CHAIRMAN'S STATEMENT
Our strategic focus remains twofold: first, to advance and support our
existing projects and investments in the renewable energy and battery metals
sectors; and second, to identify and acquire high-potential opportunities
within the resource sector that offer substantial revaluation potential.
In line with this, we are committed to advancing our 100%-owned Pitombeiras
Ferrovanadium Project in Brazil, where we are evaluating options including its
potential to deliver titanium dioxide (TiO₂) and vanadium pentoxide
(V₂O₅). This project is complemented by our stakes in innovative
metallurgical processing company Fodere Titanium Limited and LSE listed
graphite exploration company Blencowe Resources plc. Together, these provide
us with a strong foundation to generate value moving forward. Indeed, our
current investments are worth in the region of £1.9 million.
Pitombeiras Ferrovanadium Project, Ceará, Brazil ('Pitombeiras')
As a standalone project, Pitombeiras' high-grade iron ore reserves-comprising
a Total Mineral Resource Estimate of 8.26 Mt, with 62% classified as Measured
& Indicated-make it an attractive prospect, particularly if a local
offtaker can be signed. Unfortunately, as investors know, the iron ore pricing
environment has not been favourable, so throughout the period under review,
development has effectively been on hold. However, following a revaluation
we recognised that its potential extends beyond its iron ore resources, with
high titanium and vanadium content, both attractive commodities benefiting
from the global energy transition. With reported recovery rates of 86.73%
for TiO₂, 91.19% for Fe₂O₃, and 95.88% for V₂O₅ using Fodere's
proprietary technology, the project could be transformative. Should this
technology prove effective at the pre-commercial scale, Pitombeiras' value
will greatly appreciate due to the resource quality, strategic location, and
the flexibility of vanadium and titanium markets. In line with this, our next
steps will include upscaling the testwork to deliver an additional economic
study to further explore the project parameters.
Fodere Titanium Limited ('Fodere')
We remain committed to supporting Fodere as it progresses towards
commercialising its environmentally sustainable technology for extracting
valuable metals from titanium, vanadium, iron, and steel industries. Following
successful pilot-scale testing, the company is now developing a pre-commercial
plant to further test the scalability of this technology. The financial
projections for Fodere are highly promising, both for its South African
tailings project and for its potential application at Pitombeiras. Notably,
Jangada retains exclusive rights to Fodere's technology across South America.
Although progress has been slower than anticipated and frustrating, we are
confident the results will be worth the wait.
One of the Company's Non-Executive Directors, Nick von Schirnding, is a
Director of Fodere. At the end of the reporting period, the Company held 1,774
shares being a 7.7% interest in Fodere's share capital. See the financial
statements note 13 for the value of the Group's holdings in Fodere.
Blencowe Resources plc (LSE:BRES) ('Blencowe')
Our investment in Blencowe is proving to be timely, fuelled by the robust
dynamics of the graphite market and the strength of its potential world class
graphite project in Uganda both by size and end-product quality. As well as
making excellent progress towards completing a DFS at Orom-Cross, supported by
its cornerstone party, the US Government's private sector lending arm,
metallurgical testing of a 600-tonne bulk sample study has successfully
demonstrated the conversion of raw materials into battery-ready products. This
is crucial for advancing an offtake agreement with an industry leader and
attracting further interest from potential tier-one SPG consumers.
Additionally, it recently formed a strategic partnership with two experienced
Asian graphite specialists, strengthening its operational capabilities and
securing a robust commercial future.
At the end of the reporting period, the Company held 21,050,000 shares being a
10.05% interest in Blencowe's share capital. Post period end, Blencowe
completed an equity issue with the consequent effect of diluting this interest
to 9.3%.
KEFI Gold and Copper PLC (AIM: KEFI) ('KEFI')
KEFI, a gold and copper exploration company, is making good progress towards
advancing its Tulu Kapi Gold Project, Ethiopia's first large-scale mining
project in 30 years, with production set for mid-2026. In Saudi Arabia, its
GMCO joint venture is also making strides towards establishing optimal
start-up strategies at the Jibal Qutman and Hawiah projects, benefiting from
Saudi regulatory support.
