Interim Results
September 28 2006 - 3:54AM
UK Regulatory
RNS Number:6088J
Ormonde Mining PLC
28 September 2006
28 September 2006
Ormonde Mining plc
Interim Results for the Six Months Ended 30 June 2006
DUBLIN & LONDON: 28 September 2006 - Ormonde Mining plc ("Ormonde" or "the
Company"), the Spain-focused exploration and development company, is pleased to
announce its unaudited interim results for the six months ended 30 June 2006.
HIGHLIGHTS
* Positive pre-feasibility Scoping Study on the La Zarza copper-gold project
completed, incorporating the first JORC-compliant resource; bankable
feasibility study underway.
* Final phase of La Zarza infill drilling in progress, environmental
baseline study underway and discussions initiated with appropriate companies
for the engineering design work.
* Drilling programmes on the Salamanca Gold Project and other exploration
properties to progress during Q4; drilling at Salamanca will test the first
of several new gold-in-soil anomalies identified to-date.
* Signing of an option over a possible near-term cashflow opportunity at a
tungsten tailings project in Salamanca; sampling and survey results will
lead into a short metallurgical testwork programme.
* Fully funded for all ongoing programmes following a capital raising in May
of Euro4.47 million (#3.04 million) before expenses.
* Loss for the period of Euro235,927 (Euro201,224 for the 6 months to June 2005);
management continues to maximize in-the-ground investment and keep overheads
to a minimum.
Mike Donoghue, Chairman of Ormonde commented,
"This has been a period in which our lead project has passed a critical
milestone and is now advancing into its final evaluation. Our other projects
have been advanced to facilitate the more rigorous investigation which has now
commenced and which will be the subject of further news flow in the coming
months."
Enquiries to:
Kerr Anderson, Managing Director,
Ormonde Mining plc Tel: +353 (0)46 9073623
Fraser Gardiner, Director,
Ormonde Mining plc Mobile: +353 (0)86 3931178
Simon Rothschild,
Bankside Consultants Tel: +44 (0)20 7367 8871 Mobile: +44 (0)7703 167065
CHAIRMAN'S STATEMENT
OPERATIONAL REVIEW
Operational activity during the first six months of the year focused on a
pre-feasibility Scoping Study on the La Zarza Copper-Gold Deposit in Huelva
Province of south west Spain. This Study, completed in early September,
demonstrated positive economics for the proposed underground mining operation at
metal prices substantially lower than those presently prevailing, indicating an
Internal Rate of Return of 21%, rising to 36% with appropriate gearing. This
milestone has allowed the Company to immediately advance to the definitive
bankable study stage to be completed by mid-2007.
Drilling is continuing at La Zarza for reserve definition, following the first
JORC-compliant resource published in April. The environmental baseline study is
also progressing, and documentation to initiate permitting procedures will
shortly be submitted to the provincial authorities. A detailed programme of
metallurgical testwork to facilitate optimization of the mill processing circuit
is being planned and various other technical studies will commence shortly. We
have also initiated discussions with appropriate companies for the feasibility
study engineering design work.
Progress during the period on our gold exploration projects included the
completion of extensive soil geochemistry field programmes on our Salamanca and
Tracia licences. At Salamanca an extensive new mineralised zone was identified
with geochemical associations and style of mineralisation suggesting a bulk
tonnage gold target. Recently completed trenching at both Salamanca and Tracia
has confirmed drilling targets in both projects. Drilling will be ongoing
during Q4.
In February we signed an option over a tungsten tailings project at Salamanca,
which we are currently evaluating as a possible near-term cash generating
operation with exposure to upside in the tungsten price. Our assessment
advanced during the period with drilling, trenching and surveying of the
tailings. A gravity separation metallurgical testwork programme will commence
shortly and, assuming positive results, will lead into a simple
technical-economic evaluation of the project, including the design and costing
of a gravity tailings treatment plant.
CORPORATE DEVELOPMENTS
In May we completed a placing with both institutional and private investors of
Euro4.47 million (#3.04 million) before expenses, and our current cash position of
over Euro5 million means that the Company is fully funded to complete the bankable
feasibility at La Zarza and its ongoing drilling programmes on its various
projects.
Ormonde's operating loss for the period was Euro235,927 (Euro201,224 for the 6 months
to June 2005). Our management continues to maximize in-the-ground investment
and keep overheads to a minimum.
SUMMARY
This has been a period in which our lead project has passed a critical milestone
and is now advancing into its final evaluation. Our other projects have been
advanced to facilitate more rigorous investigation which has now commenced and
which will be the subject of further news flow in the coming months.
