RNS Number : 5559P
Ormonde Mining PLC
21 June 2022
 

21 June 2022

 

Ormonde Mining plc

("Ormonde" or the "Company")

 

Final Results for the Year Ended 31 December 2021

 

Ormonde announces its final results for the year ended 31 December 2021.

 

Key points:  

· Newly constructed Board appointed, including Brian Timmons (previously Non-Executive Director) becoming Non-Executive Chairman in October 2021 and Brendan McMorrow becoming Chief Executive Officer in November 2021 - significant ongoing cost savings

·    The Board is reviewing a range of acquisition opportunities in appropriate jurisdictions including precious metals, precious stones, battery metals and base metals projects

·    Process supported by newly appointed senior technical and geological consultants

·    The Board continues to evaluate its strategy to unlock value for shareholders from the Company's existing assets in Spain, including a potential transaction relating to the Company's interests at La Zarza

·    Total comprehensive loss of €1.6 million including €0.4 million asset impairment

·    Net assets of €5.96 million, including a cash balance of €3.75 million, placing the Company in a position of strength to undertake a transaction

 

Brian Timmons, Chairman, commented:

 

"2021 was a year of transition for the Company as we restructured the Board, reviewed the Company's assets, reorganised the Company to operate on a reduced cost basis, and positioned Ormonde to execute an opportunity to enable the Company to leverage its listing and balance sheet and  generate value for shareholders.

 

I would like to thank our shareholders for their continued support and patience. I am conscious that shareholders are keen to see the value of their holding grow. Our job is to ensure that we deliver the best opportunity to achieve this; one which offers the maximum upside from the Company's current balance sheet. I am confident that we have the team in place to execute on that goal and deliver shareholder value."

 

Enquiries:

 

Ormonde Mining plc

Brian Timmons, Non-Executive Chairman

Tel: +353 (0)1 801 4184

 

Vigo Consulting (Investor Relations)

Ben Simons / Charlie Neish

Tel: 44 (0)20 7390 0230

 

Davy (Nomad, Euronext Growth Advisor and Joint Broker)

Barry Murphy

Tel: +353 (0)1 679 6363

 


CHAIRMAN'S REVIEW

 

Introduction

I am pleased to provide my first report to shareholders as Ormonde's Chairman, having been appointed as a Non-Executive Director in June 2020, and subsequently as Non-Executive Chairman in October 2021.

 

2021 was a year of transition for the Company as we restructured the Board, reviewed the Company's assets, reorganised the Company to operate on a reduced cost basis, while building its capability to execute an opportunity that will enable the Company to leverage its listing and balance sheet to generate value for shareholders.

 

Leadership Restructuring

Following the Company's Annual General Meeting in September 2021, Jonathan Henry, and his board and management team left the Company.

 

Brendan McMorrow and Keith O'Donnell joined me on the Board, and Brendan was subsequently appointed in November 2021 to discharge the role of Chief Executive Officer. Brendan, Keith and I each have over 30 years' experience in company management, capital markets, and publicly listed natural resources companies.

 

The Board is now supported in its endeavours by experienced industry consultants. These include Steve Nicol and Professor Garth Earls, who bring with them over 70 years of combined relevant experience. Drawing on his background in mine evaluation and operations, Steve, as Senior Technical and Mining Advisor, is assisting in the evaluation of potential new mining assets. He previously worked with Ormonde to identify and commercialise the Barruecopardo Tungsten mine in Spain, whose 30% interest was sold by the Company in 2020 for €6 million. Garth is assisting the Company as a Senior Geologist, focused on project exploration and development appraisal. Garth has over 40 years of professional experience in mineral exploration, was part of the team that discovered the six-million-ounce Curraghinalt gold deposit in Northern Ireland, and currently serves as Executive Chairman of International Geoscience Services. He is a former Director of the Geological Survey of Northern Ireland and a past Chairman of the Geosciences Committee of the Royal Irish Academy.

