REG - Ormonde Mining PLC - Interim Results 2017 <Origin Href="QuoteRef">ORM.I</Origin>

Ormonde MiningAnnouncement

28/09/2017 07:06

RNS Number : 0191S
Ormonde Mining PLC
28 September 2017
OrmondeMiningplc
("Ormonde"or "the Company")
Interim Results for the Six Months Ended 30 June 2017
The Board of Ormonde announces its unaudited interim results for the six months ended 30 June 2017.
Barruecopardo Tungsten Mine Construction
 In June 2017 the Company reported that the Barruecopardo Tungsten Mine was being advanced into an accelerated construction and implementation phase.
 Since then, major progress in mine construction work has been achieved, including: 
o all priority equipment now in manufacture; 
o main dam construction underway; 
o site facilities under construction; and
o civils works and other contracts awarded.
 With mine commissioning scheduled to commence in Q3 2018, Barruecopardo is set to become a leading, low-cost European supplier of tungsten concentrates.
 Views of recent construction activity can be seen on Ormonde's website including a mine site flyover video (http://ormondemining.com/barruecopardo-drone-fly/) and a photo gallery of works being advanced (http://ormondemining.com/timeline-in-pictures/).
Tungsten Market (notes 1 & 2)
 Benchmark APT tungsten prices rose 12% during the reporting period, from US$193 per metric tonne unit ("mtu") in January to US$217 per mtu at the end of June.
 Subsequently, the APT price has risen in an accelerated manner, reaching a high of US$323 per mtu, with prices recently consolidating in the range of US$300-315 per mtu, representing an increase of circa 60% year to date and 90% since January 2016.
 Factors widely considered to underpin supportive supply-demand fundamentals include: steady growth in global industrial demand; a clampdown on Chinese mines on environmental grounds and enforcement of production quotas; and scarcity of tungsten concentrates from mining operations outside of China.
Financial Results
 The Company reports a total comprehensive loss for the period of 132,000 (96,000 loss for the 6 months to 30 June 2016), which includes a 120,000 loss relating to its associate investment within which the Barruecopardo Mine is held.
Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:
"The half year period to June 2017 was an extremely significant one for Ormonde, with the key decision taken by the Project partners, towards the end of the period, to advance the Barruecopardo Tungsten Mine into an accelerated construction and implementation phase. 
I am pleased to advise that the mine development has advanced in earnest, with significant progress being made across multiple areas, with great credit being due to the Project team and leadership. The fact that this progress is being achieved against a backdrop of rising tungsten prices continues to support our belief in the appropriateness of the decision to advance the Project in an accelerated manner, and consolidates the business case for this world class tungsten mine development. 
We look forward to the continued rapid progress of mine construction work over the coming months, as we look to bring Barruecopardo on stream with mine commissioning commencing during the third quarter of 2018, into what continues to look like a favourable supply-demand situation for tungsten."
Enquiries to:
Ormonde Mining plc Tel:+353 (0)18014184
Paul Carroll, Chief Financial Officer
Fraser Gardiner, Chief Operating Officer 
CapitalM Consultants
Simon RothschildMob:+44 (0)7703 167065
Murray Consultants
MarkBrennock Tel:+353(0)14980300Mob:+353(0)872335923
Davy (Nomad, ESM Adviser and Joint Broker)
John Frain Tel: +353 (0)1 679 6363
SP Angel Corporate Finance LLP (Joint Broker)
Ewan LeggatTel:+44 (0)20 3 470 0470
About Ormonde
Ormonde has a 30% interest in the Barruecopardo Tungsten Mine, located in northwest Spain. Barruecopardo is a fully permitted and fully funded mining project currently being developed through a US$99.7 million funding package agreed with Oaktree Capital Management (70% interest) in 2015. For more information, visit www.ormondemining.com.
Other Projects
 Salamanca and Zamora Gold Projects - the Company has interests in promising gold properties in Salamanca Province (42% interest) and Zamora Province (47% interest), western Spain, held in joint venture with Shearwater Group plc.
 La Zarza Copper-Gold Project - the Company continues to seek a divestment of its interest in La Zarza, a polymetallic massive sulphide deposit located in the Iberian Pyrite Belt mining district of southwest Spain.
Notes:
(1) Ammonium Paratungstate (APT) is the most commonly traded secondary downstream tungsten product, and the APT price is the most widely used benchmark for pricing the tungsten concentrates produced by mines.
(2) mtu - metric tonne unit, which is 10 kg.

