Proactiveinvestors Australia Ormonde Mining plc https://www.proactiveinvestors.com.au Proactiveinvestors Australia Ormonde Mining plc RSS feed en Mon, 24 Jun 2019 23:36:22 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20190619070003_14115830/ Wed, 19 Jun 2019 16:00:03 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20190619070003_14115830/ <![CDATA[RNS press release - Barruecopardo Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20190523070006_14084366/ Thu, 23 May 2019 16:00:06 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20190523070006_14084366/ <![CDATA[RNS press release - Barruecopardo Project Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20190226070007_13981183/ Tue, 26 Feb 2019 18:00:07 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20190226070007_13981183/ <![CDATA[RNS press release - Barruecopardo Tungsten Project Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20181214070002_13903569/ Fri, 14 Dec 2018 18:00:02 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20181214070002_13903569/ <![CDATA[RNS press release - Change of Registered Office ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20181011151443_13825704/ Fri, 12 Oct 2018 01:14:43 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20181011151443_13825704/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180927155341_13807655/ Fri, 28 Sep 2018 00:53:41 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180927155341_13807655/ <![CDATA[RNS press release - Interim Results for six months ended 30 June 2018 ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180927070006_13806188/ Thu, 27 Sep 2018 16:00:06 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180927070006_13806188/ <![CDATA[RNS press release - Barruecopardo Tungsten Project Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180912070003_13787216/ Wed, 12 Sep 2018 16:00:03 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180912070003_13787216/ <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180627121955_13695931/ Wed, 27 Jun 2018 21:19:55 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180627121955_13695931/ <![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180619070008_13684458/ Tue, 19 Jun 2018 16:00:08 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180619070008_13684458/ <![CDATA[News - Ormonde Mining still on time and on budget with Barruecopardo development ]]> https://www.proactiveinvestors.com.au/companies/news/199103/ormonde-mining-still-on-time-and-on-budget-with-barruecopardo-development-199103.html In results for the year to December 2017, Ormonde Mining Ltd (LON:ORM) booked a loss of just €100,000, as against a loss of €2.29mln in 2016. Cash in the bank at year end was just over €500,000.

The reduction in losses comes as Ormonde continues with construction at the Barruecopardo tungsten project in Spain.

READ: Ormonde Mining poised for a seminal year in 2018

Tungsten prices have been rising strongly in the past year or so, underpinning the decision to proceed with construction and obviating the need for any impairment charge along the lines of the €2mln charge booked in 2016.

Early-stage commissioning is expected to commence in July or August this year, with commissioning of the process plant expected to commence around end September 2018.

That in turn will lead on to initial production, expected to commence towards the end of 2018, followed by a gradual build-up of production levels over the early months of 2019.

"It is pleasing to be in a position to report a very successful year, with the decision taken in mid-2017 to advance the Project into an accelerated construction and implementation phase validated by the significant increases in tungsten prices seen since that time,” said Michael Donoghue, Ormonde's chairman. 

"Progress on the development of a new tungsten mine at Barruecopardo is advancing in accordance with the project schedule and its capital budget, with plant commissioning expected to commence around the end of the third quarter of 2018, followed by initial production by the end of the year, providing a new European-based, secure supply to global markets."

 

 

 

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Tue, 19 Jun 2018 07:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199103/ormonde-mining-still-on-time-and-on-budget-with-barruecopardo-development-199103.html
<![CDATA[News - Construction at Ormonde Mining's Barruecopardo project is continuing on time and on budget ]]> https://www.proactiveinvestors.com.au/companies/news/190375/construction-at-ormonde-mining-s-barruecopardo-project-is-continuing-on-time-and-on-budget-190375.html Shares in Ormonde Mining plc (LON:ORM) are trading at more than double the price they were at a year ago. The reason is simple: a growing appreciation for the company’s key asset, a 30% stake in the Barruecopardo tungsten project in Spain.

Ormonde and 70% partners Oaktree Capital have been pushing ahead with construction at Barruecopardo following a strengthening in tungsten prices last year.

READ: Ormonde Mining says Barruecopardo project commissioning scheduled to commence third quarter 2018

Operations are directed by the mine subsidiary’s board, comprised of representatives of Ormonde and Oaktree Capital, with day to day operations being managed by Ormonde’s former managing director Steve Nicol, who relinquished his board position in the summer of 2017 to dedicate his 100% focus on project delivery.

The rationality of this doesn’t take much digging into. One way or another Ormonde has been on the ground in Spain for nearly two decades, and Steve Nicol himself has lived there for many years.

What’s more, the man who was hired to boost the Ormonde management after Nicol’s sideways move, Fraser Gardiner, used to run Ormonde’s exploration operations in Spain before he was tempted away to join Citadel in Saudi Arabia.

Back in Europe now, Gardiner is picking up where he left off at Ormonde, or at least up to a point. Construction work Barruecopardo will be left in the capable hands of Nicol.

But the corporate level-work is now the province of Gardiner and chief financial officer Paul Carroll, while Nicol’s managerial positions and the old exploration portfolio that Gardiner was so familiar with revert to his control.

Still, Barruecopardo is likely to grab all the limelight for the foreseeable future, given that commissioning is planned for the third quarter of this year. With production costs slated at just US$119 per metric tonne unit, against the current European price of over US$350, that limelight is likely to be well deserved as margins will be exceptional.

READ: Ormonde Mining makes good progress with Barruecopardo construction as tungsten prices climb

The costs of getting Barruecopardo into production aren’t extortionate either, with a Capex of just over €50 mln. So all told, this looks like being an asset that should well reward its investors, albeit that Oaktree now holds the majority.

There’s still work to be done before those rewards start coming in, though.

“We are proceeding full steam ahead,” says Carroll. “The construction of the plant is on schedule.”

Gardiner concurs. “We’ll be commissioning before the end of the third quarter, with production expected around the end of the year.”

And what will happen after that?

Of course, Oaktree will play a key role in deciding, but Ormonde’s position has recently been neatly outlined in research conducted by the Irish broker Davy.

Ormonde as an investment, argues Davy, seriously dials up with an extra US$100 on the tungsten price. And that extra US$100 is not far off doubling the value of Ormonde either.

Davy starts by discounting project cash flows at a baseline price of US$250 per metric tonne unit to the start of 2018, leading it to estimate that Ormonde is worth US$32.5 mln or 5.3p per share.

