TIDMJAN
RNS Number : 0625I
Jangada Mines PLC
19 March 2018
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
19 March 2018
Jangada Mines plc ('Jangada' or the 'Company')
Unaudited Interim Results to 31 December 2017
Jangada Mines plc, a natural resources company developing South
America's largest and most advanced platinum group metals ('PGM')
project, is pleased to announce its unaudited interim results for
the six-month period ended 31 December 2017.
Overview
-- Successfully admitted to trading on AIM in June 2017, raising
GBP2.25 million, before expenses, through an oversubscribed
placing
-- Generated an updated JORC compliant resource estimate at
Pedra Branca PGM Project ('the Project') that included 1 million
ounces of PGM+Au, 109 Mlbs of nickel, 23 Mlbs of copper, 6.4 Mlbs
of cobalt and 670kt of chrome
-- Successfully upgraded resource so that 77% of the Project's
resources were in the Indicated and Measured categories
-- Completed a scoping study that confirmed Project's potential
to become a robust, shallow, open-pit operation, with a low capital
expenditure requirement, yielding attractive financial returns and
a very short payback period
-- Identified high-grade vanadium-titanium-iron mineralisation
demonstrating the significant exploration potential of the
Jangada's exploration licenses
-- Received local government approval for pilot production
essential for expediated progress to commercial production
-- Post period end, commenced broader metallurgical test
programme; started the application process for a trial mining
permit and associated environmental permit; and appointed Brandon
Hill as broker
Chairman's Statement
During the period under review, which followed the Company's
listing on AIM in late June 2017, we focused on advancing the Pedra
Branca PGM Project ('the Project') in Brazil towards a
prefeasibility study ('PFS'). To this end, we announced in mid-July
an updated JORC (2012) compliant resource estimate, which added an
additional circa US$521 million to the in-situ value of the
declared approximate 1 million ounces of PGM+Au resources at the
Project. The estimate now includes 23.138 Mt of ore in the
Measured, Indicated and Inferred categories, containing 109 million
pounds of nickel and 23 million pounds of copper grading at 0.214%
Ni and 0.045% Cu, which will off-set the costs of producing PGM and
will accrue material profitability upside at no additional
cost.
Other news during the period included the confirmation of
high-grade vanadium-titanium-iron mineralisation from samples
across five locations, and the completion of the Scoping Study,
which confirmed the Project's potential to become a robust shallow
open pit mine with low CAPEX/OPEX and suggested an Internal Rate of
Return of 80% with a payback period of 1.3 years.
More recently, we commenced a broader metallurgical test
programme, including: rougher flotation tests; cleaner and
scavenger simulation; selectivity optimisation tests;
pre-concentration tests; and chrome gravimetric and magnetic
recovery tests to support the definition of robust project
flowsheet. This is ongoing, and the Company hopes to update the
market in the near future. We have also started the application
process for a trial mining permit and associated environmental
permit. Additionally, post period end, on the corporate side, we
were delighted to appoint Brandon Hill as broker to the
Company.
In conclusion, I would point out that the Project has multiple
value upside triggers ahead, including the flowsheet and PFS, and I
therefore anticipate significant news flow during the next six
months.
Finally, I would like to take this opportunity to thank our
shareholders for their ongoing support and our team for their hard
work and valuable contribution to what has been a busy six months.
I look forward to updating our progress on a regular basis.
