TIDMORM
RNS Number : 9025A
Ormonde Mining PLC
28 September 2022
28 September 2022
Ormonde Mi n i ng p lc
("Or m onde" or "the C o m pany ")
Interim Results for the Six Months Ended 30 June 2022
Ormonde announces its unaudited interim results for the six
months ended 30 June 2022.
Key points:
-- Ongoing review of acquisition and investment opportunities across a number of jurisdictions
-- Conditional sale of La Zarza assets (the "Sale") provides
opportunity to further strengthen the Company's balance sheet in
order to create shareholder value through acquisitions
-- Following shareholder approval of the Sale, Company to become
a cash shell - required to undertake a reverse takeover within six
months
Operational Review:
New Projects
During the first six months of the year, the Board of Directors
(the "Board") and its advisory team evaluated a range of projects
located in a number of countries covering, inter alia, precious
metal, precious stones, base metals and battery metals
opportunities. While there are numerous early-stage exploration
opportunities available in the mining sector currently, such
investments carry a range of risk profiles, particularly those that
may require significant upfront investment with little visibility
over near or medium-term upside. With shareholder value in mind,
the Board is looking to identify opportunities in which Ormonde's
investment will have the ability to advance the project in a timely
manner and enhance its profitability potential without taking on
excessive risk.
La Zarza
On 29 July 2022, the Company announced that it had entered into
a conditional agreement for the sale of its interests in the La
Zarza Copper-Gold Project in Spain ("La Zarza") for a cash
consideration of EUR2.3 million, payable as EUR800,000 on closing
and three further payments of EUR500,000 each on the first, second
and third anniversary of closing. The Sale is conditional on
approval by Ormonde shareholders at an Extraordinary General
Meeting ("EGM") to be held later today. The Company has received
irrevocable undertakings from the Company's largest shareholder,
Thomas Anderson, holding 24.41% of the Company's shares, to vote in
favour of the resolutions in relation to the Sale.
Salamanca and Zamora Gold Projects
The three investigation permits that make up these gold
exploration projects came up for renewal during July and September
2021. Applications to extend each permit for a further three years
have been submitted to the mining authorities where they are
currently being processed. The renewal of the permits will require
further exploration commitments. This process can take a
considerable length of time and carries no guarantee that the
permits will be renewed. Ormonde's interest in the Salamanca and
Zamora Projects on 30 June 2022 was 50.9% and 46.6%
respectively.
Financial Review:
Interim Results
The Company reports a significantly reduced loss after tax for
the six months ended 30 June 2022 of EUR363,000 (2021: EUR630,000
Loss). The reduction of EUR267,000 in the reported loss was
primarily driven by the significant reductions in director and
senior management salaries and the elective non-payment of director
fees during the period.
As at 30 June 2022, the Company held EUR3.4 million of cash
(EUR3.7 million at 31 Dec 2021), with a further EUR800,000 due on
closing of the Sale and three further payments of EUR500,000 each
on the first, second and third anniversary of closing.
EGM Recommendation and AIM Rule 15
Following shareholder approval of the disposal of the La Zarza
assets, the Company would become a cash shell pursuant to AIM Rule
15 and the Euronext Growth Market rules, and as such will, within a
period of six months and twelve months respectively from the date
of the disposal, be required to make an acquisition or acquisitions
which constitute a reverse takeover under AIM Rule 14 and the
Euronext Growth Market rules. If no such acquisition or
acquisitions are made, the Company's shares would be suspended from
trading pursuant to AIM Rule 40 and the Euronext Growth Market
rules.
The Board unanimously recommended that shareholders voted in
favour of the resolutions relating to the Sale.
Brendan McMorrow, Chief Executive Officer, commented:
"The sale of our assets at La Zarza will be an important
milestone for the Company and, following the approval by Ormonde's
shareholders, would place the Company on an even stronger financial
footing from which to execute on new opportunities. To release
value from the assets at a premium to book value is a very
satisfactory outcome for the Company and its shareholders.
Although we have not yet identified the optimal project for our
next phase, I am encouraged by the quality and volume of the
opportunities that we have reviewed and the strength of the newly
constructed Board and its advisory team. Our balance sheet strength
allows us the benefit of selectivity, ensuring that when we do move
forward with a transaction, we expect it to be a highly attractive
one."
