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ORM Ormonde Mining

Discussion in 'General Share Chat (ORM)' started by Mongoose82, Jun 15, 2016.

  1. Mongoose82

    Mongoose82 A Legendary Member

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    "Ormonde Mining has announced that, in agreement with Oaktree Capital it has a revised and optimised construction schedule for the Barruecopardo tungsten project “which will see commissioning in late 2017.” The revisions to the timetable were, in part, a result of the previously announced delays caused by “the recent administrative appeal by a third party in relation to an element of the compulsory land acquisition process at Barruecopardo.” After resolving the administrative and regulatory issues, Ormonde Mining is now able to commence the construction of Barruecopardo with a view to initial production in late 2017. We look forward to further news as the project advances."

    SP Angel note this morning: https://www.research-tree.com/Company/IE0006627891
     
  2. Groucho

    Groucho Member

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    RNS Number : 0191S
    Ormonde Mining PLC
    28 September 2017




    OrmondeMiningplc

    ("Ormonde"or "the Company")


    Interim Results for the Six Months Ended 30 June 2017


    The Board of Ormonde announces its unaudited interim results for the six months ended 30 June 2017.


    Barruecopardo Tungsten Mine Construction

    · In June 2017 the Company reported that the Barruecopardo Tungsten Mine was being advanced into an accelerated construction and implementation phase.

    · Since then, major progress in mine construction work has been achieved, including:

    o all priority equipment now in manufacture;

    o main dam construction underway;

    o site facilities under construction; and

    o civils works and other contracts awarded.

    · With mine commissioning scheduled to commence in Q3 2018, Barruecopardo is set to become a leading, low-cost European supplier of tungsten concentrates.

    · Views of recent construction activity can be seen on Ormonde's website including a mine site flyover video (http://ormondemining.com/barruecopardo-drone-fly/) and a photo gallery of works being advanced (http://ormondemining.com/timeline-in-pictures/).



    Tungsten Market (notes 1 & 2)

    · Benchmark APT tungsten prices rose 12% during the reporting period, from US$193 per metric tonne unit ("mtu") in January to US$217 per mtu at the end of June.

    · Subsequently, the APT price has risen in an accelerated manner, reaching a high of US$323 per mtu, with prices recently consolidating in the range of US$300-315 per mtu, representing an increase of circa 60% year to date and 90% since January 2016.

    · Factors widely considered to underpin supportive supply-demand fundamentals include: steady growth in global industrial demand; a clampdown on Chinese mines on environmental grounds and enforcement of production quotas; and scarcity of tungsten concentrates from mining operations outside of China.



    Financial Results

    · The Company reports a total comprehensive loss for the period of €132,000 (€96,000 loss for the 6 months to 30 June 2016), which includes a €120,000 loss relating to its associate investment within which the Barruecopardo Mine is held.


    Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:

    "The half year period to June 2017 was an extremely significant one for Ormonde, with the key decision taken by the Project partners, towards the end of the period, to advance the Barruecopardo Tungsten Mine into an accelerated construction and implementation phase.

    I am pleased to advise that the mine development has advanced in earnest, with significant progress being made across multiple areas, with great credit being due to the Project team and leadership. The fact that this progress is being achieved against a backdrop of rising tungsten prices continues to support our belief in the appropriateness of the decision to advance the Project in an accelerated manner, and consolidates the business case for this world class tungsten mine development.

    We look forward to the continued rapid progress of mine construction work over the coming months, as we look to bring Barruecopardo on stream with mine commissioning commencing during the third quarter of 2018, into what continues to look like a favourable supply-demand situation for tungsten."

    http://m.londonstockexchange.com/exchange/mobile/news/detail/13377966.html
     
  3. Inspiration

    Inspiration Moderator Moderator

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    This has been a long time coming, but production looks on track for Q3 2018. 4.875m options were granted this week at EUR 0.027, the same price as on the open market.
    https://www.investegate.co.uk/ormonde-mining-plc/rns/granting-of-options/201801171158111517C/

    Ormonde has a 30% interest in the Barruecopardo Tungsten Mine, located in northwest Spain. Barruecopardo is a fully permitted and fully funded mining project currently being developed through a US$99.7 million funding package agreed with Oaktree Capital Management (70% interest) in 2015. The Barruecopardo Mine is scheduled to commence commissioning in Q3 2018.

    Back in March 2015, Ormonde received the following indicative non-binding proposal of 4.25p for each Ormonde share, to be satisfied in new Almonty shares, except that Ormonde shareholders could elect for a maximum of 50% of the offer consideration in cash. Ormonde rejected the offer.

