Jangada Mines Regulatory News (JAN)

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

19 March 2018

 Jangada Mines plc ('Jangada' or the 'Company')

Unaudited Interim Results to 31 December 2017

Jangada Mines plc, a natural resources company developing South America's largest and most advanced platinum group metals ('PGM') project, is pleased to announce its unaudited interim results for the six-month period ended 31 December 2017.

Overview

· Successfully admitted to trading on AIM in June 2017, raising £2.25 million, before expenses, through an oversubscribed placing

· Generated an updated JORC compliant resource estimate at Pedra Branca PGM Project ('the Project') that included 1 million ounces of PGM+Au, 109 Mlbs of nickel, 23 Mlbs of copper, 6.4 Mlbs of cobalt and 670kt of chrome

· Successfully upgraded resource so that 77% of the Project's resources were in the Indicated and Measured categories

· Completed a scoping study that confirmed Project's potential to become a robust, shallow, open-pit operation, with a low capital expenditure requirement, yielding attractive financial returns and a very short payback period

· Identified high-grade vanadium-titanium-iron mineralisation demonstrating the significant exploration potential of the Jangada's exploration licenses

· Received local government approval for pilot production essential for expediated progress to commercial production

· Post period end, commenced broader metallurgical test programme; started the application process for a trial mining permit and associated environmental permit; and appointed Brandon Hill as broker

Chairman's Statement

During the period under review, which followed the Company's listing on AIM in late June 2017, we focused on advancing the Pedra Branca PGM Project ('the Project') in Brazil towards a prefeasibility study ('PFS'). To this end, we announced in mid-July an updated JORC (2012) compliant resource estimate, which added an additional circa US$521 million to the in-situ value of the declared approximate 1 million ounces of PGM+Au resources at the Project. The estimate now includes 23.138 Mt of ore in the Measured, Indicated and Inferred categories, containing 109 million pounds of nickel and 23 million pounds of copper grading at 0.214% Ni and 0.045% Cu, which will off-set the costs of producing PGM and will accrue material profitability upside at no additional cost.

Other news during the period included the confirmation of high-grade vanadium-titanium-iron mineralisation from samples across five locations, and the completion of the Scoping Study, which confirmed the Project's potential to become a robust shallow open pit mine with low CAPEX/OPEX and suggested an Internal Rate of Return of 80% with a payback period of 1.3 years.

More recently, we commenced a broader metallurgical test programme, including: rougher flotation tests; cleaner and scavenger simulation; selectivity optimisation tests; pre-concentration tests; and chrome gravimetric and magnetic recovery tests to support the definition of robust project flowsheet. This is ongoing, and the Company hopes to update the market in the near future. We have also started the application process for a trial mining permit and associated environmental permit. Additionally, post period end, on the corporate side, we were delighted to appoint Brandon Hill as broker to the Company.

In conclusion, I would point out that the Project has multiple value upside triggers ahead, including the flowsheet and PFS, and I therefore anticipate significant news flow during the next six months.

Finally, I would like to take this opportunity to thank our shareholders for their ongoing support and our team for their hard work and valuable contribution to what has been a busy six months. I look forward to updating our progress on a regular basis.

Brian McMaster

Executive Chairman

JANGADA MINES PLC

Condensed consolidated unaudited statement of comprehensive income

for the six months ended 31 December 2017

JANGADA MINES PLC

Condensed unaudited consolidated statement of financial position

as at 31 December 2017 and 30 June 2017 (audited)

JANGADA MINES PLC

Condensed unaudited consolidated statement of changes in equity

for the period ended 31 December 2017

JANGADA MINES PLC

Condensed unaudited consolidated statement of cash flows

for the period ended 31 December 2017

JANGADA MINES PLC

Notes forming part of the interim unaudited consolidated financial information

for the period ended 31 December 2017

1. General information

The Company is a public limited company, incorporated on 30 June 2015 with the registration number 09663756 and with its registered office at Level 2, 34 Dover Street, London W1S 4NG. The Company's principal activities are the provision of mining services.

2. Significant Accounting Policies

Basis of preparation

The interim unaudited financial information for the period ended 31 December 2017 has been prepared in accordance with IAS 34 Interim Financial Reporting. The results for the period ended 31 December 2017 are unaudited.

The condensed unaudited consolidated financial information for the period ended 31 December 2017 has been prepared on a basis consistent with, and on the basis of, the accounting policies set out in the financial information on the Company set out in the Company's published results for the year to 30 June 2017. The unaudited interim financial statements of the Company have been prepared on the basis of the accounting policies, presentation, methods of computation and estimation techniques expected to be adopted in the financial information by the Company in preparing its annual report for the year ended 30 June 2018.

The financial information is presented in United States Dollars ($), which is also the functional currency of the Company and Group and is the preferred currency of the owners of the Company. Amounts are rounded to the nearest thousand ($'000), unless otherwise stated.

Accounting standards in issue but not yet effective

At the date of authorisation of this financial information, a number of standards and interpretations were in issue but not yet effective. The Directors do not anticipate that the adoption of these standards and interpretations, or any of the amendments made to the existing standards as a result of the annual improvements cycle, will have a material effect on the financial statements of the year of initial application.

Going concern

In common with many mining companies at this stage of development, the Group will require further funding to finance its pre-production programme in Brazil. Without funding in place, such conditions would indicate the existence of material uncertainty which may cast significant doubt about the Group and Company's ability to continue as a going concern. However, the Directors are confident that the Group will be able to raise funds for such requirements from investors as required, and the financial statements do not, therefore, include the adjustment that would result if the Group and Company were unable to continue as a going concern.

3. Business Segments AND SEasonality

The Company evaluates segmental performance on the basis of profit or loss from operations calculated in accordance with IFRS 8. In the Directors' opinion, the Company only operates in one segment: mining services.

The Directors believe that the Group's operations are not subject to any significant seasonality.

4. TAXATION

5. EARNINGS PER SHARE

The convertible loan notes included in the balance sheet at 31 December 2016 are ignored for diluted earnings per share calculation as they are anti-dilutive to the loss for the period. The 31 December 2016 weighted average number of shares in issue has been adjusted to reflect the shares issued in the period up to 31 December 2017 in order to allow a direct comparison of the earnings per share figures in both periods.

6. EXPLORATION & EVALUATION ASSETS

Exploration and evaluation assets represent the costs of pre-feasibility studies, field costs, government fees and the associated support costs at the Group's Pedra Branca Platinum Group Metal project.

7. CONVERTIBLE LOAN NOTES

On 22 August 2017, the Company repaid in full the outstanding convertible loan notes.

8. SHARE CAPITAL

9. RELATED PARTY TRANSACTIONS

During the period the Company entered into the following transactions with Garrison Capital Partners Limited, a related party due to having directors in common:

10. DIRECTOR'S EMOLUMENTS

The four directors were paid emoluments totaling $190,000 (2016: $Nil) during the period under review. The Directors were the key management personnel.

11. NATURE OF FINANCIAL INFORMATION

The unaudited consolidated interim financial information presented above does not constitute statutory financial statements for the period under review.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

ENDS

For further information, please visit www.jangadamines.com or contact: