Armadale Capital PLC Result of AGM (4614P)

TIDMACP

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.

**ENDS**

 
 
 
 
 
       Enquiries: 
        Armadale Capital Plc 
         Nick Johansen, Chairman 
         Tim Jones, Company Secretary                           [phone] 
        Nomad and broker: finnCap Ltd 
         Christopher Raggett / Seamus Fricker / Teddy Whiley    [phone] 
 
 
       Notes 
       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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June 20, 2022 05:45 ET (09:45 GMT)