TIDMACP
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
28 May 2019
Armadale Capital Plc ('Armadale' or 'the Company')
Final Results and Notice of AGM
Armadale, the AIM quoted investment company focused on natural
resource projects in Africa, is pleased to announce its Final
Results for the year ended 31 December 2018.
HIGHLIGHTS
-- Notable progress advancing the Mahenge Liandu Graphite Project in
Tanzania
Completed Scoping Study highlighting a potential NPV of
US$349m
and IRR of 122%
On track to deliver Definitive Feasibility Study ('DFS') Q4
2019
and commence production 2021
First off-take MOU signed and discussions underway with
other
potential customers
Engaged in discussions to secure project level funding
mandate
-- In January 2019, post period end, the Company signed an agreement to
sell non-core Mpokoto Project to focus on primary value driver,
whilst
retaining upside exposure
-- Ongoing review of quoted portfolio, the Directors believe there are
opportunities for capital gains
-- Continue to actively review further exciting investment opportunities
-- Post period end, the Board strengthened with the appointment of Paul
Johnson as a Non-executive Director
Nick Johansen, Director of Armadale said:"2018 has seen Armadale
make considerable progress advancing Mahenge Liandu towards
production in 2021. With the Scoping Study complete, which
supported a pre-tax IRR of 122% and an NPV of US$349m, confirming
the compelling economics of the Project, work has focussed on the
advancement of the DFS and product marketing. In line with this,
post period end, we signed our first off-take MOU and discussions
are underway with other potential customers.This indication of
interest highlights the increased global demand for high-quality
graphite products; notably Mahenge Liandu is one of the largest
high-grade resources in Tanzania with a high-grade JORC compliant
indicated and inferred mineral resource estimate of 51.1Mt at 9.3%
total graphite content.
"With various work streams underway towards the completion of
the DFS in Q4 2019, shareholders can look forward to multiple value
triggers in the coming months. We continue to actively review other
exciting investment opportunities to add to our portfolio and look
forward to providing updates on these and steps to realise the
potential of Mahenge Liandu in the coming months."
NOTICE OF AGM & POSTING OF ANNUAL REPORT
The Company announces that its Annual General Meeting ('AGM')
will be held at St Brides Partners Limited, 4th Floor, Salisbury
House, London Wall, London EC2M 5QQ on 27 June at 11.00 am. A
notice of AGM, together with printed copies of the Company's full
Annual Report for the year ended 31 December 2018 will be posted to
shareholders today.
Copies will also be available to view on the Company's website:
www.armadalecapitalplc.com.
STRATEGIC REPORT
To view a version of the strategic report with maps and figures,
please go to the Company's website at
www.armadalecapitalplc.com.
During the year under review, Armadale continued to operate as a
diversified investing company focused on natural resource projects
in Africa. To this end, its portfolio is divided into two
groups:
-- Actively managed investments where the Company has majority ownership
of the investment
-- Passively managed investments where the Company has a minority
investment, typically in a quoted company, and does not have
management control.
Currently, its key actively managed investment is the Mahenge
Liandu Graphite Project in Tanzania. With its large, high-grade
open cut resource, and having completed a Scoping Study that
highlighted a potential NPV of US$349m and IRR of 122%, the Company
is on track to commence production at the Project during the course
of 2021. This is timely given that global need for graphite is set
to accelerate driven by demand for spherical graphite from the new
energy sector as well as emerging demand for expandable graphite
used in products such as fireproof insulation. Notably, the
strength of the market was highlighted when, post period end, the
Company signed its first off-take MOU. The Company is also
currently reviewing other potential markets and customers within
this space.
Additionally, the Company continued to actively review other
investment opportunities with a view to targeting investments with
similar quality and potential as Mahenge Liandu.
