Interim Results

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 €4.47 million (£3.04 million) before expenses. • Loss for the period of €235,927 (€201,224 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 €4.47 million (£3.04 million) before expenses, and our current cash position of over €5 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 €235,927 (€201,224 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 €000's €000's €000'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 (€0.0015) (€0.0015) (€0.0029) 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 €000's €000's €000'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 €000's €000's €000'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 €000's €000's €000'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 €235,927(June 2005 = €201,224) 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

Companies

Ormonde Mining (CDI) (ORM)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today