TIDMORM
RNS Number : 2569L
Ormonde Mining PLC
30 September 2016
30 September, 2016
Ormonde Mining plc
("Ormonde" or "the Company")
Interim Results for the Six Months Ended 30 June 2016
Ormonde Mining plc, the mine development and exploration company
operating in Spain, is pleased to announce its unaudited interim
results for the six months ended 30 June 2016.
Highlights:
Barruecopardo
-- Declaration of Urgent Occupation received, representing the
final major step in the compulsory land acquisition process;
-- Optimised construction schedule agreed for Barruecopardo,
which sees commissioning in late 2017;
-- Engineering design and awarding of processing plant equipment
supply contracts proceeding in line with budget;
-- Initial drilling campaign, investigating the potential for a
longer term underground mine operation at Barruecopardo, yields
encouraging results.
Michael Donoghue, Chairman of Ormonde, commented,
"With permitting and financing in place we have been in a
position during 2016 to advance the development stage of our
Barruecopardo Tungsten Project and it is encouraging to see that
capital commitments to date are within budget. It has also been
reassuring to see the Regional Parliament of Castilla y Leon vote
in favour of the Declaration of Urgent Occupation for lands under
compulsory acquisition. We look forward to the full construction
stage of the Project once the remaining land access procedural
steps have been completed".
Ormonde Mining plc
Steve Nicol, Managing Director Tel: +353 (0)1 8253570
Capital M Consultants
Simon Rothschild Mob: +44 (0)7703 167065
Murray Consultants
Mark Brennock Tel: +353 (0)1 4980300 Mob: +353 (0)87 2335923
Davy Corporate Finance (Nomad / ESM Adviser, Joint Broker and
Financial Adviser)
Roland French Tel: +353 (0)1 679 6363
SP Angel Corporate Finance LLP (Joint Broker)
Ewan Leggat Tel: +44 (0)20 3 470 0470
CHAIRMAN'S STATEMENT
Following the successful completion of permitting and capital
financing in 2015 and a restructuring of the Board and Management
later that same year, the first half of 2016 was a period of
consolidation, with the emphasis on working with our Barruecopardo
Project ("Project") partner to advance engineering and land
acquisition, pre-construction site investigations, dam earthworks
trials and site establishment works to facilitate the Project
moving forward into the full development phase.
The promotion of Steve Nicol from the position of COO to CEO and
the appointment of Paul Carroll as CFO was a timely and appropriate
step as the Project moved forward from the feasibility study,
permitting and capital funding stages into the more focussed
activity of mine development and preparations for operations.
As a first step, a comprehensive project management and capital
expenditure reporting system was put in place and linked to a new
reporting system to satisfy joint venture requirements. Fairport
Engineering, who has worked with Saloro on the engineering and
procurement support for the Project since the commencement of the
basic engineering phase in early 2014, was awarded the construction
management contract. The engineering design works completed by
Fairport enabled, by early 2016, the placing of orders for all of
the priority-1, longer lead-time, capital items for the processing
plant, and 60% of the priority-2 plant. This work is ongoing.
Activity at site during 2016 largely revolved around preparatory
site formation works, including the laying of main feed service
pipelines and the development of access roads and lay-down areas in
preparation for the main construction stage. In addition, site
investigation work was completed to verify geotechnical design
parameters and earthwork compaction trials were organised for the
water dams construction works.
The second area of focus, land acquisition, advanced well during
2016, with virtually all of the land blocks that were under option
to purchase being acquired by the Project company. The final phase
of land acquisition, the compulsory acquisition of the remaining
land blocks, was also advanced, although an appeal by a third party
against an administrative step in this process led to a change in
the expected timelines to completion of the process. Following
detailed legal advice, the Project company agreed an optimised
construction schedule which balances the most likely scenarios with
regard to possible compulsory acquisition timelines, whilst also
aligning the Project targeted first production date with
independent expectations for a more favourable tungsten price
environment. The Project commissioning phase is currently scheduled
for late 2017.
Since agreeing this new schedule, we have received the final
major approval relating to the land acquisition process, the
Declaration of Urgent Occupation. This step required a vote of the
regional parliament and the fact that this approval has been
delivered promptly, ahead of the date expected, reflects the
support the Project has, both publicly and politically, in Castilla
y Leon. A few procedural steps remain during the coming months
prior to access to the lands being achieved and the optimised
construction schedule, significantly de-risked by the receipt of
this important Declaration, remains valid.
While the current focus remains on project development, the
Project partners are also looking to increase the value of the
Barruecopardo asset through both extensions to the mine life and/or
increases in the eventual production rate. With this in mind, the
Project company commenced a 5-hole drilling programme in late 2015
to investigate the continuance of the tungsten mineralisation below
the presently planned open-pit. This programme completed in early
2016, and the results were encouraging and support the Company's
belief that the mine life at Barruecopardo can be extended through
the development of an underground mine after the open-pit mine has
been established. Further drilling to pursue this objective will be
carried out in due course.
The tungsten price has suffered the same price decline as most
other commodities, reaching a low of US$162 per metric tonne unit
("mtu") touched in January 2016. However, a slow recovery seems to
be underway, with prices now touching US$180-200 per mtu. The
prognosis reported by independent third parties is for a gradual
recovery in the tungsten price in 2017, with prices increasing
further in 2018, with these forecasts and market dynamics remaining
under continual review by the Company.
Financials
Ormonde had an operating profit of EUR120,000 for the period,
which when reduced by its share of loss from its associate (its
share of the Barruecopardo Group's loss for the period) resulted in
a total comprehensive loss for the period of EUR96,000 (EUR2.56m
profit for the 6 months to 30 June 2015).
In concluding, I would like to thank shareholders for their
support during the period. I look forward to completion of land
access and the commencement of the full construction stage of the
Barruecopardo Project.
Michael J. Donoghue
Chairman
29 September 2016
Ormonde Mining plc
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2016
unaudited unaudited audited
6 Months 6 Months
ended ended Year ended
30-Jun-16 30-Jun-15 31-Dec-15
EUR000s EUR000s EUR000s
Turnover 500 0 527
Administration expenses (378) (882) (1,443)
Investment income 0 3,397 3,397
Finance income 0 43 0
Finance costs (2) 0 (42)
______ ______ ______
Profit for the period before
tax 120 2,558 2,439
Taxation 0 0 0
______ ______ ______
Profit for the Period after
tax 120 2,558 2,439
Group share of loss on
associate (216) 0 (368)
______ ______ ______
Total comprehensive income/(loss)
for the period (96) 2,558 2,071
Profit / (Loss) per share
Basic profit / (loss) per
share (in cent) (0.02) 0.54 0.44
Diluted profit / (loss)
per share (in cent) (0.02) 0.54 0.44
Ormonde Mining plc
Consolidated Statement of Financial Position
As at 30 June 2016
unaudited unaudited audited
30-Jun-16 30-Jun-15 31-Dec-15
EUR000s EUR000s EUR000s
Assets
Non-current assets
Intangible assets 5,295 5,279 5,279
Investments 16,363 16,953 16,579
Property, plant & equipment 1 1 1
_______ _______ _______
Total non-current assets 21,659 22,233 21,859
Current assets
Trade & other receivables 74 547 35
Cash & cash equivalents 504 1,171 653
_______ _______ _______
Total current assets 578 1,718 688
_______ _______ _______
Total assets 22,237 23,951 22,547
_______ _______ _______
Equity & liabilities
Equity
Issued share capital 13,485 13,485 13,485
Share premium account 29,932 29,932 29,932
Share based payment reserve 837 837 837
