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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Jangada Mines Plc | LSE:JAN | London | Ordinary Share | GB00BZ11WQ61 | ORD GBP0.0004 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.30 | 1.20 | 1.40 | 1.30 | 1.30 | 1.30 | 31,178 | 07:31:04 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Miscellaneous Metal Ores,nec | 0 | -936k | -0.0036 | -3.61 | 3.36M |
From Apr 2019 to Apr 2024
TIDMJAN
RNS Number : 1985I
Jangada Mines PLC
31 March 2020
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining
31 March 2020
Jangada Mines plc ('Jangada' or the 'Company')
Unaudited Interim Results for 6 Months Ended 31 December 2019
Jangada Mines plc ('Jangada' or 'the Company'), a natural resources company, is pleased to announce its unaudited Interim Results for the six-month period ended 31 December 2019.
Chairman's Statement
We began 2020 with our focus firmly on continuing to realise value at our 100% owned Pitombeiras Vanadium Project ('Pitombeiras' or 'the Project'), located in the state of Ceará, Brazil. During the period under review, we established the strong mineral potential of the asset as drilling, magnetic data and rock chip geochemistry enabled us to estimate a JORC (2012) Exploration Target of between 40Mt to 60Mt at 0.3% to 0.6% vanadium oxide (V2O5), 40% to 55% iron oxide (Fe2O3) and 8% to 10% titanium dioxide (TiO2). Our current focus is now on establishing a JORC compliant Mineral Resource estimate.
We commenced a 2,500m drill programme in January 2020 to test the three most prospective magnetic anomalies at the Pitombeiras North, Pitombeiras South and Goela targets over a 3km NE-SW structural trend. Drilling is scheduled to be completed in Q2 2020. Results received to date are very encouraging with three drill holes at Pitombeiras North all intersecting vanadium titanomagnetite ('VTM') mineralisation. These include 38.00 meters at 0.558% V2O5, 11.31% TiO2 and 38.40% Fe2O3, and 32.18 meters at 0.547%, 10.79% TiO2 and 37.22% Fe2O3, including 13.25 meters at 0.740% V2O5, 14.63% TiO2and 48.9% Fe2O3. However, as announced at 27 March 2020, given the prevailing environment and impact of COVID-19, and considering in particular the health and safety risks of keeping our team at site at these times of uncertainty, we have elected to reduce the programme to a total of approximately 1,350 metres. It is expected that this will not have a material impact on our immediate plans because, by completing the planned holes (albeit to a shallower depth) we will have tested the boundaries of the anomaly as required and we will have sufficient data to continue with a preliminary economic assessment ('PEA') and JORC resource estimate. We look forward to sharing further results from this drilling in due course.
The confirmation of VTM mineralisation is a significant achievement as VTM type deposits are the principal sources of vanadium globally. Further boosting this commercial potential, initial Davis Tube Recovery ('DTR') test work completed at Pitombeiras in September 2019 demonstrated that the mineralisation responds very well to magnetic separation with mass recovery of 59% and 62% and concentrate grades increasing to greater than 1.2% V2O5, including 95% Fe2O3. The titanium dioxide was concentrated on a non-magnetic fraction reaching grades around 33% TiO2 and the results also established that the magnetic recoveries produced a low silicon dioxide and low aluminium oxide product. This confirms that we are able to produce a product of potentially economic grades.
Of course, resource quality is not the only factor to be considered when assessing the commercial potential of an asset; the ability to access and export is critical too. In November 2019, C. Steinweg Handelsveem Latin America S.A. was commissioned to prepare an initial analysis of the most favourable logistical routes for vanadium product from Pitombeiras on the basis of an estimated production of 300kt of V2O5 concentrate in 2020, increasing to 600kt of V2O5 concentrate in 2022. The study identified three possible routes to market: two to Main Chinese Ports ('MCP') and one to Brazil-based Companhia Siderurgica de Pecém ('CSP') refinery. These were based on shipping from both the Pecém and Fortaleza seaports in Ceará state, which are within the Ceará Free Trade Zone, an industrial free trade area for exporting companies, which provides tax and exchange benefits and simplified administrative procedures that positively impact selling margins and bring additional competitive advantages to Jangada.
