TIDMORM
RNS Number : 0781O
Ormonde Mining PLC
29 September 2023
29 September 2023
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 2023
Ormonde Mining plc (AQSE: ORM), a natural resource company
providing exposure to quality and diverse assets across a range of
strategic minerals, announces its unaudited interim results for the
six months ended 30 June 2023.
Key points:
-- Acquisition of an initial 36.2% interest in Toronto-listed
exploration company, TRU Precious Metals Corp ("TRU"), which is
exploring for gold and copper in the highly prospective Central
Newfoundland Gold Belt in Canada
-- Acquisition of a 20% interest in Peak Nickel Limited ("PNL")
which is advancing exploration on a potentially significant battery
metals project
-- Transfer of the Company's shares to trading on the Aquis Growth Market
Brendan McMorrow, Chief Executive Officer, commented:
"I am very pleased with the progress achieved during the first
six months of 2023. During the period we identified and negotiated
two highly attractive investment opportunities to advance the
Board's stated goal of generating shareholder value by leveraging
the Company's balance sheet and resources whilst carefully managing
its operating costs.
"The Company now has exposure to two compelling, diverse and
complementary exploration opportunities. These opportunities
position the Company and its shareholders for future capital
growth, while retaining a stock market listing on the Aquis Growth
Market."
Operational Review
TRU Investment
On 30 June 2023, just prior to the end of the reporting period,
Ormonde announced its intention to acquire an initial 36.2%
interest in TRU's share capital through a private subscription for
60 million new common shares of TRU at CAD $0.05 per share for a
total consideration of CAD $3,000,000. Ormonde has the potential to
increase its shareholding up to 46.0% through the exercise of
warrants. This investment was approved by Ormonde's shareholders
after the period end, on 25 August 2023, and completed on 5
September 2023.
TRU's flagship Golden Rose Project ("Golden Rose") is in the
highly prospective Cape Ray - Valentine Lake gold-bearing
structural corridor in Southern Central Newfoundland. Golden Rose
is a regional-scale 273.5 km(2) land package, of which 240.25km(2)
is fully owned by TRU, with the additional 33.25 km(2) held under
an option to acquire a 65% interest.
This coherent land package straddles a 45km strike length along
the deposit-bearing Cape Ray -Valentine Lake shear zone and is
located between Marathon Gold's Valentine Gold Project (4 million
oz Measured and Indicated) and Matador Mining's Cape Ray Gold
Project (0.6 million oz Indicated and Inferred - exploration
continuing).
Following recent significant discoveries, Newfoundland has
become one of the world's most attractive gold exploration regions.
The prospective geology, ease of access, a supportive local
government and moderate weather all combine to give Newfoundland a
top 10 global ranking for mining investment attractiveness by the
Fraser Institute.
Within the TRU landholding, various mineralisation styles have
already been recognised, including a structural domain potentially
similar to the Curraghinalt gold deposit in Northern Ireland (6
million oz). Golden Rose has had limited historical exploration,
but the prospectivity of the area has been confirmed. TRU has
capitalised on previous work and is already turning up new
high-grade gold and copper mineralised targets on the property with
high grades similar to those that other Newfoundland explorers have
been reporting in recent years.
With the help of Ormonde, TRU intends to fast-track the
advancement of Golden Rose, as well as the evaluation of other
mineral property transaction opportunities, leveraging our teams'
complementary experience.
PNL Investment
PNL, in which Ormonde acquired a 20% interest on 7 February
2023, is a private UK-based company, which is advancing exploration
on a promising battery metals project. Ormonde's investment (
GBP512,500) was designed to support a fast-track initial drilling
programme aimed at identifying a modern, code-compliant resource in
those minerals. The Board is continuing to closely follow the
progress of this exploration programme with a view to supporting,
if and as appropriate and commensurate with Ormonde's shareholding,
the further development of this very attractive project, as the
opportunities unfold.
Financial Review
Interim Results
The Company reports a loss after tax for the six months ended 30
June 2023 of EUR454,000 (H1 2022: EUR363,000 Loss), with the
increased loss for the period reflecting additional costs incurred
on the two transactions set out in the Operational Review
above.
As at 30 June 2023, the Company held EUR2.5 million of cash
(EUR3.4 million at 31 Dec 2022).
Deferred Consideration
The Company has, after the period end, received the second
instalment of consideration (EUR500,000) due in respect of the
disposal of the La Zarza assets, which completed on 3 October 2022.
A further two instalments of EUR500,000 each are due on the second
and third anniversaries of the completion of the sale of the La
Zarza assets.
Admission to the Aquis Growth Market
As of 5 September 2023, the Company's Ordinary Shares have been
admitted to trading on the Access Segment of the Aquis Growth
Market, a Multi-lateral Trading Facility (MTF) and a Recognised
Stock Exchange under S1005 (1)(b) United Kingdom Income Tax Act
2007.