But then it gets interesting. Using a price of US$300 per mtu, which is still significantly below current trades, Davy calculates the net present value at 8.7p per share, more than double the price Ormonde has been trading at recently.

In turn this leads to the comparison that at US$250 per mtu the average gross annual cash flow over the life of the mine is US$21.7 mln, rising to US$34 mln at US$300 per mtu. This indicates that Ormonde is trading on an EV/EBITDA multiple of five times at a price of US$250 per mtu and 3.2 times at US$300 per mtu.

And remember, it’s a small market.

“Outside of China we’re a decent-sized player,” says Carroll - once up and running, Barruecopardo will be well and truly on the tungsten industry map. With funds, such as those managed by Oaktree, generally having an average investment horizon of 5-7 years, it seems likely Oaktree will seek an exit at some point.

Precisely how Ormonde will be involved in any such deal will be settled down the line. But along the way, Ormonde should have received significant dividend payouts from Barruecopardo, as well as its agreed annual management fee.

There’s also the likelihood that the production parameters originally outlined for Barruecopardo will have been surpassed, as new resources and reserves are brought in and the production rate increases as the project starts working extra days.

It all goes towards providing a solid floor to the Ormonde share price, and a solid foundation for Gardiner to work off, if it comes to cutting any deals on the other assets.

 

 

 

 

 

 

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Mon, 22 Jan 2018 09:56:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190375/construction-at-ormonde-mining-s-barruecopardo-project-is-continuing-on-time-and-on-budget-190375.html
<![CDATA[RNS press release - Granting of Options ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180117115811_13499775/ Wed, 17 Jan 2018 22:58:11 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20180117115811_13499775/ <![CDATA[RNS press release - Barruecopardo Tungsten Mine Construction Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20171128070003_13445459/ Tue, 28 Nov 2017 18:00:03 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20171128070003_13445459/ <![CDATA[News - Ormonde Mining says Barruecopardo project commissioning scheduled to commence third quarter 2018 ]]> https://www.proactiveinvestors.com.au/companies/news/187894/ormonde-mining-says-barruecopardo-project-commissioning-scheduled-to-commence-third-quarter-2018-187894.html Ormonde Mining PLC (LON:ORM) has said the Barruecopardo Tungsten mine project in Salamanca, Spain is well into its construction period, with commissioning scheduled to commence in the third quarter of 2018.

The AIM-listed miner said key developments include the commencement in October of civil works for the crush and screen plant, with mass concrete footings poured and reinforcement installation in progress.

READ: Ormonde Mining makes good progress with Barruecopardo construction

The group also said construction of earthworks for the Main Water Dam and Return Water Dam were recently completed, with under-drainage works nearing completion, and dam liners being manufactured.

It added that the mining of waste from the open pit area for run-of-mine pad fill material has commenced as well and the first process plant equipment has been delivered to site.

In its construction update, Ormonde said some 100 people are now working on the project, including 32 from Barruecopardo and surrounding communities.

Michael Donoghue, Ormonde's interim managing director said: “There have been a number of significant advances seen during the latest quarter” and “plant erection and installation scheduled for the early part of 2018."

Views of recent construction activity can be seen on Ormonde's website, including an updated drone overflight video.

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Tue, 28 Nov 2017 09:10:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187894/ormonde-mining-says-barruecopardo-project-commissioning-scheduled-to-commence-third-quarter-2018-187894.html
<![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20171006160758_13389339/ Sat, 07 Oct 2017 02:07:58 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20171006160758_13389339/ <![CDATA[RNS press release - Interim Results 2017 ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170928070002_13377966/ Thu, 28 Sep 2017 16:00:02 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170928070002_13377966/ <![CDATA[News - Ormonde Mining makes good progress with Barruecopardo construction as tungsten prices climb ]]> https://www.proactiveinvestors.com.au/companies/news/184730/ormonde-mining-makes-good-progress-with-barruecopardo-construction-as-tungsten-prices-climb-184730.html Construction of Ormonde Mining plc's (LON:ORM) Barruecopardo tungsten mine in Spain is making good progress and on track for commissioning in the third quarter of 2018, the junior reported.

Half-year results showed a net loss of €132,000 in the six months to June, with sales of €375,000.

READ: Ormonde now powering ahead with development at Barruecopardo

More importantly, over the period, the price of tungsten rose by 12% US$217 per mtu (metric tonne unit) and has since shot up to US$300-315 per mtu, an increase of around 60% year to date.

Ormonde expects the supply and demand fundamentals to remain supportive "due to 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." 

READ: Ormonde Mining now just a year away from tungsten production at Barruecopardo

The firm's chairman,Michael Donoghue, said: "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.”

 

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Thu, 28 Sep 2017 08:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/184730/ormonde-mining-makes-good-progress-with-barruecopardo-construction-as-tungsten-prices-climb-184730.html
<![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170918140919_13366467/ Mon, 18 Sep 2017 23:09:19 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170918140919_13366467/ <![CDATA[RNS press release - Barruecopardo Tungsten Project ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170905070002_13351552/ Tue, 05 Sep 2017 16:00:02 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170905070002_13351552/ <![CDATA[News - Ormonde now powering ahead with development at Barruecopardo ]]> https://www.proactiveinvestors.com.au/companies/news/183432/ormonde-now-powering-ahead-with-development-at-barruecopardo-183432.html Development work at the Barruecopardo tungsten project in Spain, managed and 30%-owned by Ormonde Mining Ltd (LON:ORM), is beginning to gather momentum.

The company anticipates mine commissioning in the third quarter of 2018, and reports that much of the necessary equipment is now being manufactured, with more on order, while on the ground construction of the workshop, offices and other infrastructure is underway.

Several construction contracts have been awarded, including for dams and civil works, with main dam construction work underway.

READ: Ormonde Mining now just a year away from tungsten production at Barruecopardo

What’s more, some 50 persons are now working on the project, including a majority from Barruecopardo and immediately adjacent towns.

This is all happening against a backdrop of strengthening tungsten prices. The APT price continues to perform strongly, with significant price rises seen over recent months to a current level of US$285-300/mtu.

This represents an increase of 30% on the prevailing price when the decision was taken to move to accelerated construction, and an 80% increase from the January 2016 low.

