Interim / Quarterly Report • Mar 19, 2018
Interim / Quarterly Report
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RNS Number : 0625I
Jangada Mines PLC
19 March 2018
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining
19 March 2018
Jangada Mines plc ('Jangada' or the 'Company')
Unaudited Interim Results to 31 December 2017
Jangada Mines plc, a natural resources company developing South America's largest and most advanced platinum group metals ('PGM') project, is pleased to announce its unaudited interim results for the six-month period ended 31 December 2017.
Overview
· Successfully admitted to trading on AIM in June 2017, raising £2.25 million, before expenses, through an oversubscribed placing
· Generated an updated JORC compliant resource estimate at Pedra Branca PGM Project ('the Project') that included 1 million ounces of PGM+Au, 109 Mlbs of nickel, 23 Mlbs of copper, 6.4 Mlbs of cobalt and 670kt of chrome
· Successfully upgraded resource so that 77% of the Project's resources were in the Indicated and Measured categories
· Completed a scoping study that confirmed Project's potential to become a robust, shallow, open-pit operation, with a low capital expenditure requirement, yielding attractive financial returns and a very short payback period
· Identified high-grade vanadium-titanium-iron mineralisation demonstrating the significant exploration potential of the Jangada's exploration licenses
· Received local government approval for pilot production essential for expediated progress to commercial production
· Post period end, commenced broader metallurgical test programme; started the application process for a trial mining permit and associated environmental permit; and appointed Brandon Hill as broker
Chairman's Statement
During the period under review, which followed the Company's listing on AIM in late June 2017, we focused on advancing the Pedra Branca PGM Project ('the Project') in Brazil towards a prefeasibility study ('PFS'). To this end, we announced in mid-July an updated JORC (2012) compliant resource estimate, which added an additional circa US$521 million to the in-situ value of the declared approximate 1 million ounces of PGM+Au resources at the Project. The estimate now includes 23.138 Mt of ore in the Measured, Indicated and Inferred categories, containing 109 million pounds of nickel and 23 million pounds of copper grading at 0.214% Ni and 0.045% Cu, which will off-set the costs of producing PGM and will accrue material profitability upside at no additional cost.
Other news during the period included the confirmation of high-grade vanadium-titanium-iron mineralisation from samples across five locations, and the completion of the Scoping Study, which confirmed the Project's potential to become a robust shallow open pit mine with low CAPEX/OPEX and suggested an Internal Rate of Return of 80% with a payback period of 1.3 years.
More recently, we commenced a broader metallurgical test programme, including: rougher flotation tests; cleaner and scavenger simulation; selectivity optimisation tests; pre-concentration tests; and chrome gravimetric and magnetic recovery tests to support the definition of robust project flowsheet. This is ongoing, and the Company hopes to update the market in the near future. We have also started the application process for a trial mining permit and associated environmental permit. Additionally, post period end, on the corporate side, we were delighted to appoint Brandon Hill as broker to the Company.
In conclusion, I would point out that the Project has multiple value upside triggers ahead, including the flowsheet and PFS, and I therefore anticipate significant news flow during the next six months.
Finally, I would like to take this opportunity to thank our shareholders for their ongoing support and our team for their hard work and valuable contribution to what has been a busy six months. I look forward to updating our progress on a regular basis.