Total indicative costs (ground and ocean costs) to transport ore from Pitomberias to MCP using the Fortaleza seaport have been estimated at US$84.64/wet metric tonne (wmt). Using the Pecem seaport as an alternative route, the total indicative costs have been estimated at US$90.02/wmt. Total indicative costs considering CSP as a final destination have been estimated at US$36.00/wmt, which only involves ground transportation using trucks as CSP is located close to Pecém. These findings prove that the Project is well located to reach overseas markets on a competitive cost basis and will form part of a Preliminary Economic Assessment ('PEA'), which we are in the process of preparing.
Testament to our confidence in the growing importance of this resource and also of Pitombeiras' potential, in November 2019, we extended the Project's footprint having identified a new target, Goela, which is currently being targeted as one of our priority drill targets. Following this, in February 2020 we added an additional 864 hectares to include additional tenements known as Mocidade, which have prospective airborne magnetic anomalies similar to the Pitombeiras VTM targets. The total Project area is now 1,958 hectares.
Detailed geological mapping and rock chip sampling will be undertaken at Mocidade as part of our approved multi-phase exploration programme across the full licence area. Alongside this and the current drilling, we will also undertake a ground magnetic survey, a detailed topographic survey and test soil geochemistry in order to support the definition of a JORC resource. We also intend to complete metallurgical test work on three bulk samples (200 kg/sample) in order to define the best process for ore beneficiation.
As a result of Pitombeiras' significant value potential, we took the strategic decision to firmly focus our attention and resources on its rapid development. Accordingly, we divested our interest in Pedra Branca Brasil Mineracao Ltda, the entity that holds the Pedra Branca Project in Brazil ('Pedra Branca') to TSX-V listed Valore Metals Corp. ('ValOre') whilst retaining a strategic upside exposure through a significant shareholding in ValOre. We look forward to following ValOre's exploration efforts as it continues to unlock the Project's resource potential.
Financials
ValOre purchased Pedra Branca in August 2019 for CAD$3,000,000 alongside the issue of 25,000,000 ValOre common shares to Jangada. In February 2020, the final CAD$1,000,000 of cash consideration was received together with the first tranche of 500,000 deferred consideration ValOre common shares. The Company currently holds a 24.9% interest in ValOre, with the remaining 2,500,000 ValOre common shares due to Jangada payable in six-monthly instalments of 500,000 shares each. The consideration will support the Company's working capital requirements, allowing us to substantially progress the development of Pitombeiras, including the PEA and identification of the JORC resource.
Outlook
We are now focussed on unlocking the inherent value of Pitombeiras for the benefit of all stakeholders. To this end, we have a clear development path thanks to a defined exploration programme. The ramp up of activity at Pitombeiras is undoubtedly timely given the favourable market dynamics that are placing increasing demand on clean energy materials such as vanadium. We look forward to sharing more exploration results in due course.
Finally, I would like to take this opportunity to thank shareholders for their continuing support and our team for their consistent hard work. As an active investor in the Company myself, my interests are firmly aligned with shareholders and I truly believe the growth prospects of Jangada are excellent.
Brian McMaster
Executive Chairman
31 March 2020
CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 DECEMBER 2019
Hot Features
Premium
Unaudited
Unaudited Six months Audited
Six months to 31 Year ended
to 31 December December 30 June
2019 2018 2019
Notes $'000 $'000 $'000
Restated(1)
Administration expenses (605) (701) (1,590)
Operating Profit / (Loss) from
continuing operations (605) (701) (1,590)
Finance expense (2) - (4)
Share of losses from associates (266) - -
Profit / (Loss) before tax (873) (701) (1,594)
Tax expense 5 - - -
---------------- ------------ ------------
Profit / (Loss) from continuing
operations (873) (701) (1,594)
Discontinued operations
Profit / (loss) from discontinued
operations 7 6,277 (43) (88)
Financial profit / (loss) for
the year 5,404 (744) (1,682)
Other comprehensive income:
Items that will or may be classified
to profit or loss:
Currency translation differences
arising on translation of foreign
operations (31) (32) 3
Exchange differences reclassified 259 - -
on disposal of foreign operations
Currency translation differences (360) - -
arising on translation of equity
investments
Total comprehensive Profit /
(Loss) attributable to owners
of the parent 5,272 (776) (1,679)
================ ============ ============
Earnings / (Loss) per share from Cents Cents Cents
loss from continuing operations
attributable to the ordinary
equity holders of the Company
during the period
* Basic (cents) 6 (0.37) (0.33) (0.71)
* Diluted (cents) 6 (0.37) (0.33) (0.71)
Earnings / (Loss) per share attributable Cents Cents Cents
to the ordinary equity holders
of the Company during the period
* Basic (cents) 6 2.27 (0.35) (0.75)
* Diluted (cents) 6 2.27 (0.35) (0.75)
1. The company has labelled the comparative information with the heading 'restated' to highlight the presentation of the discontinued operations and the currency exchange treatment on the 31 December 2018 information resulting in an immaterial adjustment to the income statement and the company's share capital, that is not the same as the prior year's financial information presented.
CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
Unaudited Unaudited Audited
31 December 31 December 30 June
2019 2018 2019
Notes $'000 $'000 $'000
Assets Restated(1)
Non-current assets
Exploration and evaluation assets 8 179 563 41
Property, plant and equipment 2 3 -
Investments 9 100 - -
Investments in associates 10 3,721
4,002 566 41
Current assets
Other receivables 11 1,553 44 15
Cash and cash equivalents 327 718 117
Assets held for sale - - 782
1,880 762 914
Total assets 5,882 1,328 955
============= ============= =========
Liabilities
Current liabilities
Trade payables 39 254 41
Loans and borrowings 64 58 62
Accruals and other payables 128 68 698
Liabilities associated with assets
held for sale - - 22
------------- ------------- ---------
Total liabilities 231 380 823
Issued capital and reserves attributable
to owners of the parent
Share capital 12 178 122 123
Share premium 4,389 4,164 4,202
Translation reserve (381) (25) 10
Retained earnings 1,465 (3,313) (4,203)
------------- ------------- ---------
Total equity 5,651 948 132
------------- ------------- ---------
Total equity & liabilities 5,882 1,328 955
============= ============= =========
1. The company has labelled the comparative information with the heading 'restated' to highlight the currency exchange treatment on the 31 December 2018 information resulting in an immaterial adjustment to the share capital and share premium balances, that is not the same as the prior year's financial information presented.
CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 DECEMBER 2019
Total equity
Share Translation Retained attributable
capital Share premium reserve earnings to owners
$'000 $'000 $'000 $'000 $'000
Balance as at 1 July 2019 123 4,202 10 (4,203) 132
--------- --------------- ----------- ------------ ----------------
Total comprehensive loss for
the half-year
Profit / (Loss) for the half-year - - - 5,404 5,404
Other comprehensive loss - - (391) 259 (132)
--------- --------------- ----------- ------------ ----------------
Total comprehensive profit
/ (loss) for the half-year - - (391) 5,653 5,262
--------- --------------- ----------- ------------ ----------------
Transactions with owners in
their capacity as owners
Shares issued 55 187 - - 242
Share options issued - - - 5 5
--------- --------------- ----------- ------------ ----------------
Total transactions with owners 55 187 - 5 246
Balance at 31 December 2019 178 4,389 (381) 1,465 5,651
========= =============== =========== ============ ================
Balance as at 1 July 2018 102 2,844 7 (2,690) 263
--------- --------------- ----------- ------------ ----------------
Total comprehensive loss for
the half-year
Loss for the half-year - - - (744) (744)
Other comprehensive loss - - (32) - (32)
--------- --------------- ----------- ------------ ----------------
Total comprehensive loss for
the half-year - - (32) (744) (776)
Transactions with owners in
their capacity as owners
Shares issued (Restated) 20 1,320 - - 1,340
Shares options issued - - - 121 121
--------- --------------- ----------- ------------ ----------------
Total transactions with owner 20 1,320 - 121 1,461
Restated Balance at 31 December
2018 122 4,164 (25) (3,313) 948
========= =============== =========== ============ ================
Total comprehensive loss for
the half-year
Loss for the half-year - - - (938) (938)
Other comprehensive income - - 35 - 35
========= =============== =========== ============ ================
Total comprehensive loss for
the half-year - - 35 (938) (903)
Transactions with owners in
their capacity as owners
Shares issued 1 38 - - 39
Shares options issued - - - 48 48
--------- --------------- ----------- ------------ ----------------
Total transactions with owners 1 38 - 48 87
Balance at 30 June 2019 123 4,202 10 (4,203) 132
========= =============== =========== ============ ================
CONDENSED UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHSED 31 DECEMBER 2019
Unaudited Unaudited Audited
31 December 31 December 30 June
2019 2018 2019
Cash flows from operating activities $'000 $'000 $'000
Profit / (Loss) before Tax from continuing
operations (873) (701) (1,594)
Profit / (Loss) before Tax from discontinued
operations 6,277 (43) (88)
------------- ------------- ---------
5,404 (744) (1,682)
Add back: depreciation - 1 2