As at the end of the period, the Company held 15,714,285 shares in KEFI
equating to a holding of 0.26%.
Axies Ventures Limited ('Axies')
In 2022, the Company purchased 1,000,000 shares in Axies for £50,000. Axies
is undertaking exploration of gold and copper projects in Cyprus and is
planning for an IPO in the coming 12 months.
At the end of the reporting period, the Company held 1,000,000 shares in Axies
equating to a holding of 7.14%.
ValOre Metals Corp ('ValOre') and ATHA Energy Corp ('ATHA')
At the end of the reporting period, Jangada had fully disposed of interests in
the share capital ValOre and ATHA with the remaining balance of the
investments sold in April 2024. Gross sale proceeds received were $63,067.
Additional Projects
Our secondary strategy is to seek out high-value opportunities where our
expertise can unlock substantial value. While we have assessed several
greenfield projects, we are mindful of our capital structure and the
significant investment required for mine development. Instead, we are focusing
on distressed brownfield opportunities and non-core assets, where we can
structure deals with minimal upfront costs.
We have already devoted considerable time to exploring opportunities,
particularly in Brazil's zinc space, and while one significant opportunity
fell through at the final stage, and another tin/tantalum project saw us
outbid, we remain optimistic. We are actively engaged with several other
prospects and are confident that we will secure an asset that meets our
criteria.
Financial Results
As a development company, the Group is reporting a Loss from Continuing
Operations of $275k for the six months ended 30 June 2024 (30 June 2023:
$651k). Overall, the reported Total Comprehensive Loss attributable to the
Group for the reporting period was $428k (2023: $493k).
Outlook
Our diverse portfolio spans critical minerals and technologies central to the
renewable energy and battery metals sectors. We firmly believe that each of
our investments has the potential to significantly enhance Jangada's future
value. Additionally, we remain dedicated to identifying new value-accretive
projects that can rapidly revalue and dramatically boost the Company's
performance.
A key priority is to protect our capital structure by selecting opportunities
that do not rely on unfavourable market conditions for funding. With the Board
holding a combined 42.7% interest in Jangada, this is a shared objective.
We have been asked about our long-term vision - whether Jangada will be a
producer, explorer, or project investor. The answer lies in a blend of all
three. Our decisions will be informed by risk profiles, revaluation potential,
and maintaining a solid capital structure.
I would like to thank our shareholders for their continued support and
patience as we work towards realising our shared vision. We look forward to
providing updates on our portfolio and new acquisitions, which we believe have
the potential to be game-changing for the Company.
Brian McMaster
Executive Chairman
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 30 JUNE 2024
30 June 30 June
2024 2023
(Unaudited) (Unaudited)
Notes $'000 $'000
Gain (loss) on fair value of investments 277 (82)
Profit (loss) on disposal of investments (53) -
Directors' remuneration (182) (179)
Foreign exchange (loss)/gain (9) (40)
Administration expenses (308) (350)
Operating loss from continuing operations (275) (651)
Finance expense - -
Loss before tax (275) (651)
Tax expense 5 - -
Loss from continuing operations (275) (651)
Other comprehensive income:
Items that will or may be classified to profit or loss:
Currency translation differences arising on translation of foreign operations (153) 158
Total comprehensive loss attributable to owners of the parent (428) (493)
Loss per share from loss from continuing operations attributable to the Cents Cents
ordinary equity holders of the Company during the period
- Basic (cents) 6 (0.11) (0.25)
- Diluted (cents) 6 (0.11) (0.25)
Loss per share attributable to the ordinary equity holders of the Company Cents Cents
during the period
- Basic (cents) 6 (0.11) (0.25)
- Diluted (cents) 6 (0.11) (0.25)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30 June 31 December
2024 2023
(Unaudited) (Audited)
Notes $'000 $'000
Assets
Non-current assets
Exploration and evaluation assets 1,179 1,300
