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Interim Results for the six months ended 30 June 2014
Armadale, the AIM-quoted investment company primarily focused on the Mpokoto Gold Project in the Democratic Republic of the Congo, has announced its interim results for the six months ended 30 June 2014.
Overview:
– Scoping Study at Mpokoto and significant value upside anticipated from Expanded Scoping Study
– Initial Scoping Study highlights:
Post tax NPV of US$30m at US$1250/oz Au
IRR of 141% with capex of US$20.2m
Operating cost estimated at US$ 649/oz Au
Initial Scoping Study focussed on only a fraction of the Project’s total mineralisation
– Expanded Scoping Study expected to provide considerable further upside from additional oxide mineralisation and deeper fresh ore
– Acquisition of Kisenge announced on 1 September 2014 giving full ownership and title to the Mpokoto gold project as well as rights to 32 additional exploration licences
– Sizeable increase in JORC Resource delivered from re-interpretation of data in April 2014 – current JORC Resource of 507,000oz Au
– Further JORC Resource increase expected from recently announced drilling results which also delineated a new mineralised zone to be included in the Expanded Scoping Study covering oxide and sulphide zones
– Mine Restoration Investments (in which Armadale holds approximately a 30% interest) put in place offtake agreements having commenced commercial production from its coal plant
– Further diversified portfolio with acquisition of stake in ASX listed Redcliffe Resources – provides exposure to Mbesa Copper Project in Tanzania
Peter Marks, Chairman, said: “Since the beginning of the year the Company has made important advances in achieving our strategy of becoming a diversified natural resource-focused investment company. Whilst we await the results of the expanded Scoping Study, the first stage has demonstrated that Mpokoto is a project with real company building prospects. Our exploration efforts remain centred firmly on Mpokoto and in this vein I believe our strengthened in-country position and bolstered development team following our acquisition of Kisenge holds us in good stead for future development.
“To support the move into production in 2015 we are now focussed on incorporating the recent positive drilling results into an updated JORC Mineral Resource estimate, which will further increase the resource base at Mpokoto. This will in turn be incorporated into an expanded and updated Scoping Study which I am confident will further underpin Mpokoto as a solid gold development project with attractive economic fundamentals even at low gold prices.”
Results Summary:
Loss after tax for the six month period ended 30 June 2014 was £442,000 (2013: £607,000), a loss of 0.01p per share (2013: 0.04p per share). The loss included exploration project costs of £55,000 and foreign exchange losses of £70,000 arising principally on the restatement of loan receivables. The cash position of the Company at 30 June 2014 was approximately £612,000.