Non-cash shares received on disposal (3,987) - -
of subsidiary
Non-cash currency translation differences (360) - -
arising on translation of equity investments
Non cash exchange differences reclassified (259) - -
on disposal of foreign operations
Non-cash share option charge 187 121 169
Non-cash shares issued in lieu of fees 4 - 96
Share of losses in associate 266 - -
Decrease/(increase) in other receivables (1,529) (22) -
(Decrease)/increase in trade and other
payables (557) 95 535
Net cash outflow from operating activities (830) (549) (880)
------------- ------------- ---------
Investing activities
Development of exploration and evaluation
assets (179) (239) (477)
Purchase of plant, property and equipment (2) - -
Purchase of shares in investment (100) - -
Net cash outflow from investing activities (281) (239) (477)
------------- ------------- ---------
Financing activities
Share capital issue 55 1,496 1,496
Cost of issuing share capital - (156) (213)
Cash proceeds received on disposal 1,326 - -
of subsidiary
Increase in related party borrowings 2 - 4
Net cash from financing activities 1,383 1,340 1,287
------------- ------------- ---------
Net movement in cash and cash equivalents 271 552 (70)
------------- ------------- ---------
Cash and cash equivalents at beginning
of period 117 198 198
Movements in foreign exchange (61) (32) 2
Cash and cash equivalents reclassified
as assets available for sale (discontinued
operation) - - (13)
Cash and cash equivalents at end of
period 327 718 117
============= ============= =========
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE SIX MONTHSED 31 DECEMBER 2019
1. General Information
The Company is a public limited company limited by shares, incorporated in England and Wales on 30 June 2015 with the registration number 09663756 and with its registered office at 20 North Audley Street, London W1K 6WE. The Company's principal activities are the exploration and development of mining assets in Brazil.
2. Accounting Policies
Basis of preparation
The interim unaudited financial information for the period ended 31 December 2019 has been prepared in accordance with IAS 34 Interim Financial Reporting. The results for the period ended 31 December 2019 are unaudited.
The condensed unaudited consolidated financial information for the period ended 31 December 2019 has been prepared on a basis consistent with, and on the basis of, the accounting policies set out in the financial information in the Company's published results for the year to 30 June 2019. 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 2020.
The consolidated financial information is presented in United States Dollars ($), which is also the functional currency of the Company and Group. Amounts are rounded to the nearest thousand ($'000), unless otherwise stated.
Changes in accounting principles and adoption of new and revised standards
In the period ended 31 December 2019, the Directors have reviewed all the new and revised Standards. The only relevant new standard that is effective for this year's financial statements is IFRS 16 "Leases", but this does not have a material impact on the financial statements.
There are no standards in issue but not yet effective which could have a material impact on the financial statements.
Going concern
As disclosed in the 30 June 2019 financial statements, there exists a material uncertainty, which may cast doubt about the Group and Company's ability to continue as a going concern. Given the proceeds from the sale of the Pedra Branca project and based on the Company's planned expenditure on the Pitombeiras vanadium deposit and the Company's working capital requirements, the Directors have a reasonable expectation that the Company will have adequate resources to meet its capital requirements for the foreseeable future. For that reason, the Directors have concluded that the financial statements should be prepared on a going concern basis.
The financial statements do not include the adjustment that would result if the Group and Company were unable to continue as a going concern.
Financial assets
All of the Group's financial assets are held within a business model whose objective is to collect contractual cash flows which are solely payments of principals and interest and therefore classified as subsequently measured at amortised cost.