    Almonty's website: http://www.almonty.com/projects/
     
    Last edited: Jan 18, 2018
  4. Inspiration

    Inspiration Moderator Moderator

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    Last edited: Jan 18, 2018
  5. Inspiration

    Inspiration Moderator Moderator

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  6. Groucho

    Groucho Member

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    28 November2017

    OrmondeMiningplc

    ("Ormonde"or "the Company")


    Barruecopardo Tungsten Mine, Spain

    Construction Update


    The Board of Ormonde is pleased to provide an update on construction activities at the Barruecopardo Tungsten Mine in Salamanca, Spain ("Barruecopardo" or "the Project"), where the Project is well into its construction period, with Project commissioning scheduled to commence in Q3 2018.


    Key developments include:

    · Civil works for the crush and screen plant commenced in October - mass concrete footings poured and reinforcement installation in progress;

    · Main Water Dam and Return Water Dam construction earthworks recently completed; under- drainage works are nearing completion, and dam liners are being manufactured;

    · Mining of waste from the open pit area for run-of-mine (ROM) pad fill material has commenced;

    · First Process Plant equipment delivered to site - shipments ongoing;

    · Some 100 people are now working on the Project, including 32 from Barruecopardo and surrounding communities;

    · Views of recent construction activity can be seen on Ormonde's website, including an updated drone overflight video (http://ormondemining.com/barruecopardo-drone-fly/);

    · After the significant price increases seen in Q3 2017, APT prices have consolidated around the $285-295/mtu level.


    Michael Donoghue, Ormonde's Interim Managing Director, commented:

    "We are very pleased with the progress of construction work at the Barruecopardo Mine site, with activities continuing to gather momentum. Some 100 people are now working on the Project, and there have been a number of significant advances seen during the latest quarter.

    The major earth moving phase relating to the construction of water storage and collection dams is now materially complete. Groundworks are well underway in the areas of the process plant and crush and screen circuit, with the delivery to site of related plant equipment items in progress, ahead of plant erection and installation scheduled for the early part of 2018."


    About Ormonde

    Ormonde has a 30% interest in the Barruecopardo Tungsten Mine, located in northwest Spain. Barruecopardo is a fully permitted and fully funded mining project currently being developed through a US$99.7 million funding package agreed with Oaktree Capital Management (70% interest) in 2015.

    For more information, visit www.ormondemining.com.


    Details:


    Civil Works

    Civil works contractor Copisa mobilised to site in October and its activities to date have been focussed on the groundworks and foundations in the primary, secondary and tertiary crushing and screening areas. These works are being prioritised so as to ensure completion in time for Metso to commence construction of the turnkey Crush and Screen Circuit commencing February 2018. Following the completion of these civil works, the focus will move to the area of the Process Plant.


    Dams

    The water dam earthworks have been ongoing since July 2017, when the dam contractor, Cerezo, mobilised to site. Weather conditions on site have been favourable with little rain encountered. These works have proceeded as planned, with the Main Water Dam and Return Water Dam A construction earthworks now being complete and with Collection Dam B works ongoing. Following installation of under-drainage, these dams will be lined with a waterproof membrane, commencing late in December and continuing into Q1 2018.


    ROM Pad

    Waste rock mining has commenced from the new open pit area to provide the required material to build up the ROM ("run-of-mine") pad, the location to which ore will be delivered from the open pit mine prior to being fed through the crushing plant.


    Process Plant Equipment

    Priority 1 and Priority 2 equipment items required for the Process Plant have been in the process of manufacture for several months, with some items now complete and despatched to site and other items nearing completion. Shipment of Priority 1 and 2 equipment items will continue over the coming months, with the last items expected to arrive on site by the end February 2018.
     
  7. Groucho

    Groucho Member

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  8. Groucho

    Groucho Member

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    12 September 2018


    Ormonde Mining plc


    ("Ormonde" or "the Company")


    Barruecopardo Tungsten Project Update


    The Board of Ormonde ("the Board") is pleased to provide an update on the Barruecopardo Tungsten Project inSalamanca, Spain("Barruecopardo" or "the Project"), where construction is well-advanced and commissioning activities have commenced.


    Key progress updates include:


    · The Project team achieved a major milestone during August with the commencement of commissioning of the turnkey crush and screen plant, the first trial of waste rock through the primary crusher having been successfully carried out;

    · The construction of the rest of the crush and screen circuit is complete, and installation of the associated electrical circuitry is presently in progress and due for completion by the second half of September;

    · Initial commissioning of the water treatment plant has also been carried out, and will continue on the imminent completion of the water management system pipework and pump installation to feed water from the old open pit;

    · The installation of major equipment and structures at the process plant is also well-advanced;

    · Process plant commissioning is now expected to commence at the start of December, a number of weeks later than originally envisaged; plant commissioning is then expected to run through into January 2019, with first production of tungsten concentrates from the beginning of February;

    · Projected construction costs remain within the Project's Construction Budget of€53.6 million;

    · Recent site photos of the construction activity can be seen on Ormonde's website at the following linkhttp://ormondemining.com/timeline-in-pictures/.


    Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:


    "It is very pleasing to have achieved another major project milestone during the quarter, with the on-target commencement of commissioning of the crush and screen plant and the water treatment plant, taking the Project into its mine commissioning phase. This major advancement accompanied progress on the construction of the process plant where most of the major equipment has been installed and structural works are well advanced.


    "The commissioning of the process plant is now due to commence in early December, slightly later than originally planned, with first tungsten expected to be produced from early February 2019, to commence a new secure supply to the global markets."
     
    Inspiration likes this.
  9. Inspiration

    Inspiration Moderator Moderator

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    There's a slight delay on the project, but MCAP is still only £23.39m. Not sure why this isn't more popular.

    Year high 5.95p
    Year low 1.93p (March '18 and Nov '17)

    Current sp 4.95p

    upload_2018-9-12_17-2-51.png
     
  10. Groucho

    Groucho Member

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    14 December 2018


    Ormonde Mining plc


    ("Ormonde" or "the Company")


    Barruecopardo Tungsten Project: Construction and Commissioning Update


    The Board of Ormonde ("the Board") is pleased to provide an update on the construction and commissioning of the Barruecopardo Tungsten Project in Salamanca, Spain ("Barruecopardo" or "the Project"), where the Company holds a 30% interest.


    The development schedule has progressed in line with previous guidance of first production of tungsten concentrates from the beginning of February 2019. Key progress includes:


    · Crush and Screen Plant commissioning nearing completion;

    · Process Plant:

    o Installation of equipment and supporting structures almost complete;

    o Pipework and low voltage electrical installations very advanced;

    o Commissioning of some circuits has commenced.

    · Water Management System:

    o Water treatment plant commissioning complete;

    o Dewatering of the historic pit is ongoing with over 100,000 cubic metres pumped from the pit to the water dams (approximately 10% of the historic pit water content).

    · Open pit mining contract awarded and mobilisation of mining equipment underway;

    · Key operations staff recruited, and first tranche of plant operators recruited and in training;

    · Projected construction costs remain within the Project's Construction Budget of €53.6 million;

    · Recent site photos of the construction activity can be seen on Ormonde's website at the following link http://ormondemining.com/timeline-in-pictures/.


    Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:

    "With substantial progress made on construction activities during the quarter, the Project has now entered a transition period as construction activities begin to wind down and mine commissioning activities ramp up significantly. It is particularly pleasing to have recently completed the recruitment of the first wave of plant operators, and to see the commencement of process plant commissioning.

    "I would like to praise the hard work and professionalism of the site team and contractors as they continue to progress the Project through this busy commissioning period. The Project schedule remains in line with previous guidance, with the production of first tungsten concentrates targeted for early February 2019."
     
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  11. Groucho

    Groucho Member

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  12. Groucho

    Groucho Member

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    26 February 2019

    Ormonde Mining plc

    ("Ormonde" or "the Company")


    Ore Mining and Processing Underway at Barruecopardo


    The Board of Ormonde ("the Board") is pleased to provide an update on the construction and commissioning of the Barruecopardo Tungsten Project inSalamanca, Spain("Barruecopardo" or "the Project"), where the Company holds a 30% interest.


    Open pit mining of surface tungsten ore zones commenced in January, and the crush and screen plant has been commissioned using ore to produce the fine ore stockpile for feeding into the process plant. The commissioning stages of the process plant have been advancing and the first ore has now been introduced to theprocessplant. This activity will continue during the following weeks, including producing tungsten concentrates, which will lead on to a progressive transition from the commissioning phase into the gradual ramp-up of production at Barruecopardo.


    Key recent progress includes:

    · Crush and screen plant and water treatment plant commissioning completed and handed over to operating team;

    · Process plant:

    o Installation of equipment and supporting structures materially complete, with some de-snagging ongoing;

    o Dry commissioning and water commissioning both complete in most areas;

    o Following some slippage in the schedule, commissioning has now progressed to commencement of ore processing and this "hot commissioning" will continue during the remainder of February and into March.

    · Initial open pit mining operations underway in the north starter pit, and waste stripping of the east wall of the historic open pit also in progress;

    · Installation of pumps ongoing in the water dams;

    · Recent site photos can be seen on Ormonde's website at the following linkhttp://ormondemining.com/timeline-in-pictures/.


    Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:

    "Activities at Barruecopardo have been advancing well, with mining of ore for the process plant commencing in early January, and plant dry and wet commissioning mostly complete, with ore now being introduced to the process plant.

