Ormonde Mining PLC Final Results (1294J)

TIDMORM

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 EUR6 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 EUR6 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: [e-mail]

Davy (Nomad, Euronext Growth Advisor and Joint Broker)

John Frain / Barry Murphy

Tel: [phone]

SP Angel Corporate Finance LLP (Joint Broker)

Ewan Leggat

Tel: [phone]

Capital M Consultants

Simon Rothschild

Mob: [phone]

Murray Consultants

Mark Brennock

Tel: [phone]

Mob: [phone]

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 EUR10 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 EUR6 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 EUR6 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 EUR11.3 million compared with a loss of EUR1.65 million for 2018. Loss from continuing operations totaled EUR0.9 million (2018: EUR1.62 million), with a loss from discontinued operations of EUR10.4 million (2018: EUR26k) 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 
                                                 EUR000s      EUR000s 
 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 
                                           EUR000s     EUR000s 
 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 
                                                 EUR000s      EUR000s 
 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                    Other   Retained      Total 
                                         Premium                  Reserve     Losses 
                              EUR000s    EUR000s       EUR000s    EUR000s    EUR000s    EUR000s 
 
 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 EUR11,303,495 (2018: loss of EUR1,649,996) 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.

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April 08, 2020 02:00 ET (06:00 GMT)