Group's financial assets include cash and cash equivalents, Company's financial assets include cash and other receivables. The Group assesses on a forward-looking basis the expected credit losses, defined as the difference between the contractual cash flows and the cash flows that are expected to be received.
Financial liabilities
Financial liabilities include the other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.
Exploration and 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 Pitmobeiras project and formerly the Pedra Branca Platinum Group Metal project.
Costs incurred prior to obtaining the legal rights to explore an area are expensed immediately to the Statements of Profit or Loss and Other Comprehensive Income. Only material expenditures incurred after the acquisition of a license interest are capitalised. Historically, the expenditures related to exploration and evaluation have not been material, as the Company is active in areas where there are minimal and immaterial exploration and evaluation costs and therefore the costs in previous years have been expensed.
Interests in associates
Associates are those entities in which the Company has significant influence, but not control or joint control, over the financial and operating policies.
The results and assets and liabilities of associates are incorporated using the equity method of accounting. Under the equity method, an investment in an associate is initially recognised in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group's share of profit or loss and other comprehensive income of the associate.
3. Critical accounting estimates and judgements
The Company makes certain estimates and assumptions regarding the future. Judgements, estimates and assumptions are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Judgements
As discussed in Note 2 there exists a material uncertainty which may cast significant doubt about the Group and Company's ability to continue as a going concern. Given the proceeds from the sale of the Pedra Branca project and based on the Company's planned expenditure on the Pitombeiras vanadium deposit and the Company's working capital requirements, the Directors have a reasonable expectation that the Company will have adequate resources to meet its capital requirements for the foreseeable future.
The Directors have considered the criteria of IFRS 6 regarding the impairment of exploration and evaluation assets and have decided based on this assessment that there is no basis to impair the carrying value of its exploration assets for the Pitmobeiras project (2019: $179,000, 2018: $nil) at this time.
Estimates and assumptions
In arriving at the carrying value of investments in associates, the group determines the need for impairment based on the level of geological knowledge and confidence of the mineral resources. Such decisions are taken on the basis of the exploration and research work carried out in the period utilising expert report.
The Company measures share options at fair value. For more detailed information in relation to the fair value measurement of such items, please refer to Note 13.
4. Segment information
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 Group only operates in one segment: mining services. All non-current assets have been generated in Brazil.
The Directors believe that the Group's operations are not subject to any significant seasonality.
5. Tax expense
Six months ended Six months ended Year ended
31 December 2019 31 December 2018 30 June 2019
Continuing Discontinued Continuing Discontinued Continuing Discontinued
operations operations operations operations operations operations
$'000 $'000 $'000 $'000 $'000 $'000
Profit / (Loss)
on ordinary
activities
before tax (873) 6,277 (701) (43) (1,594) (88)
------------ ------------- ------------ ------------- ------------ -------------
Loss on ordinary
activities
multiplied
by standard
rate of corporation
tax in the
UK of 19%
(2018: 19%) (166) 1,193 (133) (8) (303) (17)
Effects of:
Recognition
of previously
unrecognised
tax losses 166 - - - - -
Unrelieved
tax losses
for the period
carried forward - (1,193) 133 8 303 17
Total tax
charge for
the period
on continuing
operations - - - - - -
============ ============= ============ ============= ============ =============
Factors that may affect future tax charges
Apart from the losses incurred to date, there were no factors that may affect future tax charges.
6. Earnings per share
Six months ended 31 December Six months ended 31 December Year ended 30 June 2019
2019 2018
Continuing Discontinued Total Continuing Discontinued Total Continuing Discontinued Total
operations operations operations operations operations operations
(Restated) (Restated)
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Profit /
(Loss) for
the year (873) 6,277 5,404 (701) (43) (744) (1,594) (88) (1,682)
2019 2018 2019
Weighted
average
number
of shares
(basic) 237,655,901 213,619,678 224,270,445
=========== ===================== =========== ====================== =========== ============= ============
Loss per
share -
basic
(US 'cents) (0.37) 2.64 2.27 (0.33) (0.02) (0.35) (0.71) (0.04) (0.75)
=========== ============= ====== =========== ============= ======= =========== ============= ============
Weighted
average number
of shares
(diluted) 237,655,901 213,619,678 224,270,445
======= ============== ======= ================ ======= ======= ============
Loss per
share - diluted
(US 'cents) (0.37) 2.64 2.27 (0.33) (0.02) (0.35) (0.71) (0.04) (0.75)
======= ====== ====== ======= ======= ======= ======= ======= ============
There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.
