TIDMORM
RNS Number : 0305N
Ormonde Mining PLC
20 September 2019
20 September 2019
This announcement contains inside information
Ormonde Mining plc
("Ormonde" or "the Company")
Barruecopardo Tungsten Mine Update
The Board of Ormonde ("the Board") is pleased to provide an
update on the Barruecopardo Tungsten Mine in Salamanca, Spain
("Barruecopardo" or "the Mine"). The Mine, currently in the first
year ramp-up operational phase, is operated by Saloro S.L.U.
("Saloro"), in which Ormonde holds a 30% beneficial interest.
-- Improved mined ore grades as mining in the southern starter
pit transitions downwards to fresh ore and northwards towards the
main orebody (the broad, high grade tungsten zone below the
historic open pit);
-- Significant progress on waste stripping of the east-wall
cutback also achieved, such that initial access to the main orebody
is expected early in the fourth quarter;
-- The Mine's saleable concentrate inventory has been building
during the initial months of operation, with Saloro preparing
initial shipments of tungsten concentrates for sale within the next
weeks;
-- To provide Saloro with additional liquidity support, as it
establishes ore mining operations on the main orebody in the coming
months, Saloro is in the process of finalising a EUR10 million, 12
month loan facility, with Oaktree Capital Management;
-- Successful auction of significant stocks of APT from the now
closed Fanya Metals Exchange in China, to a single Chinese tungsten
company at market prices, is seen as a positive market
development.
Michael Donoghue, Ormonde's Chairman and Interim Managing
Director, commented:
"While still early in the ramp-up phase, it is encouraging to
see that tungsten grades in the Mine have been improving, and that
the waste stripping required to allow Saloro access to more
continuous and higher grade fresh tungsten ore, in the main
orebody, has seen significant progress.
"The recent, successful auction of Fanya APT stocks, and
reported tightness of available tungsten material for prompt
delivery, are leading to improved market sentiment, which may prove
both timely and positive for Saloro as it continues to ramp up
operations."
Details:
Mining
Since Ormonde's last update in June, Saloro has focused mining
activities on ore mining in the southern starter pit and waste
stripping of the east wall of the historic open pit. Significant
progress has been made on both fronts.
The southern starter pit is performing much better than the
initial production from the northern starter pit, particularly as
ore mining progresses deeper and northwards from near-surface
weathered material to fresh ore in the direction of the main
orebody. Improved blasting and mining procedures have also
contributed towards mined ore grades corresponding increasingly
well with modelled grades. Consequently, batches of higher grade
and fresher ore are being delivered to the process plant.
In parallel, the east wall cutback has progressed substantially,
such that its southern end is merged with the southern starter pit,
and as both pits advance northwards during the fourth quarter, ore
mining will effectively transition into the main orebody.
Finance
Considering the additional mining costs related to the revised
mining schedule and the deferral of first revenues as a result of
the lower grade material encountered during the first months of
operation, Saloro is in the final stages of agreeing a EUR10
million, 12 month loan facility with Oaktree Capital Management,
Ormonde's 70% joint venture partner at the Mine. Once in place, the
loan facility will provide Saloro with additional liquidity support
as it establishes ore mining operations on the main orebody over
the coming months.
Tungsten concentrates
The Mine's inventory of saleable concentrates has been gradually
building during the first months of the current ramp-up phase and
Saloro is preparing its initial concentrate shipments for sale.
Tungsten market
The tungsten market has seen a period of weakness over the last
number of months, with APT prices falling from the $270 per metric
tonne unit ("mtu") level seen for much of H1 2019, to the current
level of $200 per mtu. While some of this weakness can be
attributed to the ongoing uncertain macroeconomic environment,
there has also been significant market uncertainty relating to the
release of stocks of APT, amounting to one third of annual Chinese
output, formerly held by the defunct Fanya Metal Exchange in
China.
The recent successful auction of this material, reportedly to a
single large Chinese tungsten company at market prices, is
therefore being seen as a positive development. In addition,
cutbacks in tungsten concentrate production and APT processing
within China are reportedly resulting in a scarcity of material
available in the spot market.
Enquiries:
Ormonde Mining plc
Paul Carroll, Chief Financial Officer
Fraser Gardiner, Chief Operating Officer
Tel: +353 (0)1 8014184
Davy (Nomad, Euronext Growth Advisor and Joint Broker)
John Frain / Barry Murphy
Tel: +353 (0)1 6796363
SP Angel Corporate Finance LLP (Joint Broker)
Ewan Leggat
Tel: +44 (0)20 3 470 0470
Capital M Consultants
Simon Rothschild
Mob: +44 (0)77 03167065
Murray Consultants
Mark Brennock
Tel: +353 (0)1 4980300
Mob: +353(0)872335923
Notes:
This announcement includes certain statements that may be deemed
"forward-looking statements". Although the Company believes the
forward-looking statements are based on reasonable assumptions,
such statements should not be in any way construed as guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements.
Risk factors are typical of a mining operation, and include (but
are not limited to): the availability and / or delivery of
equipment and contractor services; plant performance; rates of
metal recovery in the process plant; mined ore tonnages and grade
in comparison to estimated ore reserves; cost overruns and the
potential for future additional funding requirements; and tungsten
concentrate sales prices.
Barruecopardo has been developed through a US$99.7 million
funding package agreed with Oaktree Capital Management (70%
interest). Ormonde's participation in the Mine is held through its
30 per cent minority interest in Barruecopardo Joint Venture BV, a
company which is governed by a Shareholder Agreement which provides
for certain rights and obligations for each party. The Mine is
operated by Saloro S.L.U., a Spanish incorporated subsidiary of
Barruecopardo Joint Venture BV.
For more information, visit www.ormondemining.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDSFFFMUFUSEDU
(END) Dow Jones Newswires
September 20, 2019 02:00 ET (06:00 GMT)
Ormonde Mining (AQSE:ORM)
Historical Stock Chart
From Apr 2024 to May 2024
Ormonde Mining (AQSE:ORM)
Historical Stock Chart
From May 2023 to May 2024