TIDMORM
RNS Number : 5559P
Ormonde Mining PLC
21 June 2022
21 June 2022
Ormonde Mining plc
("Ormonde" or the "Company")
Final Results for the Year Ended 31 December 2021
Ormonde announces its final results for the year ended 31
December 2021.
Key points:
-- Newly constructed Board appointed, including Brian Timmons
(previously Non-Executive Director) becoming Non-Executive Chairman
in October 2021 and Brendan McMorrow becoming Chief Executive
Officer in November 2021 - significant ongoing cost savings
-- The Board is reviewing a range of acquisition opportunities
in appropriate jurisdictions including precious metals, precious
stones, battery metals and base metals projects
-- Process supported by newly appointed senior technical and geological consultants
-- The Board continues to evaluate its strategy to unlock value
for shareholders from the Company's existing assets in Spain,
including a potential transaction relating to the Company's
interests at La Zarza
-- Total comprehensive loss of EUR1.6 million including EUR0.4 million asset impairment
-- Net assets of EUR5.96 million, including a cash balance of
EUR3.75 million, placing the Company in a position of strength to
undertake a transaction
Brian Timmons, Chairman, commented:
"2021 was a year of transition for the Company as we
restructured the Board, reviewed the Company's assets , reorganised
the Company to operate on a reduced cost basis , and positioned
Ormonde to execute an opportunity to enable the Company to leverage
its listing and balance sheet and generate value for
shareholders.
I would like to thank our shareholders for their continued
support and patience. I am conscious that shareholders are keen to
see the value of their holding grow. Our job is to ensure that we
deliver the best opportunity to achieve this; one which offers the
maximum upside from the Company's current balance sheet. I am
confident that we have the team in place to execute on that goal
and deliver shareholder value."
Enquiries:
Ormonde Mining plc
Brian Timmons, Non-Executive Chairman
Tel: +353 (0)1 801 4184
Vigo Consulting (Investor Relations)
Ben Simons / Charlie Neish
Tel: 44 (0)20 7390 0230
Davy (Nomad, Euronext Growth Advisor and Joint Broker)
Barry Murphy
Tel: +353 (0)1 679 6363
CHAIRMAN'S REVIEW
Introduction
I am pleased to provide my first report to shareholders as
Ormonde's Chairman, having been appointed as a Non-Executive
Director in June 2020, and subsequently as Non-Executive Chairman
in October 2021.
2021 was a year of transition for the Company as we restructured
the Board, reviewed the Company's assets, reorganised the Company
to operate on a reduced cost basis, while building its capability
to e xecute an opportunity that will enable the Company to leverage
its listing and balance sheet to generate value for
shareholders.
Leadership Restructuring
Following the Company's Annual General Meeting in September
2021, Jonathan Henry, and his board and management team left the
Company.
Brendan McMorrow and Keith O'Donnell joined me on the Board, and
Brendan was subsequently appointed in November 2021 to discharge
the role of Chief Executive Officer. Brendan, Keith and I each have
over 30 years' experience in company management, capital markets,
and publicly listed natural resources companies.
The Board is now supported in its endeavours by experienced
industry consultants. These include Steve Nicol and Professor Garth
Earls, who bring with them over 70 years of combined relevant
experience. Drawing on his background in mine evaluation and
operations, Steve, as Senior Technical and Mining Advisor, is
assisting in the evaluation of potential new mining assets. He
previously worked with Ormonde to identify and commercialise the
Barruecopardo Tungsten mine in Spain, whose 30% interest was sold
by the Company in 2020 for EUR6 million. Garth is assisting the
Company as a Senior Geologist, focused on project exploration and
development appraisal. Garth has over 40 years of professional
experience in mineral exploration, was part of the team that
discovered the six-million-ounce Curraghinalt gold deposit in
Northern Ireland, and currently serves as Executive Chairman of
International Geoscience Services. He is a former Director of the
Geological Survey of Northern Ireland and a past Chairman of the
Geosciences Committee of the Royal Irish Academy.
