24th Sep 2007 07:01
Ormonde Mining PLC24 September 2007 24 September 2007 Ormonde Mining plc Interim Results for the Six Months Ended 30 June 2007 DUBLIN & LONDON: 24 September 2007 - Ormonde Mining plc ("Ormonde" or "theCompany"), the Spain-focused exploration and development company, is pleased toannounce its unaudited interim results for the six months ended 30 June 2007. HIGHLIGHTS • Bankable Feasibility Study, due for completion by the end of the year, progressed on the La Zarza copper-gold-zinc Project • Ormonde's interest in the Project increased to 100% • Barruecopardo Tungsten Project in Salamanca upgraded to advanced project status; drilling continues to intersect high-grade tungsten mineralization • Funding in place to support ongoing drilling programmes following capital raising of €1.7 million (net of expenses) in July • Loss for the period of €284,111 (€235,927 for the 6 months to June 2006); management continues to maximize in-the-ground investment. Mike Donoghue, Chairman of Ormonde commented, "During the first six months of this year we have progressed the feasibilitystudy at La Zarza, which is now in its final stages. We also significantlyadvanced the Barruecopardo Tungsten Project through drilling and initialmetallurgical testwork, and believe that in Barruecopardo we have the potentialfor a high-grade underground tungsten mine". Enquiries to: Ormonde Mining plcKerr Anderson, Managing Director,Fraser Gardiner, DirectorTel: +353 (0)46 9073623 Bankside ConsultantsSimon Rothschild Tel: +44 (0)20 7367 8871 Mobile: +44 (0)7703 167065 Davy (Nominated Adviser to Ormonde)Fergal Meegan Tel: + 353 1 6796363 CHAIRMAN'S STATEMENT OPERATIONAL REVIEW During the first six months of 2007, the Bankable Feasibility Study on the LaZarza Cu-Au-Zn deposit in southwest Spain was progressed following theappointment of four well-established engineering firms, with Aker KvaernerEngineering Services Ltd as overall Study Manager. The main aspects of theStudy include metallurgical optimization and variability testwork, finalizationof mill, mine and associated infrastructure designs, and compilation of therelevant environmental and regulatory requirements for permitting of a miningoperation. This Study will be completed by the end of the year and will providedefinitive costs for the development of an underground mine at La Zarza,producing metal concentrates containing copper, gold, zinc and silver. Drilling of the zinc massive sulphide zone was initiated during the period, withthe objective of moving a major part of the Inferred Resource of 2.9Mt grading4.5% zinc (reported towards the end of 2006) to Indicated status, therebyenabling conversion to ore reserves under JORC Guidelines. This programme hasnow been completed and results will be reported when all assay results have beenreceived. Drilling is now being carried out to test a zone of copper-richmassive sulphide 500 metres to the west of the currently defined resources at LaZarza. During the period, the Company increased its equity interest in La Zarza from70% to 100% through an acquisition that includes all the land holdings at LaZarza held by our joint venture partner Nueva Tharsis and a buy-out of a royaltyinterest, thereby allowing Ormonde shareholders to receive the full value from amining operation at La Zarza. The Company was also very active on its Salamanca Tungsten properties in thefirst half of the year, where drilling continues to establish the presence ofhigh-grade tungsten mineralization in the northern extension to the previousBarruecopardo open-pit mine. Tungsten intersections range from 0.5-2.4% WO3over 1 to 3 metre intervals and the mineralization has now been established overa strike length of at least 600 metres. As a result of the positive drillingresults, which exceeded our best expectations, and initial metallurgical testswhich indicate that the tungsten minerals are coarse grained and can beconcentrated effectively by traditional low cost gravity equipment,Barruecopardo has been upgraded to an advanced project. The priority is now firmly on determining an initial tungsten resource on thenorthern extension at Barruecopardo, in addition to drilling investigation holesto the south beneath the old open-pit to identify the overall resourcepotential. Collection of a bulk sample for full metallurgical testing andflowsheet design will commence shortly. These activities will provide thefundamental information required in the short-term to evaluate the viability ofan underground tungsten mining operation at Barruecopardo. Our gold exploration activities in the Salamanca Project and elsewhere continuedduring the period, and we were pleased to report the intersection of narrow, buthigh-grade intervals on the Pino de Oro Prospect which include 18.9 and 16.6 g/tgold over metre intervals. This highlighted that although the Company's