REG - Ormonde Mining PLC - Final Results
28/06/2024 08:15
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RNS Number : 2453U Ormonde Mining PLC 28 June 2024
This announcement contains inside information
28 June 2024
Ormonde Mining plc
("Ormonde", the "Company" or the "Group")
Final audited results for the year ended 31 December 2023
Ormonde Mining plc (AQSE: ORM), a natural resources company with investment
exposure to exploration assets including gold and copper in Newfoundland and
nickel in Scotland, announces final audited results for the year ended 31
December 2023.
Operational highlights:
· February 2023 - acquired 20% interest in Peak Nickel Limited ("Peak
Nickel"), a private UK company advancing a high-grade battery metals project
in Scotland
o Fast tracking of an initial drilling programme in 2023
o Peak Nickel published updated Mineral Resource Estimate of a higher volume
and grade than historical resource estimate
o Peak Nickel intends to drill a further 6,000 metres on the prospect this
year
· September 2023 - acquired 36.2% controlling interest in TSX-listed
TRU Precious Metals Corporation ("TRU"), which is exploring a structural
corridor in Newfoundland that is highly prospective for gold and copper
mineralisation
o Ormonde is supporting TRU with analysis and identification of significant
exploration targets at TRU's Golden Rose Project ("Golden Rose")
· Ongoing dialogue with relevant authorities in Spain regarding renewal
of Ormonde's gold Investigation Permits owing to high gold price
· The Board continues to review additional opportunities for
investments in natural resources projects
Financial highlights
· Total comprehensive income of €358,000 (2022: loss of €1.065
million)
· Net assets as at 31 December 2023 of €10.48 million (31 December
2022: €4.90 million), including cash and cash equivalents of €2.3 million
(31 December 2022: €3.6 million)
· Received €500,000 deferred consideration in September 2023 from
2022 sale of the La Zarza assets in Spain (remaining €1 million due 2024 and
2025)
· By virtue of Ormonde controlling the operating activities of TRU
since September 2023, under IFRS accounting standards and Ormonde's accounting
policies, the Company has consolidated within these Financial Statements the
results of TRU along with the relevant portion of TRU's assets and liabilities
as at 31 December 2023
Brian Timmons, Chair of Ormonde, commented:
"Whilst continuing to actively monitor the Company's investment portfolio,
seeking to maximise the return from each of our investments for shareholders
over the medium term, Ormonde is leveraging its highly accomplished internal
technical resources to evaluate investment opportunities and will update
shareholders on developments in due course.
"We steadfastly believe Ormonde's projects to hold the potential to deliver
returns in the medium-term worth multiples of the Company's investment. We
look forward to the value of our investee companies growing as exploration
continues, resources expand, and potential financing opportunities to
accelerate the pace and scope of exploration emerge."
Financial Statements and Notes to the Accounts
For access to the Financial Statements and Notes to Accounts for the year
ended 31 December 2023, please click on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2453U_1-2024-6-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2453U_1-2024-6-27.pdf)
The full report and accounts will be available later today on the Company's
website at: www.ormondemining.com (http://www.ormondemining.com) .
Enquiries:
Ormonde Mining plc
Brian Timmons, Chair 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) 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
Limited, which is advancing exploration on a potentially significant nickel
project in Scotland.
Ormonde's shares are listed on the Aquis Stock Exchange Growth Market under
the symbol AQSE: ORM.
For more information, visit the Company's website at www.ormondemining.com
(http://www.ormondemining.com) .
Follow us on social media:
LinkedIn: https://www.linkedin.com/company/ormonde-mining-plc/
(https://www.linkedin.com/company/ormonde-mining-plc/)
X: https://x.com/OrmondeMining (https://twitter.com/OrmondeMining)
Subscribe to our email alert service to be notified whenever Ormonde releases
news:
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(https://ormondemining.com/news/regulatory-news/#1469694747033-931e13b7-bd9d)
The Directors of the Company are responsible for the release of this
announcement.
Chair's Review
Introduction
The strategy of the Board over the past two and a half years has been to
identify and invest in assets which provide exposure to high value exploration
opportunities without requiring significant expenditure.
This led to two strategic investments being executed during the year under
review, both of which the Directors believe hold medium-term potential to
yield substantial returns. The first of these, in February 2023, was an
acquisition of a 20% equity interest in Peak Nickel Limited ("Peak Nickel"), a
private UK company advancing a high-grade battery metals project in
Aberdeenshire, Scotland. The second, in September 2023, was the acquisition of
a 36.2% controlling stake in Toronto-listed TRU Precious Metals Corporation
(TSXV: TRU) ("TRU"), which is exploring a structural corridor in Newfoundland,
Canada hosting over 45km of strike length that is highly prospective for gold
and copper mineralisation.
Peak Nickel Investment
Ormonde's investment case for the Peak Nickel investment which was announced
on 7 February 2023 was to gain targeted exposure to an early resource stage
nickel sulphide project (including substantial copper and cobalt credits).
