Armadale Capital plc (LON: ACP), the AIM quoted investment company focused on natural resource projects in Africa, is pleased to provide a progress update in respect of its Mahenge Liandu Graphite Project’s Definitive Feasibility Study.
Readers are advised to review the Company’s detailed update in respect of the DFS which was provided within its announcement dated 16 April 2019, and which may be viewed through the following link: https://polaris.brighterir.com/public/armadale_capital/news/rns/story/rn0k02w
Highlights
- Advancing the DFS – on track to complete Q4 2019
- Appointed leading international laboratory Bureau Veritas to conduct the metallurgical test work and support previous work which demonstrated excellent flake size distribution and exceptional purity
- Metallurgical test work for product quality assessment on schedule for completion in June 2019 and downstream test work results confirming product quality in July 2019
- Discussions with third parties regarding project financing progressing
- Strengthening market fundamentals for higher purity higher quality graphite concentrates
Nick Johansen, Director of Armadale said: “I am pleased to confirm that further steps have been made towards the timely completion of the DFS including product quality assessment and metallurgical testing. Previous test work in this regard demonstrated excellent flake size distribution and exceptional purity and we are optimistic that similar outcomes can be achieved from this latest round of test work.
“Notably, recent graphite market developments point to increasing values being placed on higher purity higher quality graphite concentrates. As an example, Black Rock Resources (ASX:BKT), which owns the neighbouring Mahenge Project, announced binding sales agreements at materially higher than benchmark prices for higher purity concentrates and significantly higher than the $US1272/t used in our March 2018 Mahenge Liandu Scoping Study. Should Mahenge Liandu secure higher average price binding sales agreements, based on enhanced product quality, this will positively impact the product fundamentals including NPV and IRR calculations. These were already robust: NPV of US$349m and IRR of 122%.
“In line with strong market fundamentals, the Project is gathering considerable interest. Our discussions with third party organisations to date demonstrate a clear interest in providing project level financing, which we anticipate will fall into place in a timely manner, given the completion of our DFS schedule for this year.” armadale-cap