focusremains on the Feasibility Study at La Zarza and the fast-tracking of theBarruecopardo Tungsten Project, we also maintain an active gold explorationprogramme designed to develop the best opportunities to add to the Company'sSpanish resource base CORPORATE DEVELOPMENTS In April we engaged Bell Lawrie, a division of Brewin Dolphin Securities, as theCompany's UK broker and financial advisor. Davy continues to be our Irishbroker and Nomad. We also completed a small placing after the end of the periodwhich raised €1.7 million (net of expenses) to fund ongoing drilling programmesand our acquisition of the 100% interest in La Zarza. Ormonde's operating loss for the period was €284,111 (€235,927 for the 6 monthsto June 2006). Our management continues to maximize in-the-ground investment. SUMMARY This has been a period where progress at La Zarza has taken the form of detaileddesign work on the Feasibility Study and consequently market newsflow on LaZarza has been accordingly limited. However, we are now in the final stages ofcompletion of this Study. In the interim, very significant progress has beenmade on the Barruecopardo Tungsten Project, which we are rapidly advancing, andwe look forward to reporting further results from Barruecopardo between now andthe end of the year as they become available. Michael J. DonoghueChairman21 September 2007 Ormonde Mining plc Consolidated Income Statement Six months ended 30 June 2007 (unaudited) (unaudited) (audited) 6 months ended 6 months ended Year ended 30 June 2007 30 June 2006 31 December 2006 €000's €000's €000's Turnover Administrative expenses (310) (252) (601)Exploration costs written off - - (82)Operating (loss) (310) (252) (683) Interest receivable 26 16 83 (Loss) on ordinary activities (284) (236) (600) Minority interest - - 3 Retained (loss) for the period (284) (236) (597) Loss per share:Basic (€0.0017) (€0.0015) (€0.0037)Diluted (€0.0016) (€0.0013) (€0.0033) Ormonde Mining plc Consolidated Balance Sheet As At 30 June 2007 (unaudited) (unaudited) (audited) 30 June 2007 30 June 2006 31 December 2006 €000's €000's €000's Non-Current AssetsProperty, plant and equipment 15 17 10Intangible assets - Deferred exploration costs 7,558 4,444 5,927Intangible assets - Goodwill 230 112 230 7,803 4,573 6,167 Current AssetsTrade and other receivables 405 360 593Cash and cash equivalents 1,672 5,034 3,391 2,077 5,394 3,984 Total Assets 9,880 9,967 10,151 Equity and Liabilities Capital and ReservesCalled up share capital 5,887 5,864 5,885Share premium account 14,347 14,230 14,347Reserves 39 36 39Retained (losses) (10,711) (10,208) (10,427) Equity attributable to equity holders of the 9,562 9,922 9,844parent Minority interest (3) 2 (3) Total Equity 9,559 9,924 9,841 Current LiabilitiesTrade and other payables 321 43 310 Total Liabilities 321 43 310 Total Equity and Liabilities 9,880 9,967 10,151 Ormonde Mining plc Consolidated Cash Flow Statement Six months ended 30 June 2007 (unaudited) (unaudited) (audited) 6 months ended 6 months ended Year ended 30 June 2007 30 June 2006 31 December 2006 €000's €000's €000's Net (loss) before interest and income tax (310) (252) (683) Adjustments for:Exploration costs written off - - 82Depreciation for - Property, plant and 5 2 12equipment Operating (loss) before working capital changes (305) (250) (589) Decrease/(Increase) in trade receivables 188 211 (22)(Decrease)/Increase in trade payables 11 (193) 74 Cash generated from operations (106) (232) (537) Interest received 26 16 83 Net cash flow from operating activities (80) (216) (454) Investing activitiesPurchase of property, plant and equipment (10) - (4)Purchase of intangible assets (1,631) (889) (2,431)Net cash used in investing activities (1,641) (889) (2,435) Cash flows from financing activitiesProceeds from issue of share capital 2 4,248 4,389 Net cash received from financing activities 2 4,248 4,389 Net (decrease)/increase in cash and cash (1,719) 3,143 1,500equivalents Cash and Cash equivalents at the beginning of 3,391 1,891 1,891the period Cash and cash equivalents at the end of the 1,672 5,034 3,391period The financial information has been prepared under the historical cost conventionin accordance with Irish law and International Financial Reporting Standards.This is the first financial period that the Group has adopted InternationalFinancial Reporting Standards. This did not result in any material amendment tothe Group's accounting policies or the results previously presented. The loss per share was calculated from the loss for the period attributable toordinary shareholders of €284,111(June 2006 = €235,927) divided by thetime-weighted average number of shares in issue during the period of 162,488,775(June 2006 = 156,292,428). No dividends were paid or proposed in respect of the six months ended 30 June2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ORM.L