REG - Ormonde Mining PLC - Half-year Report
28/09/2022 07:01
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RNS Number : 9025A Ormonde Mining PLC 28 September 2022
28 September 2022
Ormonde Mining plc
("Ormonde" or "the Company")
Interim Results for the Six Months Ended 30 June 2022
Ormonde announces its unaudited interim results for the six months ended 30
June 2022.
Key points:
· Ongoing review of acquisition and investment opportunities across a
number of jurisdictions
· Conditional sale of La Zarza assets (the "Sale") provides opportunity
to further strengthen the Company's balance sheet in order to create
shareholder value through acquisitions
· Following shareholder approval of the Sale, Company to become a cash
shell - required to undertake a reverse takeover within six months
Operational Review:
New Projects
During the first six months of the year, the Board of Directors (the "Board")
and its advisory team evaluated a range of projects located in a number of
countries covering, inter alia, precious metal, precious stones, base metals
and battery metals opportunities. While there are numerous early-stage
exploration opportunities available in the mining sector currently, such
investments carry a range of risk profiles, particularly those that may
require significant upfront investment with little visibility over near or
medium-term upside. With shareholder value in mind, the Board is looking to
identify opportunities in which Ormonde's investment will have the ability to
advance the project in a timely manner and enhance its profitability potential
without taking on excessive risk.
La Zarza
On 29 July 2022, the Company announced that it had entered into a conditional
agreement for the sale of its interests in the La Zarza Copper-Gold Project in
Spain ("La Zarza") for a cash consideration of €2.3 million, payable as
€800,000 on closing and three further payments of €500,000 each on the
first, second and third anniversary of closing. The Sale is conditional on
approval by Ormonde shareholders at an Extraordinary General Meeting ("EGM")
to be held later today. The Company has received irrevocable undertakings
from the Company's largest shareholder, Thomas Anderson, holding 24.41% of the
Company's shares, to vote in favour of the resolutions in relation to the
Sale.
Salamanca and Zamora Gold Projects
The three investigation permits that make up these gold exploration projects
came up for renewal during July and September 2021. Applications to extend
each permit for a further three years have been submitted to the mining
authorities where they are currently being processed. The renewal of the
permits will require further exploration commitments. This process can take a
considerable length of time and carries no guarantee that the permits will be
renewed. Ormonde's interest in the Salamanca and Zamora Projects on 30 June
2022 was 50.9% and 46.6% respectively.
Financial Review:
Interim Results
The Company reports a significantly reduced loss after tax for the six months
ended 30 June 2022 of €363,000 (2021: €630,000 Loss). The reduction of
€267,000 in the reported loss was primarily driven by the significant
reductions in director and senior management salaries and the elective
non-payment of director fees during the period.
As at 30 June 2022, the Company held €3.4 million of cash (€3.7 million at
31 Dec 2021), with a further €800,000 due on closing of the Sale and three
further payments of €500,000 each on the first, second and third anniversary
of closing.
EGM Recommendation and AIM Rule 15
Following shareholder approval of the disposal of the La Zarza assets, the
Company would become a cash shell pursuant to AIM Rule 15 and the Euronext
Growth Market rules, and as such will, within a period of six months and
twelve months respectively from the date of the disposal, be required to make
an acquisition or acquisitions which constitute a reverse takeover under AIM
Rule 14 and the Euronext Growth Market rules. If no such acquisition or
acquisitions are made, the Company's shares would be suspended from trading
pursuant to AIM Rule 40 and the Euronext Growth Market rules.
The Board unanimously recommended that shareholders voted in favour of the
resolutions relating to the Sale.
Brendan McMorrow, Chief Executive Officer, commented:
"The sale of our assets at La Zarza will be an important milestone for the
Company and, following the approval by Ormonde's shareholders, would place the
Company on an even stronger financial footing from which to execute on new
opportunities. To release value from the assets at a premium to book value is
a very satisfactory outcome for the Company and its shareholders.