Michael J. Donoghue
Chairman
27 September 2006
Consolidated Profit & Loss Account
6 months ended 30 June 2006
6 months ended 6 months ended 12 months ended
30 June, 2006 30 June, 2005 31 December, 2005
Euro000's Euro000's Euro000's
Unaudited Unaudited Audited
Administrative expenses (252) (210) (451)
Operating income - - -
OPERATING LOSS (252) (210) (451)
Interest receivable 16 9 30
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (236) (201) (421)
Tax on loss on ordinary activities - - -
LOSS ON ORDINARY ACTIVITIES
AFTER TAXATION (236) (201) (421)
Minority Interest - -
Loss for the financial period (236) (201) (421)
Loss per share (Euro0.0015) (Euro0.0015) (Euro0.0029)
Consolidated Statement of Total Recognised Gains and Losses
6 months ended 30 June 2006
6 months ended 6 months ended 12 months ended
30 June, 2006 30 June, 2005 31 December, 2005
Euro000's Euro000's Euro000's
Unaudited Unaudited Audited
Loss for the financial period (236) (201) (421)
Currency translation differences on
foreign currency net investments - - 3
Total recognised gains and losses (236) (201) (418)
Consolidated Balance Sheet
As at 30 June 2006
30 June, 2006 30 June, 2005 31 December, 2005
Euro000's Euro000's Euro000's
Unaudited Unaudited Audited
FIXED ASSETS
Tangible assets 17 14 19
Goodwill 112 112 112
Intangible assets 4,444 2,853 3,555
4,573 2,979 3,686
CURRENT ASSETS
Debtors 360 32 571
Cash at bank and on hand 5,034 3,257 1,891
5,394 3,289 2,462
CREDITORS: (amounts falling due
within one year) (43) (120) (236)
NET CURRENT ASSETS 5,351 3,169 2,226
TOTAL ASSETS LESS CURRENT LIABILITIES 9,924 6,148 5,912
CREDITORS: (amounts falling due
after more than one year) - (3) -
NET ASSETS 9,924 6,145 5,912
CAPITAL AND RESERVES
Called-up share capital 5,864 5,474 5,484
Share premium account 14,230 10,383 10,359
Capital conversion reserve fund 29 29 29
Capital reserve 7 7 7
Foreign currency reserves - 3 3
Profit and loss account (10,208) (9,753) (9,972)
SHAREHOLDERS' FUNDS 9,922 6,143 5,910
Minority interest 2 2 2
9,924 6,145 5,912
Consolidated Cash Flow Statement
6 months ended 30 June 2006
6 months ended 6 months ended 12 months ended
30 June, 2006 30 June, 2005 31 December, 2005
Euro000's Euro000's Euro000's
Unaudited Unaudited Audited
NET CASH OUTFLOW FROM
OPERATING ACTIVITIES (258) (195) (821)
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest received 16 8 30
Interest element of finance leases - (1) -
NET CASH INFLOW FROM RETURNS ON
INVESTMENTS AND SERVICING OF FINANCE 16 7 30
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT
Expenditure on intangible assets (889) (1,011) (1,759)
Payments to acquire tangible assets - (2) (25)
Sale of tangible fixed assets - - 18
NET CASH OUTFLOW FROM CAPITAL
EXPENDITURE AND FINANCIAL INVESTMENT (889) (1,013) (1,766)
NET CASH OUTFLOW BEFORE FINANCING (1,131) (1,201) (2,557)
FINANCING
Issue of shares net of expenses 4,274 4,018 4,004
Capital element of finance leases - (4) -
NET CASH INFLOW FROM FINANCING 4,274 4,014 4,004
INCREASE IN CASH 3,143 2,813 1,447
1. This interim statement for the 6 months ended 30 June 2006 is
unaudited and was approved by the Directors on 27 September 2006. The financial
information contained in these statements does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985. The financial
information for the year ended 31 December 2005 has been extracted from the
statutory accounts for that year, which have been filed with the Registrar of
Companies and on which the auditors issued an unqualified report.
2. The financial information has been prepared on a consistent basis
and using the same accounting policies as the audited financial statements for
the year ended 31 December 2005 with the exception of the adoption of FRS 20 '
Share-based Payment' which was adopted with effect from 1 January 2006. FRS 20
requires the fair value of share options, granted after 7 November 2002 and not
yet vested at 1 January 2006, to employees and directors to be recognized in the
financial statements. There is no impact on the 2006 interim financial
statements or on the comparative 2005 financial statements.
3. The loss per share was calculated from the loss for the period
attributable to ordinary shareholders of Euro235,927(June 2005 = Euro201,224) divided
by the time-weighted average number of shares in issue during the period of
156,292,428 (June 2005 = 133,687,956). There is no dilutive effect of share
options on the basic loss per share.
4. No dividends were paid or proposed in respect of the six months
ended 30 June 2006.
This information is provided by RNS
The company news service from the London Stock Exchange
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