Brian McMaster
Executive Chairman
JANGADA MINES PLC
Condensed consolidated unaudited statement of comprehensive
income
for the six months ended 31 December 2017
6 Months 6 Months
ended ended
31 December 31 December
Note 2017 2016
$'000 $'000
Project costs (24) (32)
Administration expenses (594) (24)
Loss from operations (618) (56)
Finance expense (163) (20)
------------- -------------
Loss before tax (781) (76)
Tax expense 4 - -
------------- -------------
Loss from continuing operations
and total loss (781) (76)
Currency translation differences 15 (1)
Total comprehensive income/(loss) (766) (77)
============= =============
Total loss attributable to:
Owners of the parent (781) (71)
Non-controlling interests - (5)
(781) (76)
============= =============
Total comprehensive loss attributable
to:
Owners of the parent (766) (72)
Non-controlling interests - (5)
------------- -------------
(766) (77)
============= =============
Loss per share attributable
to the
ordinary equity holders of the
company during the period
- Basic and diluted ($) 5 (0.00) (0.00)
============= =============
JANGADA MINES PLC
Condensed unaudited consolidated statement of financial
position
as at 31 December 2017 and 30 June 2017 (audited)
As at As at
31 December 30 June
Note 2017 2017
$'000 $'000
Assets
Non-current assets
Plant, property and equipment 9 8
Exploration assets 6 247 -
256 8
Current assets
Other receivables 110 227
Cash and cash equivalents 800 2,450
910 2,677
Total assets 1,166 2,685
============= =========
Liabilities
Current liabilities
Trade payables 10 -
Loans and borrowings 7 - 458
Accruals 152 619
------------- ---------
Total liabilities 162 1,077
Issued capital and reserves
attributable to owners of the
parent
Share capital 8 102 102
Share premium 2,844 2,844
Translation reserve 13 (2)
Retained earnings (1,955) (1,336)
------------- ---------
Total equity 1,004 1,608
------------- ---------
Total equity & liabilities 1,166 2,685
============= =========
JANGADA MINES PLC
Condensed unaudited consolidated statement of changes in
equity
for the period ended 31 December 2017
Share Share Translation Retained Total
equity
capital premium reserve earnings attributable
to owners
$'000 $'000 $'000 $'000 $'000
At 30 June 2017 102 2,844 (2) (1,336) 1,608
Comprehensive Income
for the period
Loss - - - (781) (781)
Other comprehensive income - - 15 - 15
-------- -------- ------------ --------- -------------
Total comprehensive loss
for the period - - 15 (781) (766)
Transactions with owners
Share options issued - - - 162 162
-------- -------- ------------ --------- -------------
Total transactions with
owners - - - 162 162
As at 31 December 2017 102 2,844 13 (1,955) 1,004
======== ======== ============ ========= =============
(Share) (Share) (Translation) (Retained) (Total
equity)
(capital) (premium) (reserve) (earnings) (attributable
to owners)
($'000) ($'000) ($'000) ($'000) ($'000)
As at 30 June 2016 - - 1 (39) (38)
Comprehensive Income
for the year
Loss - - - (1,297) (1,297)
Other comprehensive
income - - (3) - (3)
---------- ---------- -------------- ----------- --------------
Total comprehensive
Income for the year - - - (1,297) (1,300)
Transactions with owners
Share issue 102 2,844 - - 2,946
---------- ---------- -------------- ----------- --------------
Total transactions with
owners 102 2,844 - - 2,946
As at 30 June 2017 102 2,844 (2) (1,336) 1,608
========== ========== ============== =========== ==============
JANGADA MINES PLC
Condensed unaudited consolidated statement of cash flows
for the period ended 31 December 2017
6 Months 6 Months
ended ended
31 December 31 December
2017 2016
$'000 $'000
Cash flows from operating activities
Loss before Tax (781) (71)
Add back: depreciation 3 3
Non-cash cost of share options 162 -
issued
Decrease/(increase) in other
receivables 117 (380)
Decrease in trade and other (457) -
payables
Net cash flows from operating
activities (956) (448)
------------- -------------
Investing activities
Development of exploration (247) -
and evaluation assets
------------- -------------
Net cash from investing activities (247) -
------------- -------------
Financing activities
(Repayment)/proceeds from related
party borrowings (58) 20
Capital advance into subsidiary - 59
(Repayment)/issue of convertible
loan notes (400) 380
Net cash from financing activities (458) 459
------------- -------------
Net movement in cash and cash
equivalents (1,609) 11
------------- -------------
Cash and cash equivalents at
beginning of period 2,450 3
Movements in foreign exchange 11 (1)
Cash and cash equivalents at
end of period 800 13
============= =============
JANGADA MINES PLC
Notes forming part of the interim unaudited consolidated
financial information
for the period ended 31 December 2017
1. General information
The Company is a public limited company, incorporated on 30 June
2015 with the registration number 09663756 and with its registered
office at Level 2, 34 Dover Street, London W1S 4NG. The Company's
principal activities are the provision of mining services.
2. Significant Accounting Policies
Basis of preparation
The interim unaudited financial information for the period ended
31 December 2017 has been prepared in accordance with IAS 34
Interim Financial Reporting. The results for the period ended 31
December 2017 are unaudited.