Steve and Garth provide the complementary skill sets required to
evaluate the geological, technical, mining operational and
commercial elements of the projects under review and to identify
worthwhile opportunities to generate value for the Company and its
shareholders.
We are now pursuing investment opportunities at a more
appropriate and efficient cost to the Company. Until the Company
has made material strategic progress in this regard, the directors
have waived their entitlement to non-executive directors' fees.
New Project Evaluation
The range of opportunities being reviewed include precious
metals, precious stones, battery metals and some base metals in a
number of jurisdictions including Africa and Europe.
Our objective is to invest in a project which will generate
meaningful value for shareholders on a sustainable basis. We are
reviewing a number of opportunities that appear promising, without
presenting excessive risk to shareholders.
Existing Projects
Ormonde retains its assets in Spain, namely the Salamanca and
Zamora gold projects and the Board continues to evaluate its
strategy to unlock value for shareholders from these assets. In
addition, the prospect of a transaction relating to the land and
data assets of the Company's La Zarza interest continues with
discussions with interested parties ongoing.
Financials
Ormonde recorded a total comprehensive loss for the period of
EUR1.6 million for 2021, including an asset impairment, noted
below, of EUR0.4 million, compared with a loss of EUR1.1 million in
2020.
Following an internal review of its assets at La Zarza, Ormonde
now values its La Zarza interests at EUR2.0 million, a EUR0.4
million reduction from previous guidance. The Board considers this
to be a fair value and is in discussions regarding a
transaction.
While reviewing new opportunities, the Board has, since its
reconstruction in late 2021, endeavoured to reduce the Company's
overheads with Board and management costs lower on a full year
basis by approximately 60 percent. The impact of these reductions
will be realised in the current year with projected savings related
to payroll of c. EUR0.3 million for 2022 as compared to 2021.
As of 31 December 2021, the Company had net assets of EUR5.96
million, including a cash balance of EUR3.75 million, placing the
Company in a position of considerable strength to undertake a
transaction within the natural resources sector.
Outlook
On behalf of the Board, I would like to thank our shareholders
for their continued support and patience. I am of course conscious
that our shareholders are keen to see the value of their holding
grow. Our job is to ensure we deliver the best opportunity to
achieve this; one which offers the maximum upside from the
Company's balance sheet and resources. I am confident that we have
the team in place to execute on that goal and deliver value to
shareholders. While we are undertaking that process, we will
continue to manage costs prudently. I look forward to updating you
on the Company's progress in due course.
Brian Timmons
Chairman
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2021
Year ended Year ended
31-Dec-21 31-Dec-20
EUR000s EUR000s
Turnover 0 0
Administration expenses (1,194) (1,119)
Impairment of intangibles (400) 0
______ ______
Loss on ordinary activities (1,594) (1,119)
Finance costs (24) (17)
______ ______
Loss for the year from continuing
activities (1,618) (1,136)
Profit from discontinued operations 0 1,600
______ ______
Loss (profit) for the year (1,618) 464
Taxation 0 0
______ ______
Loss (profit) for the Period
after tax (1,618) 464
Other comprehensive income
less: Reclassification of foreign
currency gain on disposal of
foreign operation 0 (1,600)
______ ______
Total comprehensive (loss) for
the period (1,618) (1,136)
______ ______
Earnings per share
from continuing operations
Basic & diluted (loss) per share
(in cent) (0.34) (0.24)
Total earnings per share
Basic & diluted (loss) per share
(in cent) (0.34) 0.10
Consolidated Statement of Financial Position
as at 31 December 2021
31-Dec-21 31-Dec-20
EUR000s EUR000s
Assets
Non-current assets
Intangible assets 309 295
_______ _______
Total Non-Current Assets 309 295
