RNS Number : 0781O
Ormonde Mining PLC
29 September 2023
 

29 September 2023

Ormonde Mining plc

("Ormonde" or the "Company")

 

Interim Results for the six months ended 30 June 2023

 

Ormonde Mining plc (AQSE: ORM), a natural resource company providing exposure to quality and diverse assets across a range of strategic minerals, announces its unaudited interim results for the six months ended 30 June 2023.

 

Key points:

 

·    Acquisition of an initial 36.2% interest in Toronto-listed exploration company, TRU Precious Metals Corp ("TRU"), which is exploring for gold and copper in the highly prospective Central Newfoundland Gold Belt in Canada

·    Acquisition of a 20% interest in Peak Nickel Limited ("PNL") which is advancing exploration on a potentially significant battery metals project

·    Transfer of the Company's shares to trading on the Aquis Growth Market

 

Brendan McMorrow, Chief Executive Officer, commented:

 

"I am very pleased with the progress achieved during the first six months of 2023. During the period we identified and negotiated two highly attractive investment opportunities to advance the Board's stated goal of generating shareholder value by leveraging the Company's balance sheet and resources whilst carefully managing its operating costs.

 

"The Company now has exposure to two compelling, diverse and complementary exploration opportunities. These opportunities position the Company and its shareholders for future capital growth, while retaining a stock market listing on the Aquis Growth Market."

 

 

Operational Review

 

TRU Investment

 

On 30 June 2023, just prior to the end of the reporting period, Ormonde announced its intention to acquire an initial 36.2% interest in TRU's share capital through a private subscription for 60 million new common shares of TRU at CAD $0.05 per share for a total consideration of CAD $3,000,000. Ormonde has the potential to increase its shareholding up to 46.0% through the exercise of warrants. This investment was approved by Ormonde's shareholders after the period end, on 25 August 2023, and completed on 5 September 2023.

 

TRU's flagship Golden Rose Project ("Golden Rose") is in the highly prospective Cape Ray - Valentine Lake gold-bearing structural corridor in Southern Central Newfoundland. Golden Rose is a regional-scale 273.5 km2 land package, of which 240.25km2 is fully owned by TRU, with the additional 33.25 km2 held under an option to acquire a 65% interest.

 

This coherent land package straddles a 45km strike length along the deposit-bearing Cape Ray -Valentine Lake shear zone and is located between Marathon Gold's Valentine Gold Project (4 million oz Measured and Indicated) and Matador Mining's Cape Ray Gold Project (0.6 million oz Indicated and Inferred - exploration continuing).

 

Following recent significant discoveries, Newfoundland has become one of the world's most attractive gold exploration regions. The prospective geology, ease of access, a supportive local government and moderate weather all combine to give Newfoundland a top 10 global ranking for mining investment attractiveness by the Fraser Institute.

 

Within the TRU landholding, various mineralisation styles have already been recognised, including a structural domain potentially similar to the Curraghinalt gold deposit in Northern Ireland (6 million oz). Golden Rose has had limited historical exploration, but the prospectivity of the area has been confirmed. TRU has capitalised on previous work and is already turning up new high-grade gold and copper mineralised targets on the property with high grades similar to those that other Newfoundland explorers have been reporting in recent years.

 

With the help of Ormonde, TRU intends to fast-track the advancement of Golden Rose, as well as the evaluation of other mineral property transaction opportunities, leveraging our teams' complementary experience.

 

PNL Investment

 

PNL, in which Ormonde acquired a 20% interest on 7 February 2023, is a private UK-based company, which is advancing exploration on a promising battery metals project. Ormonde's investment (£512,500) was designed to support a fast-track initial drilling programme aimed at identifying a modern, code-compliant resource in those minerals. The Board is continuing to closely follow the progress of this exploration programme with a view to supporting, if and as appropriate and commensurate with Ormonde's shareholding, the further development of this very attractive project, as the opportunities unfold.

 

Financial Review

 

Interim Results

 

The Company reports a loss after tax for the six months ended 30 June 2023 of €454,000 (H1 2022: €363,000 Loss), with the increased loss for the period reflecting additional costs incurred on the two transactions set out in the Operational Review above.

 

As at 30 June 2023, the Company held €2.5 million of cash (€3.4 million at 31 Dec 2022).