Capital conversion reserve
fund 29 29 29
Capital redemption reserve
fund 7 7 7
Foreign currency translation
reserve 1 1 1
Retained losses (22,183) (21,602) (22,089)
_______ _______ _______
Total equity - attributable
to the owners of the Company 22,109 22,689 22,202
Current liabilities
Trade & other payables 128 1,262 345
_______ _______ _______
Total liabilities 128 1,262 345
_______ _______ _______
Total equity & liabilities 22,237 23,951 22,547
_______ _______ _______
Ormonde Mining plc
Consolidated Statement of Cashflows
Six months ended 30 June 2016
unaudited unaudited audited
6 months 6 months
ended ended Year ended
30-Jun-16 30-Jun-15 31-Dec-15
EUR000s EUR000s EUR000s
Cashflows from operating
activities
Net profit for period
before tax 120 2,558 2,439
Adjustments for:
Depreciation 0 0 0
Finance cost recognised
in P&L 2 0 42
________ ________ ________
122 2,558 2,481
Movement in working capital
Movement in receivables (39) (325) 186
Movement in liabilities (217) 1,050 133
________ ________ ________
Net cash (used in) operations (134) 3,283 2,800
Cashflows from financing
activities
Interest paid 0 0 (42)
Other equity movement 0 0 1,074
________ ________ ________
Cashflow from financing
activities (134) 3,283 3,832
Investing activities
Acquisitions & disposals 216 (3,697) (3,306)
Derecognition of subsidiary 0 1,074 0
Expenditure on intangible
assets (16) 0 (16)
________ ________ ________
Net cash used in investing
activities 201 (2,623) (3,322)
Share of loss in associate (216) 0 (368)
Cashflow from investing
activities (15) (2,623) (3,690)
Net increase/(decrease)
in cash and cash equivalents (149) 660 142
Cash and cash equivalents
at beginning of period 653 511 511
______ ______ ______
Cash and cash equivalents
at end of period 504 1,171 653
Ormonde Mining plc
Consolidated Statement of Changes in Equity
Six months ended 30 June 2016
Share
based
payment
reserve
Share Share Other Retained Total
capital premium reserves losses
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s
At 1 January 2015 13,485 29,932 837 37 (25,234) 19,057
Proceeds of share
issue - - - - - 0
Derecognition
of subsidiary - - - - 1,074 1,074
Profit for the
period - - - - 2,558 2,558
______ ______ ______ ______ ______ ______
At 30 June 2015 13,485 29,932 837 37 (21,602) 22,689
Proceeds of share
issue - - - - - 0
Loss for the period - - - - (487) (487)
______ ______ ______ ______ ______ ______
At 31 December
2015 13,485 29,932 837 37 (22,089) 22,202
Proceeds of share
issue - - - - 0 0
Loss for the period - - - - (96) (96)
______ ______ ______ ______ ______ ______
At 30 June 2016 13,485 29,932 837 37 (22,185) 22,106
______ ______ ______ ______ ______ ______
Notes to the Interim Financial Statements
1. Accounting policies and basis of preparation
Ormonde Mining plc is a company domiciled in the Republic of
Ireland. The Consolidated Interim Financial Statements ("the
Interim Financial Statements") of the Company, as at and for the
six months ended 30 June 2015, comprise the Company and its
subsidiaries (together referred to as the "Group").
The Interim Financial Statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union. The Interim Financial Statements have been
prepared applying the accounting policies that were applied in the
preparation of the Company's published consolidated financial
statements for the year ended 31 December 2015. There are no new
standards, amendments to standards or interpretations which are
mandatory for the first time for financial periods commencing on 1
January 2016 which have a significant impact on the Group's
accounting policies or on the reported results.
The comparative information provided in the Interim Financial
Statements relating to the year ended 31 December 2015 does not
comprise statutory financial statements. Those statutory financial
statements on which the Company's auditors gave an unqualified
audit opinion, have been delivered to the Registrar of
Companies.
