Ormonde Mining Share Discussion Threads

[admiral jellicoe] 19/6/2019 12:24

Ultimately today's RNS did not tell us anything new.The N starter pit we already knew was not producing the grade.Focus has switched to other areas. It's good that the capital cost of the plant came in on budget and that staff are gaining in experience as activities continue.However the pressure is on to hit higher grades and start making a profit.Its all down to grades, if they can get good dirt through the plant then we should make money.If however if the original exploration grade results were highly off, then we are all well and truly f.....d.

[steelwatch] 19/6/2019 10:41

Ormonde Mining* (ORM LN) 3.15p, Mkt Cap £14.9m – 2018 Results and Barruecopardo progress report

Ormonde Mining has reported a loss of €1.65m for the year to 31st December 2018 (2017 – loss of €0.1m) as it developed the 30% owned Barruecopardo tungsten project in Spain. The loss included a €0.6m impairment charge against the La Zarza project in southern Spain as well as Ormonde Mining’s €0.78m share of the loss on the operating associate which holds the Barruecopardo project.

The company reports that the project construction has now been completed within the budget and “broadly in line with its construction schedule” and is now in the process of ramping-up phase to the targeted 1.1mtpa throughput under the management of the mine subsidiary, Saloro.

Throughput levels consistent with the targeted 1.1mtpa processing rate are being achieved and the plant is producing “concentrates … from low-grade ore feed are starting to achieve targeted specification on a regular basis while ongoing refinements to the processing circuits continue to be implemented”.

At this stage, ore is being mined from two small starter pits while waste removal “of around 80 vertical metres of waste rock from the east wall of the historic pit is to be accelerated to bring forward access to the main orebody, where the tungsten mineralisation is present as a much broader, more continuous high-grade zone”.

The lower than expected grades encountered in the northern starter pit have prompted a switch to the southern starter pit and an acceleration of the planned waste stripping over the main orebody in order to access higher grade feed for the plant.

Ormonde Mining’s Chairman and Interim Managing Director Michael Donoghue, commented that “the lower grade ore encountered in the initial, peripheral starter pit will make the remainder of this year somewhat challenging as Saloro's profitability and cashflows will continue to be constrained during the mine's ramp-up phase, however the progress made to date on processing of this lower grade material should stand the Project in good stead as it transitions into the main, higher grade orebody towards the end of 2019."

As the Barruecopardo project moves into the production phase, management is addressing opportunities for future expansion and has identified two longer term objectives, “to complete the disposal of our La Zarza interests and take a fresh look at our Spanish gold exploration holdings and new licence application areas, in western Spain which have been identified as having gold exploration potential.”

Commenting on the current tungsten market and the commodity outlook, the company explains that prices for the benchmark ammonium paratungstate (APT) peaked at US$352/mtu (metric tonne unit) in June 2018 as production declined in China as mines and plants were closed in response to more stringent implementation of environmental regulations. “Prices have declined steadily thereafter and although they have steadied somewhat of late, they remain weak, currently trading in the $255/mtu to $265/mtu range.”

Citing “two reputable metal research groups … suggesting short to medium term tungsten supply deficits and price rises”, the company points out that “While the tungsten supply-demand fundamentals in the western world are relatively transparent and the deficit predictions in this market seem well founded, the situation in the Chinese market remains less transparent”.

Ormonde Mining concludes however that “a summary of the Chinese situation by one forecaster is encouraging: "there is potential for a supply deficit in 2019 and 2020 as output from existing mines looks set to decline; ore grades at some of the larger and older Russian and Chinese mines are falling as resources become depleted. Importantly, there are no plans in China to bring online new tungsten mines to replace these depleted deposits".

Conclusion: Ormonde Mining is ramping up production from the Barruecopardo tungsten mine. Initial low grade production from starter pits is likely to constrain profitability and cashflows until later in the year when the current waste removal programme will allow access to the broader, higher grade mineralisation within the main orebody. The company also reports an industry commentator suggesting that 2019/2020 may see a supply deficit in the tungsten industry.

*SP Angel acts as Broker to Ormonde Mining

[steelwatch] 19/6/2019 09:55

Davy has issued a note today if anyone has full access:

Ormonde Mining
FY 2018 results reflect mine construction and commissioning phase

With historic numbers reflecting the construction and build-up phase of the Barruecopardo tungsten mine, the focus should be on the current year and onwards. To this end, the group reports that the mill is achieving design output rates and is also beginning to achieve the correct concentrate specifications. Ore feed grades are too low at present (as previously reported) and a push to access the main orebody by the end of this year is currently underway. With design ore grades scheduled for a mill already operating well with lower grades, the group expects an improved performance in 2020.