    "These are significant milestones for theProject, and we look forward to seeing ore commissioning progress during the weeks ahead and the successful transition into the Project's production phase."
     
  13. Groucho

    Groucho Member

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    23 May 2019

    Ormonde Mining plc

    ("Ormonde" or "the Company")


    Barruecopardo Update


    The Board of Ormonde ("the Board") provides an update on the Barruecopardo Tungsten Project inSalamanca, Spain("Barruecopardo" or "the Project"), where the Company holds a 30% interest.


    · Process plant commissioning is effectively complete with the plant operating well. Throughput rates up to 190 tonnes per hour ("tph") are now being achieved on fresh ore,sufficient to meet the Project's steady state processing target of 1.1 million tonnes per annum ("Mtpa");

    · Processing of low-grade ore feed from the northern starter pit has produced concentrates exceeding 74% WO3(compared to the industry standard of 65% WO3) and close to targeted specification; operational refinements are now focused on achieving targeted specification in the near term;

    · The initial ore feed from thenorthern starter pit, a small pit representing only the first few months of mine production, has returned lower grade than forecast due to localised complexity within this peripheral remnant zone;

    · Plans are therefore being developed to target mining of higher grade ore sources in the near term, including:

    o bringing forward mining in the higher grade southern starter pit, where mining has recently commenced; and

    o accelerating the waste stripping of the east wall of the historic pit, from surface to around 80 metres depth ("the east wall cutback"), to bring forward access to the main orebody situated below the historic open pit.


    Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:


    "The commissioning of the new process plant at Barruecopardo has essentially been completed, with the plant throughput achieving rates sufficient to meet the Project's steady state processing target of 1.1 million tonnes per annum. The concentrates produced during commissioning are close to targeted specification, so with feed grade being the critical issue the focus on the Project has now turned to developing mining procedures and revised mining schedules to target higher grade, more representative ore sources earlier in the Year-1 ramp-up schedule. This includesaccelerating waste stripping to allow access to the main orebody to be brought forward."
     
  14. Groucho

    Groucho Member

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    19 June 2019


    Ormonde Mining plc

    ("Ormonde" or "the Company")


    Final Results for the year ended 31 December 2018



    DUBLIN & LONDON: 19 June 2019 - Ormonde announces its final results for the year ended 31 December 2018.


    · Construction of the Barruecopardo Tungsten Project ("the Project"), where Ormonde has a 30% joint venture interest, has been completed and is now transitioning to the Year-1 ramp-up phase of production. Updates include:

    o construction of the mine has been completed in line with the Project's capital expenditure budget and broadly in line with its construction schedule;

    o Project now wholly operated by the mine subsidiary, Saloro SLU, led by a local management team with extensive tungsten experience;

    o process plant has already operated at throughput rates up to 195 tonnes per hour, demonstrating its ability to meet the steady-state rate of 1.1 million tonnes per annum;

    o tungsten 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; and

    o following low initial ore grades from the northern starter pit, mining schedules are being revised to target higher grade ore sources including commencement of mining of the southern starter pit and acceleration of the east wall cutback.

    · The Company reports a loss after tax for the year of €1.65 million (2017: loss of €0.1 million), which includes a share of the loss on its associate investment (the group in which the Project is held) amounting to €0.78 million, as activities at the Project increased including preparations for initial production, and an impairment of €0.6 million related to the La Zarza project.


    Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:

    "During 2018, the joint venture advanced the Barruecopardo Tungsten Project from an abandoned mine site to a newly constructed, state-of-the-art, tungsten processing facility. Although the 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, 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."

    Ormonde Mining PLC - Final Results @OrmondeMining https://www.voxmarkets.co.uk/rns/announcement/1129883c-bddf-4d07-bc33-eb723c3cc218


    CHAIRMAN'S REVIEW


    During 2018, Saloro SLU ("Saloro"), the Spanish operating company in which Ormonde has a 30% interest in partnership with Oaktree Capital Management, transformed its Barruecopardo Tungsten Project from an abandoned mine site to a newly constructed, state-of-the-art, tungsten processing facility. Although the operation is still in its infancy, it is nevertheless satisfying to see the Project progress through its construction stage, to become an operating mine, employing modern mining and processing techniques and supporting a local community.


    Barruecopardo

    Saloro has overseen the construction of the mine in line with the Project's capital expenditure budget, and construction timeframes have also been advanced broadly in line with the project construction schedule, with final installation and commencement of commissioning occurring during Q1 2019. Following the handover of the processing facilities from the engineering contractors, the Project is now wholly operated by Saloro.

