RNS Number : 7172T Jangada Mines PLC 29 March 2021
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining
29 March 2021
Jangada Mines plc
Annual Results for the 18 Months Ended 31 December 2020
Jangada Mines plc ('Jangada' or 'the Company'), a natural resources company, is pleased to announce its audited financial results for the 18-month period ended 31 December 2020. The Company is today posting its Annual Report & Accounts and Notice of AGM to Shareholders, which will also shortly be available on the Company's website.
REVIEW OF THE BUSINESS
Pitombeiras Vanadium Project
During the period under review, the Company continued to develop its 100% owned Pitombeiras Vanadium Project ('Pitombeiras' or 'the Project'), located in the state of Ceará, Brazil and I am pleased to confirm that we have made great progress in this regard.
Consistent vanadium-titanium-iron grades and widths confirmed; new drilling targets delineated; an initial National Instrument 43-101 ('NI 43-101') compliant resource estimate of 5.70Mt released; and post period end, a Preliminary Economic Assessment ('PEA') defining robust economics and remarkable potential for further growth delivered. We are rapidly ticking boxes as we look to fast-track the excitingPitombeiras Vanadium Project ('Pitombeiras' or 'the Project') in Brazil to production, realise its potential and, in the process, generate value for all our shareholders.
The 18-month period under review saw us embark on a plethora of activity at Pitombeiras including drilling programmes, metallurgical tests, and airborne magnetic surveys to delineate vanadium titanomagnetite ('VTM') drilling targets. The positive data generated from these activities enabled us to report an initial National Instrument 43-101 ('NI 43-101') compliant resource estimate for the Project mid 2020:
· Total Resource estimate of 5.70Mt at an average grade of 0.51% vanadium pentoxide (V' 2O5'), 10.09% titanium dioxide ('TiO2') and 50.42% of ferric oxide ('Fe2O3') for a contained resource of 28,990 tonnes V2O5
· Indicated Resource estimate of 1.47Mt at an average grade of 0.50%V2O5, 9.85 % TiO2 and 49.78% of Fe2O3 for a contained resource of 7,297 tonnes V2O5
· Inferred Resource estimate of4.23Mt at an average of 0.51% V2O5, 10.17% TiO2 and 50.64% of Fe2O3for a contained resource of 21,693 tonnes V2O5
Post period end, using this estimate, we were delighted to deliver an initial PEA that confirmed our own confidence in the economic viability of the Project and its excellent potential to become a profitable producer of Ferro-Vanadium concentrate (62%/65% iron ('Fe'), plus V2O5 credit).
The PEA, prepared by GE21 Consultoria Mineral ('GE21') and compliant with National Instrument 43-101 ('NI 43-101'), projected a $9.5m initial capital cost and post-tax payback period of 3 months. It also reported an estimated post-tax NPV (at a 8% discount rate) and IRR of $106.5 million and 317.8%, respectively.
Notably, the PEA suggests a simple processing route providing opportunity to a fast-track approach to production and cash flow. Furthermore, the total resource considered in the PEA is based on just two out of 20 known targets selected based on a ground magnetic survey.
ValOre Metals Corp
Our investment in ValOre Metals Corp (TSX-V:VO) ('ValOre')has yielded positive results.
As previously advised, in August 2019, we divested our 100% interest in our former subsidiary, Pedra Branca Brasil Mineracao Ltda, the entity that held the advanced palladium, platinum, and nickel project, the Pedra Branca Project in Brazil ('Pedra Branca'), to ValOre whilst retaining a strategic upside exposure through a significant shareholding in ValOre. The consideration received on the divestment was CAD$3,000,000 alongside the issue of 25,000,000 ValOre common shares to Jangada (of which 22,000,000 shares were received on completion and 3,000,000 deferred consideration shares over 3 years). The divestment resulted in a reported profit on disposal of $6.2 million for the reporting period.
During the period, we have sold down part of the investment in ValOre to 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.
At the end of the reporting period, the Company had a 17.23% interest in ValOre's share capital. AsBrian McMaster and Luiz Azevedo are both on the board of directors of ValOre, it is considered an associate for the purposes of preparing these financial statements.
ValOre continues to generate notable results from Pedra Branca. With a reported maiden NI 43-101 compliant inferred resource of 1,067,000 ounces PGE+Au at an average grade of 1.22 g/t PGE+Au, ValOre's focus in 2020 was to increase the resource and undertake discovery drilling.
To this end, a 6,000 metre two phase diamond drill programme was undertaken with the bulk aimed at expanding specific zones, which form part of the inferred resource, namely Trapia (Trapia 1 and Trapia 2) and Santo Amaro. Results reported so far indicate that the "ore body thickens at depth and that mineralisation remains open in all directions".