Ormonde Mining plc
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2017

unaudited
unaudited
audited

6 Months ended
6 Months ended
Year ended

30-Jun-17
30-Jun-16
31-Dec-16

000s
000s
000s








Turnover
375
500
1,000




Administration expenses
(386)
(378)
(856)
Amounts written of intangible assets
0
0
(2,000)
Finance costs
(1)
(2)
0

______
______
______
Profit (loss) for the period before tax
(12)
120
(1,856)




Taxation
0
0
(1)

______
______
______
Profit (loss) for the period after tax
(12)
120
(1,857)




Group share of loss on associate investment
(120)
(216)
(552)

______
______
______
Total comprehensive (loss) for the period
(132)
(96)
(2,409)








Loss per share



Basic loss per share (in cent)
(0.03)
(0.02)
(0.51)
Diluted loss per share (in cent)
(0.03)
(0.02)
(0.51)
Ormonde Mining plc
Consolidated Statement of Financial Position
As at 30 June 2017

unaudited
unaudited
audited

30-Jun-17
30-Jun-16
31-Dec-16

000s
000s
000s
Assets







Non-current assets



Intangible assets
3,305
5,295
3,300
Financial assets
15,906
16,363
16,026
Property, plant & equipment
0
1
0

_______
_______
_______
Total Non-current assets
19,211
21,658
19,326




Current assets



Trade & other receivables
30
74
37
Cash & cash equivalents
582
504
694

_______
_______
_______
Total current assets
612
578
731

_______
_______
_______
Total assets
19,823
22,237
20,057

_______
_______
_______
Equity & liabilities







Equity



Issued share capital
13,485
13,485
13,485
Share premium account
29,932
29,932
29,932
Share based payment reserve
837
837
837
Capital conversion reserve fund
29
29
29
Capital redemption reserve fund
7
7
7
Foreign currency translation reserve
1
1
1
Retained losses
(24,630)
(22,185)
(24,497)

_______
_______
_______
Total equity - attributable to the owners of the Company
19,661
22,109
19,794




Current liabilities



Trade & other payables
162
131
263

_______
_______
_______
Total liabilities
162
131
263

_______
_______
_______
Total equity & liabilities
19,823
22,237
20,057

_______
_______
_______
Ormonde Mining plc
Consolidated Statement of Cashflows
Six months ended 30 June 2017

unaudited
unaudited
audited

6 months ended
6 months ended
Year ended

30-Jun-17
30-Jun-16
31-Dec-16

000s
000s
000s




Cashflows from operating activities







Net profit/(loss) for period before tax
(12)
120
(1,856)




Adjustments for:



Depreciation
0
0
1
Finance cost recognised in P&L
0
2
0
Write down of intangibles
0
0
2,000

________
________
________

(12)
122
145
Movement in working capital



Movement in receivables
7
(39)
(1)
Movement in liabilities
(102)
(217)
(82)

________
________
________
Net cash (used in)/provided by operations
(107)
(134)
62




Investing activities



Acquisitions & disposals
120
216
552
Expenditure on intangible assets
(5)
(16)
(21)
Interest received
0
0
0

________
________
________
Net cash used in investing activities
115
201
531
Share of loss in associate
(120)
(216)
(552)
Cashflow from investing activities
(5)
(15)
(21)




