TIDMORM
RNS Number : 2665N
Ormonde Mining PLC
27 September 2012
27 September 2012
Ormonde Mining plc
("Ormonde" or "the Company")
Interim Results for the Six Months Ended 30 June 2012
Ormonde Mining plc, the development and exploration company
operating in Spain, is pleased to announce its unaudited interim
results for the six months ended 30 June 2012.
Highlights:
Barruecopardo
-- Definitive Feasibility Study completed demonstrating exceptional economics
-- Final Permitting documentation submitted
-- Capital funding negotiations with selected parties ongoing
and expected to be completed in coming months
Exploration
-- Antofagasta JV drilling on new permits completed and being assessed
-- Aurum Mining JV drilling at the El Facho and Peralonso
Prospects delivered encouraging results; further drilling now
underway at Peralonso
Michael Donoghue, Chairman of Ormonde, commented,
"Throughout 2012, we have been putting in place the essential
building blocks to enable the transformation of the Company to take
place next year with development of our flagship Barruecopardo
Tungsten Project, Spain. Following completion of the Definitive
Feasibility Study and submission of documentation for Final
Permitting, we have moved to advance capital funding arrangements
and are currently in discussions with selected parties. These
discussions are progressing and on completion in the coming months
will pave the way for the development plan to be implemented at
Barruecopardo in 2013."
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)1 8253570
Bankside Consultants
Simon Rothschild Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065
Murray Consultants
Ed Micheau Tel: +353 (0)1 4980300 Mob: +353 (0)86 803 7155
Davy (Nomad / ESM Adviser)
Eugenée Mulhern / Roland French Tel: +353 (0)1 6796363
Fairfax I.S. PLC (Joint Broker)
Ewan Leggat / Katy Birkin Tel: +44 (0)207 598 5368
CHAIRMAN'S STATEMENT
Progress on the advancement of our Barruecopardo Tungsten
Project in Salamanca Province, Spain, towards development and
production continued during the first half of 2012. Completion of
the Definitive Feasibility Study in Q1 led to the submission of the
second and final permitting documentation and facilitated the
commencement of a formal phase of capital funding and offtake
negotiations. Meanwhile our copper exploration endeavours in joint
venture with Antofagasta Minerals in the Andalucía Province and our
gold exploration in joint venture with Aurum Mining in the
Salamanca and Zamora Provinces continued to make progress, with the
latter leading to the discovery of a new and most encouraging zone
of gold mineralisation at the Peralonso Prospect in the Salamanca
Province.
The Definitive Feasibility Study for Barruecopardo, based upon
an averaged 227,000 metric tonne units of tungsten trioxide (WO(3)
) production per year from a nine year open pit operation,
confirmed both the technical viability and very strong economics of
this major tungsten project, delivering a pre-tax NPV (8% discount
rate) of EUR120M, averaged annual pre-tax net operating cash flows
of EUR29M and an IRR of 52.0% at an APT price of US$350/mtu.
During Q2 the final documentation for the permitting process at
Barruecopardo was compiled in conjunction with our Spanish
consultants. This led to the submission in July 2012 of a number of
detailed reports: the Environmental Impact Study, the Exploitation
Plan, the Restoration Plan and the Financial Plan, to the Mining
Department in Salamanca, and these documents are now being reviewed
to ensure they meet all regulatory requirements to enable the
granting of a Mining Concession. The first stage submission (the
Documento Inicial) was presented in January 2011 and was reviewed
and processed by the regional authorities in a timely manner. We
have worked closely with the various regulatory bodies since that
initial submission and have taken their views and recommendations
into account in our final submission.
Work on the pre-EPCM engineering design also commenced during
the period. This comprised testing on bulk samples to finalise the
design and equipment selection for both the comminution and gravity
circuits and to enable equipment performance guarantees to be
provided by appropriate suppliers. This work is essentially
complete with the detailed engineering work to follow.
Completion of the various technical studies facilitated an
emphasis being placed on the capital funding, offtake and detailed
engineering stages. Negotiations with selected parties in relation
to capital funding are advancing, as are external economic and
technical evaluations. Negotiations on offtake are also in process
but as a matter of strategy offtake arrangements will only be
concluded in tandem with or following the finalisation of the
capital funding package. We now expect these funding activities to
run to completion in the coming months as we seek to maintain
flexibility to ensure the optimum funding package for the
Project.
In parallel with this technical work, the strong relationship
developed with the Barruecopardo Municipality was formally
recognised through a Collaboration Agreement signed with the local
Council in July 2012, which included a commitment by Ormonde to
provide an annual contribution towards the activities of the
Council. These funds will be allocated by the Council to areas
which benefit the local community.
Tungsten prices softened somewhat during the period as a
response to some uncertainty in the short term outlook for the
global economy. Nevertheless, the outlook for tungsten remains very
positive, with end-users interested in establishing a strategic and
secure long-term supply in a situation where new mine developments
remain constrained and supply of tungsten as APT is forecast to
contract (as did the tungsten concentrate supply previously) as
China continues to develop and move downstream into tungsten
product manufacturing.
