Armadale Capital: Mahenge graphite Scoping Study Delivers NPV of US$349m with 122 percent IRR

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce the results of the Scoping Study completed by BatteryLimits on the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge’ or the ‘Project’), which demonstrates highly robust and compelling economics.

As quoted in the press release:

Nick Johansen, Director of Armadale said: “We have long held confidence in the commercial potential and economic value of Mahenge and the results of this Scoping Study greatly reinforces this view. The Project’s NPV of US$US349m is significant, especially when compared to our current market cap of ~£5m. With an IRR of 122%, 1.2 year payback and low development costs, we firmly believe that Mahenge is an attractive asset for development. Crucially, the Scoping Study was limited to just 25% of the Project’s current resource, which forms Stage 1 of a planned staged development programme. Accordingly, with an upgrade in throughput there is significant potential to improve the Project economics even further. Our next steps will now be to commence a definitive feasibility study so that we can advance Mahenge to a decision to mine early in 2019.”

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