Tillkännagivande • Sep 09
Armadale Provides Update on Work at the Canyon Silver Project and on the Mahenge Graphite Project Armadale provided an update on work at the Canyon Silver project and on the Mahenge Graphite Project. Canyon Silver Project - The Company has made significant progress in opening up the historic workings at Canyon Silver project for further evaluation and sampling. However, overall progress has been slower than planned as the ground conditions have been more difficult than expected. Further sampling will be carried out after the reopening is complete, allowing the Company to access the potential of the project. As announced on 18 June 2024, initial assay results at the project produced high grade mineralization of up to 1010 g/t silver and 18% lead. The work carried out at the project since re-commencing work includes: Widening of the first 100 feet of the Canyon Silver No 2 Tunnel from 4 x 5 feet to 8 x 8 feet to allow passage of essential equipment. This tunnel was driven by hand in 1892 to intersect the Formosa Vein that outcropped c. 100 feet above it. This widening included some timbering and a large amount of barring down and rock-bolting to make it safe and usable for all activities. A Slusher station, Geophysical station, Diamond Drilling pad and small trackless operation can now be safely and effectively performed here. Recommissioning of the 1905 winze in the number 2 tunnel. All new timbering and steel ladders have been installed. This winze bottom was cleaned by hand of 35 feet of accumulated rock and debris that had built up since 1930. The winze is now completely equipped, safe and fully useable. allowing safe passage down into the No 3 Level 'parallel portal tunnel'. As the winze was sunk on the Formosa vein, that vein is in full accessible view all the way down the 100 ft between No 2 and 3 Levels. Outside the No 3 Portal, the original Change Room building and Compressor and Generator Room have been completely rebuilt. However, electrical and plumbing will only be installed when continuous year-round operations are in progress. The Original CSM 'outside' main haulage and entry road has now been re-established, being fully rebuilt and graded from No 3 Portal down to the base of the property, when the required permit is approved a 30 ton bridge will be placed to allow for a complete circular '1 way always' route to and from the mine. The new 'No 1 Portal and above' "road" is proceeding rapidly. This had to be cut into virgin, difficult, steep mountainside. Mahenge Graphite Project - The Company is closely monitoring the progress of graphite companies in Tanzania and is encouraged by the increased recent progress towards achieving project development funding in the country. Funding for mine development has been difficult over the last several years across the junior mining sector and the company is actively looking for ways to maximize the value of the project. New Risk • Jul 28
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-UK£477k free cash flow). Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 50% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (UK£1.96m market cap, or US$2.52m). Minor Risk Shareholders have been diluted in the past year (2.4% increase in shares outstanding). Tillkännagivande • Jul 02
Armadale Capital Plc, Annual General Meeting, Jul 30, 2024 Armadale Capital Plc, Annual General Meeting, Jul 30, 2024. Location: level 2, 23 railway road, subiaco, western australia 6008, Australia New Risk • Jun 30
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -UK£477k This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-UK£477k free cash flow). Earnings have declined by 50% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (UK£3.23m market cap, or US$4.08m). Minor Risk Share price has been volatile over the past 3 months (8.5% average weekly change). Tillkännagivande • Jun 20
Armadale Capital plc Announces High Grade Results At Canyon Silver Armadale Capital Plc announced the first assay results of mineralisation exposed by the reopening of historic shafts have confirmed grades of silver and lead mineralisation of up to 1010 g/t silver and 18% lead. A sample of sulphide mineralisation was taken from both the number 2 and number 3 shafts with both samples producing high grades. The sample from shaft number 3 returned 1,010 g/t silver and 18.0% lead, while the sample from the number 2 shaft returned 412 g/t silver and 18.3% lead. Samples were assayed using XFR in accordance with the JORC code for mineralisation of this type. The deposit has been inaccessible since 1987 due to a cave-in which has now largely been cleared. The Canyon Silver are in the process of installing critical mining infrastructure, including air and water lines, with a further objective to reinstalling electrification up to the hoist room. Shareholders will be kept updated with progress as it is made. By continuing to open up both Number 2 and Number 3 portals further mineralisation is expected to be exposed in the coming weeks giving the company a good platform to fully explore the size and grade of the deposit. It is currently estimated that it will take 60 days to open up these portals allowing access to more of the deposit, and further work will be considered to open up ore passes and other access between the portal to expose further areas of mineralisation. With two open tunnels and the employment of modern geological techniques, Armadale believe significant value can be added to the historical information of the mine in a short period of time. Tillkännagivande • May 25
