Interim Results

RNS Number : 1215P

Ormonde Mining PLC

29 September 2011

 

29 September 2011

Ormonde Mining plc

Interim Results for the Six Months Ended 30 June 2011

DUBLIN & LONDON: 29 September 2011 - Ormonde Mining plc, the exploration and development company operating in Spain, is pleased to announce its unaudited interim results for the six months ended 30 June 2011. 

Highlights:

Barruecopardo 

·     Drilling completed and feasibility study progressing very satisfactorily.

·     Responses received from regional authorities to initial permitting submissions and no unexpected matters have been raised.

·     Tungsten price remains strong, having traded in a relatively narrow range at around US$460 per metric tonne unit (mtu) over the past four months.

La Zarza

·     New permits awarded around La Zarza which have been incorporated into the Antofagasta Joint Venture, with an aggressive exploration programme wholly funded by Antofagasta now underway.

·     Preparation of permitting documentation for the transfer of the mining concessions over the La Zarza Mine well advanced.

Gold Exploration

·     Activities on gold properties being funded through a joint venture with Aurum Mining plc, with results awaited from an initial drilling programme.

Michael Donoghue, Chairman of the Company, commented today,

"I am pleased to report that we are making good progress on advancing the Barruecopardo Tungsten Project through the feasibility study and permitting process and into the capital funding and development stages. We expect to be in a position to issue a progress report shortly.

Progress on our La Zarza Copper Project is also very encouraging, with an aggressive exploration programme, funded by our JV partner Antofagasta, commencing on the recently awarded permits around the known copper resources.  In addition, we are well advanced with thepreparation of permitting documentation for the transfer of the mining concessions at La Zarza."

Enquiries to:

Ormonde Mining plc

Kerr Anderson, Managing Director  Tel: [phone]

Bankside Consultants

Simon Rothschild  Tel: [phone]   Mob: [phone]

Murray Consultants

Ed Micheau  Tel: [phone]  Mob: [phone]

Davy (Nomad / ESM Adviser)

Eugenée Mulhern / Fergal Meegan  Tel: [phone]

Fairfax I.S. PLC (Joint Broker)

Ewan Leggat / Katy Birkin  Tel: [phone]

CHAIRMAN'S STATEMENT

During the first half of the year your company made significant progress on each of its three projects and, while we are presently between milestone events, the next few months of 2011 should see the realisation of our endeavours in a number of areas.

Progress on the feasibility study on the Company's flagship project, Barruecopardo, which is being carried out by Jacobs Engineering Group, is on schedule for completion by the end of the year. We expect the feasibility study to meet or exceed target expectations.  The drilling programme has been completed with the results received to date being in line with previous interpretations. We expect assays from the remaining holes to be available shortly and this will lead on to a revised resource estimate. The final, definitive, metallurgical testwork, designed to optimise the process flow-sheet and facilitate the sizing and selection of plant, is nearing completion and has yielded significant improvements in the processing plant design and operating parameters. However, the major thrust in optimising the project is in the area of the mining plan and work in this area is progressing very well and has now reached a stage where the Company expects to  issue an interim report on progress on the feasibility study shortly.

Initial permitting documentation was submitted to the regional regulatory authorities in January. Formal responses were received within the statutory timeframe and no unexpected matters were raised in the responses from the various government departments and NGO's. The guidance provided is being incorporated into the final Project Environmental Impact Assessment.

The price of tungsten has risen from $245 per mtu of APT at the time of the Scott Wilson Study (September 2010), to a current price of $460/mtu, a level around which it has settled since May 2011. Despite the present volatile nature of the equity markets and economic uncertainty in many countries, the prognosis is still very much for growing demand for tungsten, a shortage of new viable fundable projects and a shortfall on the supply side, all of which point to strong tungsten prices over the coming years. In a report issued very recently, the British Geological Survey has placed tungsten in joint first position  in terms of metal supply risk (above the rare earths), following on from previous concerns expressed in an EU report in June 2010. Putting this into a commercial context, one very reputable global financial organisation, with a significant presence in China, is forecasting a growing shortage of tungsten and the likelihood that tungsten market dynamics will develop similar to that of the rare earths, with prices increasingly supply-driven rather than demand-driven.

At our La Zarza copper project, Ormonde was recently awarded four additional permits covering a total area of some 95 square kilometres along strike to the east and west of the known mineral resources. These permits have been incorporated into the Antofagasta Joint Venture and the relevant documentation approved. The agreed $1.3 million work programme being wholly funded by Antofagasta has now commenced. The ground gravity survey is well advanced and the airborne electro-magnetic survey is due to commence shortly. We await the results of this work, which will be followed up later this year with a diamond drilling programme on any targets identified. Preparation of permitting documentation for the transfer of the mining concessions over the La Zarza Mine is now well advanced and we are pursuing avenues to facilitate exploitation of these resources.