 

Steve and Garth provide the complementary skill sets required to evaluate the geological, technical, mining operational and commercial elements of the projects under review and to identify worthwhile opportunities to generate value for the Company and its shareholders.

 

We are now pursuing investment opportunities at a more appropriate and efficient cost to the Company. Until the Company has made material strategic progress in this regard, the directors have waived their entitlement to non-executive directors' fees.

 

New Project Evaluation

The range of opportunities being reviewed include precious metals, precious stones, battery metals and some base metals in a number of  jurisdictions including Africa and Europe.

 

Our objective is to invest in a project which will generate meaningful value for shareholders on a sustainable basis. We are reviewing a number of opportunities that appear promising, without presenting excessive risk to shareholders.

 

Existing Projects

Ormonde retains its assets in Spain, namely the Salamanca and Zamora gold projects and the Board continues to evaluate its strategy to unlock value for shareholders from these assets. In addition, the prospect of a transaction relating to the land and data assets of the Company's La Zarza interest continues with discussions with interested parties ongoing.

 

Financials

Ormonde recorded a total comprehensive loss for the period of €1.6 million for 2021, including an asset impairment, noted below, of €0.4 million, compared with a loss of €1.1 million in 2020.

 

Following an internal review of its assets at La Zarza, Ormonde now values its La Zarza interests at €2.0 million, a €0.4 million reduction from previous guidance. The Board considers this to be a fair value and is in discussions regarding a transaction.

 

While reviewing new opportunities, the Board has, since its reconstruction in late 2021, endeavoured  to reduce the Company's overheads with Board and management costs lower on a full year basis by approximately 60 percent. The impact of these reductions will be realised in the current year with projected savings related to payroll of c. €0.3 million for 2022 as compared to 2021.

 

As of 31 December 2021, the Company had net assets of €5.96 million, including a cash balance of €3.75 million, placing the Company in a position of considerable strength to undertake a transaction within the natural resources sector.

 

Outlook

On behalf of the Board, I would like to thank our shareholders for their continued support and patience. I am of course conscious that our shareholders are keen to see the value of their holding grow. Our job is to ensure we deliver the best opportunity to achieve this; one which offers the maximum upside from the Company's balance sheet and resources. I am confident that we have the team in place to execute on that goal and deliver value to shareholders. While we are undertaking that process, we will continue to manage costs prudently. I look forward to updating you on the Company's progress in due course.

 

Brian Timmons

Chairman

 

 

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2021

 

 

Year ended

Year ended


31-Dec-21

31-Dec-20


€000s

€000s

 

 

 


 

 

Turnover

0

0

 

 

 

Administration expenses

(1,194)

(1,119)

Impairment of intangibles

(400)

0

 

______

______

Loss on ordinary activities

(1,594)

(1,119)

 

 

 

Finance costs

(24)

(17)

 

______

______

Loss for the year from continuing activities

(1,618)

(1,136)

 

 

 

Profit from discontinued operations

0

1,600

 

______

______

Loss (profit) for the year

(1,618)

464

 

 

 

Taxation

0

0

 

______

______

Loss (profit) for the Period after tax

(1,618)

464

 

 

 

Other comprehensive income

 

 




less: Reclassification of foreign currency gain on disposal of foreign operation

0

(1,600)

 

______

______

Total comprehensive (loss) for the period

(1,618)

(1,136)

 

______

______

 

 

 

Earnings per share



from continuing operations



Basic & diluted (loss) per share (in cent)

(0.34)

(0.24)

Total earnings per share



Basic & diluted (loss) per share (in cent)

(0.34)

0.10

 

 

 

Consolidated Statement of Financial Position

as at 31 December 2021

 

 


31-Dec-21

31-Dec-20


€000s

€000s

Assets



 



Non-current assets



Intangible assets

309

295

 

_______

_______

Total Non-Current Assets

309

295




Current assets



Trade and other receivables

93

58

Asset classified as held for sale

2,000

2,400

Cash & cash equivalents

3,746

4,965


_______

_______

Total Current Assets

5,839

7,423


_______

_______

Total Assets

6,148

7,718


_______

_______

Equity & liabilities

 

