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.


        Armadale Capital Plc 
         Nick Johansen, Chairman 
         Tim Jones, Company Secretary                           +44 (0) 20 7236 1177 
        Nomad and broker: finnCap Ltd 
         Christopher Raggett / Seamus Fricker / Teddy Whiley    +44 (0) 20 7220 0500 
       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 . 

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(END) Dow Jones Newswires

June 20, 2022 05:45 ET (09:45 GMT)

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