 

Deferred Consideration

 

The Company has, after the period end, received the second instalment of consideration (€500,000) due in respect of the disposal of the La Zarza assets, which completed on 3 October 2022. A further two instalments of €500,000 each are due on the second and third anniversaries of the completion of the sale of the La Zarza assets.

 

Admission to the Aquis Growth Market

 

As of 5 September 2023, the Company's Ordinary Shares have been admitted to trading on the Access Segment of the Aquis Growth Market, a Multi-lateral Trading Facility (MTF) and a Recognised Stock Exchange under S1005 (1)(b) United Kingdom Income Tax Act 2007.

 

Concurrently, admission of the Company's Ordinary Shares to the AIM and Euronext Growth markets, from which they had been suspended from trading since 7 February 2023 pending the publication of an Admission Document, was cancelled on the same day following shareholder approval.

 

 

 

Enquiries: 

Ormonde Mining plc


Brian Timmons, Chairman

 

Tel: +353 (0)1 801 4184

Vigo Consulting (Investor Relations)


Ben Simons / Fiona Hetherington   

 

Tel: +44 (0)20 7390 0230

Peterhouse Capital (Aquis Corporate Adviser)


Narisha Ragoonanthun / Brefo Gyasi   

 

Tel: +44 (0)20 7469 0930

 

About Ormonde Mining

 

Ormonde is a natural resource company which provides its shareholders with exposure to quality and diverse assets across a range of strategic minerals. Ormonde's portfolio includes an initial 36.2% interest in TRU Precious Metals (TSXV: TRU), which is exploring for gold and copper in the highly prospective Central Newfoundland Gold Belt in Canada, and a 20% interest in Peak Nickel, which is advancing exploration on a potentially significant battery metals project.

 

Ormonde's shares are listed on the Aquis Growth Market under the symbol AQSE: ORM.

 

For more information, visit the Company's website at www.ormondemining.com


Ormonde Mining plc

Consolidated Statement of Comprehensive Income

Six months ended 30 June 2023

 

 

 

unaudited

unaudited

audited

 

6 Months ended

6 Months ended

Year ended


30-Jun-23

30-Jun-22

31-Dec-22


€000s

€000s

€000s

 

 

 

 

Turnover

-

-

-

 

 

 

 

Administration expenses

(536)

(350)

(881)

Impairment of asset classified as held for sale

-

-

(167)

 

______

______

______

Loss on ordinary activities

(536)

(350)

(1,048)

 

 

 

 

Finance costs

(2)

(13)

(17)

Finance income (non cash)

84

-

-

 

______

______

______

Loss for the period from continuing activities

(454)

(363)

(1,065)

 

 

 

 

Taxation on loss

-

-

-

 

______

______

______

Total comprehensive loss for the period

(454)

(363)

(1,065)

 

 

 

 

 

 

 

 

Earnings per share




from continuing operations




Basic & diluted loss per share (in cent)

(0.10)

(0.08)

(0.23)

Total earnings per share




Basic & diluted loss per share (in cent)

(0.10)

(0.08)

(0.23)





 

                                                                                                                                               



Ormonde Mining plc

Consolidated Statement of Financial Position

As at 30 June 2023

 

 

 

 

unaudited

unaudited

audited



30-Jun-23

30-Jun-22

31-Dec-22


Note

€000s

€000s

€000s

Assets

 




 

 




Non-current assets

 




Intangible assets


157

315

157

Trade and other receivables

5

784

-

700

Financial assets

4

656

-

-

 

 

_______

_______

_______

Total Non-Current Assets


1,597

315

857






Current assets

 




Trade and other receivables

5

540

49

613

Cash and cash equivalents


2,524

3,385

3,564

Asset classified as held for sale


-

2,000

-



_______

_______

_______

Total current assets

 

3,064

5,434

4,177



_______

_______

_______

Total assets

 

4,661

5,749

5,034



_______

_______

_______

Equity & liabilities

 

 

 

 



 

 

 

Equity

 

 

 

 

Issued share capital

6

4,725

4,725

4,725

Share premium account

6

29,932

29,932

29,932

Share based payment reserve


281

281

281

Capital conversion reserve fund


29

29

29

Capital redemption reserve fund


7

7

7

Retained losses


(30,532)

(29,376)

