(Alliance News) - Ormonde Mining PLC on Wednesday posted a widened annual loss due to higher administrative expenses and a substantial impairment relating to La Zarza.
Shares in Ormonde were down 20% at 2.90 pence at midday.
Ormonde's pretax loss for 2018 was EUR1.6 million, from a EUR101,000 loss in 2017. This was due largely to a EUR600,000 impairment of relating to the miner's interest in the La Zarza copper project in Spain.
Another contributing factor was administrative expenses, which rose to EUR1.0 million from EUR764,000. Revenue remained flat at EUR750,000.
Ormonde has a 30% interest in Saloro SLU, the Spanish operating company for the Barruecopardo tungsten project. The remaining interest is held by Oaktree Capital Management.
Barruecopardo has been ramping up to full production and has been mining lower grade resources and pilling forward waste mining to access the main higher-grade ore body. During the year-long ramp-up period, Saloro's profitability and cashflow are likely to be constrained, said Ormonde.
"Whilst Ormonde's main focus will continue to be managing our interest in the Barruecopardo joint venture, we do see scope during the coming year for our management team to start developing new ideas and opportunities which add value for the company, both within and outside our current range of interests," said Chair Michael Donoghue
"Two immediate objectives will be to complete the disposal of our La Zarza interests and take a fresh look at our Spanish gold exploration holdings and new licence application areas, in western Spain which have been identified as having gold exploration potential," he added.