Property, plant and equipment 2 3
Investments 8 2,502 2,545
3,683 3,848
Current assets
Other receivables 10 2
Cash and cash equivalents 188 414
198 416
Total assets 3,881 4,264
Liabilities
Current liabilities
Trade payables 99 62
Accruals and other payables 146 138
Total liabilities 245 200
Issued capital and reserves attributable to owners of the parent
Share capital 9 135 135
Share premium 9 5,959 5,959
Translation reserve (681) (528)
Option reserve 10 709 709
Fair value reserve 38 38
Retained earnings (2,524) (2,249)
Total equity 3,636 4,064
Total equity & liabilities 3,881 4,264
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 30 JUNE 2024
Translation reserve Fair value reserve Option Retained earnings
Share capital Share premium reserve Total equity attributable to owners
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance as at 1 January 2023 135 5,959 (754) 38 709 (1,227) 4,860
Total comprehensive loss for the year - - - - - (651) (651)
Loss for the half-year
Other comprehensive loss - - 158 - - - 158
Total comprehensive loss for the year - - 158 - - (651) (493)
Transactions with owners in their capacity as owners
Shares issued - - - - - - -
Share options issued - - - - - - -
Total transactions with owners - - - - - - -
Balance at 30 June 2023 135 5,959 (596) 38 709 (1,878) 4,367
135 5,959 (528) 38 709 (2,249) 4,064
Balance as at 1 January 2024
Total comprehensive loss for the year - - - - - (275) (275)
Loss for the half-year
Other comprehensive loss - - (153) - - - (153)
Total comprehensive loss for the year - - (153) - - (275) (428)
Transactions with owners in their capacity as owners
Shares issued - - - - - - -
Shares options issued - - - - - - -
Total transactions with owner - - - - - - -
Balance at 30 June 2024 135 5,959 (681) 38 709 (2,524) 3,636
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF-YEAR ENDED 30 JUNE 2024
30 June 30 June
2024 2023
(Unaudited) (Unaudited)
Cash flows from operating activities $'000 $'000
Profit / (Loss) before Tax from continuing operations (275) (651)
Add back: loss/(profit) on sale of investment 53 -
Non-cash fair value (gain)/ loss on investments (277) 82
Non-cash exchange difference 9 40
Operating cash flows before working capital changes (490) (529)
Decrease/(increase) in other receivables 8 (298)
(Decrease)/increase in trade and other payables 45 61
Net cash outflow from operating activities (437) (766)
Investing activities
Development of exploration and evaluation assets (8) (74)
Non-cash investment from conversion of short-term loans - 310
Sale of shares in investments 213 -
Purchase of shares in investment - (127)
Net cash (outflow) / inflow from investing activities 205 109
Financing activities
Cancellation of options - (27)
Net cash from financing activities - (27)
Net movement in cash and cash equivalents (232) (684)
Cash and cash equivalents at beginning of period 414 1,397
Movements in foreign exchange 6 73
Cash and cash equivalents at end of period 188 786
NOTES TO THE CONDENSED FINANCIAL INFORMATION
FOR THE HALF-YEAR ENDED 30 JUNE 2024
1. General Information
The Company is a public limited company limited by shares,
incorporated in England and Wales on 30 June 2015 with the registration number
09663756 and with its registered office at Eastcastle House, 27/28 Eastcastle
Street, London W1W 8DH. The Company's principal activities are the exploration
and development of mining assets in Brazil.
2. Accounting Policies
Basis of preparation
The condensed consolidated interim financial statements have
been prepared in accordance with the requirements of the AIM Rules for
Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim
Financial Statements" in preparing this interim financial information. The
condensed consolidated financial information for the six months ended 30 June
2024 has been prepared on a basis consistent with, and on the basis of, the
accounting policies set out in the financial information in the Company's
published results for the year-end to 31 December 2023. The interim financial
statements of the Company have been prepared on the basis of the accounting
policies, presentation, methods of computation and estimation techniques
expected to be adopted in the financial information by the Company in
preparing its annual report as at 31 December 2024.