Armadale Capital plc Provides an Update on the Mahenge Liandu Graphite Project in Tanzania Armadale Capital Plc to provide an update on the Mahenge Liandu graphite project in Tanzania. Global demand for graphite used in the anodes of electric vehicle batteries increased from 448,044 tonnes in 2022, to 631,821 tonnes in 2023, mainly due to a significant uplift in the volume of electric vehicles and household battery storage units produced. This represented a 41% increase in 2023 and demand is projected to reach 11,200,000 tonnes by 2040, according to The International Energy Agency. The use of natural graphite in batteries is pivotal to releasing stored energy and graphite is the largest weighted component in current battery chemistries. It has the potential to grow from 30% of the anode to 50% by 2030 - as referenced by Benchmark Minerals and others. The World Bank expects almost 53.8% of mineral demand from energy storage to come from graphite by 2050. This is almost a 500% increase in current demand levels, according to The World Bank's "The Mineral Intensity of the Clean Energy Transition" study. The Hague Centre for Strategic Studies forecasts EV Battery demand growing at a compound rate of 41% per annum from 2020 to 2025. With China moving towards being a net-natural importer of graphite, further deficits in the supply of natural graphite are forecast, according to Shruti Kashyap, Product Director of Anodes from Benchmark Mineral Intelligence. The Board is of the view that both the Chinese restriction on graphite exports, as well as the extension of US restrictions on the importation of Chinese graphite could have an impact on graphite prices. The near-term shortage of funded graphite projects and the forecast increasing global demand could lead to increased interest in obtaining graphite from non-Chinese sources. The forecast increase in demand, as well as the requirement for the US and Western economies to source non-Chinese graphite could provide significant momentum for Mahenge. The Board believes that the project will provide graphite with high purity, low cost and strong ESG credentials, alongside being located in Tanzania, which provides optionality for the western supply chain, especially the USA Armadale paused the FEED study whilst the Company monitored developments in the graphite market and the ability of graphite projects in Tanzania to obtain funding. With material progress on both fronts since then and the appointment of Greg Entwistle to the Armadale Board, the Company is considering recommencing the FEED study so the project is construction-ready when funding is secured. Recently, two nearby projects have made material progress on financing and development, which is encouraging for potential future progress at Mahenge. Black Rock Mining Ltd. have committed to invest $33 million AUD in upgrading roads, relocating the local populace and connecting hydro-electric power to Mahenge. Ecograf Ltd. have entered into an MOU with TANESCO to supply grid power from these power lines. Tillkännagivande • May 03
Armadale Capital plc Announces Update on Canyon Silver Asset Armadale Capital Plc announced further information on the assets relating to Africao American Incorporated ("AAI"), a company incorporated under the laws of the State of Idaho, the holding company of the Canyon Silver lead, zinc and silver exploration asset based in Northern Idaho, USA ("Canyon Silver"), as well as the Board's plan for future development of this asset. Historic production prior to the mine ceasing operations in 1972 was focused on the number three shaft which produced 25,000 tonnes of ore at a grade of 4 to 6 oz per tonne of silver, 6-13% lead and 2-4% zinc and exposed a further 48,000 metric tonnes of mineralisation within the main vein. The project has an additional three to four more veins to assess. In 1984 four truckloads of hand sorted ore were trucked to a local mill and returned exceptionally high grades as follows: Three 25t truck loads averaged. 36 oz/t Ag, 66% Pb and 10% Zn; One 25t truck load averaged. 