Contango Holdings Plc announces unaudited interim results

Highlights

• £7.5 million raised (fundraise) in October 2022 at 6 p to support the Lubu coal project to first metallurgical coal production from 1Q23.
• £1 million convertible loan converted at 6p on 5 July 2022 for 16 666 667 ordinary shares.
• First offtake signed with AtoZ Investments (Pty) Ltd to purchase 10 000 tpm of washed metallurgical coal produced at Lubu.
• Metallurgical coal and coke tests undertaken through installed 1 tph test plant confirmed the excellent quality of coal from Lubu further strengthening Contango's position to complete additional offtake agreements.
• Expansion of production strategy to include both thermal coal and coke development scenarios to provide additional near-term high value revenues streams.
• Contango's operating subsidiary declared the winner of the 2022 Excellence in Community, Empowerment & Social Impact Award recognising its work at Lubu.

Post period

• Memorandum of understanding signed with a leading multi-national company for collaboration across coking coal and manufacture of coke at Lubu.
• Award of environmental impact assessment certificate for Lubu recognising the highest environmental standards imposed by Contango at the mine.
• Delivery of the Lubu wash plant in early February and assembly ahead of commissioning in March 2023 – capacity to produce 20 000 tpm.
• Delivery of surface miner (Wirtgen 2200SM) which has a cutting width of 2200 mm, ideal for selective mining, and can mine up to 500 tph of hard rock and up to 1000 tonnes tph of metallurgical coal.
• Laboratory delivered to site in February representing the last of the significant capital items ahead of first production and sales at the end of 1Q23.

Carl Esprey, CEO of Contango Holdings, said: “We expect Contango to transition into cash flow towards the end of the current quarter with first sales of coking coal. Lubu's advancement over recent months has been facilitated by the successful £7.5 million fundraising during the period, which has enabled investment in building mining and processing operations. These development initiatives are now reaching their conclusion, with the wash plant now at site and being assembled ahead of commissioning. Once calibrated and operating efficiently the wash plant is expected to be able to produce 20 000 t of washed coking coal per month which will satisfy its first offtake partner, AtoZ Investments (Pty) Ltd, and also provide sufficient supply to secure further offtakes for our coking coal.

“I would like to thank our long-standing shareholders for their support, and welcome the new entrants to our register, as I reiterate my excitement and enthusiasm for what is in store for Contango over the coming weeks and months and we transition into a fully-fledged and cash generative production company.”

Read the article online at: https://www.worldcoal.com/coal/28022023/contango-holdings-plc-announces-unaudited-interim-results/