ACTIVELY MANAGED INVESTMENTS
Mahenge Liandu Graphite Project, Tanzania ('Mahenge Liandu' or
the 'Project')
The Company continued to deliver encouraging results at its 100%
owned Mahenge Liandu Graphite Project during 2018. The Project is
located in a highly prospective region with a high-grade JORC
compliant indicated and inferred mineral resource estimate
announced February 2018 of 51.1Mt at 9.3% total graphite content
('TGC'), including 38.7Mt Indicted at 9.3% and 12.4Mt at 9.1% TGC,
making it one of the largest high-grade resources in Tanzania. The
work to date has demonstrated Mahenge Liandu'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 focus of activities was the commencement of a Definitive
Feasibility Study ('DFS') based on the results of a Scoping Study
that was completed in March 2018. The study was based on a
throughput of 400,000 tpa over a 32-year mine life and showed the
Project has robust economics and warrants further development. The
Company believes the timing of the planned mine development will
coincide with growing opportunities in the graphite market with
strong outlook for increased graphite demand from the burgeoning
lithium ion battery, expandable graphite, as well as traditional
graphite markets.
Tonnage (Mt) Cutoff TGC (%) Average TGC (%)
Inferred 12.4 3.3 9.1
Indicated 38.7 3.5 9.3
Total 51.1 3.5 9.3
Table 1. Mahenge Liandu Resource Statement
Project Location & Licences
The Mahenge Project is located in the Morogoro region, Ulanga
district, of Tanzania close to existing transport infrastructure.
It is 10km south of the Mahenge township and about 76km via a
well-maintained dirt road to Ifakara after which it is 400km by
sealed road from Dar-es-Salaam port. Other operators in the region
include Blackrock Mining Limited and Kibaran Resources Limited,
which have similar product purity and resource grades.
The Company holds following exploration tenements for Mahenge
Liandu:
-- PL10846/2016 granted on 21/9/2016 expires 20/9/2020 area 7.34 square
kilometres
-- PL10840/2016 granted 21/9/2016 expires 20/9/2020 area 21.89 square
kilometres
Project Geology
The prospect is situated within the pan African Mozambique belt,
which is the orogenic belt resulting from activities taking place
in the Neoproterozoic time. The belt extends along the eastern
border of Africa from Ethiopia through Kenya and Tanzania. The
orogenic event resulted in a complex series of geological events
including the rifting system. The belt consists of high-grade
mid-crustal rocks with a Neoproterozoic metamorphic overprint. It
is divided into the Western Granulite and Eastern Granulite. The
deposit is situated in the Eastern Granulites. The belt has
undergone retrograde metamorphism which resulted in the present
upper amphibolite metamorphic facies in the Project area.
Furthermore, the systematic drilling indicated the existence of
broad, shallow to steep dipping schists overlaying granitic
gneisses/gneiss. The gneisses are underlaid by marble units. The
graphitic schists form alternating compositional layering, with
quartz being the content that differentiates these units. High
grade graphite schists (graphite schist) have a lower composition
of quartz. Medium to low grade graphite schists (quartz graphite
schist) have a higher visual quartz percentage. The marble unit
likely forms the base of the sequence (there has not been drilling
done beyond the marble unit).
The drilling results have been very consistent with the
structural measurements taken during the mapping programme which
suggested gentle to steep dipping to the south and south-southwest.
The mineralisation remains open in all directions.
Scoping Study
During 2018, a Scoping Study was completed for Mahenge Liandu,
which included the completion of a mine optimisation study, infill
drilling and the resource upgrade. The results of the Scoping Study
were announced in March 2018.
Drilling
Drilling in 2018 comprised a diamond drilling programme
completed with eight holes for a total of 489m and 18 RC holes. All
holes intersected wide intervals of high-grade mineralisation from
surface with up to 67m thickness. The 2018 drilling aimed at infill
drilling the existing pattern to upgrade the resource
classification, extend the available resources and better define
the mineralised units laterally within the deposit. The drilling
targeted a higher-grade zone within the deposit and drilling was
concentrated in the northern part of the tenement. A map of all the
drilling completed to date is shown below.
