TIDMORM
RNS Number : 1091E
Ormonde Mining PLC
27 June 2023
This announcement contains inside information
27 June 2023
Ormonde Mining plc
("Ormonde", the "Company" or the "Group")
Final Results for the Year Ended 31 December 2022
Ormonde announces its final results for the year ended 31
December 2022.
Key points:
-- Sale of legacy La Zarza assets for EUR2.3 million, further
strengthening the Group's balance sheet
-- Investment in Peak Nickel Limited provides shareholders with
exposure to fast-growing battery metals sector
-- Extensive review of further natural resources projects has
resulted in a shortlist of attractive possible further
investments
-- Applications have been made for the renewal of gold investigation permits in Spain
Brian Timmons, Chairman, commented:
"During 2022 and the first part of 2023, the Board has delivered
on extracting value from legacy assets to boost the Group's balance
sheet and commenced its proposed strategy of leveraging this strong
balance sheet to generate new value enhancing deals for
shareholders.
The sale of the La Zarza assets and subsequent investment into
Peak Nickel Limited represent the first steps in shareholder value
creation and provide the platform for further exciting investments
in prospective mining jurisdictions. The Board continues to advance
discussions with interested parties to move onto the next stages of
this strategy.
On behalf of the Board, I would like to thank our shareholders
for their continued support and especially for their patience
displayed during the past 18 months. I look forward to updating you
all on Ormonde's progress from here."
Enquiries:
Ormonde Mining plc
Brian Timmons, 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 Broker)
Anthony Farrell
Tel: +353 (0)1 679 6363
About Ormonde Mining plc
Ormonde is focussed on the evaluation and execution of new
opportunities through which the Company can leverage its listing
and balance sheet to generate shareholder value whilst placing a
strong emphasis on cash preservation.
Currently, Ormonde holds a 20% interest in Peak Nickel Limited,
a private UK company which is advancing exploration on a
potentially significant battery metals project.
Ormonde's shares are listed on the London Stock Exchange (AIM)
and the Euronext Growth market in Dublin.
For more information, visit the Company's website at
www.ormondemining.com .
Chairman's Review
Introduction
I am pleased to present my second annual review to shareholders
since I took over as Ormonde's Chairman in October 2021.
During the year, the Board, with the assistance of our technical
advisory team, began delivering upon its commitment to leverage the
Group's balance sheet to generate value for shareholders. This has
involved an extensive review of a range of potential opportunities
leading to a shortlist of attractive possible investments.
We are of course cognisant that shareholders have been waiting
some time for news of further investments; however, this is a
process that requires both time and diligence to ensure the
transactions we pursue deliver the maximum opportunity for value
creation. I would like to assure shareholders that discussions
continue to progress, as does our partnership with our first
investee company, Peak Nickel Limited.
The investment in Peak Nickel Limited announced in February 2023
provides Ormonde's shareholders with exposure to the fast growing
and active battery metals sector. The Board expects further
investments to follow.
This investment activity was undertaken whilst the Board worked
to monetise the legacy La Zarza asset in Spain. Ormonde continues
to seek value adding options for the Group's remaining Spanish gold
assets.
Investment - Peak Nickel Limited
Subsequent to the year end, the Group acquired a 20% interest in
Peak Nickel Limited ("PNL") for total payments of GBP512,500. PNL
is a UK company which is advancing exploration on a very promising
battery metals project. The Group's investment was designed to
enable a fast-track initial drilling programme aimed at identifying
a modern, code-compliant resource in those minerals.
At the time of investment, Ormonde was granted an exclusive
option by PNL to either invest up to a further GBP4 million in cash
in PNL for further exploration work, bringing Ormonde's interest to
49.9%; or acquire the remaining 80% of PNL by way of issuance of
ordinary shares in Ormonde to PNL.
La Zarza Disposal
While new opportunities with significant value upside potential
were being shortlisted, the Board continued to advance negotiations
with interested parties towards monetising the value within the
legacy La Zarza Copper-Gold Project in Spain ("La Zarza").
On 28 September 2022, shareholders approved at an EGM a proposal
from the Board for the sale of the Group's landholding, drill core
and data assets associated with La Zarza for a cash consideration
of EUR2.3 million to La Zarza Mineria Metalica S.L.U., a subsidiary
of the Spanish company Tharsis Mining S.L., which controls the
mining rights to La Zarza.
Under the terms of this sale agreement, the Group received the
first tranche payment of EUR800,000 on closing, with the balance to
be paid in three equal payments of EUR500,000 on the first, second
and third anniversaries of completion. The next payment is due to
be received on or around 30 September 2023, further boosting the
Group's balance sheet. Ormonde holds security in respect of the
deferred cash payments.
Spanish Assets
The Group's interest in a number of gold investigation permits
(IPs) situated in Spain, held for over a decade, expired during the
Covid period, and the Group has applied for renewal of these
exploration licenses. In the event that these IPs are renewed,
Ormonde intends to undertake exploration activity on the licences.
There is no certainty of renewal of the IPs, and, accordingly,
these assets have been subject to an impairment of EUR167,000 as at
31 December 2022.
Financials
Ormonde recorded a total comprehensive loss for the period of
EUR1.1 million for 2022, compared with a loss of EUR1.6 million in
2021. As of 31 December 2022, the Group had net assets of EUR4.9
million, including a cash balance of EUR3.56 million, providing the
Group with a platform from which to invest further.
