REG - Ormonde Mining PLC - Half Yearly Report <Origin Href="QuoteRef">ORM.I</Origin>

Ormonde MiningAnnouncement

29/10/2014 15:01

RNS Number : 7900S
Ormonde Mining PLC
29 September 2014
29 September 2014
Ormonde Mining plc
("Ormonde" or "the Company")
Interim Results for the Six Months Ended 30 June 2014
Ormonde Mining plc, the development and exploration company operating in Spain, is pleased to announce its unaudited interim results for the six months ended 30 June 2014. 
Highlights:
Barruecopardo
 All environmental approvals received: Mining Concession currently awaited
 Basic Engineering completed and shortlist of companies to undertake construction activities prepared
 Ongoing progress on debt funding arrangements
 Continued resilience of the tungsten price in a time of constrained global GDP growth and positive outlook for the coming years. 
Michael Donoghue, Chairman of Ormonde, commented,
"We have made very significant progress at our Barruecopardo Project during the first half of 2014, including the receipt of the Environmental Permit, the engagement of Swedbank as debt advisors in relation to the financing package for the Project and the agreement of a five year offtake contract, with Noble Group, for the tungsten concentrate to be produced. We look forward to the issuing of the Mining Concession."
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)1 8253570
Capital M Consultants
Simon Rothschild Mob: +44 (0)7703 167065
Murray Consultants
Mark Brennock Tel: +353 (0)1 4980300 Mob: +353 (0)87 2335923
Davy (Nomad / ESM Adviser)
Eugene Mulhern / Roland French Tel: +353 (0)1 6796363
SP Angel Corporate Finance LLP(Joint Broker) 
Ewan Leggat / Katy Birkin Tel: +44 (0)20 3463 2260


CHAIRMAN'S STATEMENT
During the first half of 2014 your Company was engaged in furthering the permitting process for the development of its Barruecopardo Tungsten Mine in Salamanca Province, Spain and, in parallel has been advancing other key matters required to facilitate its development.
January 2014 saw the termination of an offer period with the withdrawal of an unsolicited and unwelcome approach by another tungsten company. While this matter did not impact upon the critical path permitting process, it did somewhat curtail certain parallel activity including funding, engineering design and concentrate marketing, and it was good to be in a position to fully resume such activities once the deadline by which a formal offer must have been made had expired.
Around this time an important milestone in the permitting process was also achieved. In February, the Company's wholly-owned Spanish subsidiary, Saloro, received notification of the granting of the Environmental Impact Declaration ("EID") for the Barruecopardo Project. This EID is in effect the environmental permit for the Project, and is required for the Regional Mines Department to be able to issue the Mining Concession to Saloro. Subsequent to this, Saloro was advised that a legal review of the status of the historic mining concessions in the Barruecopardo area was to be completed by the Regional Authorities as part of a process to ensure that the new mining concession is valid in all respects. As the initial step in this permit review had not received responses from all contacted parties, the Legal Department deemed that this step should be repeated, which resulted in an unexpected delay as announced by the Company in July 2014. However, Ormonde now understands that the review has been completed, which should ensure the granting of the Mining Concession is imminent. Further announcements will be made in relation to the Mining Concession without delay following developments.
Progress was maintained in other areas, including advancing the selection process of the engineering company required to execute the various stages of the Barruecopardo plant and infrastructure design. This resulted in Ormonde awarding the Engineering Design Contract to UK-based Fairport Engineering Limited. Fairport is an experienced UK-based engineering firm involved in the aggregates, industrial minerals and minerals processing industries from engineering design to turnkey project delivery within the UK and continental Europe. To date, key and substantive progress has been achieved including completion of the Basic Engineering stage. Process Flow Sheet development has been completed and vendor discussions about equipment have been carried out in order to facilitate the efficient placement of the critical path equipment orders once project financing has been completed. Positive and constructive pre-qualification discussions have also now been undertaken with selected Spanish sub-contractors allowing preparation of a shortlist of companies to undertake the construction activities. 
On the product marketing side, during the first half of 2014 Ormonde decided to put in place a product offtake contract as an appropriate step to facilitate the capital funding arrangements being pursued. In March, Saloro entered into a binding offtake agreement for tungsten concentrate production from Barruecopardo with Noble Resources International Pte. Ltd a wholly-owned subsidiary of Noble Group Limited, a global market-leading commodities supply-chain manager of energy products, metals, minerals & ores and agricultural products with total revenues of US$98 billion in 2013. Under the terms of this Agreement, Noble will purchase 100% of the tungsten concentrate produced from the Barruecopardo open pit mine during its initial five years of operation.
On the important subject of capital funding, Ormonde engaged Swedbank Norwayas advisors in relation to a proposed senior bond financing as part of the overall financing package for the development of Barruecopardo. Notwithstanding the ongoing difficult backdrop for mining financing initiatives, the Company has made significant progress towards an eventual outcome on debt financing. Ormonde intends to finance the balance of the Barruecopardo project costs through equity, whether by way of joint venture or otherwise. 
In the first half of the year, APT prices traded between around $360 and $375 per metric tonne unit, and is currently trading at $355. The continued resilience of the tungsten price relative to many metals in a time of constrained global GDP growth is most encouraging. The outlook for the coming years is also positive, based upon continued strong growth in demand and limited new supply, with Tungsten Market Research forecasting a base case APT price over the five year period to 2018 ranging between US$420-510 per mtu and averaging US$478 per mtu.
Only limited work was carried out on our gold properties in Spain, held through a joint venture with Aurum Mining plc. This work principally involved compilation and refinement of the database on the main targets identified to date through drilling, such as that at Peralonso, where previous limited, shallow holes, returned encouraging gold intersections.
Financials 
Ormonde incurred an operating loss for the period of 1,116k (943k for the 6 months to 30 June 2013). 
In April, the Company raised 2 million (before expenses) through a placement to fund its activities relating to Barruecopardo and for working capital purposes.
In conclusion, I would like to thank shareholders for their support during the period. I look forward to the completion of the permitting process and thereafter to finalising arrangements for the capital funding of our Barruecopardo Project.
Michael J. Donoghue
Chairman
26 September 2014