 "With the very positive decision, taken in early June this year, to advance the project into an accelerated construction and implementation phase, the intervening period has been exceptionally busy at the Project,” said Ormonde managing director Steve Nicol.

“The speed and scale of the works progressed over this period has only been possible as a result of the meticulous preparation activities performed by the project team over the past months.”

In late afternoon trading, Ormonde Mining shares were over 11%, or 0.25p higher at 2.43p.

 -- Adds share price --

 

 

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Tue, 05 Sep 2017 07:57:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183432/ormonde-now-powering-ahead-with-development-at-barruecopardo-183432.html
<![CDATA[News - Ormonde Mining now just a year away from tungsten production at Barruecopardo ]]> https://www.proactiveinvestors.com.au/companies/news/181853/ormonde-mining-now-just-a-year-away-from-tungsten-production-at-barruecopardo-181853.html “We are now full speed into production,” says Steve Nicol of Ormonde Mining plc (LON:ORM).

What a difference a year makes.

Back in 2016, Ormonde’s Barruecopardo tungsten project just wasn’t quite cutting it as far as the economics were concerned. The weaker tungsten price was cutting deep scars into Wolf Minerals every day, and Ormonde’s major backers, Oaktree, were wary of having that happen to their own project too.

But although some adjustments were necessary, including a trimming of the fee that Ormonde itself takes for managing Barruecopardo, there was actually no need to rush into production.

The funding, from Oaktree, was already in place and wasn’t going to go anywhere. And because of the nature of the deal Ormonde struck when Oaktree came in a year or two ago now, there was never any danger of an equity or working capital shortfall undermining things.

Ormonde’s chief financial officer Paul Carroll takes up the tale.

“During 2015 the tungsten price saw significant reductions,” he says. That was largely because the global oil rig count fell as oil prices contracted, and the use of tungsten in drillbits was severely curtailed.

But 2016 was also the year when actually, things began to stabilise.

“In 2016 the market was in balance for the first time in five years,” says Carroll. “There had been a cumulative 27,000 tonnes of excess supply over the four year to the end of 2015. But in 2016 the Chinese finally got a grip on their production, which is now down  more than 4% on where it was in 2015.”

Those two factors combined have created a new dynamic in the market which Ormonde and Oaktree are now preparing to address.

“There was a time when we were stretching the development timeline,” says Nicol.

“But now a series of factors have meant we’ve been able to greenlight construction. There’s been a definite increase in the tungsten price and a definite increase on the demand side. In general tungsten growth is related to GDP growth and we believe that it’s definitely the right time to build.”

Accordingly, commissioning at Barruecopardo is now planned for the third quarter of 2018, a relatively short build time that’s reflective of the amount of planning that the extended time has allowed for.

“We’ve been doing a lot of preparation work and putting in equipment orders,” says Nicol. Now though, it’s full steam ahead.

“We’ve awarded the dams construction contract, we’re finalising the electrical installation, and almost half the capital cost of the project is committed. The first step is to concentrate on delivering stable production.”

At the moment the plan is to process 1.1 mln tonnes of ore per year to produce 260,000 metric tonne units (mtus) of tungsten trioxide (WO3) per year over a nine year life.

But within that broad outline there is plenty of room for fine-tuning for greater returns. For one thing, the original plan as it was put together before the project was funded and before the gyrations in the tungsten price, paid closer attention to the shift patterns of the workers than is now needed.

Thus, the plan as it stands allows for production across a five day working week only. A straightforward enough board-level decision could move that over to a seven day week and right there a 40% increase in production suddenly appears.

In the immediate term, Ormonde is content to allow a certain amount of spare capacity to remain in the project.

“For initial start-up this spare capacity works as a great risk mitigator.  If there are any issues on start up, we can increase throughput by 40%, with no additional capex cost, to assist with any cashflow pressures,” says Carroll.

“For upside, once stable production is achieved we have the option to increase production and cashflows.”

So don’t expect that spare capacity to be left hanging for long.

But that production increase will have knock-on effects of course - if Ormonde is producing more at Barruecopardo annually, then that inevitably means the mine life will shorten too, right?

Wrong.The Oaktree financing included a €3.2 mln exploration budget designed to prove up the viability of underground ore at Barruecopardo.

“We need to focus on the larger value areas,” says Nicol. “There are areas of higher value. So mine life extension works will not be focussed on just increasing the global resource, it’s about working out what’s the most economic way to mine it?”

To date there hasn’t been too much drilling under the main orebody, but what drilling there has been has encountered mineralisation.

And the nature of the Barruecopardo ore, with its coarse mineralisation, has to date made it very amenable to cheap processing. There’s no reason to suppose the underground rock will be any different.

In the immediate term though, the focus will be on the ore nearer the surface, on getting it out and selling it into an improving tungsten market. With the cash coming in, and a growing store of knowledge about the underground ore the company will then be able to turn its attention fully to expansion. 

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Wed, 02 Aug 2017 13:07:00 +1000 https://www.proactiveinvestors.com.au/companies/news/181853/ormonde-mining-now-just-a-year-away-from-tungsten-production-at-barruecopardo-181853.html
<![CDATA[RNS press release - Publication of Annual Report ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170628070004_13275336/ Wed, 28 Jun 2017 16:00:04 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170628070004_13275336/ <![CDATA[RNS press release - Final Results for the year ended 31 December 2016 ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170620070003_13265877/ Tue, 20 Jun 2017 16:00:03 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170620070003_13265877/ <![CDATA[News - Ormonde expects Barruecopardo commissioning in third quarter of 2018 ]]> https://www.proactiveinvestors.com.au/companies/news/179515/ormonde-expects-barruecopardo-commissioning-in-third-quarter-of-2018-179515.html Ormonde Mining plc (LON:ORM)’s revised construction schedule for the Barruecopardo tungsten project in Spain now calls for plant commissioning to begin in the third quarter of 2018.

This follows the rescheduling of certain construction contracts such that they now run consecutively instead of concurrently, and also follows on from the completion of the necessary land acquisitions.

The company expects first production now to occur into a stronger tungsten market, following the exhaustion of greater than formerly suspected supply of the intermediary product ammonium paratungstate (APT).

The largest Western tungsten mine closed in 2015.