 


 

 

Capital and Reserves

 

 

Issued capital

4,725

4,725

Share premium account

29,932

29,932

Share based payment reserve

281

283

Capital conversion reserve fund

29

29

Capital redemption reserve fund

7

7

Retained losses

(29,013)

(27,469)


_______

_______

Equity attributable to the Owners of the Company

5,961

7,507




Current Liabilities



Trade & other payables

187

211


_______

_______

Total Liabilities

187

211

 

_______

_______

Total Equity & Liabilities

6,148

7,718


_______

_______



 

Consolidated Statement of Cashflows

for the year ended 31 December 2021

 

 

Year ended

Year ended


31-Dec-21

31-Dec-20


€000s

€000s

 

 

 

Cashflows from operating activities

 

 

Loss for the year before taxation

 

 

 

 

 

Continuing operations

(1,618)

(1,136)

Discontinued operations

0

1,600


________

________


(1,618)

464

Adjustments for:



Impairment of asset classified as held for sale

400

0

Reclassification of foreign exchange gain

0

(1,600)

Non cash items: Share Option expense

72

19


________

________

 

(1,146)

(1,117)

Movement in Working Capital



Movement in receivables

(35)

320

Movement in liabilities

(24)

(358)


________

________

Net Cash used in operations

(1,206)

(1,155)

 

 

 

Investing activities

 

 

Expenditure on intangible assets

(14)

(10)

Proceeds from disposal of associate

0

6,000


________

________

Net cash (used in)/generated from investing activities

(14)

5,990

 

 

 

Net (decrease)/increase in cash and cash equivalents

(1,219)

4,835

 

 

 

Cash and cash equivalents at the beginning of the year

4,965

130

 

______

______

Cash and cash equivalents at the end of the year

3,746

4,965

 

______

______

 



 

 

Consolidated Statement of Changes in Equity

for the year ended 31 December 2021

 

 

 

 

 

Share based

 

 

 

 

Share

Share

Payment

Other

Retained

 


Capital

Premium

Reserve

Reserves

Losses

Total

 

€000s

€000s

€000s

€000s

€000s

€000s

 






 

Balance at 1 January 2020

13,485

29,932

837

1,636

(37,265)

8,625

 

 

 

 

 

 

 

Loss for the year

-

-

-

-

(1,136)

(1,136)

Reclassification of foreign currency gain on disposal of foreign operation

-

-

-

(1,600)

1,600

0


______

______

______

______

______

______

Total comprehensive income for the year

0

0

0

(1,600)

464

(1,136)

 

 

 

 

 

 

 

Release relating to expired share options

-

-

(572)

-

572

0

Employee share-based compensation

-

-

18

-

-

18

Cancellation of shares

(8,760)

-

-

-

8,760

0


______

______

______

______

______

______

Balance at 31 December 2020

4,725

29,932

283

36

(27,469)

7,507

 

 

 

 

 

 

 

Loss for the year

-

-

-

-

(1,618)

(1,618)


______

______

______

______

______

______

Total comprehensive income for the year

0

0

0

0

(1,618)

(1,618)

 

 

 

 

 

 

 

Release relating to expired share options

-

-

(74)

-

74

0

Employee share-based compensation

-

-

72

-

-

72


______

______

______

______

______

______

Balance at 31 December 2021

4,725

29,932

281

36

(29,013)

5,961

 

______

______

______

______

______

______

 

 

 

1.  The basic loss per share and the diluted loss per share have been calculated on a loss after taxation of €1,618,026 (2020: profit of €464,000) and a weighted average number of Ordinary Shares in issue for the year of 472,507,482 (2020: 472,507,482) for the basic loss per share and 472,507,482 (2020: 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 2021 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 2020 prepared in accordance with IFRS and containing an unqualified report, have been filed with the Registrar of Companies.

 

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