Aminex PLC ('Aminex' or the 'Company') is pleased to announce its audited financial results for the year ended 31 December 2024.
Highlights
Outlook:
• Signing of the Engineering, Procurement and Construction contract to construct the 30-kilometre pipeline from Ntorya to the Madimba Gas Processing Plant anticipated shortly, with expected capacity of 140 MMcfd.
• Upon completion of the construction of the Ntorya-Madimba pipeline, Ntorya-2 ("NT-2") will be hooked up for production, now expected in mid-2026, given the delays with the Ntorya-Madimba pipeline.
• Drilling contract options are presently under review for the subsequent drilling of Chikumbi-1 ("CH-1") and the workover of Ntorya-1 ("NT-1").
• Vastly expanded plan to develop the Ntorya Field prepared by the operator, ARA Petroleum Tanzania Limited ("APT"), which envisages a phased development with up to 14 new wells to be drilled in the next decade to potentially double the anticipated gas production rate to 280 MMcfd.
• Funding facility for up to US$3 million from Eclipse Investments LLC, should ensure sufficient working capital until first gas production.
During 2024 and early 2025:
• Completed the processing and interpretation of the newly acquired 3D seismic data, the largest onshore seismic campaign in East Africa, covering 338 km² over the Ntorya Gas Field.
• Awarded a 25-year Development Licence over the Ntorya Field.
• Submitted a revised and expanded Ntorya Field Development Plan.
• Selected an optimal location for drilling the CH-1 well using the 3D seismic data.
• Secured all long-lead items for the drilling of CH-1 and the workover of NT-1.
• Completed preparation work for gas production, including processing facilities, flow lines, and hookups.
• Signed a Gas Sales Agreement between APT, TPDC and Aminex.
• Ruvuma PSA Farm-Out Carry of US$35 million covered Aminex for all 2024 Ntorya costs with US$29.24 million of the Carry remaining as at 31 December 2024.
• Maintained reduced gross G&A costs (before one-off costs and non-cash items) of US$1.59 million per annum in 2024.
• Loss for the year of US$5.30 million (2023: loss of US$1.12 million). Increase due principally to decommissioning costs of US$2.83 million within asset impairment charges being higher (due to higher decommissioning cost assumptions) and a release of tax provisions of US$1.09 million in 2023.
The Annual Report may be viewed on the Company's website at www.aminex-plc.com
Aminex also advises that its Annual General Meeting will be held at 2.00 pm on 24 July 2025 at The Geological Society, Burlington House, Piccadilly, London W1J 0BG.
Paper copies of the Annual Report together with the Notice of Annual General Meeting, including the Form of Proxy, will be mailed in due course to those shareholders who have elected to receive paper copies.
The Executive Chairman's Statement from the Annual Report follows below:
Executive Chairman's Statement
Dear Shareholder,
I am pleased to say that in the last fifteen months we have progressed the Ntorya Gas Development significantly. Since our last annual report, the Tanzanian government has awarded a 25-year Development Licence over the Ntorya licence area, securing the project for Aminex and operator ARA Petroleum Tanzania ("APT").
I was honoured to be present at the official licence handover ceremony in Mtwara, Tanzania, an event celebrated joyfully by over 1,000 people, including Deputy Prime Minister and Minister for Energy of Tanzania Dr. Doto Mashaka Biteko, Members of Parliament, regional and local dignitaries as well members of the public.
The licence is the first to be awarded in 13 years and at the handover ceremony I witnessed how committed the government is to using Tanzania's resources to eliminate energy poverty, unlock jobs and business opportunities for its people and drive industrialisation.
Tanzania's population is set to double by 2050 and its largest city, Dar es Salaam, will become a megacity in just five years. The country is bursting with talented, educated and optimistic young people. Demand for residential electricity, cleaner cooking fuels than wood and charcoal, and energy to power expanding industries will only climb in that time.
We believe the recent turmoil in global financial markets, which has caused concern in the investor community and disrupted international trade, should have negligible impact on the Ntorya project. The fundamentals underpinning demand for gas in Tanzania remain robust in the face of recent global market volatility.
The plan to develop Ntorya has been vastly expanded in the past year. Following the results of a 3D seismic survey over the wider Ntorya licence area, APT updated the draft Ntorya Field Development Plan and submitted it to the Tanzania Petroleum Development Corporation ("TPDC") for their input. It now envisages a phased development with up to 14 new wells to be drilled in the next decade to potentially double the anticipated gas production rate to 280 MMcfd.
The January 2024 signing of a Gas Sales Agreement with the TPDC secures a buyer for the first phase of gas production and ensures the Tanzanian people benefit from its extraction. With these milestones in place, the Ntorya Gas Development is on the verge of the construction phase with just the tender award for the construction of a gas pipeline to the Madimba Gas Processing Plant needed before ground is broken.
Key Milestones Achieved in 2024 and Early 2025
• Completion of the processing and interpretation of the newly acquired 3D seismic data, the largest onshore seismic campaign in East Africa, covering 338 km² over the Ntorya Gas Field.
• The award of a 25-year Development Licence.
• Submission of a revised and expanded Ntorya Field Development Plan.
• Selection of an optimal location for drilling the CH-1 well using the 3D seismic data.
• Securing of all long-lead items for the drilling of CH-1 and the workover of NT-1.
• Completing preparation work for gas production, including processing facilities, flow lines, and hookups.
• Signing a GSA between APT, TPDC and Aminex.
Path to First Gas
We understand that TPDC will soon be signing an Engineering, Procurement and Construction contract to construct the 30-kilometre pipeline from Ntorya to the Madimba Gas Processing Plant. This pipeline is expected to have a capacity of 140 MMcfd and will draw gas from the Ntorya-1 ("NT-1"), Ntorya-2 ("NT-2"), and Chikumbi-1 ("CH-1") wells. The pipeline will enable us to commence the monetisation of our gas production by mid-2026.
Upon completion of the construction of the Ntorya-Madimba pipeline, NT-2 will be hooked up for production. Drilling contract options are presently under review for the subsequent drilling of CH-1 and the workover of NT-1. These three wells are anticipated to produce gas for the initial phase of the development.
Financial prudence
The 2020 Farm-Out of the Ruvuma PSA should allow the Company to achieve significant production and revenue levels without requiring additional shareholder funding for the Ntorya gas field development. Aminex holds a 25% interest in the Ruvuma PSA with a US$35 million carry, equivalent to US$140 million in gross field expenditure, which is expected to support the Company through to potentially substantial production and revenue generation.
In April 2024, Eclipse Investments LLC, ARA Petroleum and Aminex signed a funding facility for up to US$3 million, which should ensure the provision of sufficient working capital until revenues commence from Ntorya gas sales.
We continue to operate with significantly reduced corporate overheads. Base running costs (excluding non-cash and one-off items) were essentially unchanged at US$1.59 million in 2024 compared to US$1.58 million in 2023. Base running costs therefore remain 70% lower than in 2018 when cost-cutting measures were first introduced. The Company maintains an efficient operational structure, ensuring flexibility and accessing strategic opportunities whilst mitigating business risks.
Transforming Tanzania and Aminex
Tanzania views natural gas as a crucial element to alleviate energy poverty. Natural gas drives economic development while being significantly cleaner than other fossil fuels such as oil, coal, and charcoal. It also provides a more reliable energy source in tropical regions than hydroelectric power, which is susceptible to variable seasonal rainfall.
We take great pride in being a founding partner in this project, which will supply such a critical resource. In fact, we think Ntorya gas is more than a resource - it's a catalyst for national transformation.
The progress made on the Ntorya project will provide shareholders with growing value this year as we realise a path to positive cash flow and the opportunity to use this pivotal project as a foundation to grow our Company further.
I want to thank our shareholders and our dedicated staff for their continued support and patience, and I look forward to a successful year ahead delivering the rewards that the Ntorya development will hopefully bring to all of us.
Yours sincerely,
Charles Santos, Executive Chairman