Overall, during fiscal 2016 Ormonde lost €2.41 mln, compared with a profit of €2.07 mln for 2015. 

Although Ormonde did make a small operating profit for the year, a €2 mln impairment charge on the La Zarza polymetallic asset asset and the share of loss in the Barruecopardo joint venture vehicle resulted in the reported loss for the period.

 

 

 

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Tue, 20 Jun 2017 07:51:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179515/ormonde-expects-barruecopardo-commissioning-in-third-quarter-of-2018-179515.html
<![CDATA[RNS press release - Barruecopardo Project Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170602070004_13246826/ Fri, 02 Jun 2017 16:00:04 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20170602070004_13246826/ <![CDATA[News - Ormonde Mining boosted as Barruecopardo mine set to come on stream ]]> https://www.proactiveinvestors.com.au/companies/news/178709/ormonde-mining-boosted-as-barruecopardo-mine-set-to-come-on-stream-178709.html It's been a long time coming but Ormonde Mining plc (LON:ORM) has pressed go on commissioning its Barruecopardo tungsten mine against the backdrop of rising tungsten prices.

The market cheered and Ormonde shares raced up over 20%  in London to stand at 1.60p each.

Commissioning of the mine in Salamanca, Spain is now earmarked for the third quarter next year (2018).

The project, permitted and financed, was originally scheduled to start at the end of 2017, but was delayed in December 2016 due to the weakness of the metal. In fact, 2016 saw the construction schedule extended twice.

Tungsten prices gradually rising....

APT (Ammonium Para Tungstate) prices have gradually been moving north since touching a low of $162 per metric tonne unit in January 2016 and indicators are now pointing towards a sustained increase, Ormonde told investors on Friday.

Ormonde noted that the price is now between $220 and 225 per mtu (metric tonne unit) - that's around a 37% increase since the beginning of last year,  with prices since July 2016 seeing a modest but consistent uptrend.

Factors behind the firming prices include a more than doubling of the US oil rig count, improvements in European and the US economic outlooks  and supply shortages outside China.

Saloro SLU (Saloro), the name of the project company, has now   put the site into an "accelerated construction and implementation phase".

Ormonde also noted that Steve Nicol, the current managing director, will depart that role to focus full time as MD of Saloro and the project manager for Barruecopardo.

Mike Donoghue, the  current Ormonde chairman, will act as interim managing director after the upcoming AGM (annual general meeting).

In 2015, Ormonde agreed a US$100mln finance package with Oaktree for the project, split with equity of around US$44mln and debt of US$55mln.

Saloro became a 30/70 joint venture between Ormonde and Oaktree having been previously wholly owned.

Agreed amendments to debt facility...

Saloro has agreed to certain amendments to the as-yet-undrawn debt facility to align with the newly approved construction schedule.

Subject to the latest development schedule being implemented, the remaining part of the equity investment -  around €16 million-  will be drawn on a pro rata basis with the debt during the development period, with any left over equity amounts being drawn on commissioning.

A straightforward development plan

The plan is to produce around 260,000 metric tonne units of tungsten trioxide (WO3) a year over an initial nine year life.

It’s a fairly simple operation that will use experienced and local mine contractors under the day-to-day supervision of the Ormonde management team.

The ore is amenable to simple gravity processing, the firm has previously said, and the ore only needs to be crushed, not reduced to powder, which sets it apart.

The Barruecopardo product comes in right at the lowest end of the cost curve in tungsten, at US$113.90 per metric tonne unit.

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Fri, 02 Jun 2017 11:58:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178709/ormonde-mining-boosted-as-barruecopardo-mine-set-to-come-on-stream-178709.html
<![CDATA[News - Ormonde Mining presses go on Barruecopardo mine amid rising tungsten prices ]]> https://www.proactiveinvestors.com.au/companies/news/178686/ormonde-mining-presses-go-on-barruecopardo-mine-amid-rising-tungsten-prices-178686.html Ormonde Mining plc (LON:ORM) has pressed go on commissioning its Barruecopardo tungsten mine with a revised timetable in the light of rising tungsten prices.

Commissioning of the mine in Salamanca, Spain is now earmarked for the third quarter of 2018.

The project had been originally scheduled for the end of 2017, but was put back in December 2016 due to the weakness of the metal.

APT prices have gradually been moving north since touching a low of $162 per metric tonne unit in January 2016 and indicators are now pointing towards a sustained increase into the future, the firm said.

Ormonde noted that the APT price is now around $220-225 per mtu (metric tonne unit) which represents around a 37% increase since the January 2016,  with the period since July 2016 seeing a modest but consistent uptrend in price.

"Following a period of review of the construction schedule, the board of the project company, Saloro SLU (Saloro), has authorised the issuance of outstanding approvals on various equipment and plant construction contracts, thus advancing the project into an accelerated construction and implementation phase," the group said today.

Ormonde chairman Michael Donoghue added that the company had always been aware of  "ensuring that the Barruecopardo project comes online into a strengthening tungsten price environment, thus not exposing the project or its shareholders to undue risk during the critical commissioning and start-up phases". 

Ormonde also noted that Steve Nicol, the current managing director, will relinquish that role in order to focus full time as MD of Saloro and the project manager for Barruecopardo. 

Mike Donoghue, current chairman, will act as interim managing director after the upcoming AGM (annual general meeting).

Saloro has agreed to certain amendments to the as yet undrawn debt facility to align with the approved construction schedule.

Subject to the latest development schedule being implemented, the remaining part of the equity investment, of around €16 million, will be drawn on a pro rata basis with the debt during the development period, with any residual equity amounts being drawn on commissioning.

Shares added 9.43% in London in early deals to stand at 1.45p.

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Fri, 02 Jun 2017 07:39:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178686/ormonde-mining-presses-go-on-barruecopardo-mine-amid-rising-tungsten-prices-178686.html
<![CDATA[RNS press release - Barruecopardo Tungsten Project ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20161222123622_013076554/ Thu, 22 Dec 2016 23:36:22 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20161222123622_013076554/ <![CDATA[News - Ormonde adjusts Barruecopardo timetable due to tungsten price ]]> https://www.proactiveinvestors.com.au/companies/news/170884/ormonde-adjusts-barruecopardo-timetable-due-to-tungsten-price-170884.html Ormonde Mining plc (LON:ORM) has put back the commissioning of its Barruecopardo tungsten mine due to the weakness in the price of the metal.

Originally scheduled for the end of next year, Ormonde now envisages commissioning will take place in mid -2018.

Tungsten has struggled over the past year and even though the price has rallied 20% since January, Ormonde is not predicting any significant improvement in the short-term though is still optimistic further out.

The junior’s debt facilities have been amended to reflect the new timetable and a management fee due to the company has been reduced by 25% to E750,000 per year until there have been two full quarters of positive cash flow.

In addition, Ormonde has completed the compulsory acquisition of all of the land necessary to build the mine.

Steve Nicol, Ormonde's managing director, said the land acquisition removed land risk from the development schedule.

He added that the decision to reschedule the timeline was make sure the project comes online into a strengthening tungsten price environment.  

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Thu, 22 Dec 2016 15:18:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170884/ormonde-adjusts-barruecopardo-timetable-due-to-tungsten-price-170884.html
<![CDATA[RNS press release - Granting of Options ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20161006180412_012993021/ Fri, 07 Oct 2016 04:04:12 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20161006180412_012993021/ <![CDATA[RNS press release - Interim Results 2016 ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160930070008_012984466/ Fri, 30 Sep 2016 16:00:08 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160930070008_012984466/ <![CDATA[News - Ormonde Mining progressing to plan ]]> https://www.proactiveinvestors.com.au/companies/news/166745/ormonde-mining-progressing-to-plan-166745.html Ormonde Mining plc (LON:ORM) has confirmed that its Barruecopardo tungsten mine remains on track to go into production at the end of next year.

The update was provided in the firm’s interim results, which charted six months of significant progress.

Chief among the landmarks was the receipt of the declaration of urgent occupation, paving the way for the compulsory purchase of land around the mine.

The construction schedule has been agreed, while the engineering design and awarding of processing plant equipment supply contracts is “proceeding in line with budget”.

The company has also launched a drilling campaign to assess the potential for a longer-term underground operation.

Barruecopardo mine is permitted and fully financed to the tune of just under US$100mln.

"We look forward to the full construction stage of the Project once the remaining land access procedural steps have been completed,” said chairman Michael Donoghue.

The company made an operating profit of €120,000 for the six months ended June 30.

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Fri, 30 Sep 2016 08:09:00 +1000 https://www.proactiveinvestors.com.au/companies/news/166745/ormonde-mining-progressing-to-plan-166745.html
<![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160916172331_012969671/ Sat, 17 Sep 2016 02:23:31 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160916172331_012969671/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160823150503_012941042/ Wed, 24 Aug 2016 00:05:03 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160823150503_012941042/ <![CDATA[News - Ormonde poised to catch rising tide of tungsten in 2017 ]]> https://www.proactiveinvestors.com.au/companies/news/128895/ormonde-poised-to-catch-rising-tide-of-tungsten-in-2017-128895.html Tungsten prices moved up marginally last week from a spread of between US$175-to-US$180 per metric tonne unit (mtu) to a spread of between US$180 and US$190.

Could this movement be the start of a much larger upswing that will take the tungsten price away from its recent multi-year lows and back into much more positive territory? - hard to say, and given that the slowest month of the northern hemisphere summer is about to get under way, perhaps a bit premature.

But such a move is coming, as any intelligent reading of the current dynamics at play will tell you, and when it comes those that have tungsten projects ready to go will be the ones that benefit most.

Ormonde Mining plc (LON:ORM) is such a company, fully-funded to bring its 30%-owned Barruecopardo tungsten project in Spain into production over the next couple of years, and now really only waiting on finalisation of one or two bits of Spanish administrative and legal procedure before it breaks ground early in 2017.

And chief executive Steve Nicol and chief financial officer Paul Carroll are convinced that the timing will be propitious.

“We’ll be commissioning at the back end of 2017,” says Nicol, “at a time when tungsten is set to be picking up. There’s been a bit of oversupply in China, and a bit of illegal and unauthorised production in China.”

But that’s all changing now. The larger producers have agreed to make cutbacks, and the illegal mining is being stamped out.

“That’s going to feed into a tightening of supply,” continues Nicol. The big question will then be: who will meet that growing demand as supply tightens? In fact, as Nicol points out, with tungsten demand directly correlated to global GDP, there will soon come a point when the market needs a new Barruecopardo to come on stream every year just to remain in balance.

That, clearly, isn’t going to happen. But it’s that sort of thinking that’s driving the longer-term plans of Ormonde, together with its project partner, to move to underground mining at Barruecopardo and also, eventually, out to satellite projects in the surrounding district.

Ormonde’s major funding partner, US$100 billion dollar private equity outfit Oaktree Capital, has already agreed that more than US$3 mln of the recent US$99.7 mln funding package can go towards drilling and studies designed to extend the mine life.

These guys are in tungsten in a big way, and they are in it for the long haul.

The first step though, will be to get the mine built. With the money in place, this appears to be self-evident, with the minor proviso that certain legal procedures still need to be gone through in regard to securing full access to the remaining lands.

Steve Nicol has lived and worked on the ground in Spain for many years now, and he’s helped ensure that every local who can prove title has been brought to the table and settled with in a fair negotiating process. The only trouble has come when title has been in doubt. In these circumstances it’s difficult to deal with anyone.

But luckily, the Spanish legal system has a way round this. The Barruecopardo project was recently the subject of a favourable vote in the legislative assembly of the Region of Castile y Leon. As a consequence of this democratic intervention what’s known as a Declaration of Urgent Occupation has been issued as part of the compulsory acquisition process, allowing  the ability, following payment of a bond for the estimated value of the relevant land, to access the land in question and go to work on it, on the understanding that should ownership ultimately be proved fair compensation will be available.

Not only does this vote from the Regional Assembly allow the company to proceed, subject to one or two further procedural steps, but it should also be seen as a ringing endorsement of the company and its plans by the Region’s local representatives.

“The issue was slowing a project down that was in the public good,” says Nicol, referring primarily to the hundreds of jobs that will be created at Barruecopardo.

And it’s worth noting here that a key difference between Ormonde and EMED Mining, the latter being a company that famously came unstuck over land ownership and rights in Spain, lies in this Declaration of Urgent Occupation.

EMED never had one. Ormonde does. And what’s more, Ormonde has all local landowners on side. If there is any attempt to block development at Barruecopardo it will presumably come from outside. And given the vote in the Regional Assembly, would appear unlikely to be successful.

So the plan is to put the remaining procedural and legal points to bed and move towards construction and production next year.

The idea is that Barruecopardo will produce 260,000 mtus per year over a nine year life. But given the likely tightening in the tungsten market, an option to increase that output would be welcome. Simple, says Paul Carroll – the company can move from a five day a week production schedule to a seven day a week one with no additional capital cost, increasing production to over 360,000 mtus per year, pulling cashflows forward and increasing project valuations.  

Steve Nicol concurs. “We can expand the process plant even further with minimal capital,” he says. Give that the company is well down the global cost curve, expansion would offer considerable economies of scale. The ore is easy to process, doesn’t need to be ground, and won’t require storage in tailings.

With a US$3 mln budget allocated for proving an early stage phase 2 underground mine, and with significant land holdings which include areas where previous tungsten mines have operated, the potential to add further value is clear.

 

 

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Tue, 02 Aug 2016 11:44:00 +1000 https://www.proactiveinvestors.com.au/companies/news/128895/ormonde-poised-to-catch-rising-tide-of-tungsten-in-2017-128895.html
<![CDATA[Media files - Ormonde Mining's Steve Nicol upbeat as Barruecopardo tungsten mine continues towards 2017 start up ]]> https://www.proactiveinvestors.com.au/companies/stocktube/5322/ormonde-mining-s-steve-nicol-upbeat-as-barruecopardo-tungsten-mine-continues-towards-2017-start-up-5322.html Tue, 26 Jul 2016 15:20:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/5322/ormonde-mining-s-steve-nicol-upbeat-as-barruecopardo-tungsten-mine-continues-towards-2017-start-up-5322.html <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160628070009_012869920/ Tue, 28 Jun 2016 16:00:09 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160628070009_012869920/ <![CDATA[RNS press release - Declaration of Urgent Occupation - Approved ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160628070007_012869878/ Tue, 28 Jun 2016 16:00:07 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160628070007_012869878/ <![CDATA[News - Ormonde Mining gets compulsory purchase boost at Barruecopardo ]]> https://www.proactiveinvestors.com.au/companies/news/127569/ormonde-mining-gets-compulsory-purchase-boost-at-barruecopardo-127569.html Ormonde Mining (LON:ORM) has been granted access to land it wants to compulsorily purchase to build a tungsten mine at Barruecopardo in Spain.

The Regional Government of Castilla y Leon, where Barruecopardo is situated, has issued a declaration of urgent occupation over the area concerned.

This legal declaration allows it to use land without having to await the completion of the compulsory purchase process.

It was requested by the mine’s operating company Saloro as part of a compulsory purchase application in March.

Ormonde’s plans have been delayed by an objection to some of its compulsory purchase plans in February, but it is not stated today whether the legal declaration relates to this or a different plot.

Steve Nicol, Ormonde's managing director, said:  "The decision by the Regional Government to vote in favour of the Declaration of Urgent Occupation on the remaining lands required to enable development of the Project, is a major success for the company.

“The decision, coming well ahead of the date required by our optimised schedule, shows the level of support that exists for the Project at all levels within the Spanish region in which we operate.

Under its revised production schedule, Ormonde will use land it already owns or rents and see commissioning in late 2017, as opposed to 2016 as originally hoped.

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Tue, 28 Jun 2016 07:35:00 +1000 https://www.proactiveinvestors.com.au/companies/news/127569/ormonde-mining-gets-compulsory-purchase-boost-at-barruecopardo-127569.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160616070008_012855927/ Thu, 16 Jun 2016 16:00:08 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160616070008_012855927/ <![CDATA[News - Ormonde Mining comfortable with progress at Barruecopardo ]]> https://www.proactiveinvestors.com.au/companies/news/127219/ormonde-mining-comfortable-with-progress-at-barruecopardo-127219.html Ormonde Mining plc (LON:ORM) said recent legal developments have provided greater clarity on the development of its Barruecopardo tungsten mine in Spain.

Back in February, the company hit a hiccup when a third party appealed against a few of its compulsory land purchase plans.

The objection to the land purchases was subsequently rejected by the relevant authorities but in the view of the project developers, the appeal was vexatious, and the possibility exists of further appeals further down the road.

Ormonde said independent legal advice has now provided clarity on the expected time period to completion of the compulsory acquisition process, given the experience of the recently resolved administrative appeal and the process of any subsequent appeals.

Based on this, the project partners have now adopted an optimised construction schedule for the project, focusing on lands already owned or rented by the company, which will see commissioning in late 2017, as opposed to 2016, as originally hoped.

Happy with progress

Profits in 2015 were €2.07mln (loss €1.63mln) with €557,000 revenues also received in management fees for services provided to Saloro, the company that owns the licence at Barruecopardo.

The Aim-listed junior booked a €3.4 mln gain on the sale of 70% of Saloro, which was part of a US$100mln finance package agreed with Oaktree for the construction of a mine at site in Salamanca.

Mike Donoghue, Ormonde's chairman, said: "The past year [2015] has been a successful one for Ormonde, with the achievement of a $100 million financing package for the Barruecopardo Tungsten Project in what was a very difficult funding market for mining projects”

Saloro is now a 30/70 joint venture between Ormonde and Oaktree having been wholly owned previously.

Straightforward development plan

The plan is to produce around 260,000 metric tonne units of tungsten trioxide (WO3) per year over an initial nine year mine life.

It’s a fairly simple operation that will use experienced and local mine contractors under the day-to-day supervision of the Ormonde management team.

The key to it all, says Steve Nicol, managing director, is that the ore is amenable to simple gravity processing.

“You only need to crush the ore to 5mm,” he says. “You don’t have to pulverise the rock down to powder. That makes for higher recoveries and sets this project apart from every other project.”

That’s important because the tungsten price, in line with most other commodities, has been weaker of late.

But the Barruecopardo product comes in right at the lowest end of the cost curve in tungsten, at US$113.90 per metric tonne unit.

Tungsten ammonium paratungstate (APT) prices have recently risen to US$210 per tonne, which is 29.6% above the low of US$162 seen in January of this year, so there’s still plenty of margin on offer for Ormonde here.

