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Interim Results for the six months ended 30 June 2015
Armadale, the AIM-quoted investment company primarily focused on the Mpokoto Gold Project in the Democratic Republic of the Congo, announces its interim results for the six months ended 30 June 2015.
Highlights
– Targeting low capex, low opex commercial gold production at the Mpokoto Gold Project in the Katanga province in the south of the DRC
– Heads of agreement with Africa-Mining Contracting Services with a view to constructing, operating and providing up to US$20 million of financing for Mpokoto
– Established resource of 678,000 oz gold from 14.58 million tonnes ore at 1.45 g/t Au to produce approximately 25,000 oz per annum over a nine year life of mine
– Average projected operating cost of US$647/oz
– NPV of approximately US$55.3 million based on a forecast gold price of US$1,250/oz – even at US$1,100/oz the NPV of the Project is approximately US$32.3 million
– Significant further upside – exploration target of 2.4-3.0 million tonnes grading 1.25-1.5 g/t Au should yield an additional 120,000-150,000 oz Au
– Defined route to production – two phased development route defined post period end
– Focused on identifying ways to realise value of interest in Mine Restoration Investments Ltd
– Loss for the six months ended 30 June 2015 of £365,000 (2014: (£442,000)) relates to expenses incurred developing the Project, as is typical of a company exposed to mining exploration
– Bolstered cash balance post period end – placements raised £1.1 million
Peter Marks, Chairman, commented “We continue to make progress, both on the ground and on a wider corporate level, in advancing our 678,000 oz Mpokoto Gold Project towards production in the first half of 2016. A significant step in this journey is the agreement we have entered into with Africa-Mining Contracting Services, a highly experience mining contractor, to work alongside Armadale, with a view to constructing and operating the Project as well as providing up to US$20 million of finance to bring the Project into production. With a clear path to production and significant further upside available, which has the potential to enhance the already favourable economics of the Project, the next 6-12 months are expected to be extremely active and we look forward to keeping shareholders updated with our progress.”
