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Ormonde Mining PLC - Final Results

RNS Number : 1294J
Ormonde Mining PLC
08 April 2020
 

8 April 2020

 

 

Ormonde Mining plc

("Ormonde" or "the Company")

 

Final Results for the year ended 31 December 2019

 

 

DUBLIN & LONDON: 8 April 2020 - Ormonde announces its final results for the year ended 31 December 2019.

 

·    Sale of interest in the Barruecopardo Tungsten Mine, Spain, for €6 million net cash consideration, against a backdrop of slower than planned ramp-up and commissioning, together with a poor commodity price environment and significant near term funding requirement;

·    Restructuring of Ormonde Board and Management:

·    Jonathan Henry, formerly a non-executive director, stepping up to the position of Executive Chairman;

·    Tim Livesey and Richard Brown join the Board as non-executive directors, bringing a wealth of corporate and technical experience;

·    Following the disposal, Management and Board have been focussed on assessing opportunities available in the resource sector for a transaction with the potential to transform shareholder value;

·    Over sixty opportunities have been assessed over the last two months, with a number of these being considered for advancement.  Additional opportunities expected to arise given the present macroeconomic environment.

 

Jonathan Henry, Ormonde's Executive Chairman, commented:

 

"Following the disposal of our interest in the Barruecopardo Mine, Ormonde's new Board and Executive Management have focussed on identifying opportunities in the resource sector capable of transforming shareholder value.  This work has progressed rapidly with a number of opportunities being actively considered.

 

While the COVID-19 situation has created an unprecedented set of circumstances, and with international travel having ceased entirely, Ormonde is continuing to review current and new opportunities, and armed with the €6 million cash disposal proceeds, is in a strong financial position from which to develop its business over the coming period."

 

 

Annual General Meeting

 

Due to restrictions brought about by the coronavirus pandemic, Ormonde's AGM, which had been planned for mid-May 2020, will now be scheduled for a later date.  A Notice of AGM, which will include the date and venue (or method of accessing if held virtually) for the AGM, will be posted to Shareholders as soon as possible following the Company being in a position to set a firm date.

  

Enquiries to:

 

Ormonde Mining plc

Paul Carroll, Chief Financial Officer

Fraser Gardiner, Chief Operating Officer

Email: [email protected]

 

Davy (Nomad, Euronext Growth Advisor and Joint Broker)

John Frain / Barry Murphy

Tel: +353 (0)1 679 6363

 

SP Angel Corporate Finance LLP (Joint Broker)

Ewan Leggat

Tel: +44 (0)20 3 470 0470

 

Capital M Consultants

Simon Rothschild

Mob: +44 (0)7703 167065

 

Murray Consultants

Mark Brennock

Tel: +353 (0)1 4980300

Mob: +353 (0)87 2335923

 


CHAIRMAN'S REVIEW

 

2019 proved to be a difficult year for the now divested Barruecopardo Tungsten Mine (the "Mine") in Spain, in which Ormonde had held a 30% interest in partnership with Oaktree Capital Management ("Oaktree"), as the Mine's ramp-up hit a number of operational issues. The related financial impact was initially addressed through an additional €10 million debt facility provided by Oaktree.  However, this proved to be inadequate, and when an additional and significant capital requirement was tabled by the Spanish operating company, Saloro SLU ("Saloro"), in late 2019, the Ormonde board of directors (the "Board") decided that shareholder value would be best preserved through the disposal of our interest in the Mine for cash.

 

 

Disposal and receipt of €6 million cash consideration

The disposal of the Company's interest in the Mine was agreed with Oaktree in January 2020 and, following its approval by Ormonde shareholders at an extraordinary general meeting ("EGM") in February 2020, Ormonde received a net cash consideration of €6 million

 

As set out in a circular sent to shareholders ahead of the EGM, the Board strongly believed that a disposal was the best option available to the Company as it would retain maximum value for shareholders when compared with the alternative options. Recent macroeconomic events, together with a Royal Decree in force in Spain requiring temporary cessation of all Spanish mines, have bolstered this position. 

 

 

Board & Management restructuring

On completion of the disposal, Ormonde made a number of changes to the Board and Management, with Mike Donoghue and John Carroll, who had provided the Company with many years of dedicated service, retiring from the Board and being replaced by Tim Livesey and Richard Brown.  Tim and Richard bring extensive capital markets and mining industry experience, together with a combination of strong technical, commercial and governance credentials.

 

At the same time, I moved to the position of Executive Chairman and in this new executive position I very much look forward to driving the business towards a new and exciting future, ably supported by the new Board and the executive team.

 

 

Current projects

Ormonde continues to retain its exploration and development assets in Spain, being the Salamanca and Zamora Gold Projects and its assets relating to the La Zarza Copper-Gold Project. While we continue to seek ways to maximise value for shareholders from these assets, including the sale of the La Zarza Copper-Gold project, any material expenditure on advancing these assets will not be incurred until a decision has been made in respect of new opportunities.

 

 

New opportunities

The Board and Management are now focused on identifying and assessing potential investment opportunities in the resource sector.  As at the time of writing, the Company has reviewed over sixty projects across a wide spectrum of commodities and jurisdictions, with most having been ruled out under objective criteria.  However, a small number of these opportunities remain promising, being of an appropriate scale whereby our cash would be meaningful, and when brought together with the asset could have a high impact over the short to medium term with the potential to add materially to shareholder value.

 

While a significant amount of work has been carried out in this area over a short period of time, of late the coronavirus pandemic has had a limiting impact on activities, with international travel having ceased entirely and domestic travel facing severe restrictions.  While this has hampered initial review and detailed due diligence processes, we believe that such promising opportunities will remain available over the short to medium term and our strong cash balance will attract an increased number of new opportunities over the coming period. 

 



 

 

 

Financials

The Ormonde Group has reported a loss after tax for the year of €11.3 million compared with a loss of €1.65 million for 2018.  Loss from continuing operations totaled €0.9 million (2018: €1.62 million), with a loss from discontinued operations of €10.4 million (2018: €26k) which relates to the disposal of Ormonde's interest in the Mine.

 

 

Finally, I would like to thank all our stakeholders, including the Company's shareholders, management, employees, directors and advisors for their continued support and dedication.  I wish you all well in what is certainly a difficult time for all.  Stay safe!

 

 

 

Jonathan Henry

Executive Chairman

 



 

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2019

 

 



Restated*


Year ended

Year ended


31-Dec-19

31-Dec-18


€000s

€000s

Continuing Operations






Administration expenses

(855)

(1,023)

Impairment of intangible assets

(49)

(600)


______

______

Loss before financing and income tax

(904)

(1,623)




Income tax expense

-

(1)


______

______

Loss for the year from continuing operations

(904)

(1,624)







Loss from discontinued operations

(10,399)

(26)


______

______

Loss for the year

(11,303)

(1,650)




Other comprehensive income



Foreign exchange relating to discontinued operations

332

523


______

______

Total comprehensive loss for the period

(10,971)

(1,127)




Earnings per share from continuing operations



Basic & diluted loss per share (in cent)

(0.19)

(0.34)




Profit / (Loss) per share



Basic & diluted loss per share (in cent)

(2.39)

(0.35)

 

 

 

 

*When an operation is classified as a discontinued operation, the comparative statement of income is reclassified as if the operation had been discontinued from the start of the comparative period.



 

Consolidated Statement of Financial Position

as at 31 December 2019

 

 


31-Dec-19

31-Dec-18


€000s

€000s

Assets



Non-current assets



Intangible assets

285

324

Investment in associates

-

16,718


_______

_______

Total non-current assets

285

17,042




Current assets



Trade & other receivables

379

42

Assets classified held for resale

8,400

2,400

Cash & cash equivalents

130

399


_______

_______

Total current assets

8,909

2,841


_______

_______

Total assets

     9,194

   19,883




Equity & liabilities



Capital and reserves



Issued share capital

13,485

13,485

Share premium account

29,932

29,932

Share based payment reserve

837

837

Capital conversion reserve fund

29

29

Capital redemption reserve fund

7

7

Foreign currency translation reserve

1,600

1,268

Retained losses

(37,265)

(25,962)


_______

_______

Total equity - attributable to the owners of the Company

8,625

19,596




Current liabilities



Trade & other payables

569

287


_______

_______

Total liabilities

569

287


_______

_______

Total equity & liabilities

     9,194

   19,883



 

Consolidated Statement of Cashflows

for the year ended 31 December 2019

 

Restated*


Year ended

Year ended


31-Dec-19

31-Dec-18


€000s

€000s

Cashflows from operating activities



Loss for the year before taxation



Continuing operations

(904)

(1,624)

Discontinued operations

(10,399)

(26)


________

________


(11,303)

(1,650)

Adjustments for:



Impairment of intangibles assets

49

600

Impairment of investment in associate

7,787

0

Share for loss in associate

3,263

776

Tax expense

-

(1)


________

________

Cashflow from operating activities

(204)

(275)




Movement in working capital



Movement in debtors

(337)

(10)

Movement in creditors

282

186


________

________

Net cash used in operating activities

(259)

(99)







Cashflow from investing activities



Net expenditure on intangible assets

(10)

(13)


________

________

Net cash used in investing activities

(10)

(13)




Net decrease in cash and cash equivalents

(269)

(112)




Cash and cash equivalents at beginning of year

399

511


______

______

Cash and cash equivalents at end of year

      130

      399










*When an operation is classified as a discontinued operation, the comparative statement of income is reclassified as if the operation had been discontinued from the start of the comparative period.



 

Consolidated Statement of Changes in Equity

for the year ended 31 December 2019

 

 




Share Based Payment Reserve









Share Capital

Share Premium

Other Reserve

Retained Losses

Total


€000s

€000s

€000s

€000s

€000s

€000s








At 1 January 2018

13,485

29,932

837

781

(24,312)

20,723















Loss for the year

-

-

-

-

(1,650)

(1,650)

FX on associate

-

-

-

523

-

523


______

______

______

______

______

______

At 31 December 2018

13,485

29,932

837

1,304

(25,962)

19,596








Loss for the year

-

-

-

-

(11,303)

(11,303)

FX on associate

-

-

-

332

-

332


______

______

______

______

  ______

______

At 31 December 2019

13,485

29,932

      837

   1,636

(37,265)

   8,625

 

 

 

1.   The basic loss per share and the diluted loss per share have been calculated on a loss after taxation of €11,303,495 (2018: loss of €1,649,996) and a weighted average number of Ordinary Shares in issue for the year of 472,507,482 (2018: 472,507,482) for the basic loss per share and 472,507,482 (2018: 472,507,482) for the diluted loss per share.

 

2.   The financial information prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS") as adopted by the European Union included in this preliminary statement does not constitute the statutory financial statements for the purposes of Chapter 4 of part 6 of the Companies Act 2014.  Full statutory statements for the year ended 31 December 2019 prepared in accordance with IFRS, upon which the auditors have given an unqualified report, have not yet been filed with the Registrar of Companies.  Full financial statements for the year ended 31 December 2018 prepared in accordance with IFRS and containing an unqualified report, have been filed with the Registrar of Companies.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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Quick facts: Ormonde Mining plc

Price: 1.6

Market: AIM
Market Cap: £7.56 m
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