In March of this year, Ormonde put in place a structure to retain its gold-tungsten properties in Salamanca Province, as peripheral extensions to the Barruecopardo assets, whilst facilitating the advancement and independent funding of its other gold properties in both Salamanca and Zamora Provinces. This structure, a joint venture with Aurum Mining Plc, is working well.  Exploration activities have made good progress and we await the results of initial drilling on areas of known gold mineralisation.

Ormonde's operating loss for the period was €437k (€258k for the 6 months to June 2010), which reflects  an additional  administrative expense as both the operational and management team are strengthened to cope with the design and development stage of the Barruecopardo Tungsten Project and the increased corporate activity as funding and offtake options are evaluated.

Ormonde successfully raised £4 million (before expenses) through a placement, which was oversubscribed, at the beginning of May to fund the feasibility study and permitting activities for Barruecopardo, part of the consideration due in connection with the acquisition by Ormonde of the final 10% interest in Barruecopardo, work related to the transfer of title to the mining concessions at La Zarza, and for general working capital purposes.

We thank shareholders for their continued support and look forward to reporting on further progress in the development of Barruecopardo as a significant, strategic and secure European low cost tungsten producer.

Michael J. Donoghue

Chairman

29 September 2011

Ormonde Mining PLC

Consolidated Statement of Comprehensive Income

Six months ended 30 June 2011

	unaudited	unaudited	audited
	6 months ended	6 months ended	Year ended
	30-Jun-11	30-Jun-10	31-Dec-10
	€000s	€000s	€000s
Turnover	0	0	0
Administration expenses	(436)	(256)	(1,061)
Exploration costs written off	0	0	(32)
	________	________	________
Operating loss	(436)	(256)	(1,093)
Interest receivable	8	0	6
Other finance costs	(9)	(2)	(2)
	______	______	______
Loss on Ordinary Activities	(437)	(258)	(1,089)
Minority Interest	0	0	0
	______	______	______
Loss for the Period	(437)	(258)	(1,089)
Loss per share
Basic	-€0.0014	-€0.0011	-€0.0043
Diluted	-€0.0014	-€0.0011	-€0.0043

Ormonde Mining PLC

Consolidated Statement of Financial Position

As at 30 June 2011

	unaudited	unaudited	audited
	30-Jun-11	30-Jun-10	31-Dec-10
	€000s	€000s	€000s
Assets
Non current assets
Intangible assets - Exploration & Evaluation costs	14,195	11,885	12,443
Property, plant & equipment	18	6	22
	_______	_______	_______
Total Non Current Assets	14,213	11,891	12,465
Current assets
Trade & other receivables	513	286	149
Cash & cash equivalents	3,885	895	1,944
	_______	_______	_______
Total current assets	4,398	1,181	2,093
	_______	_______	_______
Total assets	18,611	13,072	14,558
	_______	_______	_______
Equity & liabilities
Equity
Called up share capital	10,151	7,906	9,042
Share premium account	24,174	19,283	20,889
Other capital reserves	700	269	700
Retained losses	(16,783)	(15,516)	(16,346)
Minority interest	0	0	0
	_______	_______	_______
Total equity - attributable to the owners of the Company	18,242	11,942	14,285
Non-current liabilities
Trade & other payables	0	300	0
Current liabilities
Trade & other payables	369	830	273
	_______	_______	_______
Total liabilities	369	1,130	273
	_______	_______	_______
Total equity & liabilities	18,611	13,072	14,558
	_______	_______	_______

Ormonde Mining PLC

Consolidated Statement of Cashflows

Six months ended 30 June 2011

	unaudited	unaudited	audited
	6 months ended	6 months ended	Year ended
	30-Jun-11	30-Jun-10	31-Dec-10
	€000s	€000s	€000s
Cashflows from operating activities
Net loss before interest & tax	(436)	(256)	(1,087)
Adjustments for:
Depreciation	4	3	6
Exploration costs written off	0	0	32
Share based payment	0	0	432
Investment income recognised in P&L	(1)	0	(6)
(Increase)/Decrease in receivables	(363)	(177)	(41)
Increase/(decrease) in liabilities	96	356	(501)
Income taxes paid	0	0	(1)
	________	________	________
Cash generated from operations	(700)	(74)	(1,166)
Cashflows from financing activities
Proceeds from issue of share capital	4,394	726	3,467
Investing activities
Purchase of plant & equipment	0	0	(19)
Expenditure on exploration activities	(1,752)	(253)	(842)
Interest received/(payable)	(1)	(2)	6
	________	________	________
Net cash used in investing activities	(1,753)	(255)	(855)
	________	________	________
Net (decrease)/increase in cash	1,941	397	1,446
Cash at beginning of period	1,944	498	498
	______	______	______
Cash at end of period	3,885	895	1,944