Peak Nickel's Rodburn Project in Aberdeenshire is in a tier one jurisdiction
with indications of significant size. The investment by Ormonde helped enable
an initial drilling programme last year - the first to have been carried out
at the project for over 50 years, since a joint venture between Rio Tinto and
Consolidated Gold Fields defined a near-surface (historical - non-compliant)
resource of 3 million tonnes at 0.52% nickel and 0.27% copper ("Historical
Resource").
The results and outcomes of this initial drilling programme (18 holes for
2,600m) were published on Peak Nickel's website (www.peaknickel.co.uk
(http://www.peaknickel.co.uk) ). In its most recent presentation (June 2024),
Peak Nickel describes Rodburn as the "UK's highest-grade nickel-copper-cobalt
project" and provides an updated Mineral Resource Estimate of a higher tonnage
and grade than the Historical Resource. Peak Nickel has stated its intention
(subject to funding) to drill a further 6,000 metres on the prospect this
year.
Ormonde's technical team believes the Historical Resource has good potential
for enlargement, and that the full size potential could be evidenced, at an
early stage such that the project may attract the interests of a major seeking
an asset with significant "clean" Class 1 nickel producing potential.
There have been some key market developments since the investment by Ormonde
in Peak Nickel in early 2023. First, the quoted nickel price has fallen by
around 42% from the peak of a price spike in early 2022, due in large part to
increases in output from China and Indonesia (principally from carbon
intensive laterite sources). The prevailing nickel price is now more
consistent with the decade-long average but has undoubtedly weakened investor
sentiment. Another development of a more positive nature is that a
neighbouring energy transition metal exploration company in Aberdeenshire,
Aberdeen Minerals, announced the closing of an equity financing of up to £5.5
million earlier this month, with £3 million subscribed by Central Asia Metals
PLC. Ormonde's Directors regard this as a strong endorsement of the potential
for nickel projects in Aberdeenshire where Peak Nickel is exploring,
particularly as the investment has been made in the current nickel price
environment. Ormonde maintains its view that the opportunity to replace
environmentally costly nickel laterite production with Class 1 nickel produced
from sulphide sources in ethical mining jurisdictions will pay off in the
medium term as such raw materials will be essential for the global energy
transition.
TRU Investment
On 30 June 2023, Ormonde announced its intention to acquire an initial 36.2%
controlling equity interest in TRU's share capital for a total consideration
of CA$3 million. Ormonde has the potential to increase its shareholding to up
to 46% through the exercise of warrants. This investment was approved by
Ormonde's shareholders on 25 August 2023 and completed on 5 September 2023.
TRU is exploring the Golden Rose Project ("Golden Rose"), a large and
prospective early stage gold and copper prospect in Newfoundland, a
jurisdiction which is ranked by the Fraser Institute as the most attractive
for mining investment in Atlantic Canada and the ninth most attractive
worldwide.
Golden Rose is bookended by two gold projects with reported resources.
Directly to the southwest of Golden Rose, the Cape Ray Shear Zone Project,
under active exploration by AuMEGA Metals (formerly Matador Mining Limited)
contains 0.6 million ounces of Indicated and Inferred resources, while Calibre
Mining to the northeast is in the advanced development and construction phase
of the Valentine Gold Project, holding 5 million ounces of Measured, Indicated
and Inferred resources with a projected annual production rate of 190,000
ounces of gold. Calibre Mining acquired the project last year for CA$345
million in a timely illustration of the kind of opportunity Ormonde's
Directors believe exists for Golden Rose.
In addition to establishing several high-quality, high-grade, drill-ready gold
targets on Golden Rose, exploration activities by TRU over the past three
years have also identified copper and other critical mineral anomalies at
numerous locations, the potential of which are being further investigated in
the field this summer.
Since Ormonde's investment in TRU, the Company's technical team has been
closely involved in analysing and identifying these significant exploration
targets at Golden Rose. On foot of this analysis, the TRU management team has
been engaged in discussion with potential partners, exploring financing
structures with a view to advancing Golden Rose exploration whilst minimising
TRU's cash outflow.
Spanish Gold Assets
Ormonde maintains a Spanish subsidiary in which there are two Investigation
Permits prospective for gold located in the Zamora province in western Spain.
These are legacy permits which have been subject to renewal applications for a
number of years and were previously being advanced in a joint venture with
another listed company.
With the price of gold more than doubling in the decade since work was last
conducted on these permits, Ormonde is naturally exploring options to seek to
realise value from these interests. In this regard, the Company is engaged
with the relevant Spanish mines department seeking to achieve the renewals for
these Investigation Permits.
Following the sale of the Group's La Zarza assets in Spain for EUR 2.3
million, which completed in September 2022, €1.3 million has been received
to date, including €500,000 in September 2023. The remaining €1 million is
due in two equal payments in September 2024 and 2025.
Financials
In September 2023, Ormonde acquired a 36.2% equity interest in TRU and
subsequently by agreement appointed a majority of directors as its nominees to
the Board of TRU thereby giving Ormonde effective control over the operating
activities of TRU. As such, in accordance with Ormonde's accounting policies
and IFRS accounting standards, the Company has consolidated within the
following Financial Statements the results of TRU since September 2023 along
with the relevant portion of TRU's assets and liabilities as at 31 December
2023. This accounting treatment resulted in the booking of a net gain of
€886,000 on the equity investment for the year. Full details are set out in
Note 8 and 13 to the Financial Statements.