50% Zn, 8 oz/t Ag, and 8% Pb. The high grade mineralisation near existing mine infrastructure presents a possible opportunity to unlock future cashflow for Armadale as the company progress renovations of the existing mine infrastructure and advance the exploration prospects. Work Programme: The management of AAI will approve a detailed work programme and budget with mining contractors. who have all the equipment, personnel, licenses, training programs and contacts to cater for all the work planned at Canyon Silver, including small underground and surface drill rigs which drill to 150m; which is more than sufficient for Phase 1 drilling. The main objectives at this time are to fully open and renovate the two main ore carrying tunnels. Tunnel No. 2 was a Formosa vein only and extends 97 Metres into the mountain side with the last 67 Metres believed to have lead, zinc and silver mineralisation. This may be confirmed when the tunnel is opened and extensive samples have been taken. Armadale's first task is to clean out any loose rock and sample, measure and model the vein seen in the hanging and footwall to ascertain the grades. Tunnel No. 3 went 137 Metres into the mountain before intersecting the Formosa vein it followed for over 60 Metres, stopping much of the ground above it along the way. Eventually No. 3, which was still following mineralisation, encountered an additional large, low grade orebody about 30 metres inside the mountain - demonstrating additional potential for the deposit. Canyon Silver has three tunnels, with shafts extending to veins located below surface at the following depths: 42 Metres, 73 Metres, 124 Metres, 182 Metres, 243 Metres. With the shaft vein being the only part previously mined, Armadale is in position to take advantage of the available development, whilst further exploring for additional resources. The East and South veins remain open, with four more veins above adit level. Armadale recently announced the addition of Greg Entwistle to the Board, who has a tremendous track record in building and operating mining projects - experience that will help move towards production, and a cashflow positive position for shareholders. Armadale continues to look at ways to reduce the burden on shareholders, as continue to benefit from material cost savings on infrastructure at Mahenge. The Canyon Silver Project is another string in bow to help reduce reliance on future dilutions to build cashflow. Tillkännagivande • Feb 27
Armadale Capital plc Announces an Update on Its Mahenge Liandu Project in Tanzania Armadale Capital Plc announced an update on its Mahenge Liandu Project in Tanzania. The Company continues to focus on finalising the structure of the Government of Tanzania's 16% free carried interest of the Project and on securing project funding to allow the commencement of commercial production at the Project. While securing funding continues to remain challenging in the resources sector, strong global demand for high quality graphite remains. Discussions continue to progress with the Government of Tanzania regarding the framework and structure for their 16% carried interest. The Company is hopeful this will be finalised in conjunction with project funding. The Company is continuing the baseline environmental monitoring on site and has continued to work on the transport logistics planning for the Project. However, work on the FEED study has been scaled back in light of the challenging market conditions in order to preserve funds available on achieving development funding. The Company is continuing the baseline environmental monitoring on site and has continued to work on the transport logistics planning for the Project. However, work on the FEED study has been scaled back in light of the challenging market conditions in order to preserve funds available on achieving development funding. The Companyis continuing discussions with several potential financiers regarding the debt funding required for Project development. Continued strong demand fundamentals for graphite remain in place and there is projected to be an increasing demand as production of electric vehicles continues to increase. Graphite prices remain substantially above the prices used in the Company's feasibility study and the Board believes that these pricing levels will continue to be robust due to expected demand from the electric vehicle sector. Discussions with potential offtake partners continue. New Risk • Oct 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Revenue is less than US$1m. Market cap is less than US$10m (UK£4.11m market cap, or US$5.04m). Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Tillkännagivande • May 13
Armadale Capital Plc, Annual General Meeting, Jun 20, 2023 Armadale Capital Plc, Annual General Meeting, Jun 20, 2023, at 08:30 Coordinated Universal Time. Location: Level 1, 48-50 Smith Street, Darwin Northern Territories Australia Tillkännagivande • Feb 14
Armadale Provides Update on Mahenge Liandu Project in Tanzania Armadale Capital Plc announced that it has made further progress advancing towards commercial production at the Mahenge Liandu Project in Tanzania. This is an important strategic development as part of ongoing plans to expedite the path to commissioning commercial mining operations. Furthermore, the Company notes the improved investment climate which brings with it increased potential to attract development funding in Tanzania. Armadale notes the significant progress made at the neighbouring Black Rock Resources project over the last 12 months. The Board has accelerated the development of the mining lease at the Mahenge Liandu Project on several fronts, which collectively enhance the progression towards commercial mining operations: The Group continues to collect environmental baseline data as is required for the compliance of the mining lease and to assist in the design and planning of the proposed mining operations. In addition, the base line data for temperature, pressure, wind, moon phase, humidity, solar radiation, rainfall and stream flow data assists the local community to have access to regional weather data for local planning requirements in the Mahenge region. Planning is underway for Geotech drilling to commence this dry season, with the sites now prepared for the drill rig. The information from the proposed drilling program will enable the design of a plant and tails storage area. This information will enhance the data from the test pits that were completed last year. Logistics routes for the product continue to be assessed to determine the optimum methods to ensure the final product will enter the market at the desired price level. Discussions are ongoing with the Government of Tanzania regarding the framework for the 16% ownership, with draft Shareholder agreements, Articles of Association and Joint Financial model being submitted to both parties for review. The Group is continuing discussions with several potential financing partners regarding the debt funding required for project development. Moreover, significantly improved market fundamentals and conditions for graphite has seen an increase in interest from stakeholders capable of providing long-term project finance. Graphite prices have continued to increase due to strong ongoing demand from the EV sector, while Benchmark Mineral Intelligence see further price upside due to a potential supply deficit materialising in 2023. Current prices are materially above the level used in the company's feasibility study. Integral to securing project funding is lining up future off-take partners. With the post-Covid improvement in graphite market fundamentals globally, the Board has commenced re-engaging with prospective end-users which are located in Europe and China. The feasibility study completed in March 2020 confirms the potential for Mahenge Liandu to be a significant supplier of high quality graphite with a relatively low capex. USD 882 million pre-tax cashflow generated from initial 17 year mine life utilises just 25% of the resource, which remains open in multiple directions offering significant further upside; Estimated pre-tax NPV of USD 358 million and IRR of 91% with scope for further positive improvement upon economics in near-term through delivery of optimised DFS. Staged ramp-up planned to facilitate near term production with 60,000tpa graphite concentrate to be produced for the first four years (Stage 1) before increasing to 90,000tpa (Stage 2). Capital cost estimate for Stage 1 is USD 38.6 million, which includes a contingency of USD 4.1 million or 15% of total direct capital cost, a slight increase on the scoping study allowing for the staged ramp up. 1.6 year payback for Stage 1 (after tax) based on an average sales price of USD 1,179/t. Stage 2 expansion is expected to be funded from cashflow. Executive Departure • Apr 13
Non-Executive Director has left the company On the 31st of March, Emmanuel Mahede's tenure as Non-Executive Director ended after 4.6 years in the role. As of December 2020, Emmanuel personally held 2.50m shares (UK£84k worth at the time). A total of 3 executives have left over the last 12 months. Executive Departure • Apr 03
Non Executive Director has left the company On the 31st of March, Amne Suedi's tenure as Non Executive Director ended after 1.2 years in the role. We don't have any record of a personal shareholding under Amne's name. A total of 2 executives have left over the last 12 months. Tillkännagivande • Jan 12
Armadale Capital plc Reports Mahenge Natural Flake Graphite Testing Confirms Suitability for Use in Lithium-Ion Battery Anodes Armadale Capital plc reported that the results of the phase one test work undertaken on natural flake graphite from Armadale's 100%-owned Mahenge Graphite Project in south-east Tanzania have determined Mahenge graphite to be suitable for use in lithium-ion batteries commonly used in the exponentially evolving energy and high-tech sectors including the rapidly growing electric vehicle battery market. 