REG - Ormonde Mining PLC - Final Results
27/06/2023 18:30
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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 €2.3 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
(http://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 £512,500. 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 £4 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 €2.3 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 €800,000 on closing, with the balance to be paid in three equal
payments of €500,000 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 €167,000 as
at 31 December 2022.
Financials
Ormonde recorded a total comprehensive loss for the period of €1.1 million
for 2022, compared with a loss of €1.6 million in 2021. As of 31 December
2022, the Group had net assets of €4.9 million, including a cash balance of
€3.56 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 €000s €000s
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 €000s €000s
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
31-Dec-22 As regrouped
31-Dec-21
Notes €000s €000s
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
€000s €000s
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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