Ormonde Mining PLC
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2014
unaudited
unaudited
audited
6 Months ended
6 Months ended
Year ended
30-Jun-14
30-Jun-13
31-Dec-13
000s
000s
000s
Turnover
0
0
0
Administration expenses
(995)
(805)
(1,397)
Exploration costs expensed
(122)
(143)
(418)
Finance income
1
5
7
______
______
______
Loss for the period before tax
(1,116)
(943)
(1,808)
Taxation
0
0
(1)
______
______
______
Loss for the Period
(1,116)
(943)
(1,809)
Loss per share



Basic loss per share (in cent)
(0.25)
(0.24)
(0.45)
Diluted loss per share (in cent)
(0.25)
(0.24)
(0.44)


Ormonde Mining PLC
Consolidated Statement of Financial Position
As at 30 June 2014

unaudited
unaudited
audited

30-Jun-14
30-Jun-13
31-Dec-13

000s
000s
000s
Assets







Non current assets



Intangible assets
18,004
16,843
17,127
Property, plant & equipment
2
2
1

_______
_______
_______
Total non current assets
18,006
16,845
17,128




Current assets



Trade & other receivables
454
449
394
Cash & cash equivalents
1,557
881
1,050

_______
_______
_______
Total current assets
2,011
1,330
1,444

_______
_______
_______
Total assets
20,017
18,175
18,572

_______
_______
_______
Equity & liabilities







Equity



Issued share capital
13,446
11,636
12,197
Share premium account
29,896
28,192
28,837
Share based payment reserve
837
777
837
Capital conversion reserve fund
29
29
29
Capital redemption reserve fund
7
7
7
Foreign currency translation reserve
1
1
1
Retained losses
(24,722)
(22,743)
(23,608)