Job Langbroek Morning briefing

[buywell3] 19/6/2019 09:18

Results do not make good reading IMO
Seems the market agrees today at least


Issues remain to be sorted least of which is the poor grades


'' tungsten concentrates produced from low-grade ore feed are starting to achieve targeted specification on a regular basis while ongoing refinements to the processing circuits continue to be implemented; and following low initial ore grades from the northern starter pit, mining schedules are being revised to target higher grade ore sources including commencement of mining of the southern starter pit and acceleration of the east wall cutback. ''


dyor

[jbe81] 19/6/2019 09:05

Spot on Wan

[wanobi] 19/6/2019 08:30

now is the time to be buying this :-) cheers Wan

market will overreact today, steep sell off and then the gradual climb into the end of the year will start :-)

[roykeane2] 19/6/2019 08:24

Shame we cannot muster a more positive message, now that we are a mining company and not an exploration company.

[mip55] 19/6/2019 08:10

This time next year Rodders etc etc, putting my holding back into the drawer again. Lol

[mip55] 19/6/2019 07:04

Seems we will have to continue to be patient:Looking forward, the lower grade ore encountered in the initial, peripheral starter pit will make the remainder of this year somewhat challenging as Saloro's profitability and cashflows will continue to be constrained during the mine's ramp-up phase, however the progress made to date on processing of this lower grade material should stand the Project in good stead as it transitions into the main, higher grade orebody towards the end of 2019."

[bazaoil] 18/6/2019 10:17

Just my opinion.... China cannot afford to let prices drop much more as they are at the point where they are producing at a loss. It will take a little while for the agreed production reductions to feed through to price as there was an over supply.
What we need are a few things. (a) trump/ China to come to a deal and let the world economy settle down again and increase demand. (b) and don't like saying it but a war . A war in the middle east with Iran is a possibility. This will also make oil prices sore increasing the oil shale industry in the US. Both military and oil drilling are big consumers of Tungsten. Lastly a bit of good news from Ormonde regarding the improved grades and we could multiply from these ridiculous low levels. Just my opinion. No problem holding.

[roykeane2] 18/6/2019 08:29

Struggle to understand price action of Tungsten. China rare earth exports DOWN 60% last month and yet price of one of main industrial exports falls!!!!

[gotabsirius] 18/6/2019 07:50

100k bought on nex at 3.72 yesterday just before close, hence tick up!

[dolores123] 18/6/2019 07:28

Hi cyber. I cant see where your figures of 2.5 and 2.9 come from?

[gotabsirius] 17/6/2019 22:14

Any trades going through NEX perhaps? This looks a takeover target at this price

[cyberbub] 17/6/2019 21:03

The problem is that as with all miners, ORM is leveraged to the price of their commodity. If Mr Market (or Mr Shorter) believes that tungsten is going to say $210-220 then the company will probably be only marginally profitable at those levels. I very much doubt we will get there but remember that 'fear and greed' drive the markets.The rise of the offer price of 2.90 appears to have been totally artificial, all trades were taking place around 2.50 today. I wonder why the MMs did that - it's usually a sign of trying to deter buying, is there a large buy at say 2.60ish being worked perhaps?NAI

[dolores123] 17/6/2019 13:23

Looks like the share price needs news of actual sales and cash flow to give potential investors the confidence to buy. Surely that is just a matter of time now.

[admiral jellicoe] 17/6/2019 12:11

I'm hodling as well!! However over the last 5 years other shares have done well, Microsoft, AMD etc, some not so well IBM!It's easy to cherrypick a stock and compare etc, however things have not gone as well with the Ormonde share price despite the very significant positive news recently.In addition there is a realization that globally the horizon looks very cloudy, Mr Trump who is ripping up the rule book wrt global trade. ECB statement that things do not look good for the future in today's FT.

[bushead] 17/6/2019 11:50

Been holding 13 years Bub, I ain’t going nowhere

[cyberbub] 17/6/2019 11:32

I thought that this spike down might be 'the bottom'... Let's hope that proves to be the case.The tungsten price falling seems irrational... But as Buffett says "The market can remain irrational longer than many can remain solvent..."Just hold IMO.

[steelwatch] 17/6/2019 10:33

SP Angel today:

Tungsten APT European US$255-265/mtu vs US$260-270/mtu

[steelwatch] 15/6/2019 12:26

We'll see what share price Angel say on Monday, but looks like the indicated European price will be $255 - $265



I see this as attributable to Trump's Mob style extortion racket approach to international trade negotiations dampening global economic activity.

[gotabsirius] 15/6/2019 08:25

Bizana, that article actually points to higher Tungsten APT medium term due to significant production cuts in China. Plus, US / China trade deal would likely see a bounce in demand

[mip55] 15/6/2019 08:04

Let us hope next week we see a repeat of this:DUBLIN & LONDON: 19 June 2018 - Ormonde Mining plc announces its final results for the year ended 31 December 2017.HIGHLIGHTS FOR THE YEAR AND POST YEAR