Ormonde narrows loss in 2009

IEX-listed exploration firm Ormonde Mining narrowed its losses last year, reporting a €1.6 million loss in 2009.

This compares to a €2.5 million loss recorded in the previous year, and includes a writedown of more than €1 million of earlier exploration work mainly on the Tracia Prospect and surrounding exploration ground.

The company said the year yielded "variable" progress, with an industry partner brought in for its La Zarza project, and signed an option agreement on the Tharsis Project, an old mining area with significant copper and gold mineralisation.

The mining industry in general has remained healthy, the comapny said, with sustained consumption and high prices for base metals, precious metals and steel.

However, Ormonde said progress on development of its key project, the Barruecopardo Tungsten deposit, was slower than expected. Industry investors are seeking a sustained upturn in manufacturing and fabrication demand before spending on new capital projects.

"Nevertheless, a more favourable investment environment for tungsten is now emerging, as has been demonstrated recently by various funds taking equity investments in tungsten projects," the company said in a statement.

The firm said the resumption of corporate and investment activity in the industry would see it attempt to put the necessary funding in place as quickly as possible.

Tungsten prices, which have showed a 15 per cent improvement since July 2009, are showing signs of resilience and Ormonde said it expects them to strengthen significantly as demand is sustained and supply is constrained.