€2.56m Ormonde loss, but bullish on prospects

ORMONDE Mining has reported a net loss before taxation of €2.56m in 2008, from €650,000 a year earlier, principally due to a write-down of early exploration work.

Mike Donoghue, chairman of Ormonde commented: “I am pleased with progress achieved this year. In particular, our Barruecopardo Project is positioning itself to become a major, low-capital, long-life tungsten operation, at a time when structural changes and integration within the tungsten industry continue in anticipation of future tungsten shortages.

“We propose to advance the critical mine permitting work during 2009, such that the project will be well positioned to carry out the engineering design work and rapidly commence development.”

Davy analysts Caren Crowley said the key focus for the group is the development of the promising Barruecopardo tungsten project. “Based on drilling results, management is proposing the development of a mine which would produce at an equivalent rate of 1,000 tonnes of tungsten metal per annum.

“This would place Barruecopardo among the largest primary tungsten producers in the western world,” she said. At end-December 2008, Ormonde had net cash of €1.34m having invested €2.6m on advancing its Spanish exploration and development projects.