The condensed unaudited consolidated financial information for
the period ended 31 December 2017 has been prepared on a basis
consistent with, and on the basis of, the accounting policies set
out in the financial information on the Company set out in the
Company's published results for the year to 30 June 2017. The
unaudited 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 for the year ended 30 June 2018.
The financial information is presented in United States Dollars
($), which is also the functional currency of the Company and Group
and is the preferred currency of the owners of the Company. Amounts
are rounded to the nearest thousand ($'000), unless otherwise
stated.
Accounting standards in issue but not yet effective
At the date of authorisation of this financial information, a
number of standards and interpretations were in issue but not yet
effective. The Directors do not anticipate that the adoption of
these standards and interpretations, or any of the amendments made
to the existing standards as a result of the annual improvements
cycle, will have a material effect on the financial statements of
the year of initial application.
Going concern
In common with many mining companies at this stage of
development, the Group will require further funding to finance its
pre-production programme in Brazil. Without funding in place, such
conditions would indicate the existence of material uncertainty
which may cast significant doubt about the Group and Company's
ability to continue as a going concern. However, the Directors are
confident that the Group will be able to raise funds for such
requirements from investors as required, and the financial
statements do not, therefore, include the adjustment that would
result if the Group and Company were unable to continue as a going
concern.
3. Business Segments AND SEasonality
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.
The Directors believe that the Group's operations are not
subject to any significant seasonality.
4. TAXATION
Period Period
ended ended
31 December 31 December
2017 2016
$'000 $'000
Profit on ordinary activities before
tax (781) (71)
------------ ------------
Profit on ordinary activities multiplied
by standard rate of corporation tax
in the UK of 19% (2016: 20%) (148) (14)
Effects of:
Unrelieved tax losses carried forward 148 14
Total tax charge for the period - -
============ ============
Factors that may affect future tax
charges
There were no factors that may affect
future tax charges.
5. EARNINGS PER SHARE
Period Period
ended ended
31 December 31 December
2017 2016
US$'000 US$'000
Loss for the period (781) (76)
============ ============
Weighted average number of shares
(basic and diluted) 197,515,600 197,515,600
============ ============
Loss per share - basic and diluted
(US$'000) (0.00) (0.00)
============ ============
The convertible loan notes included in the balance sheet at 31
December 2016 are ignored for diluted earnings per share
calculation as they are anti-dilutive to the loss for the period.
The 31 December 2016 weighted average number of shares in issue has
been adjusted to reflect the shares issued in the period up to 31
December 2017 in order to allow a direct comparison of the earnings
per share figures in both periods.
6. 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 Group's Pedra Branca Platinum Group
Metal project.
7. CONVERTIBLE LOAN NOTES
On 22 August 2017, the Company repaid in full the outstanding
convertible loan notes.
8. SHARE CAPITAL
Issued Value
Ordinary shares of GBP0.0004 Number $'000
each:
At 1 July 2017 and 31 December
2017 197,515,600 102
============ ======
9. RELATED PARTY TRANSACTIONS
During the period the Company entered into the following
transactions with Garrison Capital Partners Limited, a related
party due to having directors in common:
Period Period
ended ended
31 December 31 December
2017 2016
$'000 $'000
Garrison Capital Partners
Limited:
Supply of IT and administration 47 -
expenses
Purchases made on Company's
behalf during the period - 20
Amounts owed and included
within borrowings - 111
=========== =============
10. DIRECTOR'S EMOLUMENTS
The four directors were paid emoluments totaling $190,000 (2016:
$Nil) during the period under review. The Directors were the key
management personnel.
11. NATURE OF FINANCIAL INFORMATION
The unaudited consolidated interim financial information
presented above does not constitute statutory financial statements
for the period under review.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
ENDS
For further information, please visit www.jangadamines.com or
contact:
Jangada Mines plc E: info@jangadamines.com
Strand Hanson Limited (Financial T: +44 (0)20 7409
& Nominated Adviser) 3494
James Spinney / Ritchie
Balmer / Jack Botros
Brandon Hill (Broker) T: +44 (0)20 3463
Jonathan Evans/Oliver Stanstead 5000
St Brides Partners LTD T: +44 (0)20 7236
(Financial PR) 1177
Isabel de Salis/Gaby Jenner
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FKFDQKBKDNND
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