Process Description
The Scoping Study was based on a processing plant designed to
treat 400,000 tpa of ore. The ore will be two-stage crushed,
followed by grinding in a rod mill, with graphite recovered by
flotation. The process includes separation of graphite into coarse
and fine concentrates at an intermediate stage, followed by
inter-stage re-grind milling and flotation to improve liberation
and product purity. The flotation concentrate will then be then
dewatered by filtration, dried, and bagged.
Results of the Scoping Study
The Scoping Study confirmed the combination of high graphite
feed grade and coarse flake high purity graphite product and
provided highly robust and compelling economics for the Mahenge
Liandu Project. The Scoping Study, based on a 400,000 tpa
throughput, had following key economics:
-- Producing an average of 49,000 tpa of high-quality graphite products
for a 32-year mine life
-- The near surface nature of the deposit produced a low strip ratio of
approximately 1:1 for the life of the mine
-- The Project has a low operating cost of US$408/t and is based on an
average life of mine grade of 12.5% Total Graphitic Carbon
('TGC')
-- The Project has a pre-tax IRR of 122% and NPV of US$349m with a low
development capex of US$35m
-- The maximum drawdown during the construction of the Project is
US$34.9m and the after-tax payback period is 1.2 years
-- There remains significant scope to further improve returns, with
staged expansions as the current mine plan is based on
approximately
25% of the total resource
Summary of Project Financial Performance
Financial Performance Summary Units LOM
Project Life (years) 31.8
Total LOM Net Revenue (US$ M, real) 1,977.7
Total LOM EBITDA (US$ M, real) 1,196.0
Total LOM Net Cash Flows Before Tax (US$ M, real) 1,134.7
Total LOM Net Cash Flows After Tax (US$ M, real) 794.3
NPV @ 10.0% - before tax (US$ M, real) 348.7
NPV @ 10.0% - after tax (US$ M, real) 239.1
IRR - before tax (%, real) 122.5%
IRR - after tax (%, real) 89.3%
Project Capital Expenditure (US$ M, real) 34.9
Payback Period - after tax - from 1st ore (years) 1.2
The Scoping Study results validate the Directors' long held
confidence in the commercial potential and economic value of the
Mahenge Project. The Definitive Feasibility Study that is currently
underway is based on the same parameters giving the Company
confidence that the Project will continue to show excellent returns
and will allow it to proceed to a decision to mine in 2020 provided
project development funding can be secured.
Exploration and Development Programme
Definitive Feasibility Study
The DFS for Mahenge Liandu commenced in Q2 2018 and is expected
to be complete by Q4 2019. The study will focus on defining
graphite product quality with a wide diameter diamond core drilling
programme aimed at generating samples for marketing.
The following activities are being carried out to support the
study:
-- A diamond drilling programme to obtain samples for metallurgical test
work and marketing
-- Product marketing towards the goal of obtaining binding offtake
agreements. The first MOU secured covering 60% of planned
production
was signed in February 2019
-- Environmental and social studies covering the Project area and
completion of a Relocation Action Plan ('RAP') for the people
who may
be impacted through the development of the Project
-- Granting of a mining permit
-- A geotechnical drilling programme to define the final pit wall design
-- Calculation of Proved and Probable Reserves
-- Finalisation of production flowsheets and final plant design parameters
Environmental and Social Studies
During August 2018, the Company announced the completion of
field work for Environmental and Social baseline surveys and the
Company has finalised the Environmental Social Impact Assessment
('ESIA') and Relocation Action Plan ('RAP') for submission to the
National Environment Management Council ('NEMC').
To help increase local engagement in the Project area, the
Company has appointed a community liaison officer who will aid
understanding of the impact and benefits of mining in the region.
Further information in respect of this work of will be provided as
progress is made.
Product Marketing and Offtake Partners
In February 2019, the Company announced a MOU with the Matrass
Group, a China based graphite mining and processing company, for
high quality graphite products produced at Mahenge Liandu. This
includes a proposed offtake of 30,000tpa of graphite concentrate
for an initial five-year term at a price to be agreed based on the
Chinese benchmark for the quality of the graphite produced,
representing over 60% of average target annual production. The test
work programme aimed to progress the MOU to a binding agreement is
underway.
