ORM.L Regulatory News (ORM)

This announcement contains inside information

27 June 2023

Ormonde Mining plc

("Ormonde", the "Company" or the "Group")

Final Results for the Year Ended 31 December 2022

Ormonde announces its final results for the year ended 31 December 2022.

Key points:

· Sale of legacy La Zarza assets for €2.3 million, further strengthening the Group's balance sheet

· Investment in Peak Nickel Limited provides shareholders with exposure to fast-growing battery metals sector

· Extensive review of further natural resources projects has resulted in a shortlist of attractive possible further investments

· Applications have been made for the renewal of gold investigation permits in Spain

Brian Timmons, Chairman, commented:

"During 2022 and the first part of 2023, the Board has delivered on extracting value from legacy assets to boost the Group's balance sheet and commenced its proposed strategy of leveraging this strong balance sheet to generate new value enhancing deals for shareholders.

The sale of the La Zarza assets and subsequent investment into Peak Nickel Limited represent the first steps in shareholder value creation and provide the platform for further exciting investments in prospective mining jurisdictions. The Board continues to advance discussions with interested parties to move onto the next stages of this strategy.

On behalf of the Board, I would like to thank our shareholders for their continued support and especially for their patience displayed during the past 18 months. I look forward to updating you all on Ormonde's progress from here."

Enquiries:

Ormonde Mining plc

Brian Timmons, Chairman

Tel: +353 (0)1 801 4184

Vigo Consulting (Investor Relations)

Ben Simons / Charlie Neish

Tel: 44 (0)20 7390 0230

Davy (Nomad, Euronext Growth Listing Sponsor and Broker)

Anthony Farrell

Tel: +353 (0)1 679 6363

About Ormonde Mining plc

Ormonde is focussed on the evaluation and execution of new opportunities through which the Company can leverage its listing and balance sheet to generate shareholder value whilst placing a strong emphasis on cash preservation.

Currently, Ormonde holds a 20% interest in Peak Nickel Limited, a private UK company which is advancing exploration on a potentially significant battery metals project.

Ormonde's shares are listed on the London Stock Exchange (AIM) and the Euronext Growth market in Dublin.

For more information, visit the Company's website at www.ormondemining.com.

Chairman's Review

Introduction

I am pleased to present my second annual review to shareholders since I took over as Ormonde's Chairman in October 2021.

During the year, the Board, with the assistance of our technical advisory team, began delivering upon its commitment to leverage the Group's balance sheet to generate value for shareholders. This has involved an extensive review of a range of potential opportunities leading to a shortlist of attractive possible investments.

We are of course cognisant that shareholders have been waiting some time for news of further investments; however, this is a process that requires both time and diligence to ensure the transactions we pursue deliver the maximum opportunity for value creation. I would like to assure shareholders that discussions continue to progress, as does our partnership with our first investee company, Peak Nickel Limited.

The investment in Peak Nickel Limited announced in February 2023 provides Ormonde's shareholders with exposure to the fast growing and active battery metals sector. The Board expects further investments to follow.

This investment activity was undertaken whilst the Board worked to monetise the legacy La Zarza asset in Spain. Ormonde continues to seek value adding options for the Group's remaining Spanish gold assets.

Investment - Peak Nickel Limited

Subsequent to the year end, the Group acquired a 20% interest in Peak Nickel Limited ("PNL") for total payments of £512,500. PNL is a UK company which is advancing exploration on a very promising battery metals project. The Group's investment was designed to enable a fast-track initial drilling programme aimed at identifying a modern, code-compliant resource in those minerals.

At the time of investment, Ormonde was granted an exclusive option by PNL to either invest up to a further £4 million in cash in PNL for further exploration work, bringing Ormonde's interest to 49.9%; or acquire the remaining 80% of PNL by way of issuance of ordinary shares in Ormonde to PNL. 

La Zarza Disposal

While new opportunities with significant value upside potential were being shortlisted, the Board continued to advance negotiations with interested parties towards monetising the value within the legacy La Zarza Copper-Gold Project in Spain ("La Zarza"). 

On 28 September 2022, shareholders approved at an EGM a proposal from the Board for the sale of the Group's landholding, drill core and data assets associated with La Zarza for a cash consideration of €2.3 million to La Zarza Mineria Metalica S.L.U., a subsidiary of the Spanish company Tharsis Mining S.L., which controls the mining rights to La Zarza.

Under the terms of this sale agreement, the Group received the first tranche payment of €800,000 on closing, with the balance to be paid in three equal payments of €500,000 on the first, second and third anniversaries of completion. The next payment is due to be received on or around 30 September 2023, further boosting the Group's balance sheet. Ormonde holds security in respect of the deferred cash payments.

Spanish Assets

The Group's interest in a number of gold investigation permits (IPs) situated in Spain, held for over a decade, expired during the Covid period, and the Group has applied for renewal of these exploration licenses. In the event that these IPs are renewed, Ormonde intends to undertake exploration activity on the licences. There is no certainty of renewal of the IPs, and, accordingly, these assets have been subject to an impairment of €167,000 as at 31 December 2022.

Financials

Ormonde recorded a total comprehensive loss for the period of €1.1 million for 2022, compared with a loss of €1.6 million in 2021. As of 31 December 2022, the Group had net assets of €4.9 million, including a cash balance of €3.56 million, providing the Group with a platform from which to invest further.

Suspension of Shares

The Board is mindful of the continued suspended status of the Group's shares under market rules pending an announcement and publication of an admission document. As announced on 7 February 2023, following the PNL investment, Ormonde is required to execute a further transaction with PNL or another party, which would be categorised as a reverse takeover under AIM Rule 14. This transaction would require both shareholder approval and the publication of an AIM admission document. Ormonde continues to review its investment options in relation to this requirement and the Board looks forward to sharing its strategy with shareholders in due course.

Conclusions and Outlook

During 2022 and the first part of 2023, the Board has delivered on extracting value from legacy assets to boost the Group's balance sheet and commenced its proposed strategy of leveraging this strong balance sheet to generate new value enhancing deals for shareholders.

The sale of the La Zarza assets and subsequent investment into PNL represent the first steps in shareholder value creation and provide the platform for further exciting investments in prospective mining jurisdictions. The Board continues to advance discussions with interested parties to move onto the next stages of this strategy.

On behalf of the Board, I would like to thank our shareholders for their continued support and especially for their patience displayed during the past 18 months. I look forward to updating you all on Ormonde's progress in due course.

Brian Timmons

Chairman

27 June 2023

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2022

All activities are derived from continuing activities. All (losses)/profits and total comprehensive loss for the year (and preceding year) are attributable to the equity holders of the Company. 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 2022

Company Statement of Financial Position

as at 31 December 2022

Consolidated Statement of Cashflows

for the year ended 31 December 2022

The accompanying notes in the Annual Report and Group Financial Statements mailed to shareholders and available on the Group's website form an integral part of these financial statements.