Concurrently, admission of the Company's Ordinary Shares to the
AIM and Euronext Growth markets, from which they had been suspended
from trading since 7 February 2023 pending the publication of an
Admission Document, was cancelled on the same day following
shareholder approval.
Enquiries:
Ormonde Mining plc
Brian Timmons, Chairman Tel: +353 (0)1 801 4184
Vigo Consulting (Investor Relations)
Ben Simons / Fiona Hetherington Tel: +44 (0)20 7390 0230
Peterhouse Capital (Aquis Corporate
Adviser)
Narisha Ragoonanthun / Brefo Gyasi Tel: +44 (0)20 7469 0930
About Ormonde Mining
Ormonde is a natural resource company which provides its
shareholders with exposure to quality and diverse assets across a
range of strategic minerals. Ormonde's portfolio includes an
initial 36.2% interest in TRU Precious Metals (TSXV: TRU), which is
exploring for gold and copper in the highly prospective Central
Newfoundland Gold Belt in Canada, and a 20% interest in Peak
Nickel, which is advancing exploration on a potentially significant
battery metals project.
Ormonde's shares are listed on the Aquis Growth Market under the
symbol AQSE: ORM.
For more information, visit the Company's website at
www.ormondemining.com .
Ormonde Mining plc
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2023
unaudited unaudited audited
6 Months ended 6 Months ended Year ended
30-Jun-23 30-Jun-22 31-Dec-22
EUR000s EUR000s EUR000s
Turnover - - -
Administration expenses (536) (350) (881)
Impairment of asset classified as held for sale - - (167)
______ ______ ______
Loss on ordinary activities (536) (350) (1,048)
Finance costs (2) (13) (17)
Finance income (non cash) 84 - -
______ ______ ______
Loss for the period from continuing activities (454) (363) (1,065)
Taxation on loss - - -
______ ______ ______
Total comprehensive loss for the period (454) (363) (1,065)
Earnings per share
from continuing operations
Basic & diluted loss per share (in cent) (0.10) (0.08) (0.23)
Total earnings per share
Basic & diluted loss per share (in cent) (0.10) (0.08) (0.23)
Ormonde Mining plc
Consolidated Statement of Financial Position
As at 30 June 2023
unaudited unaudited audited
30-Jun-23 30-Jun-22 31-Dec-22
Note EUR000s EUR000s EUR000s
Assets
Non-current assets
Intangible assets 157 315 157
Trade and other receivables 5 784 - 700
Financial assets 4 656 - -
_______ _______ _______
Total Non-Current Assets 1,597 315 857
Current assets
Trade and other receivables 5 540 49 613
Cash and cash equivalents 2,524 3,385 3,564
Asset classified as held for sale - 2,000 -
_______ _______ _______
Total current assets 3,064 5,434 4,177
_______ _______ _______
Total assets 4,661 5,749 5,034
_______ _______ _______
Equity & liabilities
Equity
Issued share capital 6 4,725 4,725 4,725
Share premium account 6 29,932 29,932 29,932
Share based payment reserve 281 281 281
Capital conversion reserve fund 29 29 29
Capital redemption reserve fund 7 7 7
Retained losses (30,532) (29,376) (30,078)
_______ _______ _______
Total equity - attributable to the owners of the Company 4,442 5,598 4,896
Current liabilities
Trade & other payables 219 151 138
_______ _______ _______
Total liabilities 219 151 138
_______ _______ _______
Total equity & liabilities 4,661 5,749 5,034
_______ _______ _______
Ormonde Mining plc
Consolidated Statement of Cashflows
Six months ended 30 June 2023
unaudited unaudited audited
6 Months ended 6 Months ended Year ended
30-Jun-23 30-Jun-22 31-Dec-22
EUR000s EUR000s EUR000s
Cashflows from operating activities
Loss for period before taxation (454) (363) (1,065)
________ ________ ________
(454) (363) (1,065)
Adjustments for non-cash items:
Impairment of intangible assets - - 167
Finance income (84) - -
________ ________ ________
(538) (363) (898)
Movement in Working Capital
Movement in receivables 74 44 (20)
Movement in liabilities 80 (36) (49)
________ ________ ________
Net Cash used in operations (384) (355) (967)
Investing activities
Expenditure on intangible assets - (6) (15)
Expenditure on financial assets (656) - -
Proceeds from disposal of assets held for resale - - 800
________ ________ ________
Net cash generated by / (used in) investing activities (656) (6) 785
Net decrease in cash and cash equivalents (1,040) (361) (182)
Cash and cash equivalents at beginning of period 3,564 3,746 3,746
________ ________ ________
Cash and cash equivalents at end of period 2,524 3,385 3,564
________ ________ ________
Ormonde Mining plc
Consolidated Statement of Changes in Equity
Six months ended 30 June 2023
Share Based
Payment Reserve
Share Capital Share Premium Other Reserves Retained Losses Total
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s
At 1 January 2022 4,725 29,932 281 36 (29,013) 5,961
Loss for the period - - - - (363) (363)
______ ______ ______ ______ ______ ______
Total comprehensive
income for the
period - - - - (363) (363)