For further information, please contact :
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 Listing Sponsor and Joint
Broker)
Barry Murphy
Tel: +353 (0)1 679 6363
Company website: www.ormondemining.com
Ormonde Mining plc
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2022
unaudited unaudited audited
6 Months ended 6 Months ended Year ended
30-Jun-22 30-Jun-21 31-Dec-21
EUR000s EUR000s EUR000s
Turnover - - -
Administration expenses (350) (617) (1,194)
Impairment of Asset classified
as held for sale - - (400)
______ ______ ______
Loss on ordinary activities (350) (617) (1,594)
Finance costs (13) (13) (24)
______ ______ ______
Loss for the period from continuing
activities (363) (630) (1,618)
Taxation on (loss) - - -
______ ______ ______
Loss for the period after
tax (363) (630) (1,618)
______ ______ ______
Loss for the period (363) (630) (1,618)
______ ______ ______
Total comprehensive (loss)
for the period (363) (630) (1,618)
______ ______ ______
Earnings per share
from continuing operations
Basic & diluted (loss) per
share (in cent) (0.08) (0.13) (0.34)
Total earnings per share
Basic & diluted gain (loss)
per share (in cent) (0.08) (0.13) (0.34)
Ormonde Mining plc
Consolidated Statement of Financial Position
As at 30 June 2022
unaudited unaudited audited
30-Jun-22 30-Jun-21 31-Dec-21
EUR000s EUR000s EUR000s
Assets
Non-current assets
Intangible assets 315 305 309
_______ _______ _______
Total Non-Current Assets 315 305 309
Current assets
Trade & other receivables 49 31 93
Cash & cash equivalents 3,385 4,315 3,746
Asset classified as held
for sale 2,000 2,400 2,000
_______ _______ _______
Total current assets 5,434 6,746 5,839
_______ _______ _______
Total assets 5,749 7,051 6,148
_______ _______ _______
Equity & liabilities
Equity
Issued share capital 4,725 4,725 4,725
Share premium account 29,932 29,932 29,932
Share based payment reserve 281 283 281
Capital conversion reserve
fund 29 29 29
Capital redemption reserve
fund 7 7 7
Retained losses (29,376) (28,099) (29,013)
_______ _______ _______
Total equity - attributable
to the owners of the Company 5,598 6,877 5,961
Current liabilities
Trade & other payables 151 174 187
_______ _______ _______
Total liabilities 151 174 187
_______ _______ _______
Total equity & liabilities 5,749 7,051 6,148
_______ _______ _______
Ormonde Mining plc
Consolidated Statement of Cashflows
Six months ended 30 June 2022
unaudited unaudited audited
6 Months ended 6 Months ended Year ended
30-Jun-22 30-Jun-21 31-Dec-21
EUR000s EUR000s EUR000s
Cashflows from operating activities
(Loss) for period before taxation
Continuing operations (363) (630) (1,618)
________ ________ ________
(363) (630) (1,618)
Adjustments for:
Impairment of Asset classified
as held for sale - - 400
Share option expense - - 72
________ ________ ________
(363) (630) (1,146)
Movement in Working Capital
Movement in receivables 44 27 (35)
Movement in liabilities (36) (37) (24)
________ ________ ________
Net Cash used in operations (355) (640) (1,205)
________ ________ ________
Cashflow from financing activities (355) (640) (1,205)
Investing activities
Expenditure on intangible assets (6) (10) (14)
________ ________ ________
Net cash (used in) investing activities (6) (10) (14)
Net (decrease) in cash and cash
equivalents (361) (650) (1,219)
Cash and cash equivalents at beginning
of period 3,746 4,965 4,965
______ ______ ______
Cash and cash equivalents at end
of period 3,385 4,315 3,746
________ ________ ________
Ormonde Mining plc
Consolidated Statement of Changes in Equity
Six months ended 30 June 2022
Share
based
Consolidated Statement payment
of Changes in Equity reserve
Share Share Other Retained Total
Capital Premium Reserves Losses
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s
At 1 January 2021 4,725 29,932 283 36 (27,469) 7,507
Loss for the period - - - - (630) (630)
______ ______ ______ ______ ______ ______
Total comprehensive loss
for the period 0 0 0 0 (630) (630)
______ ______ ______ ______ ______ ______
At 30 June 2021 4,725 29,932 283 36 (28,099) 6,877
Loss for the period - - - - (988) (988)
______ ______ ______ ______ ______ ______
Total comprehensive loss
for the period 0 0 0 0 (988) (988)
Release relating to expired
share options - - (74) - 74 0
Employee share-based compensation - - 72 - 72
______ ______ ______ ______ ______ ______
At 31 December 2021 4,725 29,932 281 36 (29,013) 5,961
Loss for the period - - - - (363) (363)
______ ______ ______ ______ ______ ______
Total comprehensive loss
for the period 0 0 0 0 (363) (363)
______ ______ ______ ______ ______ ______
At 30 June 2022 4,725 29,932 281 36 (29,376) 5,598
______ ______ ______ ______ ______ ______
Notes to the Interim Consolidated Financial Statements
1. Accounting policies and basis of preparation
Ormonde Mining plc ( the "Company") is a company incorporated
and domiciled in the Republic of Ireland. The Unaudited
Consolidated Interim Financial Statements ("the Interim
Consolidated Financial Statements") of the Company, as at and for
the six months ended 30 June 2022, comprise the Company and its
subsidiaries (together referred to as the "Group").