    Over this period, the Saloro team has grown steadily with employee numbers increasing during process plant commissioning as plant operators were hired and trained and the local Saloro management team expanded. This management team has significant tungsten mining experience and is therefore well placed to configure and optimise the early mining and processing operations, and steer the Project through the Year-1 ramp-up period into steady-state production.

    During this ramp-up period, ore feed to the plant was scheduled to be limited to two small starter pits at the northern and southern fringes of the main orebody, with production gradually building up to design levels towards the end of the first year ramp-up period as waste stripping eventually exposes the main orebody located below the historic open pit. Initial ore mined from the northern starter pit has been lower grade than anticipated and so mining operations are now targeting higher grade ore sources by moving to the southern starter pit area. At the same time, the stripping 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. These updates to the mine plan are currently being scheduled and costed and will dictate the short-term profitability and cashflows of the operation during the ramp-up period. Ahead of their completion, and to ensure continued compliance with the debt facility terms, Saloro has recently agreed a waiver with its debt provider in relation to a financial covenant which had been due to be tested on 30 September 2019.

    Meanwhile, the process plant is operating well, with the throughput rates operating up to design capacity, more than sufficient to meet the Project's target of 1.1 million tonnes per annum. Despite ore grades to-date being significantly below the average reserve grade, the Project has begun to regularly produce tungsten concentrates which meet targeted specification. Furthermore, ongoing refinements to the processing circuits continue to be implemented and these should stand the Project well as processed grades become more representative of the ore reserve. From end 2019 and thereafter, with access to the main orebody established, operating cashflows are projected to increase very significantly.



    Tungsten Market

    APT prices climbed up from a low of US$195/mtu (metric tonne unit) early in 2017 to break through the US$300/mtu level at the beginning of 2018 and push onwards to a peak of US$352/mtu by June 2018, driven primarily by news of production cuts in China due to mine and plant shutdowns following environmental inspections. 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.

    In the medium to long-term, as Barruecopardo ramps up to full production, the potential for a healthier outlook based on primary supply issues is supported by independent market research. While world reserves of primary tungsten are depleting and some significant tungsten mines have closed in recent years, new mine production has not kept pace. Funding for early stage tungsten exploration, which carries the largest risk of inadequate return, is scarce and capital funding for development of minor metal projects has been difficult in recent years.

    Looking at the broader picture, two reputable metal research groups are suggesting short to medium term tungsten supply deficits and price rises. 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, but 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".



    Outlook

    In the short term at Barruecopardo, as the Project mines lower grade sources and pulls forward waste mining so as to access the main higher grade ore body, we expect that Saloro's profitability and cashflows will continue to be constrained in this ramp-up year. Nevertheless, looking beyond, we see a robust outlook once mining reaches the higher grade ore and steady-state processing operations are attained, both anticipated towards the end of 2019. Should a tungsten concentrate supply deficit emerge, as has been forecast, this could also result in higher prices for Barruecopardo's product.

    Also looking forward, 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. 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.



    Financials

    The Ormonde Group has reported a loss after tax for the year of €1.65 million, compared with a loss of €0.1 million for 2017.This includes a share of the loss on its associate investment (the group in which the Barruecopardo Project is held) amounting to €0.78 million, and an impairment to the holding value of Group assets of €0.6 million related to La Zarza.

    Finally, I would like to thank all our stakeholders, including the Company's shareholders, management, employees, directors and advisors for their continued support and dedication.



    Michael J. Donoghue

    Chairman
     
  15. Groucho

    Groucho Member

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    20 September 2019

    Ormonde Mining plc

    ("Ormonde" or "the Company")


    Barruecopardo Tungsten Mine Update


    The Board of Ormonde ("the Board") is pleased to provide an update on the Barruecopardo Tungsten Mine in Salamanca, Spain ("Barruecopardo" or "the Mine"). The Mine, currently in the first year ramp-up operational phase, is operated by Saloro S.L.U. ("Saloro"), in which Ormonde holds a 30% beneficial interest.

    · Improved mined ore grades as mining in the southern starter pit transitions downwards to fresh ore and northwards towards the main orebody (the broad, high grade tungsten zone below the historic open pit);

    · Significant progress on waste stripping of the east-wall cutback also achieved, such that initial access to the main orebody is expected early in the fourth quarter;

    · The Mine's saleable concentrate inventory has been building during the initial months of operation, with Saloro preparing initial shipments of tungsten concentrates for sale within the next weeks;

    · To provide Saloro with additional liquidity support, as it establishes ore mining operations on the main orebody in the coming months, Saloro is in the process of finalising a €10 million, 12 month loan facility, with Oaktree Capital Management;

    · Successful auction of significant stocks of APT from the now closed Fanya Metals Exchange in China, to a single Chinese tungsten company at market prices, is seen as a positive market development.



    Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:

    "While still early in the ramp-up phase, it is encouraging to see that tungsten grades in the Mine have been improving, and that the waste stripping required to allow Saloro access to more continuous and higher grade fresh tungsten ore, in the main orebody, has seen significant progress.

    "The recent, successful auction of Fanya APT stocks, and reported tightness of available tungsten material for prompt delivery, are leading to improved market sentiment, which may prove both timely and positive for Saloro as it continues to ramp up operations."



    Details:


    Mining

    Since Ormonde's last update in June, Saloro has focused mining activities on ore mining in the southern starter pit and waste stripping of the east wall of the historic open pit. Significant progress has been made on both fronts.

    The southern starter pit is performing much better than the initial production from the northern starter pit, particularly as ore mining progresses deeper and northwards from near-surface weathered material to fresh ore in the direction of the main orebody. Improved blasting and mining procedures have also contributed towards mined ore grades corresponding increasingly well with modelled grades. Consequently, batches of higher grade and fresher ore are being delivered to the process plant.

    In parallel, the east wall cutback has progressed substantially, such that its southern end is merged with the southern starter pit, and as both pits advance northwards during the fourth quarter, ore mining will effectively transition into the main orebody.


    Finance

    Considering the additional mining costs related to the revised mining schedule and the deferral of first revenues as a result of the lower grade material encountered during the first months of operation, Saloro is in the final stages of agreeing a €10 million, 12 month loan facility with Oaktree Capital Management, Ormonde's 70% joint venture partner at the Mine. Once in place, the loan facility will provide Saloro with additional liquidity support as it establishes ore mining operations on the main orebody over the coming months.


    Tungsten concentrates

    The Mine's inventory of saleable concentrates has been gradually building during the first months of the current ramp-up phase and Saloro is preparing its initial concentrate shipments for sale.


    Tungsten market

    The tungsten market has seen a period of weakness over the last number of months, with APT prices falling from the $270per metric tonne unit ("mtu") level seen for much of H1 2019, to the current level of $200 per mtu. While some of this weakness can be attributed to the ongoing uncertain macroeconomic environment, there has also been significant market uncertainty relating to the release of stocks of APT, amounting to one third of annual Chinese output, formerly held by the defunct Fanya Metal Exchange in China.

    The recent successful auction of this material, reportedly to a single large Chinese tungsten company at market prices, is therefore being seen as a positive development. In addition, cutbacks in tungsten concentrate production and APT processing within China are reportedly resulting in a scarcity of material available in the spot market.
     
  16. Groucho

    Groucho Member

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    23 September 2019

    OrmondeMiningplc

    ("Ormonde"or "the Company")


    Result of AGM


    The Board of Ormonde announces that all resolutions proposed to shareholders at the Company's Annual General Meeting held in Dublin today were duly passed.

    A copy of the presentation on the Barruecopardo Tungsten Mine, which was presented to shareholders following the formal business of the AGM, will be made available today on the Company's website www.ormondemining.com.

    http://ormondemining.com/wp-content/uploads/2019/09/ORM-AGM-Presentation-2019-web.pdf

    32CBB59B-3608-4950-94BD-71848DFBE791.jpeg
    Ormonde’s primary activity is through its 30% interest in the Barruecopardo Tungsten Mine, Spain
    o Currently in ramp-up phase of open pit mine production, wholly operated by Saloro SLU, the mine subsidiary
    o At full production, will be a leading European supplier, and important global supplier, of primary tungsten, a critical industrial metal
    Process plant operated at throughput rates up to 195 tph on fresh ore, sufficient to meet steady-state rate of 1.1 Mtpa
     
  17. Groucho

    Groucho Member

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    30 September 2019

    OrmondeMiningplc

    ("Ormonde"or "the Company")


    Interim Results for the six months ended 30 June 2019


    The Board of Ormonde announces its unaudited interim results for the six months ended 30 June 2019. Ormonde's primary activity is through its 30% joint venture interest in the Barruecopardo Tungsten Mine in Salamanca, Spain ("Barruecopardo" or "the Mine"), which is operated by the Saloro S.L.U. ("Saloro").


    Barruecopardo Tungsten Mine

    · The Mine is currently in its ramp-up phase, with key developments during the reported period including:

    o Completion of Mine construction, commissioning of processing circuits and handover of full operational control to Saloro;

    o Process plant design throughput rates achieved;

    o Following initial mined ore grades being below expectations, Saloro's mining schedule was revised to accelerate waste stripping of the east wall cutback, facilitating earlier access to the main, high grade orebody;

    o High grade tungsten concentrates produced from low-grade ore feed.