Not so other companies in the space like North American Tungsten, which is currently restructuring under Canada’s Creditors Arrangement Act and laying off staff.

Great time for project

“It’s a great time to be building a project,” says Nicol.

Less competitive projects are coming out of production while a select few new, lower cost entrants like Wolf Minerals (LON:WLFE) and Ormonde bring on new projects that are geared to a lower pricing environment.

But, as always, the situation is a little more nuanced than that.

China, which has historically accounted for the majority of the world’s tungsten supply, has pared back production.

“The supply coming out of China is not going up any more,” says Nicol. “Their mines are becoming higher cost, dropping in grade and getting deeper. Many of their existing mines are in the red.”

That points to likely pressures on supply. Against that, tungsten demand has historically been correlated to global GDP which is forecast to rise by 3.3% next year according to the World Bank.

Growth in the sectors that consume the most tungsten, the automotive and aerospace industries, is expected to grow by around 5%.

It all points to a recovery in the tungsten price that could start to show through just as Ormonde is delivering its first production into the market.

So, with an ongoing exploration programme designed to secure the longer-term future of Barruecopardo already underway, and with the support of joint venture partner Oaktree, the future for Ormonde seems underpinned.

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Thu, 16 Jun 2016 15:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/127219/ormonde-mining-comfortable-with-progress-at-barruecopardo-127219.html
<![CDATA[News - Ormonde Mining posts profit after stake sale ]]> https://www.proactiveinvestors.com.au/companies/news/127197/ormonde-mining-posts-profit-after-stake-sale-127197.html Ormonde Mining (LON:ORM) moved into profit in 2015 helped by a gain on the sale of a majority of its stake in its flagship Barruecopardo  tungsten project in Spain.

The Aim-listed junior booked a €3.4 mln gain on the sale, which was part of a US$100mln finance package agreed with Oaktree for the construction of a mine at site in Salamanca.

Profits for the year were €2.07mln (loss €1.63mln) with €557,000 revenues also received in management fees for services provided to Saloro, the company that owns the licence at Barruecopardo.

Saloro is now a 30/70 joint venture between Ormonde and Oaktree having been wholly owned previously.

This week, Ormonde said first tungsten is now expected from Barruecopardo in 2017 with a delay caused by an objection to its compulsory land purchase plans.

Mike Donoghue, Ormonde's chairman, said: "The past year has been a successful one for Ormonde, with the achievement of a $100 million financing package for the Barruecopardo Tungsten Project in what was a very difficult funding market for mining projects.

 “With an updated construction schedule having been recently agreed with our Project partners, which sees commissioning of the mine in late 2017, the next year should be an exciting one.

He noted that the price for tungsten had rallied recently, adding that supply is also increasingly being constrained by an agreed cut-back in production by the eight largest tungsten mining groups in China, which could progressively start to limit market supply in 2016, and by higher cost mine closures and the deferral of new mining projects.

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Thu, 16 Jun 2016 08:36:00 +1000 https://www.proactiveinvestors.com.au/companies/news/127197/ormonde-mining-posts-profit-after-stake-sale-127197.html
<![CDATA[RNS press release - Barruecopardo Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160615070009_012854126/ Wed, 15 Jun 2016 16:00:09 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160615070009_012854126/ <![CDATA[News - Ormonde Mining rejigs development schedule for Barruecopardo ]]> https://www.proactiveinvestors.com.au/companies/news/127139/ormonde-mining-rejigs-development-schedule-for-barruecopardo-127139.html Ormonde Mining plc (LON:ORM) said recent legal developments have provided greater clarity on the development of its Barruecopardo tungsten mine in Spain.

Back in February, the company hit a road block when a third party appealed against a few of its compulsory land purchase plans. The objection to the land purchases was subsequently rejected by the relevant authorities but in the view of the project developers, the appeal was vexatious, and the possibility exists of further appeals further down the road.

Ormonde said independent legal advice has now provided clarity on the expected time period to completion of the compulsory acquisition process, given the experience of the recently resolved administrative appeal and the process of any subsequent appeals.

Based on this, the project partners have now adopted an optimised construction schedule for the project, focusing on lands already owned or rented by the company, which will see commissioning in late 2017, as opposed to 2016, as originally hoped.

IN DEPTH: Ormonde Mining's plans for Barruecopardo WATCH: Ormonde’s new board focused on brining Barruecopardo to production

Ormonde said that by the time the mine starts producing, the price environment for tungsten should be much more favourable, thereby reducing risk and optimising project valuations.

Tungsten ammonium paratungstate (APT) prices have recently risen to US$210 per tonne, which is 29.6% above the low of US$162 seen in January of this year.

The outlook for tungsten in the short term is moderately positive; however, medium-to-longer term forecasts predict substantial price rises, Ormonde’s statement said.

Saloro, the project operating company, has completed negotiations with the project's debt provider in relation to amendments to the debt facility agreement, which remains undrawn, to reflect the new schedule, ensuring continued compliance with the agreement, and continued availability of the requisite capital.

"The optimisation of the project construction schedule is a balanced response to the contents of the expert legal advice relating to the likely timelines for the compulsory acquisition of the remaining land plots, and it more closely aligns first production with a forecasted improvement in tungsten prices, with the aim of optimising project valuation,” said Steve Nicol, Ormonde’s managing director.

“We will now commence implementation of this new staged construction schedule, commencing  with construction works on the water dams, the continued installation of site services and other construction readiness works,” Nicol added.

Shares in Ormonde Mining fell 6.7% to 1.26p on the news, suggesting that the project delay had been largely priced in by the market.

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Wed, 15 Jun 2016 08:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/127139/ormonde-mining-rejigs-development-schedule-for-barruecopardo-127139.html
<![CDATA[RNS press release - Drilling Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160524070010_012826752/ Tue, 24 May 2016 16:00:10 +1000 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160524070010_012826752/ <![CDATA[News - Ormonde pleased by underground drill results from Spain ]]> https://www.proactiveinvestors.com.au/companies/news/126293/ormonde-pleased-by-underground-drill-results-from-spain-126293.html Latest drill results have boosted Ormonde Mining’s (LON:ORM) plan to extend the life of its Barruecopardo tungsten mine in Spain by going underground.

Assays from holes drilled beneath the expected open pit site returned tungsten grades between 1.95% to 2.59% over narrow widths and 0.26% and 0.21% over 23m and 25m at depths below 170m.

