(Alliance News) - Shares in Jangada Mines PLC fell on Tuesday after the mining company said its Pitomberias vanadium project in Brazil may need additional funding, and it cautioned on an uncertain timeline to production.
Shares in Jangada Mines were down 19% at 3.78 pence each on Tuesday morning in London.
Jangada said it was "pleased" with the "great" progress with the 100%-owned Pitomberias Vanadium project in Brazil during the year.
However, the company cautioned that additional funding will be required for the Pitombeiras project as it moves towards production, a key goal for the group. As a result, Jangada is engaged in an ongoing assessment and will consider the sourcing of funding over the next three to nine months.
The timing of construction of the plant is currently unknown, and the company cautioned it was too early to say definitively whether the project would move into production in 2022.
The project has a total resource estimate of 5.70 million tonnes at an average grade of 0.51% vanadium pentoxide, 10.09% titanium dioxide, and 50.42% ferric oxide. Since the year-end, a technical report also confirmed the economic viability of the project.
Jangada said the project has "excellent potential to become a profitable producer" of ferro-vanadium concentrate, despite warning on its funding and production timeline.
In addition, the Brazil-focused firm said to swung to profit in 2021 on lower costs.
It swung to a pretax profit of USD92,000 from a loss of USD2.3 million in the 18 months ended December 31, 2020. Administration expenses were 20% lower at USD864,000 from USD1.1 million. Like the prior financial year, Jangada posted no revenue.
By Heather Rydings; heatherrydings@alliancenews.com
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Jangada Mines (JAN)