Although we have not yet identified the optimal project for our next phase, I
am encouraged by the quality and volume of the opportunities that we have
reviewed and the strength of the newly constructed Board and its advisory
team. Our balance sheet strength allows us the benefit of selectivity,
ensuring that when we do move forward with a transaction, we expect it to be a
highly attractive one."
For further information, please contact:
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 Listing Sponsor and Joint Broker)
Barry Murphy
Tel: +353 (0)1 679 6363
Company website: www.ormondemining.com (http://www.ormondemining.com)
Ormonde Mining plc
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2022
unaudited unaudited audited
6 Months ended 6 Months ended Year ended
30-Jun-22 30-Jun-21 31-Dec-21
€000s €000s €000s
Turnover - - -
Administration expenses (350) (617) (1,194)
Impairment of Asset classified as held for sale - - (400)
______ ______ ______
Loss on ordinary activities (350) (617) (1,594)
Finance costs (13) (13) (24)
______ ______ ______
Loss for the period from continuing activities (363) (630) (1,618)
Taxation on (loss) - - -
______ ______ ______
Loss for the period after tax (363) (630) (1,618)
______ ______ ______
Loss for the period (363) (630) (1,618)
______ ______ ______
Total comprehensive (loss) for the period (363) (630) (1,618)
______ ______ ______
Earnings per share
from continuing operations
Basic & diluted (loss) per share (in cent) (0.08) (0.13) (0.34)
Total earnings per share
Basic & diluted gain (loss) per share (in cent) (0.08) (0.13) (0.34)
Ormonde Mining plc
Consolidated Statement of Financial Position
As at 30 June 2022
unaudited unaudited audited
30-Jun-22 30-Jun-21 31-Dec-21
€000s €000s €000s
Assets
Non-current assets
Intangible assets 315 305 309
_______ _______ _______
Total Non-Current Assets 315 305 309
Current assets
Trade & other receivables 49 31 93
Cash & cash equivalents 3,385 4,315 3,746
Asset classified as held for sale 2,000 2,400 2,000
_______ _______ _______
Total current assets 5,434 6,746 5,839
_______ _______ _______
Total assets 5,749 7,051 6,148
_______ _______ _______
Equity & liabilities
Equity
Issued share capital 4,725 4,725 4,725
Share premium account 29,932 29,932 29,932
Share based payment reserve 281 283 281
Capital conversion reserve fund 29 29 29
Capital redemption reserve fund 7 7 7
Retained losses (29,376) (28,099) (29,013)
_______ _______ _______
Total equity - attributable to the owners of the Company 5,598 6,877 5,961
Current liabilities
Trade & other payables 151 174 187
_______ _______ _______
Total liabilities 151 174 187
_______ _______ _______
Total equity & liabilities 5,749 7,051 6,148
_______ _______ _______
Ormonde Mining plc
Consolidated Statement of Cashflows
Six months ended 30 June 2022
unaudited unaudited audited
6 Months ended 6 Months ended Year ended
30-Jun-22 30-Jun-21 31-Dec-21
€000s €000s €000s
Cashflows from operating activities
(Loss) for period before taxation
Continuing operations (363) (630) (1,618)
________ ________ ________
(363) (630) (1,618)
Adjustments for:
Impairment of Asset classified as held for sale - - 400
Share option expense - - 72
________ ________ ________
(363) (630) (1,146)
Movement in Working Capital
Movement in receivables 44 27 (35)
Movement in liabilities (36) (37) (24)
________ ________ ________
Net Cash used in operations (355) (640) (1,205)
________ ________ ________
Cashflow from financing activities (355) (640) (1,205)
Investing activities
Expenditure on intangible assets (6) (10) (14)
________ ________ ________
Net cash (used in) investing activities (6) (10) (14)
Net (decrease) in cash and cash equivalents (361) (650) (1,219)
Cash and cash equivalents at beginning of period 3,746 4,965 4,965
______ ______ ______
Cash and cash equivalents at end of period 3,385 4,315 3,746
________ ________ ________
Ormonde Mining plc
Consolidated Statement of Changes in Equity
Six months ended 30 June 2022
Share based payment reserve
Consolidated Statement of Changes in Equity
Share Capital Share Premium Other Reserves Retained Losses Total
€000s €000s €000s €000s €000s €000s
At 1 January 2021 4,725 29,932 283 36 (27,469) 7,507
Loss for the period - - - - (630) (630)
______ ______ ______ ______ ______ ______
Total comprehensive loss for the period 0 0 0 0 (630) (630)
