Ormonde expects to generate $350m in revenue from Spanish tungsten mine

Ormonde Mining says it expects to generate more than $350 million in revenue at its flagship Barruecopardo tungsten mine in Spain during the initial five years of production.

The Irish exploration group, which is yet to produce any revenues, reported a pre-tax loss of €1.8 million for 2013, down from €4.5 million the previous year.

The company said administrative costs totalled €1.4 million, up from the €1.2 million recorded in 2012, while write-offs of exploration costs fell to €418,000 from €3.3 million.

Ormonde said 2013 had been an eventful year for the company with the signing of a supply agreement for 100 per cent of the tungsten produced at its Barruecopardo prospect in Salamanca, and achieving the site's environmental permit.

"We are now embarked on the final activities to enable development of our planned mining operation," said chairman Michael Donoghue.

"We have made considerable progress at our flagship Barruecopardo tungsten project over the last year and into 2014, including the achievements on permitting with the receipt of the environmental permit, the appointment of Swedbank as advisor in relation to a €50 million senior bond financing, and the signing of an off-take agreement with Noble Group. "

He said he expected to generate net revenues, if the current tungsten price of around $375 per metric tonne unit were to be applied, in excess of $350 million over the project’s initial five years of production.