Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Ormonde Mining posts profit after stake sale

Profits for the year were €2.07mln (loss €1.63mln) with €557,000 revenues also received in management fees
Picture of tungsten
Production is now scheduled for 2017

Ormonde Mining (LON:ORM) moved into profit in 2015 helped by a gain on the sale of a majority of its stake in its flagship Barruecopardo  tungsten project in Spain.

The Aim-listed junior booked a €3.4 mln gain on the sale, which was part of a US$100mln finance package agreed with Oaktree for the construction of a mine at site in Salamanca.

Profits for the year were €2.07mln (loss €1.63mln) with €557,000 revenues also received in management fees for services provided to Saloro, the company that owns the licence at Barruecopardo.

Saloro is now a 30/70 joint venture between Ormonde and Oaktree having been wholly owned previously.

This week, Ormonde said first tungsten is now expected from Barruecopardo in 2017 with a delay caused by an objection to its compulsory land purchase plans.

Mike Donoghue, Ormonde's chairman, said: "The past year has been a successful one for Ormonde, with the achievement of a $100 million financing package for the Barruecopardo Tungsten Project in what was a very difficult funding market for mining projects.

 “With an updated construction schedule having been recently agreed with our Project partners, which sees commissioning of the mine in late 2017, the next year should be an exciting one.

He noted that the price for tungsten had rallied recently, adding that supply is also increasingly being constrained by an agreed cut-back in production by the eight largest tungsten mining groups in China, which could progressively start to limit market supply in 2016, and by higher cost mine closures and the deferral of new mining projects.

PhilW.jpg
Why Invest In Ormonde Mining plc? Read More Here

Register here to be notified of future ORM Company articles
View full ORM profile

Ormonde Mining plc Timeline

Newswire
September 30 2016
Article
February 29 2016

Related Articles

American-Lithium---Fish-lake-exploration.jpg
January 31 2017
American Lithium holds a commanding land position at Fish Lake in Nevada
Marble quarry. Fox Marble has quarries in Kosovo and the Balkans region,
May 19 2016
The Fox Marble order book has increased to €3.9 million for the year
a chunk of tungsten ore
September 01 2016
“We’re systematically getting the finance in place, getting the production in place and I think you’ll see us very quickly grow over the next 12 to 18 months.”

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use