(Alliance News) - Ormonde Mining PLC on Monday reported it widened its interim loss but said the tungsten market is improving after a price decline in the first half.
The company's primary activity is through its 30% interest in the Barruecopardo tungsten mine in Salamanca, Spain.
In the six months to June 30, Ormonde's pretax loss widened to EUR1.1 million from EUR411,000 on increased costs at the mine after operators Saloro SLU ramped up activity.
During the period, mine construction and commissioning of processing circuits at Barruecopardo were completed, however, initial mine ore grades were "below expectations".
More positively, mining of the facility's southern starter pit and east wall cutback have made "significant progress", Ormonde said, and initial access "to the main orebody" is expected in early part of the fourth quarter of 2019.
Prices for ammonium paratungstate, a crystalline salt needed to create tungsten metal, fell 9.1% to USD250 per metric tonne unit from USD275 during the interim period.
Following the end of June, it fell a further 25% to USD200 per metric tonne unit amid uncertainty about stock held by the defunct Fanya Metal Exchange, which was in operation in China from 2011 to 2015 before collapsing amid accusations of fraud.
Ormonde said Tungsten market conditions have been promising more recently, however.
The company explained: "Reports of both the successful auction of the Fanya material in mid-September and scarcity of available material in the spot market are being seen as positive market developments, with latest upward market price movements supporting this view."
Turning to its gold operations, Ormonde said there was no "material developments" in the Salamanca and Zamora gold projects in Spain.
Chair & Interim Managing Director Mike Donoghue said: "The first half of 2019 was a pivotal period for Ormonde and its 30% interest in the new Barruecopardo tungsten mine, as construction was completed and Saloro began to ramp-up mining operations. We expect Saloro to build further on this initial operational progress as mining advances, with access to the main orebody expected to be achieved during the early part of the fourth quarter.
"This progress is set against a backdrop of an improving tungsten market, with reported tight spot market availability, and the successful auction of Fanya APT stocks in mid-September."
Shares in Ormonde were 3.2% higher at 3.20 pence each in London on Tuesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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