REG - Ormonde Mining PLC - Interim Results
27/09/2024 08:15
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RNS Number : 8968F Ormonde Mining PLC 27 September 2024
27 September
2024
Ormonde Mining plc
("Ormonde" or the "Company")
Interim Results for the Six Months Ended 30 June 2024
Ormonde Mining plc (https://ormondemining.com/) (AQSE: ORM), a natural
resources company with investment exposure to outstanding gold and battery
metal exploration assets in Newfoundland and Scotland, announces its unaudited
interim results for the six months ended 30 June 2024.
Highlights (year to date):
· Significant developments at 36.3%-owned TRU Precious Metals ("TRU")
o TRU entered into a definitive option agreement in July 2024 with Eldorado
Gold Corporation (TSX:ELD, NYSE: EGO) ("Eldorado") granting Eldorado the
exclusive option to earn an 80% ownership interest in the Golden Rose project
through a multi-year C$7 million work programme and C$8.25 million in cash
payments to TRU
o Appointment of Steve Nicol, Ormonde director, as CEO of TRU in August 2024
o High value M&A activity of neighboring project to TRU's Golden Rose
project with Calibre Mining (TSE: CXB) C$345 million acquisition of Marathon
Gold in January 2024
o TRU published plans in April 2024 for copper-focused exploration programme
at Golden Rose (commenced July 2024)
· Continued progress at Rodburn Project in Aberdeenshire, Scotland
owned by Peak Nickel Limited ("PNL") in which Ormonde holds a 19.2% equity
interest with indications of significant size emerging
o Results and outcomes of 2023 drilling programme (18 holes for 2,600
metres) were published on Peak Nickel's website in February 2024, with PNL
describing Rodburn as the "UK's highest-grade nickel-copper-cobalt project"
o 2024 drilling programme commenced in August 2024, with PNL aiming to drill
a minimum of a further 1,000 metres and up to 6,000 metres
o Neighbouring project attracted significant investment in June 2024 from
Central Asia Metals (AIM: CAML), illustrating the potential for nickel
sulphide deposits in the area
· Appointed Steve Nicol as Non-Executive Director in August 2024 -
experienced mining executive with over 35 years' experience, including in
operations management, mine evaluation and development roles, who also sits on
the boards of Ormonde's investee companies TRU and PNL
Key Financials
· Group loss for the six month period of €578K, of which €189K
relates to TRU's non-controlled portion of the loss (H1 2023 : Loss of
€454K)*
· Group net assets as at 30 June 2024 of €5.06million (31 December
2023: €5.45 million), including group cash and cash equivalents of €1.54
million (31 December 2023: €2.3 million)(*)
(*)By virtue of Ormonde controlling the operating activities of TRU
since September 2023, under IFRS accounting standards and Ormonde's
accounting policies, the Company has consolidated within these Financial
Statements the results of TRU along with the relevant portion of TRU's assets
and liabilities as at 30 June 2024.
The Directors of the Company accept responsibility for the contents of this
announcement.
Enquiries:
Ormonde Mining plc
Brian Timmons, Chairman / Brendan McMorrow, CEO
Tel: +353 1 8014184
Vigo Consulting (Investor Relations)
Ben Simons / Fiona Hetherington
Tel: 44 (0)20 7390 0230
Peterhouse Capital (Aquis Corporate Adviser)
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 36.3% 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 19.2% interest in Peak Nickel
Limited, giving Ormonde targeted exposure to a high-grade battery metals
project in the UK.
TRU is exploring for gold and copper in the highly prospective Central
Newfoundland Gold Belt on its 100%-owned Golden Rose project, a regional-scale
264.25 km(2) land package including 45 km of strike length along the
deposit-bearing Cape Ray - Valentine Lake Shear Zone, directly between Calibre
Mining's Valentine Gold Project and AuMEGA Metals' Cape Ray Gold Project. The
Golden Rose Project is currently optioned-out to TSX-listed Eldorado Gold
Corporation.