Discussions with other potential offtake partners for the
remaining 19,000tpa of graphite concentrate are progressing
positively.
The graphite market continues to strengthen with several
Tanzanian based graphite projects securing binding offtakes over
recent months. The rapid expansion of the electric vehicle market
is expected to continue to drive this growth.
Project Level Financing
The Company is engaged in discussions to secure a project level
funding mandate. Further details in respect of this element will be
provided as material developments occur.
Mining Lease Application
Reflecting the progress of work to date, the Company expects to
submit its application for a mining lease in August 2019.
Front End Engineering Design
Following completion of the DFS, the Company expects to commence
the Front-End Engineering Design ('FEED') work programme in
December 2019. The FEED process is a detailed technical project
planning phase undertaken prior to the commencement of construction
and used as a basis to secure project construction bids.
Project Construction
Subject to a successful and timely completion of the
aforementioned preparatory work, suitable project level financing
and receipt of relevant regulatory permits and licences, the
Company expects to commence the construction phase in Q2 2020.
Production
Based on current estimates and assuming a construction phase of
10 months the first production would be achieved from the Mahenge
Liandu Project around Q1 2021.
Mpokoto Gold Project, DRC ('MPOKOTO')
The Mpokoto Project was the subject of a joint venture agreement
with Kisenge Mining Pty Ltd ('Kisenge Mining') throughout the year
under review and, as such, was considered a non-core investment
asset of Armadale.
After the year under review, on 11 January 2019, Armadale
entered into final formal sale agreement with African Royalty
Company Pty Limited (a related company to Arrow Mining Pty Ltd) for
the sale of the Mpokoto Gold Project.
This agreement crystallises the value of the Mpokoto Project
with a company capable of obtaining the funding to bring the mine
into production.
The transaction allows Armadale to focus on advancing its
primary value driver, the high-grade Mahenge Liandu Graphite
Project in Tanzania, whilst ensuring the Company retains exposure
to the development upside of the Mpokoto Project.
Arrow Mining will take over the operations on the Mpokoto
Project and is obliged to pay Armadale a 1.5% royalty on gold sales
achieved once in production.
PASSIVELY MANAGED INVESTMENTS
Mine Restoration Investments Limited ('MRI'), South Africa
The shares in MRI are being carried at Nil market value (2017:
Nil) as MRI shares were suspended from trading on the Johannesburg
Stock Exchange.
Quoted Portfolio
The Company has a small portfolio of quoted investments,
principally in resource companies where the Directors believe there
are opportunities for capital gain. The Company continues to keep
its portfolio under review.
SUSTAINABLE DEVELOPMENT
The Company is committed to sustainable development and
conducting its business ethically. Given that the Company invests
in the mining industry, Armadale focuses on health and safety,
being environmentally responsible, and supporting the communities
close to its investments.
CORPORATE INFORMATION
Principal risks and uncertainties
There are known risks associated with the mineral industry,
especially in Africa. The Board regularly reviews the risks to
which the Group is exposed and endeavours to minimise them as far
as possible. The following summary, which is not exhaustive,
outlines some of the risks and uncertainties currently facing the
Group:
-- The Group is exposed to two minerals namely gold and graphite. With
gold, the Group is vulnerable to fluctuations in the prevailing
market
price of gold and to variations of the US dollar, in which sales
will
be denominated. Graphite is a relatively new commodity whose
market is
being driven by demand in renewable energy. It is thus
vulnerable to
global energy policies.
-- The impact of Brexit on companies operating in the UK is still being
monitored. Thus far Brexit has not impacted the Group's ability
to
raise funds.
-- The exploration for and development of mineral resources involves
technical risks, infrastructure risks and logistical challenges,
which
even a combination of careful evaluation and knowledge may
not
eliminate.
