Jangada Mines PLC (AIM:JAN) moved into profit in 2021 helped by the sale of its Pedra Branca project in Brazil.
AIM-traded Jangada posted a pretax profit of US$92,000 compared with a loss of US$2.3mln in 2020.
It sold the Pedra Branca project to ValOre Metals (TSX-V:VO) Corp and gained a significant shareholding in ValOre, which it subsequently sold down over the year to help finance the development of its Pitombeiras vanadium project in Brazil.
Jangada said it made “great progress” on its Pitombeiras project during the year. It carried out drilling programmes, metallurgical tests, and airborne magnetic surveys to delineate drilling targets and also reported an initial NI 43-101-compliant resource estimate for the project.
In April this year, the company provided an updated technical report with the inclusion of the titanium component at Pitombeiras.
READ: Jangada Mines unveils updated technical report for Pitombeiras project
“The group's key strategic goal is to progress the Pitombeiras operations through to production and future cash flow generative, which would be opportune at these times when we see peak iron ore prices and recovering vanadium prospects,” said executive chairman Brian McMaster.
“The timing of the construction of the plant is at this stage unknown due to the ongoing assessment of the project and, if considered economic, the need to access funding. This ongoing assessment and the sourcing of funding are matters the board will be considering over the next 3-9 months.
“Whilst it is a strategy the board is seeking to pursue, it is too early to say definitively whether the project will move into the production phase in 2022,” he concluded.
Jangada ended 2021 with cash and cash equivalents of US$3.59mln.