REG - Ormonde Mining PLC - Interim Results
29/09/2023 08:15
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RNS Number : 0781O Ormonde Mining PLC 29 September 2023
29 September 2023
Ormonde Mining plc
("Ormonde" or the "Company")
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 (£512,500) 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
€454,000 (H1 2022: €363,000 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 €2.5 million of cash (€3.4 million at
31 Dec 2022).
Deferred Consideration
The Company has, after the period end, received the second instalment of
consideration (€500,000) due in respect of the disposal of the La Zarza
assets, which completed on 3 October 2022. A further two instalments of
€500,000 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
(http://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
€000s €000s €000s
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 €000s €000s €000s
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
€000s €000s €000s
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
€000s €000s €000s €000s €000s €000s
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/ (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 €000s €000s €000s
Segment loss for period (431) (23) (454)
______ ______ ______
(431) (23) (454)
______ ______ ______
Total comprehensive loss for year to 31 December 2022 €000s €000s €000s
Segment loss for period (933) (132) (1,065)
______ ______ ______
(933) (132) (1,065)
______ ______ ______
Total comprehensive loss for 6 months to 30 June 2022 €000s €000s €000s
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
€000s €000s €000s
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 €656,000 is comprised of €588,000 relating to the
Company's 20% equity investment in Peak Nickel Limited which is advancing
exploration on a potentially significant battery metals project and €68,000
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 €500,000 (current) and €784,000
(non-current) (total of €1.284 Million) representing the fair value of the
€1.5 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
€000s €000s €000s
Authorised Equity
650,000,000 ordinary shares of €0.01 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 €0.01 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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