Peak Nickel's Rodburn Project in Aberdeenshire is in a tier one jurisdiction
with indications of significant size.
Ormonde's shares are quoted on the Aquis Stock Exchange Growth Market under
the symbol AQSE: ORM.
For more information, visit the Company's website at www.ormondemining.com
(https://ormondemining.com/) .
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(https://www.linkedin.com/company/ormonde-mining-plc/)
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Operational Review
Introduction
Ormonde offers investors exposure to outstanding gold and battery metal
exploration assets, significantly undervalued in the Board's view, without
being exposed to significant capital expenditure demands.
Ormonde's portfolio currently includes two strategic investments: an initial
36.3% in TRU Precious Metals (TSXV: TRU) ("TRU") (increasing to up to 46% if
Ormonde's 3-year warrants are exercised), which is exploring for gold and
copper in the highly prospective Central Newfoundland Gold Belt in Canada; and
a 19.2% interest in Peak Nickel Limited ("PNL"), a private UK company
advancing a high-grade battery metals project in Aberdeenshire, Scotland.
TRU Precious Metals
TRU is exploring the Golden Rose project ("Golden Rose"), a large and highly
prospective early-stage gold and copper prospect in Newfoundland, comprising a
297.5km(2) land package, including 45km of strike length along the
deposit-bearing Cape Ray-Valentine Lake Shear Zone.
The Golden Rose project is directly flanked by Calibre Mining's Valentine Gold
Project (acquired in January 2024 for C$345 million) to the northeast and
AuMEGA Metals' Cape Ray Project to the southwest. Calibre Mining's Valentine
Mine hosts resources of 5 million ounces of gold (measured, indicated and
inferred). The Valentine Mine is currently under construction and is expected
to be operational in Q2 2025, at which point it will be the largest gold mine
in Atlantic Canada. Its owner has subsequently staked claims over new
tenements also adjacent to Golden Rose. AuMEGA Metals' Cape Ray Project
contains 0.6 million ounces of indicated and inferred gold resources.
The most significant developments with TRU occurred shortly after the
period-end when, in July 2024, TRU entered into a definitive option agreement
with the US$3.5 billion market cap company Eldorado Gold Corporation (TSX:ELD,
NYSE: EGO) ("Eldorado") granting Eldorado the exclusive option to earn an 80%
ownership interest in the Golden Rose project through a multi-year C$7 million
work programme and C$8.25 million in cash payments to TRU. This was by any
measure a huge endorsement of the potential for the project by a
well-capitalised and experienced mid-tier producer which could yield
considerable value for TRU, and Ormonde as its controlling shareholder, in the
years ahead.
TRU has been designated as the operator of Golden Rose and remains the
beneficial owner of any non-gold/copper discoveries. To that end, Ormonde was
very pleased to note in August 2024, that TRU had appointed Steve Nicol as its
CEO to drive its operations. Steve has an impressive mining career with over
35 years' experience, has brought a complex mine into commercial production
and has advised Ormonde for many years in a technical capacity. Steve sits on
the Boards of both TRU and PNL, in addition to becoming a non-executive
director of Ormonde in August 2024.
In April 2024, TRU outlined its intention to carry out a copper-focused
exploration programme this summer to assess the critical minerals potential
associated with the deposit-bearing Cape Ray-Lake Valentine Shear Zone. The
programme commenced in July 2024.
Peak Nickel Investment
PNL's Rodburn Project is an early-stage, nickel, copper, cobalt resource with
indications of significant size in an emerging nickel sulphide district in
Aberdeenshire, Scotland - a Tier 1 jurisdiction. It has a historical
(non-compliant) resource of 3 million tonnes at 0.52% nickel and 0.27% copper
which Ormonde's technical team believes there is very good potential to
enlarge.
Having drilled some 2,600 metres in 2023, results and outcomes were published
on PNL's website in February 2024, with PNL describing Rodburn as the "UK's
highest-grade nickel-copper-cobalt project."