The Interim Financial Statements do not include all of the
information required for full annual financial statements and
should be read in conjunction with the consolidated financial
statements of the Group as at and for the year ended 31 December
2015, which are available on the Company's website,
www.ormondemining.com. The Interim Financial Statements for the six
months ended 30 June 2016 are unaudited but have been reviewed by
the Company's auditors.
The Directors are satisfied that the Group has sufficient
resources to continue in operation for the foreseeable future,
being a period of not less than 12 months from the date of the
Interim Financial Statements. Accordingly, they continue to adopt
the going concern basis in preparing the financial information.
The Interim Financial Statements were approved by the Board of
Directors on 29 September 2016.
2. Segmental analysis
The Group is engaged in one business segment only, development
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 2016 are as
follows:
Ireland Spain
Profit for 6 months to
30 June 16 EUR000s EUR000s
Segment loss for period 0 (96)
______ ______
0 (96)
______ ______
Notes to the Interim Financial Statements (continued)
3. Profit/(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-16 30-Jun-15 31-Dec-15
EUR000s EUR000s EUR000s
Profit (loss) for period (96) 2,558 2,071
Weighted average number
of ordinary shares
for the purpose of basic
earnings per share 472,507,482 472,507,482 472,507,482
______ ______ ______
Basic profit (loss) per
ordinary shares (in cent) (0.02) 0.54 0.44
______ ______ ______
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-16 30-Jun-15 31-Dec-15
EUR000s EUR000s EUR000s
Profit (loss) for period (96) 2,558 2,071
Weighted average number
of ordinary shares
for the purpose of basic
earnings per share 472,507,482 472,507,482 472,507,482
Shares deemed to be issued
for no consideration
in respect of employee
options 0 1,559,322 0
Weighted average number
of ordinary shares
for the purpose of diluted
earnings per share 472,507,482 474,066,804 472,507,482
______ ______ ______
Diluted profit (loss)
per ordinary shares (in
cent) (0.02) 0.54 0.44
______ ______ ______
Notes to the Interim Financial Statements (continued)
4. Share capital
30-Jun-16 30-Jun-15 31-Dec-15
EUR000s EUR000s EUR000s
Authorised equity
650,000,000 ordinary
shares of 2.5c each 16,250 16,250 16,250
100,000,000 deferred
shares of 3.809214c each 3,809 3,809 3,809
______ ______ ______
20,059 20,059 20,059
______ ______ ______
Issued capital
Share capital 13,485 13,485 13,485
Share premium 29,932 29,932 29,932
______ ______ ______
43,417 43,417 43,417
______ ______ ______
5. Post balance sheet event
There were no post balance sheet events.
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 2016.
Independent Review Report to Ormonde Mining plc
Introduction
We have been engaged by the Company to review the Consolidated
Interim Financial Statements ("the Interim Financial Statements")
of the Company as at and for the six months ended 30 June 2016
comprising the Consolidated Statement of Comprehensive Income, the
Consolidated Statement of Financial Position, the Statement of
Cashflows and the related explanatory notes. We have read other
information contained in the half-yearly financial report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the Interim
Financial Statements.
This report is made solely to the Company in accordance with the
terms of our engagement. Our review has been undertaken so that we
might state to the Company those matters we are required to state
to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company for our review work, for this
report or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. As disclosed in note 1, the
annual financial statements of the group are prepared in accordance
with IFRSs as adopted by the EU. The Directors are responsible for
ensuring that the set of financial statements included in this
half-yearly financial report has been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the Interim Financial Statements in the half-yearly financial
report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagement (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the entity", issued by the Financial Reporting Council. A review
of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and
Ireland) and consequently does not enable us to obtain assurance
that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the Interim Financial Statements in the
half-yearly report for the six months ended 30 June 2016 is not
prepared, in all material respects, in accordance with IAS 34 as
adopted by the European Union.
Brendan Murtagh
For and on behalf of
LHM Casey McGrath Limited
Chartered Certified Accountants, Statutory Audit Firm
29 September 2016
6 Northbrook Road
Dublin 6
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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