7. Discontinued operations
On 14 August 2019, the Company completed the disposal of Pedra Branca do Brasil Mineracao S/A ('Pedra Branca') to ValOre Metals Corp ('ValOre' or the 'Purchaser') pursuant to the share purchase agreement dated 16 July 2019 ('Share Purchase Agreement'). The subsidiary was reported in the annual report for the year ended 30 June 2019 as a discontinued operation.
Financial information relating to the discontinued operation for the period to the date of disposal is set out below.
(a) Consideration received or receivable
The financial performance and cash flow information presented reflects the operations for the period ending 14 August 2019.
Period ended Period ended Year ended
31 December 31 December 30 June
2019 2018 2019
$'000 $'000 $'000
Cash Consideration 2,272 - -
Initial Consideration Shares in the Purchaser, ValOre Metals Corp,
totalling 22,000,000 common
shares 3,987 - -
Fair value of Deferred Consideration Shares in the Purchaser, totalling
3,000,000 common shares 764
------------- ------------- -----------
Total disposal consideration 7,023
Less: Deficiency in assets disposed of 500
Add: Share of loss to disposal (22)
Less: Write off of debts owed (1,224)
------------- ------------- -----------
Gain on disposal before income tax 6,277
Income tax expense -
------------- ------------- -----------
Gain on disposal before income tax 6,277
============= ============= ===========
The Company received the final cash payment of C$1,000,000 and 500,000 Deferred Consideration Shares on 10 February 2020. The Company is due to receive the remaining 2,500,000 ValOre common shares over the next 2.5 years (Deferred Consideration Shares). As at 31 December 2019 the fair value of the Deferred Consideration Shares was determined to be $764,000.
(b) Financial performance and cash flow information
The financial performance and cash flow information presented reflects the operations for the period ending 14 August 2019.
Period ended Period ended Year ended
14 August 31 December 30 June
2019 2018 2019
Financial performance from discontinued operations $'000 $'000 $'000
Expenses (21) (43) (88)
------------- ------------- -----------
Loss before tax from discontinued operations (21) (43) (88)
Tax - - -
------------- ------------- -----------
Loss for the period from discontinued operations (21) (43) (88)
============= ============= ===========
(b) Financial performance and cash flow information (continued)
Period ended Period ended Year ended
14 August 31 December 30 June
2019 2018 2019
Cash flows from discontinued operation $'000 $'000 $'000
Net cash flows from operating activities (9) 6 (77)
Net cash flows from investing activities (31) (239) (477)
Net cash flows from financing activities - 340 563
Net cash flow inflow / (outflow) (40) 106 9
============= ============= ===========
(c) Net assets as at date of sale
The carrying amounts of assets and liabilities as at the date of sale on 14 August 2019 were:
14 August 31 December 30 June
2019 2018 2019
$'000 $'000 $'000
Assets
Exploration and evaluation assets 754 563 761
Property, plant and equipment 2 3 2
Trade and receivables 6 6 7
Cash and cash equivalents - 84 13
---------- ------------ --------
Assets held for sale 762 656 782
Liabilities
Trade payables 23 52 11
Loans and borrowings 1,224 844 ,194
Accruals and other payables 11 8 11
---------- ------------ --------
Liabilities directly associated with assets held for sale 1,259 904 1,216
Deficiency in assets directly associated with disposal group (500) (248) (434)
========== ============ ========
8. 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 Pitombeiras West vanadium deposit project.
9. Investments
Six months Six months Year ended
ended ended 30 June
31 December 31 December 2019
2019 2018
$'000 $'000 $'000
Equity securities 100 - -
Carrying amount of investments 100 - -
============= ============= ===========
On 3 October 2019, the Company acquired shares in the share capital of Fodere Titanium Limited for $100,000 (2018: $nil). Fodere Titanium Limited is a United Kingdom registered minerals technology company which has developed innovative processes for the titanium, vanadium, iron and steel industries.
