You can be sure if there a cent to be wrangled from this mess that he will be in the background with Madden cooking up the next way to shaft you lot. Wonder how thin you can slice 1p before they have to surrender the listing, sooner the better. Hopefully these crooks will never get another job.
Here's some good news, reported on https://live.euronext.com/en/product/equities/IE00BF0MZF04-XESM and Davy.ie. Just another reason to get off the ISEQ as there is no volume and appears to be a glitch.
Yes would be an excellent opportunity to drop T from the 15th floor.
Went to the last couple of AGMs, they are open to discus anything, think everyone knows what the issues and are, which will take time to remedy. Email Paul if you're going with some lunch suggestions (else they will just serve coffee). Have asked them to consider a different set of exchanges to AIM and ISEQ.
As I reckon the board of management here have lost touch and focus, it is worth sending them an email at email@example.com, just to let them know what you think of their performance around the opening of the mine and their approach to Investor Relations.
Here the second or detail part of Davy's synopsis
Result reflects construction phase
A net after-tax loss of €1.65m reflects the cost associated with the construction phase and commissioning of the tungsten mine at Barruecopardo in the Salamanca Province in Western Spain. Ormonde has a 30% share in the mine and accounts for the project on an associated investment basis. The loss attributed to the project for the year was €0.78m and Ormonde also wrote down other investments (La Zarza) by €0.6m. The tungsten project was delivered on budget and largely within the scheduled time frame. It is also now fully operated by the local management team.
Mill performing well, but lower grades will impact current year planned cash flows
Even with lower mined grades (as previously reported), the mill at Barruecopardo has performed well. It has achieved design run rates equivalent to 1.1m tonnes per annum and is also starting to produce concentrates with design specifications. Mining operations have shifted to the southern start-up pit and stripping of waste over the main orebody. This will allow access to higher ore grades towards the end of the current year. Management stated that the knock-on effect of lower grade than planned for in the current ramp-up period will constrain profitability and cash flows in the current year. Not surprisingly, a scheduled debt covenant review in September has been waived.
Tungsten prices remain flat but fundamentals strong
Management reports current tungsten prices at $255 to $265/MTU. This likely reflects the current heightened levels of macro-economic uncertainty. However, it does not reflect the physical supply-side characteristics, especially relative to long-term demand trends. Together with an expected steadily better operating performance, this points to an improved outlook for Ormonde in 2020.
Doh! Cut the wrong article ... here's the Davy summary
FY 2018 results reflect mine construction and commissioning phase
With historic numbers reflecting the construction and build-up phase of the Barruecopardo tungsten mine, the focus should be on the current year and onwards. To this end, the group reports that the mill is achieving design output rates and is also beginning to achieve the correct concentrate specifications. Ore feed grades are too low at present (as previously reported) and a push to access the main orebody by the end of this year is currently underway. With design ore grades scheduled for a mill already operating well with lower grades, the group expects an improved performance in 2020.
Job Langbroek Morning briefing
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“Prices have declined steadily thereafter and although they have steadied somewhat of late, they remain weak, currently trading in the $255/mtu to $265/mtu range.”
Citing “two reputable metal research groups … suggesting short to medium term tungsten supply deficits and price rises”, the company points out that “While the tungsten supply-demand fundamentals in the western world are relatively transparent and the deficit predictions in this market seem well founded, the situation in the Chinese market remains less transparent”.
Ormonde Mining concludes however that “a summary of the Chinese situation by one forecaster is encouraging: "there is potential for a supply deficit in 2019 and 2020 as output from existing mines looks set to decline; ore grades at some of the larger and older Russian and Chinese mines are falling as resources become depleted. Importantly, there are no plans in China to bring online new tungsten mines to replace these depleted deposits".
Conclusion: Ormonde Mining is ramping up production from the Barruecopardo tungsten mine. Initial low grade production from starter pits is likely to constrain profitability and cashflows until later in the year when the current waste removal programme will allow access to the broader, higher grade mineralisation within the main orebody. The company also reports an industry commentator suggesting that 2019/2020 may see a supply deficit in the tungsten industry.
*SP Angel acts as Broker to Ormonde Mining
Here you go ... 1 of 2
Ormonde Mining* (ORM LN) 3.15p, Mkt Cap £14.9m – 2018 Results and Barruecopardo progress report
Ormonde Mining has reported a loss of €1.65m for the year to 31st December 2018 (2017 – loss of €0.1m) as it developed the 30% owned Barruecopardo tungsten project in Spain. The loss included a €0.6m impairment charge against the La Zarza project in southern Spain as well as Ormonde Mining’s €0.78m share of the loss on the operating associate which holds the Barruecopardo project.
The company reports that the project construction has now been completed within the budget and “broadly in line with its construction schedule” and is now in the process of ramping-up phase to the targeted 1.1mtpa throughput under the management of the mine subsidiary, Saloro.
Throughput levels consistent with the targeted 1.1mtpa processing rate are being achieved and the plant is producing “concentrates … 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”.
At this stage, ore is being mined from two small starter pits while waste removal “of around 80 vertical metres of waste rock from the east wall of the historic pit is to be accelerated to bring forward access to the main orebody, where the tungsten mineralisation is present as a much broader, more continuous high-grade zone”.
The lower than expected grades encountered in the northern starter pit have prompted a switch to the southern starter pit and an acceleration of the planned waste stripping over the main orebody in order to access higher grade feed for the plant.
Ormonde Mining’s Chairman and Interim Managing Director Michael Donoghue, commented that “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, 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."
As the Barruecopardo project moves into the production phase, management is addressing opportunities for future expansion and has identified two longer term objectives, “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.”
Commenting on the current tungsten market and the commodity outlook, the company explains that prices for the benchmark ammonium paratungstate (APT) peaked at US$352/mtu (metric tonne unit) in June 2018 as production declined in China as mines and plants were closed in response to more stringent implementation of environmental regulations.
Whilst admitting that the company have made an absolute balls of their last two announcements, the fundamentals have shifted due to the falling market price of the ore. I have sought clarification as to why the company was liable for an off balance sheet expense, when the JV entity, Solero , should have picked up the tab. Davy have provided a more rational analysis of the current position (see advfn), than the agendas expressed here.
This is now an opportunity to buy at levels I did not expect to see again.
Looks like Mr. Market is going to have to see the results of the first weigh in, to realise the reality here. Ormonde's product is 10-20% above the published price for Tungsten as it is of a premium quality. We only need to pay off the 30% share of the mine's cost (circa 40m) before the annual dividend from the mine blows everything away. They're on track to a double digit share price. The annual tonnage is also due to be boosted in Q3 by the implementation of a three shift production cycle.
Yes, have asked them several times by email for an update, the response was to show patience. I replied that I'd very little left.
I'm taking the current situation to be a power play by the mine's actual owners, who have told their minority partner to wait until they are good and ready to issue news as our MD had promised a Spring update.
We are now overdue news of the mine's opening and I for one am disappointed in Ormonde as their MD promised to open the mine in early February (https://polaris.brighterir.com/public/ormonde_mining/news/rns/story/wvq553x).
So what's going on Mike?