REG - Ormonde Mining PLC - Final Results
21/06/2022 07:00
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RNS Number : 5559P Ormonde Mining PLC 21 June 2022
21 June 2022
Ormonde Mining plc
("Ormonde" or the "Company")
Final Results for the Year Ended 31 December 2021
Ormonde announces its final results for the year ended 31 December 2021.
Key points:
· Newly constructed Board appointed, including Brian Timmons (previously
Non-Executive Director) becoming Non-Executive Chairman in October 2021 and
Brendan McMorrow becoming Chief Executive Officer in November 2021 -
significant ongoing cost savings
· The Board is reviewing a range of acquisition opportunities in
appropriate jurisdictions including precious metals, precious stones, battery
metals and base metals projects
· Process supported by newly appointed senior technical and geological
consultants
· The Board continues to evaluate its strategy to unlock value for
shareholders from the Company's existing assets in Spain, including a
potential transaction relating to the Company's interests at La Zarza
· Total comprehensive loss of €1.6 million including €0.4 million
asset impairment
· Net assets of €5.96 million, including a cash balance of €3.75
million, placing the Company in a position of strength to undertake a
transaction
Brian Timmons, Chairman, commented:
"2021 was a year of transition for the Company as we restructured the Board,
reviewed the Company's assets, reorganised the Company to operate on a reduced
cost basis, and positioned Ormonde to execute an opportunity to enable the
Company to leverage its listing and balance sheet and generate value for
shareholders.
I would like to thank our shareholders for their continued support and
patience. I am conscious that shareholders are keen to see the value of their
holding grow. Our job is to ensure that we deliver the best opportunity to
achieve this; one which offers the maximum upside from the Company's current
balance sheet. I am confident that we have the team in place to execute on
that goal and deliver shareholder value."
Enquiries:
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 Advisor and Joint Broker)
Barry Murphy
Tel: +353 (0)1 679 6363
CHAIRMAN'S REVIEW
Introduction
I am pleased to provide my first report to shareholders as Ormonde's Chairman,
having been appointed as a Non-Executive Director in June 2020, and
subsequently as Non-Executive Chairman in October 2021.
2021 was a year of transition for the Company as we restructured the Board,
reviewed the Company's assets, reorganised the Company to operate on a reduced
cost basis, while building its capability to execute an opportunity that will
enable the Company to leverage its listing and balance sheet to generate value
for shareholders.
Leadership Restructuring
Following the Company's Annual General Meeting in September 2021, Jonathan
Henry, and his board and management team left the Company.
Brendan McMorrow and Keith O'Donnell joined me on the Board, and Brendan was
subsequently appointed in November 2021 to discharge the role of Chief
Executive Officer. Brendan, Keith and I each have over 30 years' experience in
company management, capital markets, and publicly listed natural resources
companies.
The Board is now supported in its endeavours by experienced industry
consultants. These include Steve Nicol and Professor Garth Earls, who bring
with them over 70 years of combined relevant experience. Drawing on his
background in mine evaluation and operations, Steve, as Senior Technical and
Mining Advisor, is assisting in the evaluation of potential new mining assets.
He previously worked with Ormonde to identify and commercialise the
Barruecopardo Tungsten mine in Spain, whose 30% interest was sold by the
Company in 2020 for €6 million. Garth is assisting the Company as a Senior
Geologist, focused on project exploration and development appraisal. Garth has
over 40 years of professional experience in mineral exploration, was part of
the team that discovered the six-million-ounce Curraghinalt gold deposit in
Northern Ireland, and currently serves as Executive Chairman of International
Geoscience Services. He is a former Director of the Geological Survey of
Northern Ireland and a past Chairman of the Geosciences Committee of the Royal
Irish Academy.
Steve and Garth provide the complementary skill sets required to evaluate the
geological, technical, mining operational and commercial elements of the
projects under review and to identify worthwhile opportunities to generate
value for the Company and its shareholders.
We are now pursuing investment opportunities at a more appropriate and
efficient cost to the Company. Until the Company has made material strategic
progress in this regard, the directors have waived their entitlement to
non-executive directors' fees.
New Project Evaluation
The range of opportunities being reviewed include precious metals, precious
stones, battery metals and some base metals in a number of jurisdictions
including Africa and Europe.
Our objective is to invest in a project which will generate meaningful value
for shareholders on a sustainable basis. We are reviewing a number of
opportunities that appear promising, without presenting excessive risk to
shareholders.
Existing Projects
Ormonde retains its assets in Spain, namely the Salamanca and Zamora gold
projects and the Board continues to evaluate its strategy to unlock value for
shareholders from these assets. In addition, the prospect of a transaction
relating to the land and data assets of the Company's La Zarza interest
continues with discussions with interested parties ongoing.
Financials
Ormonde recorded a total comprehensive loss for the period of €1.6 million
for 2021, including an asset impairment, noted below, of €0.4 million,
compared with a loss of €1.1 million in 2020.
Following an internal review of its assets at La Zarza, Ormonde now values its
La Zarza interests at €2.0 million, a €0.4 million reduction from previous
guidance. The Board considers this to be a fair value and is in discussions
regarding a transaction.
While reviewing new opportunities, the Board has, since its reconstruction in
late 2021, endeavoured to reduce the Company's overheads with Board and
management costs lower on a full year basis by approximately 60 percent. The
impact of these reductions will be realised in the current year with projected
savings related to payroll of c. €0.3 million for 2022 as compared to 2021.
As of 31 December 2021, the Company had net assets of €5.96 million,
including a cash balance of €3.75 million, placing the Company in a position
of considerable strength to undertake a transaction within the natural
resources sector.
