Ormonde Mining : 27-06-2022 – ANNUAL REPORT 2021

Ormonde Mining plc

Ormonde Mining plc

Annual Report and

Financial Statements

For the year ended 31 December 2021

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Ormonde Mining plc

Annual Report and Financial Statements

Contents
Chair's Review...............................................................................................................................................	3
Directors' Report ...........................................................................................................................................	5
Consolidated Statement of Comprehensive Income ....................................................................................	18
Consolidated Statement of Financial Position .............................................................................................	19
Company Statement of Financial Position...................................................................................................	20
Consolidated Statement of Cashflows .........................................................................................................	21
Company Statement of Cashflows...............................................................................................................	22
Consolidated Statement of Changes in Equity.............................................................................................	23
Company Statement of Changes in Equity ..................................................................................................	24
Notes to the Financial Statements................................................................................................................	25
Directors and other information...................................................................................................................	45
Letter from the Chair of Ormonde Mining plc .............................................................................................	47
Notice of Annual General Meeting..............................................................................................................	49
Form of Proxy..............................................................................................................................................	54

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Ormonde Mining plc

Chair's Review

Introduction

I am pleased to provide my first report to shareholders as Ormonde's Chairman, having been appointed as a Non-Executive Director in June 2020, and subsequently as Non-Executive Chairman in October 2021.

2021 was a year of transition for the Company as we restructured the Board, reviewed the Company's assets, reorganised the Company to operate on a reduced cost basis, while building its capability to execute an opportunity that will enable the Company to leverage its listing and balance sheet to generate value for shareholders.

Leadership Restructuring

Following the Company's Annual General Meeting in September 2021, Jonathan Henry, and his board and management team, left the Company.

Brendan McMorrow and Keith O'Donnell joined me on the Board, and Brendan was subsequently appointed in November 2021 to discharge the role of Chief Executive Officer. Brendan, Keith and I each have over 30 years' experience in company management, capital markets, and publicly-listed natural resources companies.

The Board is now supported in its endeavours by experienced industry consultants. These include Steve Nicol and Professor Garth Earls, who bring with them over 70 years of combined relevant experience. Drawing on his background in mine evaluation and operations, Steve, as Senior Technical and Mining Advisor, is assisting in the evaluation of potential new mining assets. He previously worked with Ormonde to identify and commercialise the Barruecopardo Tungsten mine in Spain, whose 30% interest was sold by the Company in 2020 for €6 million. Garth is assisting the Company as a Senior Geologist, focused on project exploration and development appraisal. Garth has over 40 years of professional experience in mineral exploration, was part of the team that discovered the six-million-ounce Curraghinalt gold deposit in Northern Ireland, and currently serves as Executive Chairman of International Geoscience Services. He is a former Director of the Geological Survey of Northern Ireland and a past Chairman of the Geosciences Committee of the Royal Irish Academy.

Steve and Garth provide the complementary skill sets required to evaluate the geological, technical, mining operational and commercial elements of the projects under review and to identify worthwhile opportunities to generate value for the Company and its shareholders.

We are now pursuing investment opportunities at a more appropriate, and efficient cost to the Company. Until the Company has made material strategic progress in this regard, the directors have waived their entitlement to non-executive directors' fees.

New Project Evaluation

The range of opportunities being reviewed include precious metals, precious stones, battery metals and some base metals in a number of jurisdictions including, Africa and Europe.

Our objective is to invest in a project which will generate meaningful value for shareholders on a sustainable basis. We are reviewing a number of opportunities that appear promising without presenting excessive risks to shareholders.

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Ormonde Mining plc

Existing Projects

Ormonde retains its assets in Spain, namely the Salamanca and Zamora gold projects and the Board continues to evaluate its strategy to unlock value for shareholders from these assets. In addition, the prospect of a transaction relating to the land and data assets of the Company's La Zarza interest continues, with discussions with interested parties ongoing.

Financials

Ormonde recorded a total comprehensive loss for the period of €1.6 million for 2021, including an asset impairment, noted below, of €0.4 million, compared with a loss of €1.1 million in 2020.

Following an internal review of its assets at La Zarza, Ormonde now values its La Zarza interests at €2.0 million, a €0.4 million reduction from previous guidance. The Board considers this to be a fair value, and is in discussions regarding a transaction. While reviewing new opportunities, the Board has, since its reconstruction in late 2021, endeavoured to reduce the Company's overheads, with Board and management cost lower, on a full year basis, by approximately 60 percent. The impact of these reductions will be realised in the current year with projected savings related to payroll of c. €0.3 million for 2022 as compared to 2021.

As of 31 December 2021, the Company had net assets of €5.96 million, including a cash balance of €3.75 million, placing the Company in a position of considerable strength to undertake a transaction within the natural resources sector.

Outlook

On behalf of the Board, I would like to thank our shareholders for their continued support and patience. I am of course conscious that our shareholders are keen to see the value of their holding grow. Our job is to ensure we deliver the best opportunity to achieve this; one which offers the maximum upside from the Company's balance sheet and resources. I am confident that we have the team in place to execute on that goal and deliver value to shareholders. While we are undertaking that process, we will continue to manage costs prudently. I look forward to updating you on the Company's progress in due course.

Brian Timmons

Chairman

20 June 2022

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Ormonde Mining plc

Directors' Report

For the year ended 31 December 2021

The Directors present the Annual Report and Audited Financial Statements for the year ended 31 December 2021 of Ormonde Mining plc ("the Company") and its subsidiaries (collectively "the Group").

Principal Activity

The Company is listed on the Euronext Growth Market of Euronext Dublin and AIM, part of the London Stock Exchange.

The principal activity of the Company and its subsidiaries comprises acquisition, exploration and development of mineral resource projects.

Review of Business and Future Developments

A detailed review of activities for the year and future prospects of the Group is contained in the Chair's Review at the commencement of this report.

Results and Dividends

The Consolidated Statement of Comprehensive Income for the year ended 31 December 2021 and the Consolidated Statement of Financial Position as at that date, are set out on pages 18 and 19 respectively.

No dividends were paid during the year and the Directors do not recommend the payment of a dividend.

Principal Risks and Uncertainties

The Group's activities are currently carried out in Spain and Ireland. The Group undertakes periodic reviews to identify risk factors which may affect its business and financial performance. The summary set out below is not exhaustive as it is not possible to identify all risks that may affect the Group, but the Directors consider the principal risks and uncertainties to be thefollowing:

Exploration Risk

Exploration and development activities may be delayed or adversely affected by factors outside the Group's control, in particular: global pandemics; climatic conditions; performance of partners or suppliers; availability of qualified staff and contractors; availability, delays or failures in installing and commissioning plant and equipment; unknown geological conditions; remoteness of location; actions of host governments or other regulatory authorities relating to the grant, maintenance or renewal of any required authorisations; and environmental regulations or changes in law.

Commodity Price Risk

The demand for, and price of, commodities is dependent on factors including global and local supply and demand, investment trends, actions of governments or cartels and general global economic and political developments.

Political Risk

As a consequence of activities in different parts of the world, the Group may be subject to political, economic and other uncertainties, including but not limited to regime change, changes in national laws and mining policies and exposure to different legal systems.

Financial Risk

Financial risk is explained in Note 23

Share Price

The share price movement in the year ranged from a low of €0.008 to a high of €0.03 (2020: €0.004 to €0.03).

The share price at the year-end was €0.009 (2020: €0.020).

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