Furthermore, work related to mineralogy, processing and metallurgy has provided very positive initial results and some additional options which warrant immediate follow up. We are expecting continued newsflow throughout the year as ValOre continues with a property-wide exploration programme at Pedra Branca.
Fodere Titanium Limited
By channelling capital in a responsible way towards companies that innovate and address global challenges to create a more sustainable world, investing can make a difference. With this in mind, the decision was made to take a 3.6% interest in Fodere Titanium Limited ('Fodere'), a company that is making great strides towards commercialising the production of titanium dioxide and vanadium from waste materials.
Fodere is rapidly advancing the commercialisation ofits environmentally sustainable and highly innovative technology to extract high value metals from the titanium, vanadium, iron, and steel industries. Fodere is currently in discussion with industrial offtakers as it moves toward building an initial plant to commence production. One of the Company's Non-Executive Directors, Nick von Schirnding, is Chairman of Fodere.
COVID-19
The directors note that COVID-19 has had a significant negative impact on the global economy during 2020 with disruption felt globally. The Group has thankfully seen its inherent value significantly increase from its value in 2019 because of our successful exploration programme and project development initiatives. On a wider level COVID-19 has highlighted to the world the importance of sustainability across every aspect of life. With a portfolio of assets and investments that support the drive towards greater sustainability, Jangada is well placed to contribute to the world's needs without compromising the ability of future generations to meet their own needs.
Financial Results
The progress during the financial year of advancing the Pitombeiras project resulted in the Group incurring an operating Loss from Continuing Operations of $1.6 million (2019: $1.6 million). As stated above, the reported profit on the disposal of the Pedra Branca project was $6.2 million (2019: loss of $0.09 million).
Overall and pleasingly, the reported Total Comprehensive Profit attributable to the Group for the 18-month reporting period was $3.9 million (2019: loss of $1.7 million).
B K McMaster
Director
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 18 MONTHS PERIOD ENDED 31 DECEMBER 2020
18 Months
Period | 12 Months | ||
ended | Year | ||
31 | ended | ||
December | 30 June | ||
2020 | 2019 | ||
$'000 | $'000 | ||
Other Income | |||
Profit on disposal of investment | 29 | - | |
Administration expenses | (1,580) | (1,590) | |
Operating loss from continuing operations | (1,551) | (1,590) | |
Finance expense | 7 | (3) | (4) |
Share of loss from associates | 14 | (714) | |
Loss before tax | (2,268) | (1,594) | |
Tax expense | 8 | - | - |
Loss from continuing operations | (2,268) | (1,594) | |
Discontinued operation | |||
Profit / (Loss) from discontinued operation | 6 | 6,190 | (88) |
Financial profit / (loss) for the year | 3,922 | (1,682) | |
Other comprehensive income: | |||
Items that will or may be reclassified to profit or loss: | |||
Fair value differences arising from OCI in associates | 38 | - | |
Currency translation differences arising on translation of | |||
(18) | 3 | ||
foreign operations | |||
Total comprehensive profit / (loss) attributable to | |||
3,942 | (1,679) | ||
owners of the parent | |||
Earnings / (Loss) per share from loss from | |||
continuing operations attributable to the ordinary | |||
Cents | Cents | ||
equity holders of the Company during the period | |||
9 | (0.94) | (0.71) | |
9 | (0.94) | (0.71) | |
Cents | Cents | ||
9 | 1.63 | (0.75) | |
9 | 1.63 | (0.75) | |
Page 2 of 17 |
- -
Basic (cents)
Diluted (cents)
Earnings / (Loss) per share attributable to the ordinary equity holders of the Company during the period
- -Basic (cents)
Diluted (cents)
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020
As at | |||
31 | As at | ||
December | 30 June | ||
2020 | 2019 | ||
Assets | $'000 | $'000 | |
Non-current assets | |||
Exploration and evaluation assets | 12 | 550 | 41 |
Property, plant and equipment | 1 | - | |
Investments | 13 | 600 | - |
Investments in associates | 14 | 2,194 | - |
3,345 | 41 | ||
Current assets | |||
Other receivables | 15 | 554 | 15 |
Cash and cash equivalents | 513 | 117 | |
Assets held for sale | - | 782 | |
1,067 | 914 | ||
Total assets | 4,412 | 955 | |
Liabilities | |||
Current liabilities | |||
Trade payables | 36 | 41 | |
Loans and borrowings | 16 | - | 62 |
Accruals and other payables | 17 | 93 | 698 |
