Ormonde Mining has reported a pre-tax loss of €77,651 for the six months to June 2002, a 9 per cent improvement on the loss of €84,706 in the same period a year earlier.

Operating losses at the firm fell by 12 per cent to €77,651 from €87,245, which included a €66,930 charge for relisting in the same period 12 months earlier.

In a statement, the company said low metal prices and the global economic downturn have adversely affected the mining sector.

Ormonde Mining operates overseas through wholly owned subsidiaries and, in the first six months of this year, acquired interests in gold properties in Spain and Morocco.

The statement said the firm's involvement in the projects was based on the presence of high-grade gold and were made without significant entry costs.

Both interests have yielded positive results since their acquisition.

The firm said that the low price of gold was being felt right through the sector from producers to junior explorers.

But chairman Mr Colin Andrew was optimistic. "Ongoing consolidation within the gold mining sector into a handful of very large companies, each annually producing more than five million ounces of gold, presents opportunities for junior explorers, as new discoveries are required to service the production capacity of these companies," he said.

On the Irish Stock Exchange Ormonde shares closed at 49 cent yesterday. So far this year they have been trading between 43 cent and 75 cent.