Last checked at 30 Nov 2022 07:00
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources
30 November 2022
Contango Holdings Plc
("Contango" or the "Company")
Audited Final Results for the Year Ended 31 May 2022
Contango Holdings Plc, the London listed natural resource company developing the Lubu Coal Project in Zimbabwe ("Lubu Project"), is pleased to announce its audited results for the year ended 31 May 2022.
A copy of the full report and accounts can be found at this link, http://www.rns-pdf.londonstockexchange.com/rns/0023I_1-2022-11-29.pdf, and will be uploaded shortly to the Company's website at www.contango-holdings-plc.co.uk.
Highlights
· Commencement of initial mining at the Lubu Project at the end of Q1 2022, with further development at site post-period.
· Focus remains on an initial 10,000 tonnes per month of production before further ramp up to 300,000 tonnes per annum during 2023
· Secured a first offtake partner, AtoZ Investments (Pty) Ltd, for 10,000 tonnes of washed coal per month post period. Additional coking coal offtake discussions underway.
· Logistics and export solutions being finalised ahead of thermal coal production and sales in H1 2023.
· Advancement of coke production strategy and offtake negotiations also underway ahead of targeted coke production in H2 2023.
· £7,500,000 raised post period end - Contango is now fully funded for both its coking and thermal coal strategies and expects to use non-equity alternatives for the funding of its coke strategy.
· Additional value upside from Garalo-Ntiela Gold Project - potential gold resource increased to 1.8Moz in 2021 and exploration work ongoing to better understand its full resource potential.
Carl Esprey, Chief Executive Officer of Contango Holdings, said:
"Contango is now fast approaching the landmark transition into becoming a cash generative mining company, and importantly, is fully funded to deliver its first two profit centres from coking coal and thermal coal. Our operation at Lubu is nearing its final stages of maiden coking coal production and sales, with first sales now expected to occur in Q1 2023. Whilst the Company had hoped to reach this milestone by year end, delays in import clearance for certain key capital items, including the wash plant, has extended the timetable slightly.
"However, excellent progress at site continues to be made in expectation of delivery of the wash plant and surface miner. Moreover, we are fully capitalised and well-funded to meet our objectives. This is also providing a very strong position in our ongoing discussions with additional offtakers and I would expect to provide an update on this in the near term.
"Given the demand for Contango's products the Company will now also set about expanding the planned footprint of the pit to enable increased production capacity. This positive development is to be funded out of existing cash resources following our £7.5 million capital raise earlier this quarter.
"With this in mind, 2023 is shaping up to be a year of operational and financial delivery, and I look forward to sharing our developments with shareholders over the coming weeks and months."
**ENDS**
For further information, please visit www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc Chief Executive Officer Carl Esprey
| E: contango@stbridespartners.co.uk |
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Tavira Financial Limited Financial Adviser & Broker Jonathan Evans
| T: +44 (0)20 7100 5100 |
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St Brides Partners Ltd Financial PR & Investor Relations Susie Geliher / Charlotte Page | T: +44 (0)20 7236 1177 |