Brian McMaster
Executive Chairman
JANGADA MINES PLC
Condensed consolidated unaudited statement of comprehensive income
for the six months ended 31 December 2017
| 6 Months ended 31 December |
6 Months ended 31 December |
||
| Note | 2017 | 2016 | |
| $'000 | $'000 | ||
| Project costs | (24) | (32) | |
| Administration expenses | (594) | (24) | |
| Loss from operations | (618) | (56) | |
| Finance expense | (163) | (20) | |
| Loss before tax | (781) | (76) | |
| Tax expense | 4 | - | - |
| Loss from continuing operations and total loss | (781) | (76) | |
| Currency translation differences | 15 | (1) | |
| Total comprehensive income/(loss) | (766) | (77) | |
| Total loss attributable to: | |||
| Owners of the parent | (781) | (71) | |
| Non-controlling interests | - | (5) | |
| (781) | (76) | ||
| Total comprehensive loss attributable to: | |||
| Owners of the parent | (766) | (72) | |
| Non-controlling interests | - | (5) | |
| (766) | (77) | ||
| Loss per share attributable to the | |||
| ordinary equity holders of the company during the period | |||
| - Basic and diluted ($) | 5 | (0.00) | (0.00) |
JANGADA MINES PLC
Condensed unaudited consolidated statement of financial position
as at 31 December 2017 and 30 June 2017 (audited)
| As at 31 December |
As at 30 June |
||
| Note | 2017 | 2017 | |
| $'000 | $'000 | ||
| Assets | |||
| Non-current assets | |||
| Plant, property and equipment | 9 | 8 | |
| Exploration assets | 6 | 247 | - |
| 256 | 8 | ||
| Current assets | |||
| Other receivables | 110 | 227 | |
| Cash and cash equivalents | 800 | 2,450 | |
| 910 | 2,677 | ||
| Total assets | 1,166 | 2,685 | |
| Liabilities | |||
| Current liabilities | |||
| Trade payables | 10 | - | |
| Loans and borrowings | 7 | - | 458 |
| Accruals | 152 | 619 | |
| Total liabilities | 162 | 1,077 | |
| Issued capital and reserves attributable to owners of the parent | |||
| Share capital | 8 | 102 | 102 |
| Share premium | 2,844 | 2,844 | |
| Translation reserve | 13 | (2) | |
| Retained earnings | (1,955) | (1,336) | |
| Total equity | 1,004 | 1,608 | |
| Total equity & liabilities | 1,166 | 2,685 | |
JANGADA MINES PLC
Condensed unaudited consolidated statement of changes in equity
for the period ended 31 December 2017
| Share | Share | Translation | Retained | Total equity | |
| capital | premium | reserve | earnings | attributable to owners | |
| $'000 | $'000 | $'000 | $'000 | $'000 | |
| At 30 June 2017 | 102 | 2,844 | (2) | (1,336) | 1,608 |
| Comprehensive Income for the period | |||||
| Loss | - | - | - | (781) | (781) |
| Other comprehensive income | - | - | 15 | - | 15 |
| Total comprehensive loss for the period | - | - | 15 | (781) | (766) |
| Transactions with owners | |||||
| Share options issued | - | - | - | 162 | 162 |
| Total transactions with owners | - | - | - | 162 | 162 |
| As at 31 December 2017 | 102 | 2,844 | 13 | (1,955) | 1,004 |
| Share | Share | Translation | Retained | Total equity | |
| capital | premium | reserve | earnings | attributable to owners | |
| $'000 | $'000 | $'000 | $'000 | $'000 | |
| As at 30 June 2016 | - | - | 1 | (39) | (38) |
| Comprehensive Income for the year | |||||
| Loss | - | - | - | (1,297) | (1,297) |
| Other comprehensive income | - | - | (3) | - | (3) |
| Total comprehensive Income for the year | - | - | - | (1,297) | (1,300) |
| Transactions with owners | |||||
| Share issue | 102 | 2,844 | - | - | 2,946 |
| Total transactions with owners | 102 | 2,844 | - | - | 2,946 |
| As at 30 June 2017 | 102 | 2,844 | (2) | (1,336) | 1,608 |
JANGADA MINES PLC
Condensed unaudited consolidated statement of cash flows
for the period ended 31 December 2017
| 6 Months ended 31 December |
6 Months ended 31 December |
||
| 2017 | 2016 | ||
| $'000 | $'000 | ||
| Cash flows from operating activities | |||
| Loss before Tax | (781) | (71) | |
| Add back: depreciation | 3 | 3 | |
| Non-cash cost of share options issued | 162 | - | |
| Decrease/(increase) in other receivables | 117 | (380) | |
| Decrease in trade and other payables | (457) | - | |
| Net cash flows from operating activities | (956) | (448) | |
| Investing activities | |||
| Development of exploration and evaluation assets | (247) | - | |
| Net cash from investing activities | (247) | - | |
| Financing activities | |||
| (Repayment)/proceeds from related party borrowings | (58) | 20 | |
| Capital advance into subsidiary | - | 59 | |
| (Repayment)/issue of convertible loan notes | (400) | 380 | |
| Net cash from financing activities | (458) | 459 | |
| Net movement in cash and cash equivalents | (1,609) | 11 | |
| Cash and cash equivalents at beginning of period | 2,450 | 3 | |
| Movements in foreign exchange | 11 | (1) | |
| Cash and cash equivalents at end of period | 800 | 13 | |
JANGADA MINES PLC
Notes forming part of the interim unaudited consolidated financial information
for the period ended 31 December 2017
1. General information
The Company is a public limited company, incorporated on 30 June 2015 with the registration number 09663756 and with its registered office at Level 2, 34 Dover Street, London W1S 4NG. The Company's principal activities are the provision of mining services.