Elsewhere, exploration activity in the joint venture with
Antofagasta on the new permits awarded in 2011 continued, with
3,048 metres of drilling recently completed on several targets as a
follow-up to a ground gravity survey and an airborne
electro-magnetic survey. This programme was funded by Antofagasta
and data is now being assessed by them. Further announcements in
relation to the outcome of this programme will be made in due
course.
Ormonde's gold exploration activities in Zamora and Salamanca
Provinces generated encouraging results during the period. This
work was fully funded as part of an earn-in joint venture with
Aurum Mining Plc, with Ormonde acting as Manager. Drilling on the
El Facho Prospect in Zamora established continuity of the gold
mineralised zone over a strike length of some 600 metres and
enabled a preliminary non-compliant resource estimate of some
120-145k ounces of gold at average grades of around 1g/t gold. The
first drilling on the Peralonso Prospect in the Salamanca Province
yielded very encouraging results with broad zones of potentially
economic mineralisation encountered in one of the holes and this
Prospect has become a priority target with further drilling now
underway.
Ormonde incurred an operating loss for the period of EUR499k
(EUR445k for the 6 months to June 2011), which reflects a continued
control of administrative expenses. The Company raised GBP3.4
million (before expenses) through a placement at the beginning of
March, to progress work at Barruecopardo and for general working
capital purposes.
In concluding I would like to thank shareholders for their
support during the period. I look forward to finalising
arrangements for the development of our Barruecopardo Project in
the period ahead.
Michael J. Donoghue
Chairman
27 September 2012
Ormonde Mining PLC
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2012
unaudited unaudited audited
6 months 6 months
ended ended Year ended
30-Jun-12 30-Jun-11 31-Dec-11
EUR000s EUR000s EUR000s
Turnover 0 0 0
Administration expenses (499) (445) (981)
________ ________ ________
Operating loss (499) (445) (981)
Interest receivable 13 8 15
______ ______ ______
Loss on Ordinary Activities (486) (437) (966)
Minority Interest 0 0 0
______ ______ ______
Loss for the Period (486) (437) (966)
Loss per share
Basic loss per share -EUR0.0014 -EUR0.0014 -EUR0.0030
Diluted loss per share -EUR0.0013 -EUR0.0014 -EUR0.0029
Ormonde Mining PLC
Consolidated Statement of Financial Position
As at 30 June 2012
unaudited unaudited audited
30-Jun-12 30-Jun-11 31-Dec-11
EUR000s EUR000s EUR000s
Assets
Non current assets
Intangible assets - Exploration
& Evaluation costs 18,128 14,195 16,763
Property, plant & equipment 4 18 4
_______ _______ _______
Total Non Current Assets 18,132 14,213 16,767
Current assets
Trade & other receivables 269 513 427
Cash & cash equivalents 3,526 3,885 1,990
_______ _______ _______
Total current assets 3,795 4,398 2,417
_______ _______ _______
Total assets 21,927 18,611 19,184
_______ _______ _______
Equity & liabilities
Equity
Called up share capital 10,998 10,151 10,151
Share premium account 27,185 24,174 24,174
Share based payment reserve 777 664 777
Other capital reserves 36 36 36
Foreign currency translation
reserve 0 0 1
Retained losses (17,798) (16,783) (17,313)
Minority interest 0 0 0
_______ _______ _______
Total equity - attributable
to the owners of the Company 21,198 18,242 17,826
Current liabilities
Trade & other payables 729 369 1,358
_______ _______ _______
Total liabilities 729 369 1,358
_______ _______ _______
Total equity & liabilities 21,927 18,611 19,184
_______ _______ _______
Ormonde Mining PLC
Consolidated Statement of Cashflows
Six months ended 30 June 2012
unaudited unaudited audited
6 months 6 months Year
ended ended ended
30-Jun-12 30-Jun-11 31-Dec-11
EUR000s EUR000s EUR000s
Cashflows from operating
activities
Net loss for period before
interest & tax (486) (436) (967)
Adjustments for:
Depreciation 1 4 3
Movement on Share-based payment
reserve 0 0 114
Investment income recognised
in P&L 0 (1) (15)
________ ________ ________
(485) (433) (865)
Movement in Working Capital
(Increase) in receivables 158 (363) (277)
Increase/(decrease) in liabilities (629) 96 1,087
Income taxes paid 0 0 (1)
________ ________ ________
Net Cash (used in) operations (956) (700) (56)
Cashflows from financing
activities
Proceeds from issue of share
capital 3,858 4,394 4,394
Investing activities
Movement in plant & equipment (1) 0 14
Expenditure on intangible
assets (1,364) (1,752) (4,321)
Interest received 0 (1) 15
________ ________ ________
Net cash used in investing
activities (1,365) (1,753) (4,292)
________ ________ ________
Net increase in cash and
cash equivalents 1,536 1,941 46
Cash and cash equivalents
at beginning of period 1,990 1,944 1,944
______ ______ ______
Cash and cash equivalents
at end of period 3,526 3,885 1,990
Ormonde Mining PLC
Consolidated Statement of Changes in Equity
Share
based
payment
reserve
Share Share Other Retained Total
Capital Premium Reserves Losses
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s
At 1 January 2011 9,042 20,889 663 37 (16,346) 14,285
Proceeds of share
issue 1,109 3,285 - - - 4,394
Loss for the period - - - - (437) (437)
______ ______ ______ ______ _______ ______
At 30 June 2011 10,151 24,174 663 37 (16,783) 18,242
Proceeds of share
issue - - - - - 0
Recognition of share
based payments - - 114 - - 114
Loss for the period - - - - (529) (529)
______ ______ ______ ______ _______ ______
At 31 December 2011 10,151 24,174 777 37 (17,312) 17,827
Proceeds of share
issue 847 3,011 - - 0 3,858
Recognition of share
based payments - - - - - 0
Loss for the period - - - - (486) (486)
______ ______ ______ ______ _______ ______
At 30 June 2012 10,998 27,185 777 37 (17,798) 21,199
______ ______ ______ ______ _______ ______
Notes to the Interim Financial Statements
1. Segmental Analysis
The Group is engaged in one business segment only, exploration
of mineral resource projects. Therefore only an analysis by
geographical segment has been presented. The Group has geographic
segments in Ireland and Spain.