(30,078)



_______

_______

_______

Total equity - attributable to the owners of the Company

 

4,442

5,598

4,896



 

 

 

Current liabilities

 




Trade & other payables


219

151

138



_______

_______

_______

Total liabilities


219

151

138

 

 

_______

_______

_______

Total equity & liabilities

 

4,661

5,749

5,034



_______

_______

_______

 

 

 



Ormonde Mining plc

Consolidated Statement of Cashflows

Six months ended 30 June 2023

 

 

 

unaudited

unaudited

audited

 

6 Months ended

6 Months ended

Year ended


30-Jun-23

30-Jun-22

31-Dec-22


€000s

€000s

€000s

 

 

 

 

Cashflows from operating activities

 

 

 

 

 

 

 

Loss for period before taxation

(454)

(363)

(1,065)


________

________

________


(454)

(363)

(1,065)

Adjustments for non-cash items:




Impairment of intangible assets

-

-

167

Finance income

(84)

-

-


________

________

________

 

(538)

(363)

(898)

Movement in Working Capital




Movement in receivables

74

44

(20)

Movement in liabilities

80

(36)

(49)


________

________

________

Net Cash used in operations

(384)

(355)

(967)

 

 

 

 

Investing activities

 

 

 

Expenditure on intangible assets

-

(6)

(15)

Expenditure on financial assets

(656)

-

-

Proceeds from disposal of assets held for resale

-

-

800


________

________

________

Net cash generated by / (used in) investing activities

(656)

(6)

785

 

 

 

 

Net decrease in cash and cash equivalents

(1,040)

(361)

(182)

 

 

 

 

Cash and cash equivalents at beginning of period

3,564

3,746

3,746

 

________

________

________

Cash and cash equivalents at end of period

2,524

3,385

3,564


________

________

________


Ormonde Mining plc

Consolidated Statement of Changes in Equity

Six months ended 30 June 2023

 

 

 

 

 

Share Based Payment Reserve

 

 

 

 

 

 

 

 

 


Share Capital

Share Premium

Other Reserves

Retained Losses

Total

 

€000s

€000s

€000s

€000s

€000s

€000s

 






 

At 1 January 2022

4,725

29,932

281

36

(29,013)

5,961

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

(363)

(363)

 

______

______

______

______

______

______

Total comprehensive income for the period

-

-

-

-

(363)

(363)


______

______

______

______

______

______

At 30 June 2022

4,725

29,932

281

36

(29,376)

5,598

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

(702)

(702)


______

______

______

______

______

______

Total comprehensive income for the period

-

-

-

-

(702)

(702)







 


______

______

______

______

______

______

At 31 December 2022

4,725

29,932

281

36

(30,078)

4,896

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

(454)

(454)


______

______

______

______

______

______

Total comprehensive income for the period

-

-

-

-

(454)

(454)

 

______

______

______

______

______

______

At 30 June 2023

4,725

29,932

281

36

(30,532)

4,442


______

______

______

______

______

______

 

 



 

Notes to the Interim Consolidated Financial Statements

 

1.      Accounting policies and basis of preparation

 

Ormonde Mining plc is a company incorporated and domiciled in the Republic of Ireland. The  Interim Consolidated Financial Statements for the six months ended 30 June 2023 comprise the Company and its subsidiaries (together referred to as the "Group"), and have not been audited or reviewed by the Company's auditors.

 

The Interim Consolidated Financial Statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group as at and for the year ended 31 December 2022, which are available on the Company's website at https://ormondemining.com/. The audit opinion on the statutory financial statements for the year ended 31 December 2022 was unqualified.

 

The financial information in this report has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS") as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. These policies are consistent with those to be adopted in the Group's consolidated financial statements for the year ending 31 December 2023. The accounting policies applied by the Group in the Interim Consolidated Financial Statements are the same as those applied by the Group in the consolidated financial statements for the year ended 31 December 2022.

 

The Directors have prepared the Interim Consolidated Financial Statements on the going concern basis which assumes that the Group and Company will have sufficient resources to continue in operation for the foreseeable future, being a period of not less than 12 months from the date of signing of these statements. The Directors have prepared cashflow forecasts for the twelve-month period to September 2024 and on that basis consider it appropriate to prepare the Interim Consolidated Financial Statements on the going concern basis. These statements do not include any adjustments that would result from the going concern basis of preparation not being adopted.