2. Significant Accounting Policies
Basis of preparation
The interim unaudited financial information for the period ended 31 December 2017 has been prepared in accordance with IAS 34 Interim Financial Reporting. The results for the period ended 31 December 2017 are unaudited.
The condensed unaudited consolidated financial information for the period ended 31 December 2017 has been prepared on a basis consistent with, and on the basis of, the accounting policies set out in the financial information on the Company set out in the Company's published results for the year to 30 June 2017. 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 2018.
The financial information is presented in United States Dollars ($), which is also the functional currency of the Company and Group and is the preferred currency of the owners of the Company. Amounts are rounded to the nearest thousand ($'000), unless otherwise stated.
Accounting standards in issue but not yet effective
At the date of authorisation of this financial information, a number of standards and interpretations were in issue but not yet effective. The Directors do not anticipate that the adoption of these standards and interpretations, or any of the amendments made to the existing standards as a result of the annual improvements cycle, will have a material effect on the financial statements of the year of initial application.
Going concern
In common with many mining companies at this stage of development, the Group will require further funding to finance its pre-production programme in Brazil. Without funding in place, such conditions would indicate the existence of material uncertainty which may cast significant doubt about the Group and Company's ability to continue as a going concern. However, the Directors are confident that the Group will be able to raise funds for such requirements from investors as required, and the financial statements do not, therefore, include the adjustment that would result if the Group and Company were unable to continue as a going concern.
3. Business Segments AND SEasonality
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 Company only operates in one segment: mining services.
The Directors believe that the Group's operations are not subject to any significant seasonality.
4. TAXATION
| Period ended | Period ended | |
| 31 December | 31 December | |
| 2017 | 2016 | |
| $'000 | $'000 | |
| Profit on ordinary activities before tax | (781) | (71) |
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2016: 20%) | (148) | (14) |
| Effects of: | ||
| Unrelieved tax losses carried forward | 148 | 14 |
| Total tax charge for the period | - | - |
| Factors that may affect future tax charges | ||
| There were no factors that may affect future tax charges. |
5. EARNINGS PER SHARE
| Period | Period | |
| ended | ended | |
| 31 December | 31 December | |
| 2017 | 2016 | |
| US$'000 | US$'000 | |
| Loss for the period | (781) | (76) |
| Weighted average number of shares (basic and diluted) | 197,515,600 | 197,515,600 |
| Loss per share - basic and diluted (US$'000) | (0.00) | (0.00) |
The convertible loan notes included in the balance sheet at 31 December 2016 are ignored for diluted earnings per share calculation as they are anti-dilutive to the loss for the period. The 31 December 2016 weighted average number of shares in issue has been adjusted to reflect the shares issued in the period up to 31 December 2017 in order to allow a direct comparison of the earnings per share figures in both periods.
6. 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 Pedra Branca Platinum Group Metal project.
7. CONVERTIBLE LOAN NOTES
On 22 August 2017, the Company repaid in full the outstanding convertible loan notes.
8. SHARE CAPITAL
| Issued | Value | |
| Ordinary shares of £0.0004 each: | Number | $'000 |
| At 1 July 2017 and 31 December 2017 | 197,515,600 | 102 |
9. RELATED PARTY TRANSACTIONS
During the period the Company entered into the following transactions with Garrison Capital Partners Limited, a related party due to having directors in common:
| Period ended 31 December 2017 | Period ended 31 December 2016 | ||||
| $'000 | $'000 | ||||
| Garrison Capital Partners Limited: | |||||
| Supply of IT and administration expenses | 47 | - | |||
| Purchases made on Company's behalf during the period | - | 20 | |||
| Amounts owed and included within borrowings | - | 111 |
10. DIRECTOR'S EMOLUMENTS
The four directors were paid emoluments totaling $190,000 (2016: $Nil) during the period under review. The Directors were the key management personnel.
11. 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.
ENDS
For further information, please visit www.jangadamines.com or contact:
| Jangada Mines plc | E: [email protected] |
| Strand Hanson Limited (Financial & Nominated Adviser) James Spinney / Ritchie Balmer / Jack Botros |
T: +44 (0)20 7409 3494 |
| Brandon Hill (Broker) Jonathan Evans/Oliver Stanstead |
T: +44 (0)20 3463 5000 |
| St Brides Partners LTD (Financial PR) Isabel de Salis/Gaby Jenner |
T: +44 (0)20 7236 1177 |
This information is provided by RNS
The company news service from the London Stock Exchange
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