10. Investments in associates
Six months Six months Year ended
ended ended 30 June
31 December 31 December 2019
2019 2018
$'000 $'000 $'000
Cost of investment in ValOre 3,987 - -
Metals Corp
Share of losses from continuing (266) - -
operations
------------- ------------- -----------
Carrying amount of interest in 3,721 - -
associate
============= ============= ===========
On 14 August 2019 pursuant to the Share Purchase Agreement following the completion of the disposal of Pedra Branca to ValOre, the Company received the initial Consideration Shares in ValOre, totalling 22,000,000 common shares, equating to the Company owning 26 percent of ValOre's then enlarged share capital.
Post period end, the Company will also receive Deferred Consideration Shares in ValOre pursuant to the Share Purchase Agreement totalling 3,000,000 payable in six equal tranches of 500,000 each tranche, commencing on the date falling six months after Completion and ending on the date falling thirty-six months after Completion.
Refer to Note 7 for more information relating to the disposal of Pedra Branca.
ValOre is a Vancouver based company with a portfolio of high-quality uranium and precious metal exploration projects in Canada and Brazil that is listed on the Toronto Stock Exchange ("TSX") Venture Exchange.
11. Other receivables
Other receivables includes deferred income totalling $1,260,000 relating to the disposal of Pedra Branca as follows:
(a) final tranche of the cash consideration of $765,000 (CAD$1,000,000) due on, or before, 6 months after completion; and
(b) 3,000,000 Deferred Consideration Shares in ValOre with fair value determined to be $495,000 at balance date.
The cash consideration and 500,000 Deferred Consideration Shares in ValOre were received on 6 February 2020. Refer to Notes 7 and 10 for more information relating to the disposal of Pedra Branca.
12. Share capital
Six months ended
Six months ended 31 December 2018 Year ended
31 December 2019 (restated) 30 June 2019
Share Share Share
Issued Capital Issued Capital Issued Capital
Number $'000 Number $'000 Number $'000
At beginning of period
ordinary shares of
0.04p each: 237,315,053 123 197,515,600 102 197,515,600 102
============ ========= ============ ========= ============ =========
3 October 2018: shares
Issued as part of
placement - - 38,273,328 20 38,273,328 20
25 April 2019: share
issue in lieu of
fees - - - - 1,526,125 1
12 December 2019:
share issue in lieu
of fees 4,798,091 3 - - - -
At end of period:
ordinary shares of
0.04p each: 242,113,144 126 235,788,928 122 237,315,053 123
============ ========= ============ ========= ============ =========
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the Company.
13. Share options and warrants
Six months ended Six months ended Year ended
31 December 2019 31 December 2018 30 June 2019
Average Number Average Number Average Number
exercise of options exercise of options exercise of options
price per and warrants price per and warrants price per
share option share option share option
$ $ $
At 30 June 50,249,996 0.065 15,250,000 0.065 15,250,000
Warrants
issued
15 October
2018 - - 0.079 34,999,996 0.079 34,999,996
Warrants
issued
12 December
2019 0.079 4,798,091 - - - -
Expired and
surrendered
share
options 0.065 (15,250,000) - - - -
Share options
issued 6
December
2019 0.026 9,000,000 - - - -
--------------------------------------------------------- -------------------------------------------------- --------------------------------------------------------- -------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------------
At 31
December 48,798,087 50,249,996 50,249,996
--------------------------------------------------------- -------------------------------------------------- --------------------------------------------------------- -------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------------
Vested and
exercisable
at 31
December 0.026 9,000,000 0.065 7,625,000 0.065 7,625,000
========================================================= ================================================== ========================================================= ================================================== ========================================================= ==============================================================
In December 2019, as part of the new award of the Director/Consultant Options, all of the individuals concerned, together with the other Directors of the Company who were not receiving new share options surrendered their existing holdings of share options, which in total aggregated 8,000,000 share options. These share options were awarded at the time of the Company's IPO on AIM in June 2017, with an exercise price of 5 pence per share option (6.5 US cents), and an expiry date of 31 December 2019. All other options currently outstanding in the Company, which in total aggregated 7,250,000, were on the same terms and expired unexercised on 31 December 2019.