Suspension of Shares
The Board is mindful of the continued suspended status of the
Group's shares under market rules pending an announcement and
publication of an admission document. As announced on 7 February
2023, following the PNL investment, Ormonde is required to execute
a further transaction with PNL or another party, which would be
categorised as a reverse takeover under AIM Rule 14. This
transaction would require both shareholder approval and the
publication of an AIM admission document. Ormonde continues to
review its investment options in relation to this requirement and
the Board looks forward to sharing its strategy with shareholders
in due course.
Conclusions and Outlook
During 2022 and the first part of 2023, the Board has delivered
on extracting value from legacy assets to boost the Group's balance
sheet and commenced its proposed strategy of leveraging this strong
balance sheet to generate new value enhancing deals for
shareholders.
The sale of the La Zarza assets and subsequent investment into
PNL represent the first steps in shareholder value creation and
provide the platform for further exciting investments in
prospective mining jurisdictions . The Board continues to advance
discussions with interested parties to move onto the next stages of
this strategy.
On behalf of the Board, I would like to thank our shareholders
for their continued support and especially for their patience
displayed during the past 18 months. I look forward to updating you
all on Ormonde's progress in due course.
Brian Timmons
Chairman
27 June 2023
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2022
Year ended Year ended
31-Dec-22 31-Dec-21
Notes EUR000s EUR000s
Revenue 0 0
Administration expenses (881) (1,194)
Impairment of intangibles 10 (167) (400)
______ ______
Loss on ordinary activities (1,048) (1,594)
Finance costs (17) (24)
______ ______
Loss for the year (1,065) (1,618)
Taxation 0 0
______ ______
Loss for the Period after tax (1,065) (1,618)
______ ______
Total comprehensive (loss)/income
for the period (1,065) (1,618)
Earnings per share
Basic & diluted (loss) per share
(in cent) 8 (0.23) (0.34)
Total earnings per share
Basic & diluted earnings/ (loss)
per share (in cent) 8 (0.23) (0.34)
All activities are derived from continuing activities. All
(losses)/profits and total comprehensive loss for the year (and
preceding year) are attributable to the equity holders of the
Company. The Group has not recognised gains or losses other than
those dealt within the Statement of Comprehensive Income.
Consolidated Statement of Financial Position
as at 31 December 2022
31-Dec-22 31-Dec-21
Notes EUR000s EUR000s
Assets
Non-current assets
Intangible assets 10 157 309
Trade and other receivables 14 700 0
_______ _______
Total Non-Current Assets 857 309
Current assets
Trade and other receivables 14 613 93
Asset classified as held for sale 13 0 2,000
Cash & cash equivalents 15 3,564 3,746
_______ _______
Total Current Assets 4,177 5,839
_______ _______
Total Assets 5,034 6,148
_______ _______
Equity & liabilities
Capital and Reserves
Issued capital 17 4,725 4,725
Share premium account 17 29,932 29,932
Share based payment reserve 18 281 281
Capital conversion reserve fund 18 29 29
Capital redemption reserve fund 18 7 7
Retained losses 19 (30,078) (29,013)
_______ _______
Equity attributable to the Owners
of the Company 4,896 5,961
Current Liabilities
Trade & other payables 16 138 187
_______ _______
Total Liabilities 138 187
_______ _______
Total Equity & Liabilities 5,034 6,148
_______ _______
Company Statement of Financial Position
as at 31 December 2022
As regrouped
31-Dec-22 31-Dec-21
Notes EUR000s EUR000s
Assets
Investment in subsidiaries 12 130 443
Trade and other receivables 14 1,388 2,079
_______ _______
Total Non-Current Assets 1,518 2,522
Current assets
Trade and other receivables 14 95 76
Cash & cash equivalents 15 3,554 3,740
_______ _______
Total Current Assets 3,649 3,816
_______ _______
Total Assets 5,167 6,338
_______ _______
Equity & Liabilities
Capital and Reserves
Issued capital 17 4,725 4,725
Share premium account 17 29,932 29,932
Share based payment reserve 18 281 281
Capital conversion reserve fund 18 29 29
Capital redemption reserve fund 18 7 7
Retained losses 19 (30,051) (28,935)
_______ _______
Equity attributable to the Owners
of the Company 4,923 6,039
Current Liabilities
Trade & other payables 16 244 299
_______ _______
Total Liabilities 244 299
_______ _______
Total Equity & Liabilities 5,167 6,338
_______ _______
Consolidated Statement of Cashflows
for the year ended 31 December 2022
Year ended Year ended
Notes 31-Dec-22 31-Dec-21
EUR000s EUR000s
Cashflows from operating activities
Loss for the year before taxation (1,065) (1,618)
________ ________
(1,065) (1,618)
Adjustments for:
Impairment of intangible assets 167 0
Impairment of Asset classified as
held for resale 0 400
Non-cash items: Share Option cost 0 72
________ ________
(898) (1,146)
Movement in Working Capital
Movement in receivables (20) (35)
Movement in liabilities (49) (24)
________ ________
Net Cash used in operations (967) (1,205)
Investing activities
Expenditure on intangible assets (15) (14)
Proceeds from disposal of assets
held for resale 800 0
________ ________
Net cash used in investing activities 785 (14)
Net (decrease) in cash and cash
equivalents (182) (1,219)
Cash and cash equivalents at the
beginning of the year 15 3,746 4,965
______ ______
Cash and cash equivalents at the
end of the year 15 3,564 3,746
______ ______
The accompanying notes in the Annual Report and Group Financial
Statements mailed to shareholders and available on the Group's
website form an integral part of these financial statements.
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END
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