______ ______ ______ ______ ______ ______
At 30 June 2021 4,725 29,932 283 36 (28,099) 6,877
Loss for the period - - - - (988) (988)
______ ______ ______ ______ ______ ______
Total comprehensive loss for the period 0 0 0 0 (988) (988)
Release relating to expired share options - - (74) - 74 0
Employee share-based compensation - - 72 - 72
______ ______ ______ ______ ______ ______
At 31 December 2021 4,725 29,932 281 36 (29,013) 5,961
Loss for the period - - - - (363) (363)
______ ______ ______ ______ ______ ______
Total comprehensive loss for the period 0 0 0 0 (363) (363)
______ ______ ______ ______ ______ ______
At 30 June 2022 4,725 29,932 281 36 (29,376) 5,598
______ ______ ______ ______ ______ ______
Notes to the Interim Consolidated Financial Statements
1. Accounting policies and basis of preparation
Ormonde Mining plc ( the "Company") is a company incorporated and domiciled in
the Republic of Ireland. The Unaudited Consolidated Interim Financial
Statements ("the Interim Consolidated Financial Statements") of the Company,
as at and for the six months ended 30 June 2022, comprise the Company and its
subsidiaries (together referred to as the "Group").
The comparative information provided in the Interim Consolidated Financial
Statements relating to the year ended 31 December 2021 does not comprise
statutory financial statements. The audit opinion on the statutory financial
statements for the year ended 31 December 2021 was unqualified. However, the
auditors drew attention by way of an emphasis of matter paragraph to the
material uncertainty relating to the carrying value of the La Zarza
exploration and evaluation assets, which are classified as assets held for
sale. These assets held for sale are as set out in the opening page to these
Interim Consolidated Financial Statements now the subject of a conditional
agreement for their sale.
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 2021, which are available on the
Company's website, www.ormondemining.com. (http://www.ormondemining.com.)
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 2022. 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 2021.
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 2023 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 27 September 2022.
Notes to the Interim Consolidated Financial Statements
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 2022 are as follows:
Ireland Spain Total
Total comprehensive loss for 6 months to 30 June 2022 €000s €000s €000s
Segment (loss) for period (207) (156) (363)
______ ______ ______
(207) (156) (363)
______ ______ ______
Total comprehensive loss for year to 31 December 2021 €000s €000s €000s
Segment (loss) for period (1,038) (580) (1,618)
______ ______ ______
(1,038) (580) (1,618)
______ ______ ______
Total comprehensive loss for 6 months to 30 June 2021 €000s €000s €000s
Segment (loss) for period (532) (97) (630)
______ ______ ______
(532) (97) (630)
______ ______ ______
Notes to the Interim Consolidated Financial Statements (continued)
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-22 30-Jun-21 31-Dec-21
€000s €000s €000s
Profit/(loss) for the period attributable to equity holders of the parent:
From continuing business (363) (630) (1,618)
______ ______ ______
Total (Loss) for period (363) (630) (1,618)
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 (0.08) (0.13) (0.34)
______ ______ ______
Basic loss per ordinary shares (in cent) Total (0.08) (0.13) (0.34)
______ ______ ______
Diluted earnings per share
For the six months to 30 June 2022, 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 2021 and the year ended 31 December 2021 the
basic and diluted earnings per share are the same.
Notes to the Interim Consolidated Financial Statements (continued)
4. Share capital
30-Jun-22 30-Jun-21 31-Dec-21
€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
______ ______ ______
5. Dividends
No dividends were paid or proposed in respect of the six months ended 30 June
2022.
6. Post balance sheet events
On 30 August 2022 the Company notified shareholders that is was posting a
circular calling an extraordinary general meeting for the 28 September 2022 in
relation to the approval of the sale of the La Zarza assets to La Zarza
Mineria Metalica S.L.U..
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