Ormonde mining reports loss as work on Spanish project ramps up

The €132,000 loss comes mainly from its flagship tungsten mine in Barruecopardo

Irish-listed mineral resource company Ormonde Mining has reported a loss of €132,000 for the six months to the end of June 2017, which includes a €120,000 loss at its flagship tungsten project in Spain.

In June, Ormonde announced that its Barruecopardo tungsten mine was being advanced into an accelerated construction and implementation phase, and it expects mine commissioning to commence in the third quarter of next year.

The company notes that tungsten prices have risen by 12 per cent over the six-month period, something that it suggests would bode well for its 30 per cent holding in the mine, located in northwest Spain.

"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," said Michael Donoghue, the company's chairman and interim managing director.


Funding package

The development of the Barruecopardo mine was helped by a $99.7 million funding package agreed with Oaktree Capital Management, which holds a 70 per cent interest in the project.

More recently, the company reorganised its share capital, thereby reducing the value of ordinary shares from €0.025 each to €0.01 – a measure that took effect on September 19th.

Aside from its Spanish tungsten interests, Ormonde has involvements in “promising” gold properties in Salamanca province and Zamora province.

Peter Hamilton

Peter Hamilton

Peter Hamilton is a contributor to The Irish Times specialising in business