The interim financial information set out above does not
constitute statutory accounts within the meaning of the Companies Act 2006. It
has been prepared on a going concern basis in accordance with the recognition
and measurement criteria of UK-adopted International Accounting Standards, and
hence the previously reported accounting policies still apply.
The interim condensed consolidated financial statements do
not include all of the information required for full annual financial
statements and should be read in conjunction with the audited consolidated
financial statements of the Company as at and for the year ended 31 December
2023.
Statutory financial statements for the year ended 31 December
2023 were approved by the Board of Directors on 10 June 2024 and delivered to
the Registrar of Companies. The report of the auditors on those financial
statements was unqualified.
The Board have conducted a review of forecast earnings and cash over the next
twelve months, considering various scenarios and sensitivities. The Board have
a reasonable expectation that the Company has adequate resources to continue
in operational existence for the foreseeable future. Accordingly, they
continue to adopt the going concern basis in preparing the interim financial
statements.
The consolidated financial information is presented in United States Dollars
($), which is also the functional currency of the Company. Amounts are rounded
to the nearest thousand ($'000), unless otherwise stated.
Changes in accounting principles and adoption of new and
revised standards
In the year ended 30 June 2024, the Directors have reviewed all the new and
revised Standards. There are no standards in issue but not yet effective which
could have a material impact on the financial statements.
Going concern
The Directors, having made appropriate enquiries, consider that adequate
resources exist for the Company and Group to continue in operational existence
for the foreseeable future and that, therefore, it is appropriate to adopt the
going concern basis in preparing the condensed consolidated interim financial
statements for the period ended 30 June 2024.
The interim Financial Statements have been prepared on a going concern basis.
Although the Group's assets are not generating revenues and an operating loss
has been reported, the Directors are of the view that the Group has sufficient
funds to meet all committed and contractual expenditure and to maintain good
title to the exploration licences.
As disclosed in the 31 December 2023 financial statements, the directors do
not consider there to be a material uncertainty, which may cast doubt about
the Group and Company's ability to continue as a going concern. The Directors
have a reasonable expectation that the Group will have adequate resources to
meet its capital requirements for the foreseeable future. For that reason, the
Directors have concluded that the financial statements should be prepared on a
going concern basis.
3. Critical accounting estimates and judgements
Except as described below, the same accounting policies, presentation and
methods of computation have been followed in these condensed consolidated
interim financial statements as were applied in the preparation of the Group's
annual financial statements for the year ended 31 December 2023.
Judgements
Given the proceeds from the sale of the Pedra Branca project and based on the
Company's planned expenditure on the Pitombeiras vanadium deposit and the
Company's working capital requirements, the Directors have a reasonable
expectation that the Company will have adequate resources to meet its capital
requirements for the foreseeable future.
The Directors have considered the criteria of IFRS 6 regarding the impairment
of exploration and evaluation assets and have decided based on this assessment
that there is no basis to impair the carrying value of its exploration assets
for the Pitombeiras project (2023: $nil, 2022: $nil) at this time.
Estimates and assumptions
In arriving at the carrying value of investments in associates, the Company
determines the need for impairment based on the level of geological knowledge
and confidence of the mineral resources. Such decisions are taken on the basis
of the exploration and research work carried out in the period utilising
expert report.
The Company measures share options at fair value. For more detailed
information in relation to the fair value measurement of such items, please
refer to Note 11.
4. Segment information
The Company evaluates segmental performance on the basis of profit or loss
from operations calculated in accordance with IFRS 8. In the Directors'
opinion, the Company only operates in one segment: mining services. All
non-current assets have been generated in Brazil.
The Directors believe that the Company's operations are not subject to any
significant seasonality.
5. Tax expense
Half-year ended Half-year ended
30 JUNE 2024 30 June 2022
Continuing operations Continuing operations
(Unaudited) (Unaudited)
$'000 $'000
Loss on ordinary activities before tax (275) (651)
Loss on ordinary activities multiplied by standard rate of corporation tax in (69) (163)
the UK of 25% (2023: 25%)
Effects of:
Recognition of previously unrecognised tax losses - -
Unrelieved tax losses for the period carried forward 69 163
Total tax charge for the period on continuing operations - -
Factors that may affect future tax charges
Apart from the losses incurred to date, there were no factors that may affect
future tax charges.
