17:00 Mon 29 Sep 2014
Ormonde Mining PLC - Half Yearly Report
("Ormonde" or "the Company")
Interim Results for the Six Months Ended
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.
"We have made very significant progress at our
Enquiries to:
Davy (Nomad / ESM Adviser)
Eugenée Mulhern /
CHAIRMAN'S STATEMENT
During the first half of 2014 your Company was engaged in furthering the permitting process for the development of its
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
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
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
On the important subject of capital funding, Ormonde engaged Swedbank Norway as 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
Only limited work was carried out on our gold properties in
Financials
Ormonde incurred an operating loss for the period of
In April, the Company raised
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
Chairman
Consolidated Statement of Comprehensive Income
Six months ended
| unaudited | unaudited | audited |
| 6 Months ended | 6 Months ended | Year ended |
| | | |
| €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) |
Consolidated Statement of Financial Position
As at
| unaudited | unaudited | audited |
| | | |
| €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 |
| _______ | _______ | _______ |
Consolidated Statement of Cashflows
Six months ended
| unaudited | unaudited | audited |
| 6 months ended | 6 months ended | Year ended |
| | | |
| €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 |
Consolidated Statement of Changes in Equity
Six months ended
| | | Share based payment reserve | | | |
| | | | | | |
| Share Capital | Share Premium | Other Reserves | Retained Losses | Total | |
| €000s | €000s | €000s | €000s | €000s | €000s |
| | | | | | |
At | 11,636 | 28,192 | 777 | 37 | (21,799) | 18,843 |
| | | | | | |
Proceeds of share issue | - | - | - | - | - | 0 |
Loss for the period | - | - | - | - | (943) | (943) |
| ______ | ______ | ______ | ______ | ______ | ______ |
At | 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 | 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 | 13,446 | 29,896 | 837 | 37 | (24,724) | 19,492 |
| ______ | ______ | ______ | ______ | ______ | ______ |
Notes to the Interim Financial Statements
1. Accounting policies and basis of preparation
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
The comparative information provided in the Interim Financial Statements relating to the year ended
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
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
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
The segment results for the period ended 30th
| | |
Loss for 6 months to | €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 | | | |
| €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 | | | |
| €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 | 17,127 | 17,127 |
Additions | 877 | 877 |
Write off | 0 | 0 |
| ______ | ______ |
At | 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 | 26 | 46 | 18 | 90 |
Additions | 0 | 2 | 0 | 2 |
Disposals | 0 | 0 | 0 | 0 |
| ______ | ______ | ______ | ______ |
At | 26 | 48 | 18 | 92 |
| ______ | ______ | ______ | ______ |
| | | | |
Accumulated Depreciation & Impairment | | | | |
At | (25) | (46) | (18) | (89) |
Depreciation expense | 0 | (1) | 0 | (1) |
Disposals | 0 | 0 | 0 | 0 |
| ______ | ______ | ______ | ______ |
At | (25) | (47) | (18) | (90) |
| ______ | ______ | ______ | ______ |
| | | | |
Net Book Value at | 1 | 0 | (0) | 1 |
| ______ | ______ | ______ | ______ |
Net Book Value at | 1 | 1 | (0) | 2 |
| ______ | ______ | ______ | ______ |
6. Share Capital
Share Capital | | | |
| €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 |
| ______ | ______ | ______ |
| | | |
| | | |
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
Independent Review Report to
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
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 (
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
For and on behalf of
LHM Casey McGrath
Chartered Certified Accountants, Statutory Audit Firm
ENDS
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