-- There can be no assurance that the Group's projects will be fully
developed in accordance with current plans.
-- Future development work and subsequent financial returns arising may
be adversely affected by factors outside the control of the
Group.
-- The availability and access to future funding within the global
economic environment.
-- The Group operates in multiple national jurisdictions and is therefore
vulnerable to changes in government policies which are outside
its
control. The mining regulation changes in Tanzania are still
being
evaluated, however they seem to have minimal impact on
investment in
graphite mining. The Group continues to monitor the
implementation of
the new changes to evaluate and mitigate sovereign risks.
Some of the mitigation strategies the Group applies in its
present stage of development include, among others:
-- Proactive management to reducing fixed costs.
-- Rationalisation of all capital expenditures.
-- Maintaining strong relationships with government (employing local
staff and partial government ownership), which improves the
Group's
position as a preferred small mining partner.
-- Engagement with local communities to ensure our activities provide
value to the communities where we operate.
-- Alternative and continued funding activities with a number of options
to secure future funding to continue as a going concern.
The Directors regularly monitor such risks and will take actions
as appropriate to mitigate them. The Group manages its risks by
seeking to ensure that it complies with the terms of its
agreements, and through the application of appropriate policies and
procedures, and via the recruitment and retention of a team of
skilled and experienced professionals.
Key Performance Indicators
The Group's current key performance indicators ('KPIs') are the
performance of its underlying investments, measured in terms of the
development of the specific projects they relate to, the increase
in capital value since investment and the earnings generated for
the Group from the investment. The Directors consider that it is
still too early in the investment cycle of any of the investments
held, for meaningful KPIs to be given.
Success is also measured through the identification and
investment in suitable additional opportunities that fit the
Group's investment objectives. The acquisition of Mahenge Liandu
Graphite Project is such success.
Board
Post period end, in March 2019, Paul Johnson was appointed to
the Board as a Non-executive Director.
Mr. Johnson is an experienced public company director and is a
former Chief Executive Officer of natural resource investing
company Metal Tiger plc (LON:MTR). He has also previously held the
roles of Chairman at ECR Minerals plc (LON:ECR); Chief Executive
Officer at China Africa Resources plc (now Pembridge Resources plc
- LON:PERE) and Metal NRG plc (LON:MNRG); and Non-executive
Director at Greatland Gold plc (LON:GGP), Papua Mining plc (now
Rockfire Resources plc LON:ROCK) and Thor Mining plc (LON:THR).
Mr. Johnson is the Chief Executive Officer of Value Generation
Limited, a family investment and advisory company focused on the
natural resource and related fintech sectors. He is also Executive
Director of African Battery Metals plc (LON:ABM) an AIM quoted
exploration and development company focused on battery metal
projects in Africa.
Financial Results
For the year ended 31 December 2018 the Group did not earn any
revenues as its business related solely to the making of
investments in non-revenue producing resource projects and
companies.
The Group made a loss after tax of GBP0.648 million (2017:
GBP6.177 million) for the year ended 31 December 2017.
The Directors successfully negotiated the sale of the Mpokoto
Project and recognise an impairment charge of GBP0.194 million
based on the reassessment of the carrying value of the Project to
nil. Other than this, the loss comprises the administrative
expenses associated with operating a public company and finance
costs.
Funds raised during the year amounted in total to GBP0.85
million of which GBP0.65 million came from a placing of shares and
GBP0.2 million from the initial drawdown of a new loan facility of
GBP0.4 million. Other share issues during the year were in respect
of loan note conversions and the discharge of certain consultants'
invoices.
At 31 December 2018, the Group had cash of GBP44,000 (2017:
GBP65,000) and debt of GBP677,000 (2016: GBP634,000).
Since the year end, a further GBP0.964 million has been raised
from a placing of shares and the balance of the new loan facility,
GBP0.2 million, remains available for drawdown. The Group is in
discussions with third parties which may provide project level
financing for the development of the Mahenge Liandu Project.