6. Loss per share
Half-year Half-year
ended ended
30 June 30 June
2024 2023
(Unaudited) (Unaudited)
$'000 $'000
Loss for the year (275) (651)
2024 2023
Weighted average number of shares (basic & diluted) 258,602,032 258,602,032
Loss per share - basic & diluted (US 'cents) (0.11) (0.25)
There have been no transactions involving ordinary shares or potential
ordinary shares that would significantly change the number of ordinary shares
or potential ordinary shares outstanding between the reporting date and the
date of completion of these financial statements.
7. Exploration & evaluation assets
Exploration and evaluation assets represent the costs of pre-feasibility
studies, field costs, government fees and the associated support costs at the
Company's Pitombeiras West vanadium deposit project. The ultimate recoupment
of costs carried forward for exploration expenditure is dependent on the
successful development and commercial exploitation or sale of the respective
mining areas.
8. Investments
As at As at
30 June 31 December
2024 2023
(Unaudited) (Audited)
$'000 $'000
Investment in ValOre Corp. - 21
Investments in Latitude Uranium Inc / ATHA Energy Corp. - 53
Investment in Fodere Titanium Limited 1,020 1,017
Investment in Blencowe Resources Plc 1,491 1,286
Investment in Axies Ventures Limited 63 64
Investment in KEFI Gold and Copper Plc 125 292
Impairment in Investments (197) (188)
Carrying amount of investments 2,502 2,545
Level 1 Level 2 Level 3 Total
As at 30 June 2024 (Unaudited) $'000 $'000 $'000 $'000
Assets
Investments - At FVTPL 1,616 886 - 2,502
Total assets 1,616 886 - 2,502
Level 1 Level 2 Level 3 Total
As at 31 December 2023 (Audited) $'000 $'000 $'000 $'000
Assets
Investments - At FVTPL 1,652 893 - 2,545
Total assets 1,652 893 - 2,545
The Company holds shares in the share capital of Blencowe Resources Plc
("Blencowe"). Blencowe is a United Kingdom registered natural resources
company focused on the development of the Orom-Cross Graphite Project in
Uganda.
The Company holds shares in the share capital of Fodere Titanium Limited
("Fodere"). Fodere is a United Kingdom registered minerals technology company
which has developed innovative processes for the titanium, vanadium, iron and
steel industries.
The Company holds shares in the share capital of Axies Ventures Limited
("Axies"). Axies is a United Kingdom registered exploration and development
company focused on the Axies Copper Project in Cyprus.
The Company holds shares in the share capital KEFI Gold and Copper Plc
("KEFI"). KEFI is a United Kingdom registered gold and copper exploration and
development company with projects in the Federal Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia.
9. Share capital
30 June 2024 31 December 2023
Issued Share Capital Share premium Issued Share Capital Share premium
Number $'000 $'000 Number $'000 $'000
At beginning and end of the period ordinary shares of 0.04p each: 258,602,032 135 5,959 258,602,032 135 5,959
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the
event of a winding up of the Company, to participate in the proceeds from sale
of all surplus assets in proportion to the number of and amounts paid up on
shares held. Ordinary shares entitle their holder to one vote, either in
person or proxy, at a meeting of the Company.
10. Share options and warrants
Average exercise price per share option Period ended 30 June Average exercise price per share option Year ended 31 December 2023
$
$
2024 Number of
Number of options
options
At the beginning of the period - 34,844,444 - 34,844,444
Share options expired 9 February 2024 0.09 (694,444) - -
At the end of the period 34,150,000 34,844,444
On 19 February 2024, 694,444 options, with a grant date of 19 February 2021,
an expiry date of 19 February 2024 and an exercise price £0.09 per option
share, expired.