In June 2024, a neighbouring project held by Aberdeen Minerals which is only
50km east of Rodburn attracted a £3 million investment from Central Asia
Metals (AIM: CAML), illustrating confidence in the potential for nickel
sulphide deposits in the area. Aberdeen Minerals is exploring for nickel
mineralisation in similar geological settings to that of PNL.
PNL commenced its 2024 drill programme in August 2024, aiming to drill a
minimum of a further 1,000 metres.
Rodburn is exploring for nickel sulphide resources - which represent cleaner
and less energy intensive sources of Class 1 (battery grade) nickel. Finding
clean new nickel sources is critical for the global energy transition.
Spanish Gold Assets
Ormonde continues to hold two investigation permits prospective for gold
located in the Zamora province in western Spain via a subsidiary. In light of
the existing high gold price, Ormonde is currently evaluating these licences
with a view to realising value from these interests. Discussions regarding the
renewal of these investigation permits from the relevant Spanish mines
department are continuing to progress.
On 3 October 2022, Ormonde completed the sale of its La Zarza assets in Spain
for €2.3 million. To date, €1.3 million has been received with two further
instalments of €500,000 each due on the second and third anniversaries of
the completion date.
Financial Review
The Company reports a total comprehensive loss for the six months ended 30
June 2024 of €578,000 (H1 2023: loss of €454,000), with the increase
reflecting the inclusion of TRU's non-controlling portion of the loss which
amounted to €189,000.
Group net assets as at 30 June 2024 were €5.06 million (31 December 2023:
€5.45 million), including Group cash and cash equivalents of €1.54 million
(31 December 2023: €2.3 million).
Brian Timmons
Chairman
Ormonde Mining plc
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2024
unaudited unaudited audited
6 Months ended 6 Months ended Year ended
30-Jun-24 30-Jun-23 31-Dec-23
€000s €000s €000s
Turnover - - -
Administration expenses (616) (536) (1,287)
______ ______ ______
Loss on ordinary activities (616) (536) (1,287)
Finance costs (2) (2) (3)
Other income/gains 58 84 1,627
______ ______ ______
Profit/Loss before tax for the period (560) (454) 337
Taxation on profit/(loss) - - -
______ ______ ______
Profit (Loss) for the period after tax (560) (454) 337
Other comprehensive income
Other comprehensive income: Foreign exchange (18) - 21
______ ______ ______
Total comprehensive income (loss) for the period (578) (454) 358
Total comprehensive income (loss) attributable to
Owners of the parent company (389) (454) 551
Non controlling interest (189) - (193)
______ ______ ______
Earnings per share
from continuing operations
Basic & diluted (loss) per share (in cent) (0.08) (0.10) 0.12
Total earnings per share
Basic & diluted gain (loss) per share (in cent) (0.08) (0.10) 0.12
Ormonde Mining plc
Consolidated Statement of Financial Position
As at 30 June 2024
unaudited unaudited audited
30-Jun-24 30-Jun-23 31-Dec-23
Note €000s €000s €000s
Assets
Non-current assets
Intangible assets 6,319 157 6,206
Trade and other receivables 5 414 784 399
Financial assets 4 1,233 656 1,172
_______ _______ _______
Total Non-Current Assets 7,966 1,597 7,777
Current assets
Trade and other receivables 5 597 540 663
Cash and cash equivalents 1,542 2,524 2,311
_______ _______ _______
Total current assets 2,139 3,064 2,974
_______ _______ _______
Total assets 10,105 4,661 10,751
_______ _______ _______
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
Foreign currency translation reserve 3 0 21
Retained losses (29,919) (30,532) (29,549)
_______ _______ _______
Equity attributable to the owners of the Company 5,058 4,442 5,446
Non controlled interests 7 4,844 0 5,034
_______ _______ _______
Total Equity 9,902 4,442 10,480