The comparative information provided in the Interim Consolidated
Financial Statements relating to the year ended 31 December 2021
does not comprise statutory financial statements. The audit opinion
on the statutory financial statements for the year ended 31
December 2021 was unqualified. However, the auditors drew attention
by way of an emphasis of matter paragraph to the material
uncertainty relating to the carrying value of the La Zarza
exploration and evaluation assets, which are classified as assets
held for sale. These assets held for sale are as set out in the
opening page to these Interim Consolidated Financial Statements now
the subject of a conditional agreement for their sale.
The Interim Consolidated Financial Statements do not include all
of the information required for full annual financial statements
and should be read in conjunction with the audited consolidated
financial statements of the Group as at and for the year ended 31
December 2021, which are available on the Company's website,
www.ormondemining.com.
The financial information in this report has been prepared using
accounting policies consistent with International Financial
Reporting Standards (" IFRS") as adopted by the European Union.
IFRS is subject to amendment and interpretation by the
International Accounting Standards Board ("IASB") and the IFRS
Interpretations Committee and there is an ongoing process of review
and endorsement by the European Commission. These policies are
consistent with those to be adopted in the Group's consolidated
financial statements for the year ending 31 December 2022. The
accounting policies applied by the Group in the Interim
Consolidated Financial Statements are the same as those applied by
the Group in the consolidated financial statements for the year
ended 31 December 2021.
The Directors have prepared the Interim Consolidated Financial
Statements on the going concern basis which assumes that the Group
and Company will have sufficient resources to continue in operation
for the foreseeable future, being a period of not less than 12
months from the date of signing of these statements. The Directors
have prepared cashflow forecasts for the twelve month period to
September 2023 and on that basis consider it appropriate to prepare
the Interim Consolidated Financial Statements on the going concern
basis. These statements do not include any adjustments that would
result from the going concern basis of preparation not being
adopted.
.
The unaudited Interim Consolidated Financial Statements were
approved by the Board of Directors on 27 September 2022.
Notes to the Interim Consolidated Financial Statements
2. Segmental analysis
An analysis by geographical segments is presented below. The
Group has geographical segments in Ireland and Spain.
The segment results for the period ended 30 June 2022 are as
follows:
Ireland Spain Total
Total comprehensive loss for 6 months
to 30 June 2022 EUR000s EUR000s EUR000s
Segment (loss) for period (207) (156) (363)
______ ______ ______
(207) (156) (363)
______ ______ ______
Total comprehensive loss for year to
31 December 2021 EUR000s EUR000s EUR000s
Segment (loss) for period (1,038) (580) (1,618)
______ ______ ______
(1,038) (580) (1,618)
______ ______ ______
Total comprehensive loss for 6 months
to 30 June 2021 EUR000s EUR000s EUR000s
Segment (loss) for period (532) (97) (630)
______ ______ ______
(532) (97) (630)
______ ______ ______
Notes to the Interim Consolidated Financial Statements
(continued)
3. Basic earnings per share
The basic and weighted average number of ordinary shares used in
the calculation of basic earnings per share are as follows:
Earnings per share 30-Jun-22 30-Jun-21 31-Dec-21
EUR000s EUR000s EUR000s
Profit/(loss) for the period attributable to equity
holders of the parent:
From continuing business (363) (630) (1,618)
______ ______ ______
Total (Loss) for period (363) (630) (1,618)
Weighted average number of ordinary shares
for the purpose of basic earnings per share 472,507,482 472,507,482 472,507,482
______ ______ ______
Basic loss per ordinary shares (in cent)
from continuing operations (0.08) (0.13) (0.34)
______ ______ ______
Basic loss per ordinary shares (in cent)
Total (0.08) (0.13) (0.34)
______ ______ ______
Diluted earnings per share
For the six months to 30 June 2022, the share options are
anti-dilutive and therefore diluted earnings per share is the same
as the basic earnings per share.
For the six months to 30 June 2021 and the year ended 31
December 2021 the basic and diluted earnings per share are the
same.
Notes to the Interim Consolidated Financial Statements
(continued)
4. Share capital
30-Jun-22 30-Jun-21 31-Dec-21
EUR000s EUR000s EUR000s
Authorised Equity
650,000,000 ordinary shares of
EUR0.01 each 6,500 6,500 6,500
______ ______ ______
6,500 6,500 6,500
______ ______ ______
Issued Capital
Share Capital 4,725 4,725 4,725
Share Premium 29,932 29,932 29,932
______ ______ ______
34,657 34,657 34,657
______ ______ ______
Issued Capital comprises
472,507,483 ordinary shares of
EUR0.01 each 4,725 4,725 4,725
______ ______ ______
4,725 4,725 4,725
______ ______ ______
5. Dividends
No dividends were paid or proposed in respect of the six months
ended 30 June 2022.
6. Post balance sheet events
On 30 August 2022 the Company notified shareholders that is was
posting a circular calling an extraordinary general meeting for the
28 September 2022 in relation to the approval of the sale of the La
Zarza assets to La Zarza Mineria Metalica S.L.U..
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IR FLFSRALIDFIF
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