As at As at
30 June 2024 31 December 2023
$'000 $'000
Share based payments reserve
At beginning of year 709 709
Share based payments surrendered - -
Closing balance 709 709
Share options warrants outstanding at the end of the period have the following
expiry date and exercise prices:
Share options/warrants 30 June Share options/warrants 31 December
2023 2022
Exercise price
Grant date Expiry date £
1 December 2019 30 November 2024 0.02 3,150,000 3,150,000
10 August 2021 10 August 2025 0.08 31,000,000 31,000,000
The fair value at grant date is independently determined using an adjusted
form of the Black Scholes Model that takes into account the exercise price,
the term of the option, the impact of dilution (where material), the share
price at grant date and expected price volatility of the underlying share, the
expected dividend yield, the risk-free interest rate for the term of the
option and the correlations and volatilities of the peer group companies. In
addition to the inputs in the table above, further inputs as follows:
The model inputs for the 3,150,000 options carried forward from the time of
the IPO:
(a) options are granted for no consideration and vested options are
exercisable for a period of five years after the grant date: 1 December 2019.
(b) expiry date: 30 November 2024.
(c) share price at grant date: 1.75 pence.
(d) expected price volatility of the company's shares: 50%.
(e) risk-free interest rate: 1.0%.
The model inputs for the 30,000,000 director and Brazilian employee options
and 1,000,000 third party warrants granted for consulting services during the
year included:
(a) 30,000,000 options are granted and split into two Tranches,
whereby 20,250,000 tranche A options have vesting conditions linked to
performance and 9,750,000 Tranche B options vest immediately.
(b) Tranche A is split further with 9,450,000 options vesting once
all necessary permits required to commence production are received and then a
further 10,800,000 options vest upon commencement of production at the
Pitombeiras Vanadium Project.
(c) The 9,450,000 options have a vesting period of two years from
grant date and the 10,800,000 options have a vesting period of three years
from the grant date.
(d) 1,000,000 warrants are granted for no consideration and vested
warrants are exercisable for a period of three years after the grant date: 10
August 2021.
(e) expiry date: 10 August 2025.
(f) share price at grant date: 8.0 pence.
(g) expected price volatility of the company's shares: 70.24%.
(h) risk-free interest rate: 0.591%.
12. Related Party Transactions
During the period the Company entered into the following transactions with
related parties:
Half-year ended Half-year ended
30 June 2024 30 June 2023
(Unaudited) (Unaudited)
$'000 $'000
FFA Legal Ltda
Legal and accountancy services expensed 36 36
FFA Legal Ltda is a related party to the Company due to having a director in
common with Company. At the period end it was owed $nil (2023: $nil).
13. Parent Entity
Parent Entity Information 30 June 31 December
2024
2023
$'000 $'000
(Unaudited) (Audited)
Current assets 177 395
Total assets 4,432 4,642
Current liabilities 245 199
Total liabilities 245 199
Net Assets 4,187 4,443
Share capital 135 135
Share premium 5,959 5,959
Reserves (621) (591)
Accumulated losses (1,286) (1,060)
Total Equity 4,187 4,443
Loss of the parent entity (256) (776)
Other comprehensive profit for the year - -
Total comprehensive loss of the parent entity (256) (776)
14. Subsequent Events
There have been no significant events after the reporting period.
15. Nature of Financial Information
The condensed consolidated interim financial information presented above does
not constitute statutory financial statements for the period under review.
16. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of
Directors on xx September 2024.
**ENDS**
For further information please visit www.jangadamines.com
(http://www.jangadamines.com/) or contact:
Jangada Mines plc Brian McMaster (Chairman) Tel: +44 (0)20 7317 6629
Strand Hanson Limited Ritchie Balmer Tel: +44 (0)20 7409 3494
(Nominated & Financial Adviser) James Spinney
Tavira Securities Limited Jonathan Evans Tel: +44 (0)20 7100 5100
(Broker)
St Brides Partners Ltd Ana Ribeiro jangada@stbridespartners.co.uk
(Financial PR) Isabel de Salis
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