Ormonde Mining PLC - Final Results
November 24 1999 - 4:57AM
UK Regulatory
RNS Number:3497B
Ormonde Mining PLC
24 November 1999
23 November 1999 Shares on Issue: 43,917,841
Press Release Fully Diluted: 43,917,841
Irish Stock Exchange Share Price: 7 cents
Vancouver Stock Exchange (OMP) Market Cap:Euro 3.07 M, C$4.63M
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 30 JUNE, 1999
Ormonde Mining Plc ("Ormonde") has today released its financial results and
Annual Report for the year ended 30 June, 1999.
Ormonde, in common with most other junior exploration companies, has had a
difficult year during 1998/99. Pressure on metal prices continued with a
subsequent knock-on effect on share prices. Equity raising remained difficult
and the need to conserve funds resulted in a world-wide cut-back in
exploration and development activity.
Fortunately metal prices firmed during the third quarter of 1999. The
decision by the European central banks to formalise their gold sales, and,
particularly their decision to control the gold available for leasing, has had
an immediate beneficial impact on the gold price. We would expect to see a
continuing firming trend in the gold price over the next couple of years.
The stock markets have reacted favourably to this change, but it will take
some time to shake off the recent adverse sentiment and see the full effect of
this change reflected in the markets and particularly in the junior
exploration sector. However the critical fact is that the gold market has
bottomed and the industry cycle is starting on the upward swing.
The earlier adverse market conditions have forced Ormonde to curtail its
activities towards the middle of 1999. However significant advances were made
in Tanzania during the first half of the year.
The initial reconnaissance drilling programme was carried out on the Mgusu
property where a 271,000 ounces inferred gold resource was defined by earlier
drilling. This property lies adjacent to the multi-million ounce deposits
presently being evaluated and developed by Ashanti at Geita and Kukuluma and
Ridge 8 by Anglo American. Four of the seven targets at Mgusu were subjected
to first-pass rotary-air-blast (RAB) drilling. Results from three of these
targets were disappointing, but the drilling on Mgusu III revealed that gold
mineralisation is present in this area. Follow-up drilling is warranted on
this target in addition to the drilling required on the other untested Mgusu
targets.
Exploration activity on the Bukoli property, Lake Victoria Goldfield, during
1998/99 consisted of two programmes of reconnaissance drilling along a 3.3km
long mineralised zone. The results to date have been very encouraging with
several holes encountering economic widths and grades of gold mineralisation,
including 21m at 2.04 grams per tonne (g/t), 8m @8.75g/t, 5m @3.51g/t and 13m
@ 1.68g/t. However the holes were very shallow, generally less than 40m deep,
and the lines were widely spaced. Much tighter spaced deeper holes will be
required to allow us to establish the economic potential of this area.
Exploration activity continued elsewhere in Tanzania, at the Ikoka, Karumwa,
Mrangi, Ikina, and Chunya projects, but at a lower level then we would have
wished.
The programme and prospects for 1999/2000 are at this time of writing not
finalised, reflecting the interim stage of a number of commercial and funding
opportunities currently being assessed by Ormonde. Corporate activity on
project acquisitions is also finally on the increase and in the last quarter
we have been very active in pursuing some interesting opportunities. Now that
the gold price has recovered and the gold equity markets are showing some
signs of life, your Directors expect to be in a position to raise funds and
enter into other transactions which should lead to a step up in the company's
activities.
The report of the auditors on the financial statements for the year ended 30
June, 1999 draws the readers attention to the uncertainty of the carrying
value of intangible assets disclosed in the financial statements, largely
comprising capitalised exploration costs and to the uncertainty surrounding
the availability of adequate finance for future operations but the auditors
opinion is not qualified in respect of these matters.
In the interim we have completed a joint venture on our Siga Hills, Karumwa
and Magamba properties in Tanzania and we are presently negotiating a second
joint venture on other licences. At this point the company has farmed out
almost half of its Tanzanian portfolio of properties.
Overall we believe that 1999/2000 has the makings of a turnaround in the
company's fortunes. We look forward to the millennium.
Financial Results
The company has posted a loss of IR#51,103 (Canadian $109,406) before tax.
Profit and Loss Statement for the year ended 30 June, 1999 is appended.
Desmond J. Burke
Managing Director
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEARS ENDED 30 JUNE 1999 AND 1998
1999 1998
IR# IR#
Administrative expenses (27,036) (33,427)
Write-down of exploration costs (26,477) (147,885)
-----------------------
OPERATING LOSS (53,513) (181,312)
Other income 2,410 8,942
-----------------------
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (51,103) (172,370)
Taxation - -
-----------------------
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (51,103) (172,370)
Profit and loss account brought forward - (deficit) (4,523,317) (4,350,947)
-----------------------
Profit and loss account carried forward - (deficit) (4,574,420) (4,523,317)
=======================
Loss per share (IR#0.0013) (IR#0.0053)
=======================
The group has no recognised gains or losses other than those reflected in the
profit and loss accounts above.
The financial statements were approved by the Board of Directors on 17
November, 1999.
For further information contact:
Desmond J. Burke Esq
2 St. Canice's Court
Dean Street
Kilkenny City
Kilkenny
Ireland
Tel: 353-56-52411
Fax: 353-56-52433
23 November, 1999
END
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