    · Subsequent to the end of the reported period, and as announced recently:

    o Mining of the southern starter pit and east wall cutback have both made significant progress, such that initial access to the main orebody is expected in the early part of Q4 2019;

    o A €10 million loan facility is being finalised between Saloro and Oaktree Capital Management to provide Saloro with additional liquidity support as it establishes mining operations on the main orebody;

    o Saloro is preparing initial shipments of tungsten concentrates for sale within the next weeks.


    Tungsten market

    · APT prices drifted from $275 per mtu to $250 per mtu during the reported period, due to general market weakness, and since the end of June dropped to $200 per mtu amid uncertainty relating to large APT stocks formerly held by the defunct Fanya Metal Exchange in China;

    · 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.


    Other projects

    · There were no material developments during the reporting period related to the Company's other interests in Spain, which are:

    o A joint venture interest in the Salamanca and Zamora gold projects, in western Spain;

    o Assets being divested related to the La Zarza copper-gold project in the Iberian Pyrite Belt of southern Spain;

    o Gold exploration permit applications elsewhere in Spain.



    Financial results

    · The Company reports a loss after tax for the period of €1,108,000 (€411,000 loss for the 6 months to 30 June 2018), which includes a €1,057,000 loss (€338,000 loss for the 6 months to 30 June 2018) relating to its associate investment within which the Barruecopardo Mine is held. The larger loss on the associate investment relates to increased costs as Saloro ramped up operations at the Mine.


    Mike Donoghue, Ormonde's Chairman and Interim Managing Director, commented:

    "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 Q4.

    "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."

    Ormonde Mining PLC - Interim Results @OrmondeMining https://www.voxmarkets.co.uk/rns/announcement/29fc0129-c80e-4e84-b544-740d59ae3607
     
  18. Groucho

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    17 October 2019

    Ormonde Mining plc

    ("Ormonde" or "the Company")


    Saloro Financing Update


    Ormonde reports that Saloro S.L.U. ("Saloro"), the operator of the Barruecopardo Tungsten Mine in Spain in which Ormonde holds a 30% joint venture interest, has entered into a €10 million, twelve month term loan facility ("New Term Loan") to be provided by funds managed by Oaktree Capital Management, L.P. ("Oaktree"). As announced by Ormonde on 20th September 2019, the New Term Loan provides Saloro with additional liquidity support as it establishes mining operations on the main orebody at Barruecopardo.


    Saloro can draw from the New Term Loan on an as required basis, in tranches of at least €500,000, over the loan period (subject to compliance with the New Term Loan conditions). Interest on the New Term Loan will be capitalised in full, at a rate of 18% per annum ("pa") on drawn funds, with a 3% pa commitment fee accruing on undrawn amounts. Drawn funds, capitalised interest and commitment fees are repayable at the end of the 12 month term, by bullet repayment.


    Under the New Term Loan, Saloro has the option to substitute drawings under the funding line with letters of credit procured by Oaktree, to support Saloro in obtaining loan funding from third party banks, rather than borrowing directly from Oaktree under the New Term Loan. Discussions are advancing with a number of third party banks in relation to this lower cost funding route.


    It has also been agreed that interest on the original loan in place with Oaktree since 2015 ("OCM Facility") will be accrued in full, at a rate of 15%, over the New Term Loan's 12 month term. This will revert to 7% cash interest and 5% payment in kind ("PIK") interest at the end of this period, should certain financial covenant tests be achieved, or 7% cash interest and 7% PIK interest if tests are not achieved.
     
  19. Groucho

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    25 November 2019

    Ormonde Mining plc

    ("Ormonde" or "the Company")


    Tungsten Concentrates Sales at Barruecopardo


    Ormonde is pleased to report an update on tungsten concentrate sales by Saloro S.L.U. ("Saloro"), the operator of the Barruecopardo Tungsten Mine ("the Mine") in Salamanca, Spain, in which Ormonde holds a 30% joint venture interest.


    Sales of 20-tonne tungsten concentrate shipments to international buyers have been recently concluded, with further containers being prepared for imminent sale. These sales mark an important milestone for the Mine as it continues its ramp-up phase. The Mine is designed to produce 260,000 metric tonne units (or 2,600 tonnes) of tungsten trioxide contained in concentrate per year when ramp up is complete and the Mine is in full production.


    On mining progress, initial access to the south end of the main orebody, which had been anticipated early in the fourth quarter, has been delayed due to the discovery of old, backfilled, undocumented mine workings within the southern starter pit, where high grade tungsten mineralisation had been expected. Current mining has reached the base of these workings at their southern end and ore grades from this initial exposure of the main ore-zone are now expected to improve accordingly. As mining advances northwards, the ore depletion arising from the old workings will continue to have an impact on ore feed grades until mining reaches the continuous section of the high grade main orebody below the historic pit, which is proven by drilling.