The segment results for the period ended 30(th) June 2012 are as
follows:
Ireland Spain
Loss for 6 months to
30 June 12 EUR000s EUR000s
Segment loss for period 0 (486)
______ ______
0 (486)
______ ______
2. Loss per share
The basic and weighted average number of ordinary shares used in
the calculation of basic earnings per share are as follows:
Loss per share 30-Jun-12 30-Jun-11 31-Dec-11
EUR000s EUR000s EUR000s
Loss for period (486) (437) (966)
Weighted average number
of ordinary shares
for the purpose of basic
earnings per share 359,604,555 308,642,582 324,122,481
______ ______ ______
Basic loss per ordinary
shares (in cent) (0.14) (0.14) (0.30)
______ ______ ______
Diluted earnings per share
The weighted average number of ordinary shares used in the
calculation of diluted earnings per share are as follows:
Loss per share 30-Jun-12 30-Jun-11 31-Dec-11
EUR000s EUR000s EUR000s
Loss for period (486) (437) (966)
Weighted average number
of ordinary shares
for the purpose of basic
earnings per share 359,604,555 308,642,582 324,122,481
Shares deemed to be issued
for no consideration
in respect of Employee
Options 6,356,175 2,704,688 6,957,464
Weighted average number
of ordinary shares
for the purpose of diluted
earnings per share 365,960,730 311,347,270 331,079,945
______ ______ ______
Diluted loss per ordinary
shares (in cent) (0.13) (0.14) (0.29)
______ ______ ______
Notes to the Interim Financial Statements (continued)
3. Intangible assets - Exploration costs
Exploration
Total & Evaluation
Assets
EUR000s EUR000s
Cost
At 1 January 2012 16,764 16,764
Additions 1,364 1,364
______ ______
At 30 June 2012 18,128 18,128
______ ______
4. Property, Plant and Equipment
Fixtures Computer Motor Total
& Fittings Equipment Vehicles
EUR000s EUR000s EUR000s EUR000s
Cost
At 1 January 2012 26 45 18 89
Additions 1 0 0 1
Disposals (2) (19) 0 (21)
_____ _____ _____ _____
At 30 June 2012 25 26 18 69
_____ _____ _____ _____
Accumulated Depreciation
& Impairment
At 1 January 2012 (23) (44) (18) (85)
Depreciation expense (1) 0 0 (1)
Disposals 2 19 0 21
_____ _____ _____ _____
At 30 June 2012 (22) (25) (18) (65)
_____ _____ _____ _____
Net Book Value at 1 January
2012 3 1 0 4
_____ _____ _____ _____
Net Book Value at 30
June 2012 3 1 0 4
_____ _____ _____ _____
Notes to the Interim Financial Statements (continued)
5. Share Capital
Share Capital 30-Jun-12 30-Jun-11 31-Dec-11
EUR000s EUR000s EUR000s
Authorised Equity
450,000,000 ordinary shares
of 2.5c each 11,250 11,250 11,250
100,000,000 deferred shares
of 3.809214c each 3,809 3,809 3,809
______ ______ ______
15,059 15,059 15,059
______ ______ ______
Issued Capital
Share Capital 10,998 10,151 10,151
Share Premium 27,185 24,174 24,174
______ ______ ______
38,183 34,325 34,325
______ ______ ______
On 12 March 2012, the Company placed 33,910,896 new ordinary
shares of nominal value of EUR0.025 each in the capital of the
Company at a price of Stg10p per share, raising in aggregate
StgGBP3.39 million (approximately EUR4.04 million) before
expenses.
The financial information has been prepared under International
Financial Reporting Standards using accounting policies consistent
with those in the last Annual Report.
No dividends were paid or proposed in respect of the six months
ended 30 June 2012.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEMFMMFESELU
Ormonde Mining (AQSE:ORM)
Historical Stock Chart
From Jul 2024 to Aug 2024
Ormonde Mining (AQSE:ORM)
Historical Stock Chart
From Aug 2023 to Aug 2024