Current liabilities
Trade & other payables 203 219 271
_______ _______ _______
Total liabilities 203 219 271
_______ _______ _______
Total Equity & Liabilities 10,105 4,661 10,751
_______ _______ _______
Ormonde Mining plc
Consolidated Statement of Cashflows
Six months ended 30 June 2024
unaudited unaudited audited
6 Months ended 6 Months ended Year ended
30-Jun-24 30-Jun-23 31-Dec-23
€000s €000s €000s
Cashflows from operating activities
Profit (Loss) for period before taxation (560) (454) 337
________ ________ ________
(560) (454) 337
Adjustments for non cash items:
Foreign exchange gain/(loss) on translation (18) - 21
Negative goodwill - - (886)
Fair value increase in investments - - (585)
Fair value increase in receivables (58) (84) (156)
________ ________ ________
(636) (538) (1,269)
Movement in Working Capital
Movement in receivables 109 74 89
Movement in liabilities (68) 80 64
________ ________ ________
Net Cash used in operations (595) (384) (1,116)
Investing activities
Expenditure on intangible assets (113) - (143)
Expenditure on financial assets (61) (656) (587)
Purchase of investments in subsidiaries - - (2,053)
Cash acquired on purchase of TRU - - 2,146
Proceeds from disposal of assets held for resale - - 500
________ ________ ________
Net cash (used in) investing activities (175) (656) (137)
Net (decrease) in cash and cash equivalents (769) (1,040) (1,253)
Cash and cash equivalents at beginning of period 2,311 3,564 3,564
________ ________ ________
Cash and cash equivalents at end of period 1,542 2,524 2,311
________ ________ ________
Ormonde Mining plc
Consolidated Statement of Changes in Equity
Six months ended 30 June 2024
Share based payment reserve Foreign Currency translation reserve
Share Capital Share Premium Other Reserves Retained Losses Total Non Controlled Interests Total Equity
€000s €000s €000s €000s €000s €000s €000s €000s €000s
At 1 January 2023 4,725 29,932 281 36 0 (30,078) 4,896 0 4,896
Loss for the period - - - - - (454) (454) - (454)
______ ______ ______ ______ ______ ______ ______ ______ ______
Total comprehensive income for the period 0 0 0 0 0 (454) (454) 0 (454)
______ ______ ______ ______ ______ ______ ______ ______ ______
At 30 June 2023 4,725 29,932 281 36 0 (30,532) 4,442 0 4,442
Profit for the period - - - - - 983 983 (193) 790
Foreign exchange adjustments - - - - 21 - 21 - 21
______ ______ ______ ______ ______ ______ ______ ______ ______
Total comprehensive income for the period 0 0 0 0 21 983 1,004 (193) 811
Acquisition of subsidiary - - - - - - 0 5,227 5,227
______ ______ ______ ______ ______ ______ ______ ______ ______
At 31 December 2023 4,725 29,932 281 36 21 (29,549) 5,446 5,034 10,480
Loss for the period - - - - - (370) (370) (190) (560)
Foreign exchange adjustments - - - - (18) - (18) - (18)
______ ______ ______ ______ ______ ______ ______ ______ ______
Total comprehensive income for the period 0 0 0 0 (18) (370) (388) (190) (578)
______ ______ ______ ______ ______ ______ ______ ______ ______
At 30 June 2024 4,725 29,932 281 36 3 (29,919) 5,058 4,844 9,902
______ ______ ______ ______ ______ ______ ______ ______ ______
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 2024 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 2023, which are available on the
Company's website at https://ormondemining.com/ (https://ormondemining.com/) .
The audit opinion on the statutory financial statements for the year ended 31
December 2023 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 2024. 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 2023.
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 2025 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 26 September 2024.
2. Segmental analysis
An analysis by geographical segments is presented below. The Group has
geographical segments in Ireland, Canada, UK and Spain.
