Jangada Mines shares were deep in the red on Wednesday after the mining group said they would hold off pushing forward with the Pitombeiras iron ore project as they waited for the ‘right pricing environment’.
The delays at Pitombeiras were not taken well by investors and Jangada Mines shares were trading 20% weaker at the time of writing.
Pitombeiras has a $96.5 million post-tax Net Present Value (NPV) with estimated $145.9 million post-tax undiscounted operating cash flow.
Despite the strong financials of the Pitombeiras project, the company is yet to secure an off-take agreement which is hindering feasibility evaluation of titanium mineralisation. This admission suggests today’s fall is more a display of impatience by shareholders, as opposed to poor project fundamentals.
Nonetheless, progress with their investments in Blencowe Resources and Fodere were not enough to offset frustrations with the setbacks at Pitombeiras.
“Jangada has a highly experienced Brazilian centric legal, financial and operational management team able to source and execute on projects,” said Brian McMaster, Executive Chairman of Jangada.
“The Board and team have a proven track record of being able to find high value low-cost opportunities, such as the acquisition of the Pedra Branca Platinum Group Metals Project, which was vended to TSX listed, ValOre Metals. Pitombeiras is technically sound and has excellent upside potential, the Board is just waiting for the right pricing environment to push the button on its development.”