Ormonde Mining PLC

Consolidated Statement of Changes in Equity

			Share based payment reserve
	Share Capital	Share Premium		Other Reserves	Retained Losses	Total
	€000s	€000s	€000s	€000s	€000s	€000s
At 1 January 2010
	7,447	19,016	232	37	(15,258)	11,474
Proceeds of share issue	459	267	-	-	-	726
Loss for the period	-	-	-	-	(258)	(258)
	______	______	______	______	______	______
At 30 June 2010	7,906	19,283	232	37	(15,516)	11,942
Proceeds of share issue	1,136	1,606	-	-	-	2,742
Recognition of share based payments	-	-	431	-	-	431
Loss for the period	-	-	-	-	(830)	(830)
	______	______	______	______	______	______
At 31 December 2010	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
	______	______	______	______	______	______

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 2011 are as follows:

	Ireland	Spain
Loss for period to 30 June 11	€000s	€000s
Segment loss for period	0	(437)
	______	______
	0	(437)
	______	______

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:

	30-Jun-11	30-Jun-10	31-Dec-10
	€000s	€000s	€000s
Loss for period	(437)	(258)	(1,089)
Weighted average number of ordinary shares
for the purpose of basic earnings per share	308,642,582	241,711,655	250,388,186
	______	______	______
Basic loss per ordinary shares (in cent)	(0.14)	(0.11)	(0.43)
	______	______	______

Diluted earnings per share

The weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:

	30-Jun-11	30-Jun-10	31-Dec-10
	€000s	€000s	€000s
Loss for period	(437)	(258)	(1,089)
Weighted average number of ordinary shares
for the purpose of basic earnings per share	308,642,582	241,711,655	250,388,186
Shares deemed to be issued for no consideration
in respect of Employee Options	2,704,688	2,298,333	3,298,611
Weighted average number of ordinary shares
for the purpose of diluted earnings per share	311,347,270	244,009,988	253,686,797
	______	______	______
Diluted loss per ordinary shares (in cent)	(0.14)	(0.11)	(0.43)
	______	______	______

Notes to the Interim Financial Statements (continued)

3.   Intangible assets - Exploration costs

	Exploration
	& Evaluation	Total
	Assets
	€000s	€000s
Cost
At 1 January 2011	12,443	12,443
Additions	1,752	1,752
	______	______
At 30 June 2011	14,195	14,195
	______	______

4.   Property, Plant and Equipment

	Fixtures	Computer	Motor	Total
	& Fittings	Equipment	Vehicles
	€000s	€000s	€000s	€000s
Cost
At 1 January 2011	22	45	37	104
Additions	0	0	0	0
	______	______	______	______
At 30 June 2011	22	45	37	104
	______	______	______	______
Accumulated Depreciation & Impairment
At 1 January 2011	(22)	(43)	(17)	(82)
Depreciation expense	0	(1)	(3)	(4)
	______	______	______	______
At 30 June 2011	(22)	(44)	(20)	(86)
	______	______	______	______
Net Book Value at 1 January 2011	0	2	20	22
	______	______	______	______
Net Book Value at 30 June 2011	0	1	17	18
	______	______	______	______

Notes to the Interim Financial Statements (continued)

5.   Share Capital

	30-Jun-11	30-Jun-10	31-Dec-10
	€000s	€000s	€000s
Authorised Equity
450,000,000 ordinary shares of 2.5c each	11,250	11,250	11,250
100,000,000 deferred shares of 3.809214 each	3,809	3,809	3,809
	______	______	______
	15,059	15,059	15,059
	______	______	______
Issued Capital
Share Capital	10,151	7,906	9,042
Share Premium	24,174	19,283	20,889
	______	______	______
	34,325	27,189	29,931
	______	______	______

On 4 May 2011, the Company placed 42,199,711 new ordinary shares of nominal value of €0.025 each in the capital of the Company at a price of Stg9.5p per share, raising Stg£4 million (approximately €4.4 million) before expenses.

On 11 May 2011, 2,150,000 new ordinary shares of nominal value of €0.025 each in the capital of the Company were issued in connection with the exercise of options at €0.041 each.

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 2011.

ENDS

 

END

 

 

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