Furthermore, and dependant on the working capital requirements at
project level, and considering working capital needs in respect of
corporate operations, the Group considers it will have access to
adequate additional financing as and when required from new equity
issues and additional loan facilities. As a result, the financial
statements have been prepared on the going concern basis as, in the
opinion of the Directors, there is a reasonable expectation that
the Group and the Company will continue in operational existence
for the foreseeable future.
Outlook
Looking to the future, with its clear development path to
production commencing with the execution of the DFS currently
underway, the Directors believe that Mahenge Liandu represents an
exciting opportunity for the Group. Furthermore, other notable
investment opportunities are under review, which the Board believe
could replicate this success and deliver significant value to
shareholders.
Emmanuel S Mahede
Director
23 May 2019
Consolidated Statement of
Comprehensive Income
For the year ended 31 December 2018
Note 2018 2017
GBP GBP
Other administrative expenses (392,945) (399,938)
Operating loss (392,945) (399,938)
Finance costs (17,459) (44,478)
Loss before taxation 6 (410,404) (444,416)
Taxation 9 - -
Loss for the year from (410,404) (444,416)
continuing operations
Loss from discontinued 14 (237,616) (5,732,598)
operations, net of tax
Loss after taxation (648,020) (6,177,014)
Other comprehensive income
Items that may be reclassified
to profit or loss:
Exchange differences on translating 83,407 (771,989)
foreign entities
Total comprehensive (loss) (564,613) (6,949,003)
/ income attributable
to the equity holders
of the parent company
Loss per share attributable Pence Pence
to the equity
holders of the parent company
Basic and diluted total loss per share 10 (0.23) (2.58)
Basic and diluted loss per share 10 (0.14) (0.19)
from continuing operations
Consolidated Statement
of Financial Position
At 31 December 2018
Note 2018 2017
GBP GBP
Assets
Non-current assets
Exploration and evaluation assets 11 3,192,999 2,384,036
Investments 12 973 6,705
3,193,972 2,390,741
Current assets
Trade and other receivables 13 53,486 54,563
Cash and cash equivalents 44,310 65,163
97,796 119,726
Non-current assets classified 14 128,011 322,412
as held for sale
225,807 442,138
Total assets 3,419,779 2,832,879
Equity and liabilities
Equity
Share capital 18 3,038,605 2,980,211
Share premium 20 20,569,844 19,720,193
Shares to be issued 20 286,000 286,000
Share option reserve 20 94,884 94,884
Foreign exchange reserve 20 421,252 337,845
Retained earnings 20 (22,129,940) (21,481,920)
Total equity 2,280,645 1,937,213
Current liabilities
Trade and other payables 15 333,653 133,619
Loans 16 677,470 431,406
1,011,123 565,025
Liabilities directly associated 14 128,011 128,011
with non-current
assetsclassified as held for sale
1,139,134 693,036
Non-current liabilities
Long term borrowings 17 - 202,630
Total Liabilities 1,139,134 895,666
Total equity and liabilities 3,419,779 2,832,879
Company Statement of Financial Position
At 31 December 2018
Note 2018 2017
GBP GBP
Assets
Non-current assets
Investments 12 1,600,973 1,606,705
Other receivables 13 1,394,461 972,544
2,995,434 2,579,249
Current assets
Investments held for disposal 12 - 194,401
Trade and other receivables 13 13,439 43,750
Cash and cash equivalents 4,240 10,809
17,679 248,960
Total assets 3,013,113 2,828,209
Equity and liabilities
Equity
Share capital 18 3,038,605 2,980,211
Share premium 20 20,569,844 19,720,193
Shares to be issued 20 286,000 286,000
Share option reserve 20 94,884 94,884
Retained earnings 20 (21,753,522) (20,953,744)
Total equity 2,235,811 2,127,544
Current liabilities
Trade and other payables 15 99,832 66,629
Loan notes 16 677,470 431,406
777,303 498,035
Non-Current liabilities
Long term borrowings 17 - 202,630
Total liabilities 777,303 700,665
Total equity and liabilities 3,013,113 2,828,209
The Company has taken advantage of the exemption conferred by
section 408 of Companies Act 2006 from presenting its own statement
of comprehensive income. A loss after taxation of GBP605,270 (2017:
GBP6,006,511) has been included in the financial statements of the
parent company.
