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.