Liabilities associated with assets held for sale | - | 22 | |
Total liabilities | 129 | 823 | |
Issued capital and reserves attributable to owners | |||
of the parent | |||
Share capital | 18 | 126 | 123 |
Share premium | 18 | 4,389 | 4,202 |
Translation reserve | (8) | 10 | |
Fair Value Reserve | 38 | - | |
Retained earnings | (262) | (4,203) | |
Total equity | 4,283 | 132 | |
Total equity and liabilities | 4,412 | 955 | |
COMPANY BALANCE SHEET | |||
AS AT 31 DECEMBER 2020 | |||
As at | |||
30 | As at | ||
December | 30 June | ||
2020 | 2019 | ||
Assets | $'000 | $'000 | |
Non-current assets | |||
Investment in subsidiary | 800 | - | |
Investment | 13 | 600 | - |
Investments in associates | 14 | 2,870 | - |
4,270 | - | ||
Current assets | |||
Group and other receivables | 15 | 549 | 1,082 |
Cash and cash equivalents | 447 | 117 | |
996 | 1,199 | ||
Total assets | 5,266 | 1,199 | |
Liabilities | |||
Current liabilities | |||
Trade payables | 35 | 41 | |
Loans and borrowings | 16 | - | 62 |
Accruals and other payables | 17 | 76 | 698 |
Total liabilities | 111 | 801 | |
Issued capital and reserves attributable to owners | |||
of the parent | |||
Share capital | 18 | 126 | 123 |
Share premium | 18 | 4,389 | 4,202 |
Translation reserve | 30 | - | |
Retained earnings | 610 | (3,927) | |
Total equity | 5,155 | 398 | |
Total equity & liabilities | 5,266 | 1,199 |
The profit for the year dealt with in the accounts of the parent company,Jangada Mines plc, was $4,518,000 (2019: loss of $1,594,000). As permitted underSection 408 of the Companies Act 2006, no Income Statement or Statement of Comprehensive Income is presented for the parent company.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 18 MONTHS PERIOD ENDED 31 DECEMBER 2020
18 Months
Period | 12 Months | |
ended | Year | |
31 | ended | |
December | 30 June | |
2020 | 2019 | |
$'000 | $'000 | |
(2,268) | (1,594) | |
6,190 | (88) | |
3,922 | (1,682) | |
(2,259) | - | |
(4,207) | - | |
(18) | - | |
19 | 169 | |
190 | 96 | |
714 | - | |
245 | - | |
(632) | 535 | |
(2,026) | (880) | |
(509) | (477) | |
(1) | - | |
2,259 | - | |
1,337 | - | |
(600) | - | |
2,486 | (477) | |
- | 1,496 | |
- | (213) | |
(62) | 4 | |
(62) | 1,287 | |
398 | (70) | |
117 | 198 | |
(2) | 2 | |
513 | 117 | |
18 Months | ||
Year ended | 12 Months | |
31 | Year ended | |
December | 30 June | |
2020 | 2019 | |
Cash flows from operating activities | $'000 | $'000 |
Profit/(loss) before tax | 4,518 | (1,594) |
Cash proceeds on sale of subsidiary | (2,259) | |
Non-cash share received on disposal of subsidiary | (4,207) | - |
Non-cash exchange differences | 30 | - |
Non-cash share option charge | 19 | 169 |
Non-cash shares issued in lieu of fees | 190 | 96 |
Decrease/(increase) in other receivables | (265) | 2 |
(Decrease)/increase in trade and other payables | (628) | 524 |
Net cash flows from operating activities | (2,602) | (803) |
Investing activities | ||
Proceeds on sale of subsidiary | 2,259 | - |
Sale of shares in Valore Metals Corp | 1,337 | - |
Purchase of shares in investment | (600) | - |
2,996 | - | |
Financing activities | ||
Share capital issue | - | 1,496 |
Cost of issuing share capital | - | (213) |
Loans to subsidiary | - | (563) |
Repayment of convertible loan notes | - | - |
Page 4 of 17 |
Cash flows from operating activities Profit/(Loss) before Tax from continuing operations Profit/(Loss) before Tax from discontinued operations Profit/(Loss) before Tax
Cash proceeds on sale of subsidiary
Non-cash share consideration received on disposal of subsidiary
Non-cash exchange differences Non-cash share option charge Non-cash shares issued in lieu of fees Share of losses in associate Decrease/(increase) in other receivables (Decrease)/increase in trade and other payables
Net cash outflow from operating activities
Investing activities
Development of exploration and evaluation assets Purchase of plant, property and equipment
Cash proceeds on sale of subsidiary
Sale of shares in investment Purchase of shares in investments
Net cash inflow/(outflow) from investing activities
Financing activities
Share capital issue
Cost of issuing share capital (Repayment)/Increase in related party borrowings
Net cash from financing activities
Net movement in cash and cash equivalents Cash and cash equivalents at beginning of period
Movements in foreign exchange
Cash and cash equivalents at end of year
COMPANY CASH FLOW STATEMENT
FOR THE 18 MONTHS PERIOD ENDED 31 DECEMBER 2020
Notes
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Jangada Mines PLC published this content on 29 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2021 06:05:04 UTC.