_______
_______
_______
Total equity - attributable to the owners of the Company
19,494
17,899
18,300




Non-current liabilities



Trade & other payables
0
0
0




Current liabilities



Trade & other payables
523
275
272

_______
_______
_______
Total liabilities
523
275
272

_______
_______
_______
Total equity & liabilities
20,017
18,175
18,572

_______
_______
_______


Ormonde Mining PLC
Consolidated Statement of Cashflows
Six months ended 30 June 2014

unaudited
unaudited
audited

6 months ended
6 months ended
Year ended

30-Jun-14
30-Jun-13
31-Dec-13

000s
000s
000s




Cashflows from operating activities







Net loss for period before tax
(1,116)
(943)
(1,808)




Adjustments for:



Depreciation
1
1
2
Exploration costs written off
0
143
418
Movement on Share-based payment reserve
0
(1)
60
Investment income recognised in P&L
0
0
(7)

________
________
________

(1,115)
(800)
(1,335)
Movement in Working Capital



(Increase)/decrease in receivables
(60)
110
165
Increase/(decrease) in liabilities
251
(131)
(136)

________
________
________
Net Cash (used in) operations
(924)
(821)
(1,306)




Cashflows from financing activities



Proceeds from issue of share capital
2,309
(0)
1,206




Investing activities



Movement in plant & equipment
(1)
(1)
0
Expenditure on intangible assets
(877)
(580)
(1,138)
Interest received
0
1
7
Taxation
0
0
(1)

________
________
________
Net cash used in investing activities
(878)
(580)
(1,132)

________
________
________
Net increase in cash and cash equivalents
507
(1,401)
(1,232)




Cash and cash equivalents at beginning of period
1,050
2,282
2,282

______
______
______
Cash and cash equivalents at end of period
1,557
881
1,050

Ormonde Mining PLC
Consolidated Statement of Changes in Equity
Six months ended 30 June 2014



Share based payment reserve










Share Capital
Share Premium
Other Reserves
Retained Losses
Total

000s
000s
000s
000s
000s
000s







At 31 December 2012
11,636
28,192
777
37
(21,799)
18,843







Proceeds of share issue
-
-
-
-
-
0
Loss for the period
-
-
-
-
(943)
(943)

______
______
______
______
______
______
At 30 June 2013
11,636
28,192
777
37
(22,742)
17,900







Proceeds of share issue
561
645
-
-
-
1,206
Recognition of share based payments
-
-
60
-
-
60
Loss for the period
-
-
-
-
(866)
(866)

______
______
______
______
______
______
At 31 December 2013
12,197
28,837
837
37
(23,608)
18,300







Proceeds of share issue
1,249
1,059
-
-
-
2,308
Loss for the period
-
-
-
-
(1,116)
(1,116)

______
______
______
______
______
______
At 30 June 2014
13,446
29,896
837
37
(24,724)
19,492

______
______
______
______
______
______


Notes to the Interim Financial Statements
1. Accounting policies and basis of preparation
Ormonde Mining plc is a company domiciled in the Republic of Ireland. The Consolidated Interim Financial Statements ("the Interim Financial Statements") of the Company, as at and for the six months ended 30 June 2014, comprise the Company and its subsidiaries (together referred to as the "Group").
The Interim Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. The Interim Financial Statements have been prepared applying the accounting policies that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 December 2013. There are no new standards, amendments to standards or interpretations which are mandatory for the first time for financial periods commencing on 1 January 2014 which have a significant impact on the Group's accounting policies or on the reported results.
The comparative information provided in the Interim Financial Statements relating to the year ended 31 December 2013 does not comprise statutory financial statements. Those statutory financial statements on which the Company's auditors gave an unqualified audit opinion, have been delivered to the Registrar of Companies.
The Interim Financial Statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2013, which are available on the Company's website, www.ormondemining.com. The Interim Financial Statements for the six months ended 30 June 2014 are unaudited but have been reviewed by our auditors.
The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, being a period of not less than 12 months from the date of these Interim Financial Statements. Accordingly, they continue to adopt the going concern basis in preparing the financial information.
The Interim Financial Statements were approved by the Board of Directors on 26 September 2014.
2. Segmental analysis
The Group is engaged in one business segment only, development of mineral resource projects. Therefore only an analysis by geographical segment has been presented. The Group has geographic segments in Ireland and Spain. 
The segment results for the period ended 30th June 2014 are as follows:

Ireland
Spain
Loss for 6 months to 30 June 14
000s
000s



Segment loss for period
0
(1,116)

______
______

0
(1,116)

______
______


Notes to the Interim Financial Statements (continued)
3. Loss per share
The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
Loss per share
30-Jun-14
30-Jun-13
31-Dec-13

000s
000s
000s




Loss for period
(1,116)
(943)
(1,809)




Weighted average number of ordinary shares



for the purpose of basic earnings per share
442,324,992
398,494,402
404,950,441

______
______
______
Basic loss per ordinary shares (in cent)
(0.25)
(0.24)
(0.45)

______
______
______
Diluted earnings per share
The weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:
Loss per share
30-Jun-14
30-Jun-13
31-Dec-13

000s
000s
000s




Loss for period
(1,116)
(943)
(1,809)




Weighted average number of ordinary shares



for the purpose of basic earnings per share
442,324,992
398,494,402
404,950,441




Shares deemed to be issued for no consideration



in respect of Employee Options
1,559,322
1,470,175
1,755,101




Weighted average number of ordinary shares



for the purpose of diluted earnings per share
443,884,314
399,964,577
406,705,542

______
______
______
Diluted loss per ordinary shares (in cent)
(0.25)
(0.24)
(0.44)
4. Intangible assets - Exploration costs

Exploration


& Evaluation
Total

Assets


000s
000s
Cost


At 1 January 2014
17,127
17,127
Additions
877
877
Write off
0
0

______
______
At 30 June 2014
18,004
18,004


Notes to the Interim Financial Statements (continued)
5. Property, plant and equipment

Fixtures
Computer
Motor
Total

& Fittings
Equipment
Vehicles


000s
000s
000s
000s
Cost




At 1 January 2014
26
46
18
90
Additions
0
2
0
2
Disposals
0
0
0
0

______
______
______
______
At 30 June 2014
26
48
18
92

______
______
______
______





Accumulated Depreciation & Impairment




At 1 January 2014
(25)
(46)
(18)
(89)
Depreciation expense
0
(1)
0
(1)
Disposals
0
0
0
0

______
______
______
______
At 30 June 2014
(25)
(47)
(18)
(90)

______
______
______
______





Net Book Value at 1 January 2014
1
0
(0)
1

______
______
______
______
Net Book Value at 30 June 2014
1
1
(0)
2

______
______
______
______
6. Share Capital
Share Capital
30-Jun-14
30-Jun-13
31-Dec-13

000s
000s
000s




Authorised Equity



550,000,000 ordinary shares of 2.5c each
13,750
11,250
13,750
100,000,000 deferred shares of 3.809214c each
3,809
3,809
3,809

______
______
______

17,559
15,059
17,559

______
______
______




Issued Capital



Share Capital
13,446
11,636
12,197
Share Premium
29,896
28,192
28,837

______
______
______

43,342
39,828
41,034

______
______
______


Notes to the Interim Financial Statements (continued)
7. Post Balance Sheet Event
There were no post Balance Sheet Events.
The financial information has been prepared under International Financial Reporting Standards using accounting policies consistent with those in the last Annual Report.
No dividends were paid or proposed in respect of the six months ended 30 June 2014.


Independent Review Report to Ormonde Mining PLC
Introduction
We have been engaged by the Company to review the Consolidated Interim Financial Statements ("the Interim Financial Statements") of the Company as at and for the six months ended 30 June 2014 comprising the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Statement of Cashflows and the related explanatory notes. We have read other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Interim Financial Statements.
This report is made solely to the Company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The Directors are responsible for ensuring that the set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the Interim Financial Statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagement (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the entity", issued by the Auditing Practices Board. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the Interim Financial Statementsin the half-yearly report for the six months ended 30 June 2014 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU.
Fergal McGrath
For and on behalf of
LHM Casey McGrath
Chartered Certified Accountants, Statutory Audit Firm
26 September 2014
6 Northbrook Road
Dublin 6
ENDS

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