Consolidated
Statement
of Changes
in Equity
For the year
ended
31 December 2018
ShareCapital SharePremium Sharesto beissued ShareOptionReserve Loan Note Reserve ForeignExchangeReserve RetainedEarnings Total
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January 2017 2,946,587 19,009,592 286,000 85,850 37,500 1,109,844 (15,342,406) 8,132,957
Loss for the year - - - - - - (6,177,014) (6,177,014)
Other - - - - - (771,989) - (771,989)
comprehensive
loss
Total - - - - - (771,989) (6,177,014) (6,949,008)
comprehensive
loss for the year
Issue of shares 33,624 771,501 - - - - - 805,125
Expenses of issue - (60,900) - - - - - (60,900)
Share based - - - 9,034 - - - 9,034
payment
charges
Transfer on - - - - (37,500) - 37,500 -
conversion
of loan notes
Total other 33,624 710,601 - 9,034 (37,500) - 37,500 753,259
movements
At 31 December 2,980,211 19,720,193 286,000 94,884 - 337,845 (21,481,920) 1,937,213
2017
Loss for the year - - - - - - (648,020) (648,020)
Other - - - - - (84,407) (2,377)
comprehensive
loss
Total - - - - - (84,407) (648,020) (650,397)
comprehensive
loss for the year
Issue of shares 58,394 905,106 - - - - - 963,500
Expenses of issue - (55,455) - - - - - (55,455)
Total other 58,394 849,651 - - - - - 908,045
movements
At 31 December 3,038,605 20,569,844 286,000 94,884 - 422,252 (22,169,940) 2,194,861
2018
The following describes the nature and purpose of each reserve
within owners' equity:
Reserve Description and purpose
Share amount subscribed for share capital at nominal value
capital
Share amount subscribed for share capital in excess of nominal value, net of
premium
allowable expenses
Shares share capital to be issued in connection with the acquisition of
to
be
issued
Netcom
Share cumulative charge recognised under IFRS 2 in respect of share-based
option
reserve
payment awards
Loan equity element of convertible loan notes
note
reserve
Foreign reserve gains/losses arising on re-translating the net assets of overseas
exchange
operations into sterling
Retained cumulative net gains and losses recognised in the statement of
earnings
comprehensive income
Company Statement
of
Changes in Equity
For the year
ended
31 December 2018
ShareCapital SharePremium Shares tobe issued ShareOptionReserve Loan Note Reserve RetainedEarnings Total
GBP GBP GBP GBP GBP GBP
At 1 January 2017 2,946,587 19,009,592 286,000 85,850 37,500 (14,984,733) 7,380,796
Loss for the year - - - - - (6,006,511) (6,006,511)
Total - - - - - (6,006,511) (6,006,511)
comprehensive
loss forthe year
Issue of shares 33,624 771,501 - - - - 805,125
Expenses of issue - (60,900) - - - (60,900)
Share based - - - 9,034 - - 9,034
payment
charges
Transfer on - - - - (37,500) 37,500 -
conversion
ofloan notes
Total other 33,624 710,601 - 9,034 (37,500) 37,500 753,259
movements
At 31 December 2,980,211 19,720,193 286,000 94,884 - (20,953,744) 2,127,544
2017
IFRS 9 Adjustment (194,508) (194,508)
tointercompany
debt
At 1 January 2018 2,980,211 19,720,193 286,000 94,884 - (21,148,252) 1,933,036
Loss for the year (605,270) (605,270))
Total (605,270) (605,270)
comprehensive
loss forthe year
Issue of shares 58,394 905,106 - - - - 963,500
Expenses of share - (55,455) - - - - (55,455)
issue
Share based - - - - - - -
payment
charges
Transfer on - - - - - - -
conversion
ofloan notes
Total other 58,394 849,651 - - - - 908,045
movements
At 31 December 3,038,605 20,569,844 286,000 94,884 - (21,753,522) 1,949,812
2018
The following describes the nature and purpose of each reserve