Outlook
On behalf of the Board, I would like to thank our shareholders for their
continued support and patience. I am of course conscious that our shareholders
are keen to see the value of their holding grow. Our job is to ensure we
deliver the best opportunity to achieve this; one which offers the maximum
upside from the Company's balance sheet and resources. I am confident that we
have the team in place to execute on that goal and deliver value to
shareholders. While we are undertaking that process, we will continue to
manage costs prudently. I look forward to updating you on the Company's
progress in due course.
Brian Timmons
Chairman
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2021
Year ended Year ended
31-Dec-21 31-Dec-20
€000s €000s
Turnover 0 0
Administration expenses (1,194) (1,119)
Impairment of intangibles (400) 0
______ ______
Loss on ordinary activities (1,594) (1,119)
Finance costs (24) (17)
______ ______
Loss for the year from continuing activities (1,618) (1,136)
Profit from discontinued operations 0 1,600
______ ______
Loss (profit) for the year (1,618) 464
Taxation 0 0
______ ______
Loss (profit) for the Period after tax (1,618) 464
Other comprehensive income
less: Reclassification of foreign currency gain on disposal of foreign 0 (1,600)
operation
______ ______
Total comprehensive (loss) for the period (1,618) (1,136)
______ ______
Earnings per share
from continuing operations
Basic & diluted (loss) per share (in cent) (0.34) (0.24)
Total earnings per share
Basic & diluted (loss) per share (in cent) (0.34) 0.10
Consolidated Statement of Financial Position
as at 31 December 2021
31-Dec-21 31-Dec-20
€000s €000s
Assets
Non-current assets
Intangible assets 309 295
_______ _______
Total Non-Current Assets 309 295
Current assets
Trade and other receivables 93 58
Asset classified as held for sale 2,000 2,400
Cash & cash equivalents 3,746 4,965
_______ _______
Total Current Assets 5,839 7,423
_______ _______
Total Assets 6,148 7,718
_______ _______
Equity & liabilities
Capital and Reserves
Issued capital 4,725 4,725
Share premium account 29,932 29,932
Share based payment reserve 281 283
Capital conversion reserve fund 29 29
Capital redemption reserve fund 7 7
Retained losses (29,013) (27,469)
_______ _______
Equity attributable to the Owners of the Company 5,961 7,507
Current Liabilities
Trade & other payables 187 211
_______ _______
Total Liabilities 187 211
_______ _______
Total Equity & Liabilities 6,148 7,718
_______ _______
Consolidated Statement of Cashflows
for the year ended 31 December 2021
Year ended Year ended
31-Dec-21 31-Dec-20
€000s €000s
Cashflows from operating activities
Loss for the year before taxation
Continuing operations (1,618) (1,136)
Discontinued operations 0 1,600
________ ________
(1,618) 464
Adjustments for:
Impairment of asset classified as held for sale 400 0
Reclassification of foreign exchange gain 0 (1,600)
Non cash items: Share Option expense 72 19
________ ________
(1,146) (1,117)
Movement in Working Capital
Movement in receivables (35) 320
Movement in liabilities (24) (358)
________ ________
Net Cash used in operations (1,206) (1,155)
Investing activities
Expenditure on intangible assets (14) (10)
Proceeds from disposal of associate 0 6,000
________ ________
Net cash (used in)/generated from investing activities (14) 5,990
Net (decrease)/increase in cash and cash equivalents (1,219) 4,835
Cash and cash equivalents at the beginning of the year 4,965 130
______ ______
Cash and cash equivalents at the end of the year 3,746 4,965
______ ______
Consolidated Statement of Changes in Equity
for the year ended 31 December 2021
Share based
Share Share Payment Other Retained
Capital Premium Reserve Reserves Losses Total
€000s €000s €000s €000s €000s €000s
Balance at 1 January 2020 13,485 29,932 837 1,636 (37,265) 8,625
Loss for the year - - - - (1,136) (1,136)
Reclassification of foreign currency gain on disposal of foreign operation - - - (1,600) 1,600 0
______ ______ ______ ______ ______ ______
Total comprehensive income for the year 0 0 0 (1,600) 464 (1,136)
Release relating to expired share options - - (572) - 572 0
Employee share-based compensation - - 18 - - 18
Cancellation of shares (8,760) - - - 8,760 0
______ ______ ______ ______ ______ ______
Balance at 31 December 2020 4,725 29,932 283 36 (27,469) 7,507
Loss for the year - - - - (1,618) (1,618)
______ ______ ______ ______ ______ ______
Total comprehensive income for the year 0 0 0 0 (1,618) (1,618)
Release relating to expired share options - - (74) - 74 0
Employee share-based compensation - - 72 - - 72
______ ______ ______ ______ ______ ______
Balance at 31 December 2021 4,725 29,932 281 36 (29,013) 5,961
______ ______ ______ ______ ______ ______
1. The basic loss per share and the diluted loss per share have been
calculated on a loss after taxation of €1,618,026 (2020: profit of
€464,000) and a weighted average number of Ordinary Shares in issue for the
year of 472,507,482 (2020: 472,507,482) for the basic loss per share and
472,507,482 (2020: 472,507,482) for the diluted loss per share.
2. The financial information prepared using accounting policies consistent
with International Financial Reporting Standards ("IFRS") as adopted by the
European Union included in this preliminary statement does not constitute the
statutory financial statements for the purposes of Chapter 4 of part 6 of the
Companies Act 2014. Full statutory statements for the year ended 31 December
2021 prepared in accordance with IFRS, upon which the auditors have given an
unqualified report, have not yet been filed with the Registrar of Companies.
Full financial statements for the year ended 31 December 2020 prepared in
accordance with IFRS and containing an unqualified report, have been filed
with the Registrar of Companies.
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