Net increase/(decrease) in cash and cash equivalents
(112)
(149)
41




Cash and cash equivalents at beginning of period
694
653
653

______
______
______
Cash and cash equivalents at end of period
582
504
694
Ormonde Mining plc
Consolidated Statement of Changes in Equity
Six months ended 30 June 2017



Share based payment reserve








Share Capital
Share Premium
Other Reserves
Retained Losses
Total

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







At 1 January 2016
13,485
29,932
837
37
(22,089)
22,202







Loss for the period
-
-
-
-
(96)
(96)

______
______
______
______
______
______
At 30 June 2016
13,485
29,932
837
37
(22,185)
22,106







Loss for the period
-
-
-
-
(2,313)
(2,313)

______
______
______
______
______
______
At 31 December 2016
13,485
29,932
837
37
(24,498)
19,793







Loss for the period
-
-
-
-
(132)
(132)

______
______
______
______
______
______
At 30 June 2017
13,485
29,932
837
37
(24,630)
19,661

______
______
______
______
______
______


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 2017, 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 European Union. 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 2016. There are no new standards, amendments to standards or interpretations which are mandatory for the first time for financial periods commencing on 1 January 2017 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 2016 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 2016, which are available on the Company's website, www.ormondemining.com. The Interim Financial Statements for the six months ended 30 June 2017 are unaudited but have been reviewed by the Company's 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 the 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 27 September 2017.
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 2017 are as follows:

Ireland
Spain
Loss for 6 months to 30 June 17
000s
000s



Segment loss for period
(12)
(120)

______
______

(12)
(120)

______
______
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-17
30-Jun-16
31-Dec-16

000s
000s
000s




Loss for period
(132)
(96)
(2,409)




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)
(0.03)
(0.02)
(0.51)

______
______
______
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-17
30-Jun-16
31-Dec-16

000s
000s
000s




Loss for period
(132)
(96)
(2,409)




Weighted average number of ordinary shares



for the purpose of basic earnings per share
472,507,482
472,507,482
472,507,482




Shares deemed to be issued for no consideration



in respect of Employee Options
0
0
0




Weighted average number of ordinary shares



for the purpose of diluted earnings per share
472,507,482
472,507,482
472,507,482





______
______
______
Diluted loss per ordinary shares (in cent)
(0.03)
(0.02)
(0.51)

______
______
______
Notes to the Interim Financial Statements (continued)
4. Share capital

30-Jun-17
30-Jun-16
31-Dec-16

000s
000s
000s




Authorised equity



650,000,000 ordinary shares of 2.5c each
16,250
16,250
16,250
100,000,000 deferred shares of 3.809214c each
3,809
3,809
3,809

______
______
______

20,059
20,059
20,059

______
______
______




Issued capital



Share capital
13,485
13,485
13,485
Share premium
29,932
29,932
29,932

______
______
______

43,417
43,417
43,417

______
______
______
5. Post balance sheet event
A Share Capital Reorganisation (the "Reorganisation") was approved at the Company's AGM on 18 September 2017, resulting in the nominal value of Ordinary Shares being reduced from 0.025 each to 0.01 each. The Reorganisation leaves all shareholders holding the same amount of Ordinary Shares as they held prior to the Reorganisation and thus the aggregate value of their holding should remain unchanged.
With effect from 8.00 am on 19 September 2017, 472,507,482 Ordinary Shares of nominal value 0.01 each, being the entire issued ordinary share capital of the Company, were admitted to trading on the AIM Market of the London Stock Exchange and the ESM Market of the Irish Stock Exchange. 
There were no other 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 2017.
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 2017 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 Financial Reporting Council. 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 Statements in the half-yearly report for the six months ended 30 June 2017 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the European Union.
Brendan Murtagh
For and on behalf of
LHM Casey McGrath Limited
Chartered Certified Accountants, Statutory Audit Firm
27September 2017
6 Northbrook Road
Dublin 6
ENDS

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