Ormonde Mining reports lower losses

ORMONDE Mining – the Navan-headquartered mineral exploration company, with a focus on the Spanish market – has reported a pre-tax loss of just under €1.58 million for 2009.

This figure marked a significant improvement on the previous year, when the company’s losses before tax amounted to €2.53m.

The lower losses were mainly driven by a welcome improvement in tungsten prices – one of the main minerals for which Ormonde mines – which have shot up by 15% since last July.

“There are clear indications that the tungsten price is resilient and will strengthen significantly as demand is sustained and supply is constrained.

“This creates conditions for the high tungsten prices of 2008 to be reached or exceeded,” said Ormonde’s chairman, Michael Donoghue.

Last year also saw Ormonde lower its operating loss from €2.56m to €1.58m and its loss per share fall from 12c to 7c.

Ormonde’s assets include the La Zarza copper, gold and zinc mine in southern Spain. It has also recently signed an option to take 100% ownership of the 4,000 hectare Tharsis copper and gold project in Spain’s Huelva province. However, its chief asset is the Barruecopardo tungsten mine in the Salamanca region of the country.

The company’s progress on that project was slower than expected last year, mainly because of caution by industry investors.

Mr Donoghue added: “A more favourable investment environment for tungsten is now emerging, as has been demonstrated recently by various funds taking equity investments in tungsten projects.”