The segment results for the period ended 30 June 2024 are as follows:
Ireland Canada UK Spain Total
Total loss before tax for 6 months to 30 June 2024 €000s €000s €000s €000s €000s
Segment profit (loss) for period (314) (278) 0 32 (560)
______ ______ ______ ______ ______
(314) (278) 0 32 (560)
______ ______ ______ ______ ______
Total profit before tax for year to 31 December 2023 €000s €000s €000s €000s €000s
Segment profit (loss) for period (916) 585 585 83 337
______ ______ ______ ______ ______
(916) 585 585 83 337
______ ______ ______ ______ ______
Total loss before tax for 6 months to 30 June 2023 €000s €000s €000s €000s €000s
Segment (loss) for period (431) 0 0 (23) (454)
______ ______ ______ ______ ______
(431) 0 0 (23) (454)
______ ______ ______ ______ ______
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:
30-Jun-24 30-Jun-23 31-Dec-23
€000s €000s €000s
Profit/(Loss) for the period attributable to equity holders of the parent:
Profit (Loss) for period (389) (454) 551
______ ______ ______
Total Profit (Loss) for period (389) (454) 551
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) Total (0.08) (0.10) 0.12
______ ______ ______
Diluted earnings per share
For the six months to 30 June 2024, 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 2023 and the year ended 31 December 2023 the
basic and diluted earnings per share are the same.
4. Investments in subsidiaries, business combinations and financial
assets
Subsidiaries are fully consolidated from the date that control commences until
the date that control ceases. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the policies adopted by the
Group. In 2023 Ormonde acquired a 36.2% interest in TRU Precious Metals Corp
(TRU). The Directors agreed that Ormonde has met the IFRS 10 control criteria
with the Board of Directors control of TRU and has the right to appoint/remove
TRU's key management personnel and decide on exploration plans and operational
strategy by a simple majority of Board votes. As a result, Ormonde has
consolidated TRU since acquisition in September 2023. The measurement basis
chosen for Non Controlling Interests is the proportionate share of
identifiable net assets.
The Group has a 19.2% investment in Peak Nickel Ltd which is deemed to be an
investment under IFRS and is shown at cost plus a fair value adjustment.
Peak Nickel Limited is UK based company advancing exploration on a potentially
significant battery metals project. The Directors having regard to the
volatility of these type of investments (and this is the case given the early
stage of this project and the type of market whereby metal prices can
fluctuate quite widely and have a direct impact on fund raising) and to
fluctuations in share prices for this nature of investment, have deemed fair
value at 31 December 2023 of the Peak Nickel equity interest to be the amount,
GB£1.02 million, (€1,172,000) generating a gain in 2023, recognised through
the income statement, of €585,400. There was a further investment of
GB£50,000 in early 2024.
5. Trade and other receivables
Trade receivables include the amount of €500,000 (current) and €414,000
(non-current) (total of €914,000) representing the fair value of the €1
million deferred consideration receivable at 30 June 2024 following the
disposal in September 2022 of certain land and data assets associated with the
La Zarza project.
6. Share capital
30-Jun-24 30-Jun-23 31-Dec-23
€000s €000s €000s
Authorised Equity
950,000,000 ordinary shares of €0.01 each 9,500 9,500 9,500
______ ______ ______
9,500 9,500 9,500
______ ______ ______
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
472,507,482 ordinary shares of €0.01 each 4,725 4,725 4,725
______ ______ ______
4,725 4,725 4,725
______ ______ ______
7. Non Controlled Interests
The non controlled interest of €4,844,000 represents the 63.7% of TRU
Precious Metals Corp net assets which the company does not control at year end
and comprises mainly of intangible assets (€3,922,000),
receivables/prepayments (€48,000), cash balance (€939,000) and trade
payables (€74,000).
8. Dividends
No dividends were paid or proposed in respect of the six months ended 30 June
2024.
9. Post balance sheet events
In July 2024, TRU entered into a definitive option agreement with Eldorado
Gold Corporation ("Eldorado") granting Eldorado the exclusive option to earn
an 80% ownership interest in the Golden Rose project through a multi-year
CAN$7 million work programme and a CAN$8.25 million cash payment to TRU. See
the Operational Review at the start of this Report for fuller details.
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