22nd Sep 2016 10:17
LONDON (Alliance News) - Armadale Capital PLC on Thursday said it remained loss making in the first half but the company acquired a new project after the period which is now the primary focus of the business.
The investment company focused on the mining and wider natural resource sector acquired the Mahenge Liandu graphite project in Tanzania just after the first half of the year ended, which also led to a restructuring of the board.
"This prospect represents an exciting new investment for Armadale, drawing upon the company's understanding of the African resource sector, delivering a compelling investment opportunity in the graphite market in order to capitalise on the strong wider macroeconomic outlook for graphite, which is a key element in the burgeoning global battery market," said Chairman William Frewen.
"The potential for commercial grade graphite has led the board to determine that the Mahenge Liandu graphite project will increasingly become a focus for Armadale," he added.
The loss before tax in the first six months of the year amounted to GBP279,000 versus the loss of GBP365,000 last year. That was after administrative costs rose to GBP350,000 from GBP307,000 but was offset by a GBP71,000 gain from reversing impairments.
Armadale shares were down 13% to 2.06 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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