Share warrants outstanding at the end of the period have the following expiry date and exercise prices:
Exercise Share warrants Share warrants
price 31 December 31 December
Grant date Expiry date $ 2019 2018
15 October
15 October 2018 2020 0.079 34,999,996 34,999,996
12 December 15 October
2019 2020 0.079 4,798,091
The warrants were valued using the Black Scholes Model with inputs noted in the above table and further inputs as follows:
Input 15 October 2018 12 December 2019
grant grant
Consideration Nil Nil
Terms Vested warrants Vested warrants
are exercisable are exercisable
for a period of during the period
two years after to 15 October 2020
the grant date
Expiry date 15 October 2020 15 October 2020
Share price at grant 2.58 pence 1.70 pence
date
Expected price volatility
of the Company's
shares 50% 50%
Risk-free interest
rate 2.0% 2.0%
Share options granted during the half year ended 31 December 2019 have the following expiry date and exercise prices:
Grant date Expiry date Exercise Share options Share options
price 31 December 31 December
$ 2019 2018
31 December
6 December 2019 2024 0.026 9,000,000 -
The fair value at grant date is independently determined using an adjusted form of the Black Scholes Model that takes into account the exercise price, the term of the option, the impact of dilution (where material), the share price at grant date and expected price volatility of the underlying share, the expected dividend yield, the risk free interest rate for the term of the option and the correlations and volatilities of the peer group companies. In addition to the inputs in the table above, further inputs as follows:
The model inputs for options granted during the period included:
(a) options are granted for no consideration and vested options are exercisable for a period of five years after the grant date: 6 December 2019.
(b) expiry date: 31 December 2024.
(c) share price at grant date: 1.75 pence.
(d) expected price volatility of the company's shares: 50%.
(e) risk-free interest rate: 1.0%.
14. Related Party Transactions
During the period the Company entered into the following transactions with related parties:
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2019 2018 2019
$'000 $'000 $'000
Garrison Capital Partners Limited:
Purchases made on Company's behalf
and administrative fees expensed
during the year 55 34 114
Interest charge included within
Company and Group borrowings 2 - 4
Lauren McMaster
Consultancy services 4 - 15
FFA Legal Ltda
Legal and accountancy services expensed 41 - 79
Harvest Minerals Limited
Employment services reimbursed - (69) (104)
------------ ------------ -----------
Garrison Capital Partners Limited is a related party to the company due to having a director in common. At the period end, it was owed $nil (2018: $nil).
Lauren McMaster is a related party to the Company due to being married to the Chairman. At the period end, the amount owed was $nil (2018: $24,000).
FFA Legal Ltda is a related party to the Group due to having a director in common with Group companies. At the period end it was owed $nil (2018: $nil).
15. Subsequent Events
a) On 3 February 2020, Brian McMaster and Luis Azevedo purchased 1,400,000 existing Ordinary Shares of GBP0.0004 each in the Company at an average price of 1.8 pence per Ordinary Share purchased. Following the purchase, the beneficial interest increased to:
No. of
ordinary
shares % of share
held capital
Directors' interests:
Brian McMaster 55,244,467 23.3%
Luis Azevedo 54,066,667 22.8%
b) On 10 February 2020, the Company received the final payment from ValOre due under the Pedra Branca Share Purchase Agreement of CAD$1,000,000 (US$0.765 million as at 31 December 2019). The Company also received 500,000 Deferred Consideration Shares from ValOre, being the first instalment due under the terms of the Share Purchase Agreement. Refer to Notes 7 and 10 for information relating to the disposal of Pedra Branca.
16. 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. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
**S**
For further information please visit www.jangadamines.com or contact:
Jangada Mines plc Brian McMaster (Chairman) Tel: +44 (0) 20 7317
6629
Strand Hanson Limited James Spinney Tel: +44 (0)20 7409
(Nominated & Financial Ritchie Balmer 3494
Adviser) Jack Botros
Brandon Hill Capital Jonathan Evans Tel: +44 (0)20 3463
(Broker) Oliver Stansfield 5000
St Brides Partners Charlotte Page Tel: +44 (0)20 7236
Ltd Beth Melluish 1177
(Financial PR)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR SDLSUFESSESD
(END) Dow Jones Newswires
March 31, 2020 05:31 ET (09:31 GMT)
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