______ ______ ______ ______ ______ ______
At 30 June 2022 4,725 29,932 281 36 (29,376) 5,598
Loss for the period - - - - (702) (702)
______ ______ ______ ______ ______ ______
Total comprehensive
income for the
period - - - - (702) (702)
______ ______ ______ ______ ______ ______
At 31 December 2022 4,725 29,932 281 36 (30,078) 4,896
Loss for the period - - - - (454) (454)
______ ______ ______ ______ ______ ______
Total comprehensive
income for the
period - - - - (454) (454)
______ ______ ______ ______ ______ ______
At 30 June 2023 4,725 29,932 281 36 (30,532) 4,442
______ ______ ______ ______ ______ ______
Notes to the Interim Consolidated Financial Statements
1. Accounting policies and basis of preparation
Ormonde Mining plc is a company incorporated and domiciled in
the Republic of Ireland. The Interim Consolidated Financial
Statements for the six months ended 30 June 2023 comprise the
Company and its subsidiaries (together referred to as the "Group"),
and have not been audited or reviewed by the Company's
auditors.
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 2022, which are available on the Company's website at
https://ormondemining.com/ . The audit opinion on the statutory
financial statements for the year ended 31 December 2022 was
unqualified.
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 2023. 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 2022.
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 2024 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 28 September 2023.
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 2023 are as
follows:
Ireland Spain Total
Total comprehensive loss for 6 months
to 30 June 2023 EUR000s EUR000s EUR000s
Segment loss for period (431) (23) (454)
______ ______ ______
(431) (23) (454)
______ ______ ______
Total comprehensive loss for year
to 31 December 2022 EUR000s EUR000s EUR000s
Segment loss for period (933) (132) (1,065)
______ ______ ______
(933) (132) (1,065)
______ ______ ______
Total comprehensive loss for 6 months
to 30 June 2022 EUR000s EUR000s EUR000s
Segment loss for period (207) (156) (363)
______ ______ ______
(207) (156) (363)
______ ______ ______
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-23 30-Jun-22 31-Dec-22
EUR000s EUR000s EUR000s
Loss for the period attributable to
equity holders of the parent:
From continuing business (454) (363) (1,065)
______ ______ ______
Total Loss for period (454) (363) (1,065)
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 (0.10) (0.08) (0.23)
______ ______ ______
Basic loss per ordinary shares (in
cent) Total (0.10) (0.08) (0.23)
______ ______ ______
Diluted earnings per share
For the six months to 30 June 2023, 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 2022 and the year ended 31
December 2022 the basic and diluted earnings per share are the
same.
4. Financial assets
Financial assets of EUR656,000 is comprised of EUR588,000
relating to the Company's 20% equity investment in Peak Nickel
Limited which is advancing exploration on a potentially significant
battery metals project and EUR68,000 which represents a first
payment relating to the equity investment in TRU Precious Metals
Corporation (a TSX V listed company) which transaction closed on 5
September 2023. See Post balance sheet events note for more
details.
5. Trade and other receivables
Trade receivables include the amount of EUR500,000 (current) and
EUR784,000 (non-current) (total of EUR1.284 Million) representing
the fair value of the EUR1.5 Million deferred consideration
receivable at 30 June 2023 following the disposal in September 2022
of certain land and data assets associated with the La Zarza
project.
6. Share capital
30-Jun-23 30-Jun-22 31-Dec-22
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
______ ______ ______
7. Dividends
No dividends were paid or proposed in respect of the six months
ended 30 June 2023.
8. Post balance sheet events
At an extraordinary general meeting on 25 August 2023,
shareholders passed a resolution to cancel the listing of the
Company's shares from both the AIM Market and the Euronext Growth
Market. At the same extraordinary general meeting the Company was
authorised by shareholders to enter into and complete the TRU
investment.
On 5 September 2023 the Company announced that its ordinary
shares were admitted to trading on the Access Segment of the Aquis
Growth Market. It was then noted that the Company's shares would be
de-listed from trading on both the AIM and Euronext markets with
effect from 7.00 a.m. on the same day.
On 6 September 2023 the Company announced the closing of the
investment in TRU Precious Metals Corporation (TRU - a TSX V listed
company) whereby it acquired a 36.2% equity interest in TRU for a
consideration of CAD$3 Million.
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END
NEXSEDFAAEDSEEU
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