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Ormonde Mining plc

Ormonde adjusts Barruecopardo timetable due to tungsten price

Ormonde now envisages commissioning will take place in mid -2018

picture of tungsten filaments
Tungsten price has rallied a little

Ormonde Mining plc (LON:ORM) has put back the commissioning of its Barruecopardo tungsten mine due to the weakness in the price of the metal.

Originally scheduled for the end of next year, Ormonde now envisages commissioning will take place in mid -2018.

Tungsten has struggled over the past year and even though the price has rallied 20% since January, Ormonde is not predicting any significant improvement in the short-term though is still optimistic further out.

The junior’s debt facilities have been amended to reflect the new timetable and a management fee due to the company has been reduced by 25% to E750,000 per year until there have been two full quarters of positive cash flow.

In addition, Ormonde has completed the compulsory acquisition of all of the land necessary to build the mine.

Steve Nicol, Ormonde's managing director, said the land acquisition removed land risk from the development schedule.

He added that the decision to reschedule the timeline was make sure the project comes online into a strengthening tungsten price environment.  

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Price: £0.03

Market: AIM
Market Cap: £13.47 m
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Watch

Ormonde Mining's Steve Nicol upbeat as Barruecopardo tungsten mine continues...

Ormonde Mining managing director Steve Nicol sat down with Proactive Investors to talk us through the busy phase of work currently underway as the development of the Barruecopardo tungsten mine progresses towards completion. Fully funded, fully permitted and on track for a 2017 start up,...

on 26/7/16

2 min read