within owners' equity:
Reserve Description and purpose
Share capital amount subscribed for share
capital at nominal value
Share premium amount subscribed for share capital in
excess of nominal value, net of
allowable expenses
Shares to be issued share capital to be issued in connection
with the acquisition of
Netcom
Share option reserve cumulative charge recognised under
IFRS 2 in respect of share-based
payment awards
Loan note reserve equity element of convertible loan notes
Retained earnings cumulative net gains and losses
recognised in the statement of
comprehensive income
Consolidated Statement of Cash Flows
For the year ended 31 December 2018
2018 2017
GBP GBP
Cash flows from operating activities
Loss before taxation (648,020) (6,177,014)
Adjustment for:
Depreciation - 1,806
Impairment charge 194,401 5,726,445
Share based payment charge - 9,034
Shares issued in settlement of liabilities - 67,500
Finance costs 17,459 44,478
(436,160) (327,751)
Changes in working capitalReceivables 1,077 (36,133)
Payables 98,048 72,101
Net cash used in operating activities (309,483) (287,577)
Cash flows from investing activities
Expenditure on exploration (224,095) (548,766)
and evaluation assets
Sale of listed investments 5,732 -
Net cash used in investing activities (218,363) (548,766)
Cash flows from financing activities
Proceeds from share placement 560,000 650,753
Issue costs (25,455) (60,900)
Proceeds from loan (Note 18) - 200,000
Net cash from financing activities 534,545 789,851
Net decrease in cash and cash equivalents (20,853) (50,698)
Cash and cash equivalents at 1 January 65,163 115,861
Cash and cash equivalents at 31 December 44,310 65,163
Company Statement of Cash Flows
For the year ended 31 December 2018
2018 2017
GBP GBP
Cash flows from operating activities
Loss before taxation (605,270) (6,006,511)
Adjustment for:
Share based payment charge - 9,034
Impairment charge 454,745 5,730,587
Shares issued in settlement of liabilities - 67,500
Finance costs 12,708 44,478
(137,817) (154,912)
Changes in working capital
Receivables 30,311 (36,894)
Payables 33,203 (20,078)
Net cash used in operating activities (74,303) (211,884)
Cash flows from investing activities
Advances to subsidiaries (422,606) (668,037)
Sale of listed investments 5,732 -
Net cash used in investing activities (416,874) (668,037)
Cash flows from financing activities
Proceeds from share placement 560,000 650,751
Issue costs (25,455) (60,900)
Proceeds from loan (Note 18) - 200,000
Net cash from financing activities 534,545 789,851
Net decrease in cash and cash equivalents (6,569) (90,070)
Cash and cash equivalents at 1 January 10,809 100,879
Cash and cash equivalents at 31 December 4,240 10,809
**ENDS**
For further information, please visit the Company's website
www.armadalecapitalplc.com, follow Armadale on Twitter
@ArmadaleCapital or contact:
Enquiries:
Armadale Capital Plc +44 20 7236 1177
Tim Jones, Company Secretary
Nomad and broker: finnCap Ltd +44 20 7220 0500
Christopher Raggett / Max Bullen-Smith
Joint Broker: SVS Securities +44 20 3700 0093
Tom Curran / Ben Tadd
Press Relations: St Brides Partners Ltd +44 20 7236 1177
Isabel de Salis / Juliet Earl
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190527005030/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
May 28, 2019 02:00 ET (06:00 GMT)
Armadale Capital (LSE:ACP)
Historical Stock Chart
From Apr 2024 to May 2024
Armadale Capital (LSE:ACP)
Historical Stock Chart
From May 2023 to May 2024