Current assets
Trade and other receivables 93 58
Asset classified as held for
sale 2,000 2,400
Cash & cash equivalents 3,746 4,965
_______ _______
Total Current Assets 5,839 7,423
_______ _______
Total Assets 6,148 7,718
_______ _______
Equity & liabilities
Capital and Reserves
Issued capital 4,725 4,725
Share premium account 29,932 29,932
Share based payment reserve 281 283
Capital conversion reserve
fund 29 29
Capital redemption reserve
fund 7 7
Retained losses (29,013) (27,469)
_______ _______
Equity attributable to the
Owners of the Company 5,961 7,507
Current Liabilities
Trade & other payables 187 211
_______ _______
Total Liabilities 187 211
_______ _______
Total Equity & Liabilities 6,148 7,718
_______ _______
Consolidated Statement of Cashflows
for the year ended 31 December 2021
Year ended Year ended
31-Dec-21 31-Dec-20
EUR000s EUR000s
Cashflows from operating activities
Loss for the year before taxation
Continuing operations (1,618) (1,136)
Discontinued operations 0 1,600
________ ________
(1,618) 464
Adjustments for:
Impairment of asset classified as
held for sale 400 0
Reclassification of foreign exchange
gain 0 (1,600)
Non cash items: Share Option expense 72 19
________ ________
(1,146) (1,117)
Movement in Working Capital
Movement in receivables (35) 320
Movement in liabilities (24) (358)
________ ________
Net Cash used in operations (1,206) (1,155)
Investing activities
Expenditure on intangible assets (14) (10)
Proceeds from disposal of associate 0 6,000
________ ________
Net cash (used in)/generated from
investing activities (14) 5,990
Net (decrease)/increase in cash
and cash equivalents (1,219) 4,835
Cash and cash equivalents at the
beginning of the year 4,965 130
______ ______
Cash and cash equivalents at the
end of the year 3,746 4,965
______ ______
Consolidated Statement of Changes in Equity
for the year ended 31 December 2021
Share
based
Share Share Payment Other Retained
Capital Premium Reserve Reserves Losses Total
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s
Balance at 1 January
2020 13,485 29,932 837 1,636 (37,265) 8,625
Loss for the year - - - - (1,136) (1,136)
Reclassification of foreign
currency gain on disposal
of foreign operation - - - (1,600) 1,600 0
______ ______ ______ ______ ______ ______
Total comprehensive income
for the year 0 0 0 (1,600) 464 (1,136)
Release relating to expired
share options - - (572) - 572 0
Employee share-based compensation - - 18 - - 18
Cancellation of shares (8,760) - - - 8,760 0
______ ______ ______ ______ ______ ______
Balance at 31 December
2020 4,725 29,932 283 36 (27,469) 7,507
Loss for the year - - - - (1,618) (1,618)
______ ______ ______ ______ ______ ______
Total comprehensive income
for the year 0 0 0 0 (1,618) (1,618)
Release relating to expired
share options - - (74) - 74 0
Employee share-based compensation - - 72 - - 72
______ ______ ______ ______ ______ ______
Balance at 31 December
2021 4,725 29,932 281 36 (29,013) 5,961
______ ______ ______ ______ ______ ______
1. The basic loss per share and the diluted loss per share have
been calculated on a loss after taxation of EUR1,618,026 (2020:
profit of EUR464,000) and a weighted average number of Ordinary
Shares in issue for the year of 472,507,482 (2020: 472,507,482) for
the basic loss per share and 472,507,482 (2020: 472,507,482) for
the diluted loss per share.
2. The financial information prepared using accounting policies
consistent with International Financial Reporting Standards
("IFRS") as adopted by the European Union included in this
preliminary statement does not constitute the statutory financial
statements for the purposes of Chapter 4 of part 6 of the Companies
Act 2014. Full statutory statements for the year ended 31 December
2021 prepared in accordance with IFRS, upon which the auditors have
given an unqualified report, have not yet been filed with the
Registrar of Companies. Full financial statements for the year
ended 31 December 2020 prepared in accordance with IFRS and
containing an unqualified report, have been filed with the
Registrar of Companies.
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END
FR URUARUWUNUUR
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