In accounting for the Peak Nickel investment, the Company, under IFRS
Accounting Standards is required to apply a specified fair value treatment.
This has given rise, as detailed in note 8, to a valuation of GB£1.02M
(€1.17M) to the Peak Nickel investment and a gain of €585,000 recognised
through the income statement.
Accordingly, for the year under review, Ormonde recorded a total comprehensive
income of €358,000 (2022: loss of €1.065 million). The Group had net
assets of €10.48 million at 31 December 2023 (31 December 2022: net assets
of €4.90 million), including cash and cash equivalents of €2.3 million (31
December 2022: €3.6 million).
Outlook
Whilst continuing to actively monitor the Company's investment portfolio,
seeking to maximise the return from each of our investments for shareholders
over the medium term, Ormonde is leveraging its highly accomplished internal
technical resources to evaluate other investment opportunities and will update
shareholders on developments in due course.
I am asked by shareholders from time to time when the value of Ormonde's
investment portfolio will be fairly reflected in the Company's share price.
Early-stage exploration is inherently slow to progress, especially so in
challenging investment markets; however, we steadfastly believe Ormonde's
projects to hold the potential to deliver returns in the medium-term worth
multiples of the Company's investment. We look forward to the value of our
investee companies growing as exploration continues, resources expand, and
potential financing opportunities to accelerate the pace and scope of
exploration emerge.
Brian Timmons
Chair
27 June 2024
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2023
Year ended Year ended
31-Dec-23 31-Dec-22
Notes €000s €000s
Turnover 0 0
Administration expenses (1,288) (881)
Impairment of intangibles 10 0 (167)
______ ______
Loss on ordinary activities (1,288) (1,048)
Finance costs (3) (17)
Other income/gains 8 1,627 0
______ ______
Profit (Loss) before tax for the year 337 (1,065)
Taxation 0 0
______ ______
Profit (loss) after tax for the year 337 (1,065)
Other comprehensive income: foreign exchange 21 0
______ ______
Total comprehensive income (loss) for the year 358 (1,065)
______ ______
Total comprehensive income (loss) attributable to
Owners of the parent company 551 (1,065)
Non controlling interest (193) 0
______ ______
Earnings per share
Basic & diluted earnings (loss) per share (in cent) 9 0.12 (0.23)
All activities are derived from continuing activities. The profits/(losses)
and total comprehensive income/losses for the year (and preceding year) are
allocated between the equity holders of the Company and non controlled
interests. The Group has not recognised gains or losses other than those dealt
within the Statement of Comprehensive Income.
Consolidated Statement of Financial Position
as at 31 December 2023
31-Dec-23 31-Dec-22
Notes €000s €000s
Assets
Non-current assets
Intangible assets 11 6,206 157
Trade and other receivables 14 399 700
Financial assets 13 1,172 0
_______ _______
Total Non-Current Assets 7,777 857
Current assets
Trade and other receivables 14 663 613
Cash & cash equivalents 15 2,311 3,564
_______ _______
Total Current Assets 2,974 4,177
_______ _______
Total Assets 10,751 5,034
_______ _______
Equity & liabilities
Capital and Reserves
Issued capital 17 4,725 4,725
Share premium account 17 29,932 29,932
Share based payment reserve 18 281 281
Capital conversion reserve fund 18 29 29
Capital redemption reserve fund 18 7 7
Foreign currency translation reserve 18 21 0
Retained losses 19 (29,549) (30,078)
_______ _______
Equity attributable to the Owners of the Company 5,446 4,896
Non controlled interests 20 5,034 0
_______ _______
Total Equity 10,480 4,896
Current Liabilities
Trade & other payables 16 271 138
_______ _______
Total Liabilities 271 138
_______ _______
Total Equity & Liabilities 10,751 5,034
_______ _______
Company Statement of Financial Position
as at 31 December 2023
31-Dec-23 31-Dec-22
Notes €000s €000s
Assets
Investment in subsidiaries 13 2,184 130
Other investments 13 1,172 0
Trade and other receivables 14 1,044 1,388
_______ _______
Total Non-Current Assets 4,400 1,518
Current assets
Trade and other receivables 14 35 95
Cash & cash equivalents 15 484 3,554
_______ _______
Total Current Assets 518 3,649
_______ _______
Total Assets 4,918 5,167
_______ _______
Equity & Liabilities
Capital and Reserves
Issued capital 17 4,725 4,725
Share premium account 17 29,932 29,932
Share based payment reserve 18 281 281
Capital conversion reserve fund 18 29 29
Capital redemption reserve fund 18 7 7
Retained losses 19 (30,310) (30,051)
_______ _______
Equity attributable to the Owners of the Company 4,664 4,923
Current Liabilities
Trade & other payables 16 254 244
_______ _______
Total Liabilities 254 244
_______ _______
Total Equity & Liabilities 4,918 5,167
_______ _______
The accompanying notes in the Annual Report and Group Financial Statements
available on the Group's website form an integral part of these financial
statements
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