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.
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."