    In this regard, there continues to be a strong emphasis on the waste stripping of the east wall cutback to facilitate access to the full strike extent of the main orebody. Saloro's mine plans are being updated to reflect the current mining situation.



    Michael Donoghue, Ormonde's Chairman and Interim Managing Director, commented:

    "The completion of initial tungsten concentrate sales from the Barruecopardo Tungsten Mine to international buyers represents an important milestone for both Saloro and Ormonde. The commencement of related revenues is a positive for Saloro and the mine and these are expected to ramp-up as the transition into the main orebody continues over the coming period. "
     
  20. Groucho

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    8th January 2020

    Ormonde Mining plc

    ("Ormonde" or the "Company")


    Proposed disposal of Ormonde's 30% interest in the Barruecopardo Tungsten Mine


    Ormonde announces that it has entered into a conditional Sale and Purchase Agreement ("SPA") for the disposal of the Company's 30% interest in Barruecopardo Joint Venture BV ("Barr BV"), the joint venture holding company for the Barruecopardo Tungsten Mine (the "Mine") in Salamanca, Spain, to Oaktree Capital Management ("Oaktree") for a total net cash consideration of €6 million (the "Disposal").


    Summary of the reasons for and terms of the proposed Disposal

    · Low initial ore grades and delays to accessing the main orebody, reported by the Mine's management team and disclosed by Ormonde in recent announcements, have resulted in overall mine production and related revenues being substantially lower than the 2012 feasibility study forecasts for the current stage of ramp-up, which, when coupled with accelerated waste mining and the related increase in mining costs, have led to additional funding requirements for the Mine;

    · An additional debt financing of €10 million was announced on 17th October 2019, with initial draws on this facility increasing debt levels in the Barr BV group to €58.8 million, as at 30th November 2019;

    · As announced by Ormonde on 25th November 2019, the Mine's plans were being updated by the Mine's management team taking account of ore depletion from old mine workings within the southern starter pit. A proposed 2020 budget for the Mine's continued operations, based on these updated plans, foresees a further cash shortfall by the end of February or during March 2020, and an additional funding requirement, which is currently estimated by the Company to be in the region of €12-15 million;

    · This new funding requirement is set against a backdrop of weak tungsten prices, with benchmark prices of ammonium paratungstate ("APT") currently quoted at US$235-245 per metric tonne unit ("mtu") versus the US$350 per mtu price used in the 2012 feasibility study;

    · Having assessed investment risks, market factors, debt levels and the impact of various financing scenarios on Ormonde's interests, Ormonde has agreed to sell its 30% interest in Barr BV to Oaktree, the 70% majority owner and 100% debt provider;

    · Under the SPA, OCM Luxembourg Tungsten Holdings SARL, a wholly owned subsidiary of Oaktree, will pay €6 million in cash to Ormonde's subsidiary, Ormonde Mining BV, as net consideration for all shares held by Ormonde Mining BV in Barr BV immediately following completion of the transaction;

    · Ormonde shareholder approval at an extraordinary general meeting ("EGM"), to be held on 12th February 2020, is the only condition precedent to complete the Disposal. A circular will be posted to shareholders that will contain further information on the Disposal and intended use of the sale proceeds;

    · The Ormonde Board of Directors (the "Board") considers a cash exit from the Company's minority interest at this time to be in the best interest of Ormonde shareholders ("Shareholders") under current circumstances and intends to unanimously recommend the Disposal to Shareholders;


    · Should the Disposal not take place, Shareholders should be aware of the possibility that Saloro SLU ("Saloro") could become in default under the terms of its debt financing by Oaktree (and require a waiver from Oaktree), and the security given by Ormonde over its shares in Barr BV, as part of the 2015 financing, could be enforced. In such event, the Board believes that it would be unlikely that any value would be retained by Shareholders.


    Commenting on the Disposal, Mike Donoghue, Chairman and Interim Managing Director said:

    "While the disposal of Ormonde's interest in the Barruecopardo Mine will be a disappointment for many Shareholders, the Mine has encountered significant setbacks during its ramp-up operations, initially resulting in an additional €10 million funding requirement, addressed through an additional loan facility as announced in October 2019, and most recently a further funding requirement estimated by the Company to be in the region of €12-15 million.

    Having assessed the options open to Ormonde to address this funding requirement, in light of the performance of the Mine to date, the current tungsten market, difficulties or risks in raising capital and the potential consequences for Ormonde were its share of funding not to be provided, the Board has determined that a sale of its interest in the Barruecopardo Mine is in the best interests of Shareholders and will therefore recommend that Shareholders approve the Disposal at the upcoming EGM. "
     

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