What it owns
When fully operational, Barruecopardo will account for around 13% of non-Chinese global supply of tungsten concentrates.
The new mine development is based on an initial open pit mining operation with a 9-year mine life, producing 260,000 metric tonne units (“mtu”) of tungsten trioxide (WO3) per year, or 2,060 tonnes of tungsten metal, contained in a high-quality concentrate, following a one year ramp up period.
Ormonde holds a 30% interest in the project company, Saloro SLU which is funded through a US$100mln financing package provided by 70% JV partner Oaktree Capital.
Salamanca and Zamora Gold are held through a joint venture (48%/44% respectively) with Shearwater Group PLC.
The area is one of the most prospective gold terrains in Spain, Ormonde believes.
Ormonde took an impairment charge of €600,000 for the former working copper mine of La Zarza in its 2018 figures and is now looking to sell it.
How is it doing
Saloro has started its ramp-up operation and initial shipments of tungsten concentrates and sales should start within the next few weeks, the miner said at the end of September.
The original plan was revised following lower grades than expected but mining of the southern starter pit and east wall cutback has been going well, it added.
Ormonde posted a loss €1.18mln (€411,000 loss) for the six months to June. Cash at the half-year was €312,000.
What the boss says: Mike Donoghue, chairman
"The first half of 2019 was a pivotal period for Ormonde and its 30% interest in the new Barruecopardo Tungsten Mine, as construction was completed and Saloro began to ramp-up mining operations.
"This progress is set against a backdrop of an improving tungsten market, with reported tight spot market availability, and the successful auction of Fanya APT stocks in mid-September."
- The latest forecast is for tungsten to be in deficit in 2019 and 2020 as Russian and Chinese sources deplete
- There no plans for China to replace tungsten mines as they run down says Ormonde
- Prices might, therefore, rise in short to medium term
- Scope to develop “new ideas and opportunities” to add value
- Completion of disposal of La Zarza interests
- New look at the gold exploration opportunities