Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

1 October 2024

Armadale Capital Plc

('Armadale' the 'Company' or the 'Group')

Interim Results

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce its unaudited interim results for the six months ended 30 June 2024.

During the period under review Armadale diversified its investments to include a high grade silver project in Idaho by investing in an option over a 51% interest in the Canyon Silver Project in three stages. While the FEED study has been on hold, Armadale has continued to progress baseline environmental monitoring and explore potential funding options.

During the half, the neighbouring graphite project in Tanzania owned by Black Rock Mining Limited secured material funding which the Company believes may prompt further interest in, and facilitate ongoing discussions with regard to, Armadale's efforts to secure funding for the Mahenge Graphite Project.

Highlights

For the Canyon Silver Project:

To date the work carried out to date at the project since re-commencing work 

·    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 totally by hand in 1892 to intersect the Formosa Vein that outcropped barely 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 is now successfully done. 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 for allowing safe passage down into the No 3 Level 'parallel portal tunnel'. Due to the winze being sunk on the Formosa vein, that vein is in full accessible view all the way down to the 100 ft between No 2 and 3 Levels.

·    Outside the No 3 Portal, the original Change Room building and Compressor and Generator Room were completely rebuilt. However, electrical and plumbing infrastructure will only be installed when continuous year-round operations are certain and in progress.

·    The Original CSM 'outside' main haulage and entry road has now been re-established, being rebuilt and graded from No 3 Portal down to the base of the property, when the required permit is approved a 30 tonne bridge will be installed to provide a one way access route to and from the mine.

For the Mahenge Graphite Project

·    Armadale continued 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.

·    The Group is continuing discussions with several potential financing partners regarding the funding required for project development. The significantly improved market fundamentals for graphite concentrates has made a positive impact on the interest from stakeholders capable of providing long-term project finance. Armadale continued its ongoing review of its quoted investment portfolio, where the Directors believe there are opportunities for capital gains and have therefore made a number of additions to the portfolio in the period.

At 30 June 2024, the Company had cash of £66,000 (with and average monthly cash burn of about £25,000 including annual audit costs) and investments worth £776,000.

FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2024

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2024

Consolidated Statement of Financial Position

At 30 June 2024

Unaudited Consolidated Statement of Changes in Equity

For the period ended 30 June 2024

The following describes the nature and purpose of each reserve within shareholders' 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 historical acquisition

Share option and warrant reserve   Cumulative charge recognised under IFRS2 in respect of share-based payment awards

Foreign exchange reserve              Gains/losses arising on re-translating the net assets of overseas operations into sterling

Retained earnings                            Cumulative net gains and losses recognised in the statement of comprehensive income