Ormonde Mining back in profit, confirms new managing director

Irish-listed exploration firm Ormonde Mining swung back in into profit in the first-half of 2015 as the Spanish-focused group announced a number of board and management changes following the death of managing director Kerr Anderson last month.

Ormonde reported a €2.55 million profit for the six months ending June 30th as against a €1.11 million loss for the same period a year earlier. The latest results include a profit of €3.40 million from the part disposal of the group's interest in its Spanish subsidiary Saloro.

The Meath-based company also announced a number of changes to its board and management on Wednesday with Steve Nicol appointed as managing director. Mr Nicol, who is an executive director and was previously chief operating officer with Ormonde, has been acting managing director since the sudden death of Dr Kerr Anderson, who led the group for 14 years.

In addition to Mr Nicol's appointment, Ormonde also said that Paul Carroll, the company's corporate development manager, is to become its new chief financial officer. Jonathan Henry, currently president and chief executive of TSX-listed Gabriel Resources joins the board as a non-executive director while chairman Mike Donoghue is to move to a position of non-execute chairman with immediate effect.

Ormonde which recorded a €1.6 million pretax loss for fiscal 2014, said on Wednesday it has made further progress at its Barruecopardo mine in the south of Spain. An environmental permit was approved for the asset early last year and a mining concession was granted to the company’s Spanish subsidiary Saloro in November. The mine is now at development stage with commissioning targeted to commence in late 2016.

US fund Oaktree Capital recently took a majority stake in the Barruecopardo mine after shareholders in Ormonde voted overwhelmingly in favour for a deal which saw the fund and the company split ownership of the tungsten mine 70 per cent - 30 per cent in return for €90 million in debt and equity.

Chairman Mr Donoghue said the tungsten market had succumbed to the general commodity and mining downturn, but claimed the outlook for the coming years remains positive, “with forecasts for the ammonium paratungstate (APT) price to rise above $300 over the coming years.”

In the first half of the year, APT prices traded between around $218 and $305 per metric tonne unit, and is currently trading at $190.