Barruecopardo currently has an estimated nine year mine life, but Steve Nicol, Ormonde's managing director, said the results confirmed its belief that there is significant potential to substantially extend the mine life at Barruecopardo underground. Further drilling will test the potential while pit construction is underway.

Ormonde added that an objection to the compulsory land acquisition process would mean additional delays in the expected timeline.

An initial ruling had gone in the company's favour but the appeals process would impact the timeline of the project, it said.

Ormonde added it was now finalising discussions with its project partner and debt provider on the optimisation of the project delivery schedule.

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Tue, 24 May 2016 07:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/126293/ormonde-pleased-by-underground-drill-results-from-spain-126293.html
<![CDATA[RNS press release - Barruecopardo Update ]]> https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160229070011_012715681/ Mon, 29 Feb 2016 18:00:11 +1100 https://www.proactiveinvestors.com.au/companies/rns/732/LSE20160229070011_012715681/ <![CDATA[News - Ormonde Mining faces Barruecopardo delay ]]> https://www.proactiveinvestors.com.au/companies/news/123070/ Ormonde (LON:ORM) has reported a hiccough in building at its Barruecopardo tungsten mine in Spain after an objection was made to its compulsory land purchase plans.

The tungsten group said 96% of its 'option to purchase' agreements has been exercised, but a third party appeal to one part of the process would mean a delay in its completion.

These developments are expected to have an impact on the schedule for commissioning at Barruecopardo, it added.

As a result, Ormonde will prioritise works on lands where it has full access and will temporarily defer works elsewhere, including construction of the process plant.

In coming weeks. the focus will be onsite earthworks compaction trials and commencement of water dam construction works. 

A further announcement will be made once there is greater clarity on completion of the compulsory acquisition process, it added.

Steve Nicol, Ormonde's managing director, said it had passed a number of key milestones in recent months including the placement of 100% of Priority 1 and 60% of Priority 2 equipment orders and the award to Fairport Engineering of the construction management contract.

Certain activities will now being advanced consecutively rather than concurrently, he added.

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Mon, 29 Feb 2016 08:17:00 +1100 https://www.proactiveinvestors.com.au/companies/news/123070/
<![CDATA[News - Ormonde Mining on track for first tungsten by end 2016 ]]> https://www.proactiveinvestors.com.au/companies/news/116757/ormonde-mining-on-track-for-first-tungsten-by-end-2016-116757.html The money’s in the bank, the permits are falling into place, and major items of plant will shortly be ordered.

It all seems to be falling into place for Ormonde Mining (LON:ORM), which after a slow start on the markets many years ago has gradually been building up a head of steam at its Barruecopardo tungsten project in Spain.

This is a brown-fields site which ceased operations in 1982, and crucially for Ormonde, the local population has felt its loss deeply.

There is strong appetite for a resumption of mining, which should spark a rejuvenation process for a town where the average age is 66.

There’s much work to be done yet, of course.

But with a multi-billion dollar hedge fund backing development, a definitive feasibility study in place and a new managing director now settling in, all the key components are in place.

In fact Steve Nicol, the company’s managing director is new to the role only. He’s actually played a key role in the development of Barruecopardo from concept to project poised for development as the key man on the ground in Spain.

The passing of Kerr Anderson may have elevated Steve into his current role at an unexpected time, but the succession is logical.

Steve has all the local relationships in hand, knows the project back to front and lives in Spain.

If anyone can push this project forward and into production, he can.

The most recent news underlines that Ormonde is now moving into a new, more aggressive phase.

Within the last couple of days the company has announced progress on the acquisition of the land required for the project, the completion of process flow diagrams, the signing of an electrical connection contract, the posting of an environmental bond, and the commencement of a drilling campaign aimed at establishing the viability of mining once the open pit is mined out. 

“Ormonde is on its way to becoming a tungsten producer,” says Nicol unequivocally. “The project is moving forward on time and on budget.”

Construction is scheduled to get underway early in 2016 with open pit mining likely to commence at the end of the same year.

It’s an ambitious target, but one that Ormonde has long been working towards.

The plan is to produce around 260,000 metric tonne units of tungsten trioxide (WO3) per year over an initial nine year mine life.

It’s a fairly simple operation that will use experienced and local mine contractors under the day-to-day supervision of the Ormonde management team.

The key to it all, says Nicol, is that the ore is amenable to simple gravity processing.

“You only need to crush the ore to 5mm,” he says. “You don’t have to pulverise the rock down to powder. That makes for higher recoveries and sets this project apart from every other project.”

That’s important because the tungsten price, in line with most other commodities, has been weaker of late.

But the Barruecopardo product comes in right at the lowest end of the cost curve in tungsten, at US$113.90 per metric tonne unit.

The current price is just shy of US$200, so there’s still plenty of margin on offer for Ormonde here.

Not so other companies in the space like North American Tungsten, which is currently restructuring under Canada’s Creditors Arrangement Act and laying off staff.

“It’s a great time to be building a project,” says Nicol.

Less competitive projects are coming out of production while a select few new, lower cost entrants like Wolf Minerals (LON:WLFE) and Ormonde bring on new projects that are geared to a lower pricing environment.

But, as always, the situation is a little more nuanced than that.

China, which has historically accounted for the majority of the world’s tungsten supply, has pared back production.

“The supply coming out of China is not going up any more,” says Nicol. “Their mines are becoming higher cost, dropping in grade and getting deeper. Many of their existing mines are in the red.”

That points to likely pressures on supply. Against that, tungsten demand has historically been correlated to global GDP which is forecast to rise by 3.3% next year according to the World Bank.

Growth in the sectors that consume the most tungsten, the automotive and aerospace industries, is expected to grow by around 5%.

It all points to a recovery in the tungsten price that could start to show through just as Ormonde is delivering its first production into the market.

So, with an ongoing exploration programme designed to secure the longer-term future of Barruecopardo already underway, and with the support of joint venture partner Oaktree, the outlook for Ormonde seems very positive.

Watch this space for further updates.

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Wed, 28 Oct 2015 11:24:00 +1100 https://www.proactiveinvestors.com.au/companies/news/116757/ormonde-mining-on-track-for-first-tungsten-by-end-2016-116757.html