 

The unaudited Interim Consolidated Financial Statements were approved by the Board of Directors on 28 September 2023.

 

 

2.      Segmental analysis

 

An analysis by geographical segments is presented below. The Group has geographical segments in Ireland and Spain.

 

The segment results for the period ended 30 June 2023 are as follows:

 

 


Ireland

Spain

Total

Total comprehensive loss for 6 months to 30 June 2023

€000s

€000s

€000s





Segment loss for period

(431)

(23)

(454)


______

______

______


(431)

(23)

(454)


______

______

______





Total comprehensive loss for year to 31 December 2022

€000s

€000s

€000s





Segment loss for period

(933)

(132)

(1,065)


______

______

______


(933)

(132)

(1,065)


______

______

______

 

 

 

 

Total comprehensive loss for 6 months to 30 June 2022

€000s

€000s

€000s





Segment loss for period

(207)

(156)

(363)


______

______

______


(207)

(156)

(363)


______

______

______


 

3.      Basic earnings per share

 

The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

 

Earnings per share

30-Jun-23

30-Jun-22

31-Dec-22


€000s

€000s

€000s





Loss for the period attributable to equity holders of the parent:








From continuing business

(454)

(363)

(1,065)


______

______

______

Total Loss for period

(454)

(363)

(1,065)





Weighted average number of ordinary shares




for the purpose of basic earnings per share

472,507,482

472,507,482

472,507,482


______

______

______

Basic loss per ordinary shares (in cent) from continuing operations

(0.10)

(0.08)

(0.23)


______

______

______

Basic loss per ordinary shares (in cent) Total

(0.10)

(0.08)

(0.23)


______

______

______

 

 

Diluted earnings per share

 

For the six months to 30 June 2023, the share options are anti-dilutive and therefore diluted earnings per share is the same as the basic earnings per share.

 

For the six months to 30 June 2022 and the year ended 31 December 2022 the basic and diluted earnings per share are the same.

 

 

4.      Financial assets

 

Financial assets of €656,000 is comprised of €588,000 relating to the Company's 20% equity investment in Peak Nickel Limited which is advancing exploration on a potentially significant battery metals project and €68,000 which represents a first payment relating to the equity investment in TRU Precious Metals Corporation (a TSX V listed company) which transaction closed on 5 September 2023. See Post balance sheet events note for more details.

 

 

5.      Trade and other receivables

 

Trade receivables include the amount of €500,000 (current) and €784,000 (non-current) (total of €1.284 Million) representing the fair value of the €1.5 Million deferred consideration receivable at 30 June 2023 following the disposal in September 2022 of certain land and data assets associated with the La Zarza project.


 

 

6.            Share capital

 

 

30-Jun-23

30-Jun-22

31-Dec-22


€000s

€000s

€000s





Authorised Equity




650,000,000 ordinary shares of €0.01 each

6,500

6,500

6,500


______

______

______


6,500

6,500

6,500


______

______

______


 

 

 

Issued Capital




Share Capital

4,725

4,725

4,725

Share Premium

29,932

29,932

29,932


______

______

______


34,657

34,657

34,657


______

______

______





Issued Capital comprises




472,507,483 ordinary shares of €0.01 each

4,725

4,725

4,725


______

______

______


4,725

4,725

4,725


______

______

______

 

 

7.            Dividends

 

No dividends were paid or proposed in respect of the six months ended 30 June 2023.

 

 

8.            Post balance sheet events

 

At an extraordinary general meeting on 25 August 2023, shareholders passed a resolution to cancel the listing of the Company's shares from both the AIM Market and the Euronext Growth Market. At the same extraordinary general meeting the Company was authorised by shareholders to enter into and complete the TRU investment.

 

On 5 September 2023 the Company announced that its ordinary shares were admitted to trading on the Access Segment of the Aquis Growth Market. It was then noted that the Company's shares would be de-listed from trading on both the AIM and Euronext markets with effect from 7.00 a.m. on the same day.

 

On 6 September 2023 the Company announced the closing of the investment in TRU Precious Metals Corporation (TRU - a TSX V listed company) whereby it acquired a 36.2% equity interest in TRU for a consideration of CAD$3 Million.

 

 

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