Monday 14 October 2019

Losses increase at Dublin-listed Ormonde Mining

Ormonde chairman Michael Donoghue.
Ormonde chairman Michael Donoghue.
Ellie Donnelly

Ellie Donnelly

Dublin-listed Ormonde Mining has reported a loss after tax of €1.65m for 2018, an increase on the loss of €101,000 reported the prior year.

Almost half of this loss was attributed to completing a metal mine, the Barruecopardo Tungsten project, in western Spain.

The group has a 30pc joint venture interest in the mine, which is in full operation mode, and is now wholly operated by the mine subsidiary, Saloro.

In its final results for 2018, Ormonde said tungsten (a silver coloured metal) 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.

The Dublin-listed group also wrote off an impairment of €600,000 related to its La Zarza project.

Commenting on the update, Michael Donoghue, Ormonde's chairman and interim MD, said: “Although the [Barruecopardo Tungsten] operation is still in its infancy, it is nevertheless satisfying to see the project transformed into an operating mine using modern mining and processing techniques and supporting a local community.”

"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,” Mr Donoghue said.

“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," he added.

Meanwhile losses at Petrel Resources reduced to €239,000 in 2018, from a loss €4,392,000 in 2017.

The group, chaired by veteran investor John Teeling, said Riadh Hameed has joined it as a non-executive director, and is helping re-establish Petrel's Baghdad operations.

Petrel has also applied to assume operatorship and extend the first phase of frontier exploration license 3/14 located off the coast of Ireland, and to convert LO 16/24 to a frontier exploration licence.

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