Ormonde Mining plc

Consolidated Statement of Changes in Equity

Six months ended 30 June 2021

Notes to the Interim Consolidated Financial Statements

1.    Accounting policies and basis of preparation

Ormonde Mining plc is a company domiciled in the Republic of Ireland. The Unaudited Consolidated Interim Financial Statements ("the Interim Consolidated Financial Statements") of the Company, as at and for the six months ended 30 June 2021, comprise the Company and its subsidiaries (together referred to as the "Group").

The comparative information provided in the Interim Consolidated Financial Statements relating to the year ended 31 December 2020 does not comprise statutory financial statements. The audit opinion on the statutory financial statements for the year ended 31 December 2020 was unqualified. However, the auditors drew attention by way of an emphasis of matter paragraph to the material uncertainty relating to the carrying value of the La Zarza exploration and evaluation assets, which are classified as assets held for sale.

The Interim Consolidated Financial Statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group as at and for the year ended 31 December 2020, which are available on the Company's website, www.ormondemining.com. The Interim Consolidated Financial Statements for the six months ended 30 June 2021 are unaudited but have been reviewed by the Company's auditors.

The interim consolidated financial information in this report has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS") as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. These policies are consistent with those to be adopted in the Group's consolidated financial statements for the year ending 31 December 2021. The accounting policies applied by the Group in the Interim Consolidated Financial Statements are the same as those applied by the Group in the consolidated financial statements for the year ended 31 December 2020.

The principal risks and uncertainties of the Group have not changed since the last annual consolidated financial statements for the year ended 31 December 2020. 

The Board of Directors has carefully considered the impact of Covid-19, noting the widespread disruption to normal activities and the uncertainty over the duration of this disruption. The Group is currently seeking new investment opportunities and has been impacted by Covid-19, particularly in relation to management's ability to conduct technical due diligence in overseas jurisdictions.

Three previously issued Investigation Permits in Spain, which have a book value of €305,000, have renewal dates between July and September 2021. It is possible that applications for license renewal may be declined by the relevant authorities, which would result in the licenses becoming impaired.

The Company has, for some time, been advancing a disposal process in relation to certain land and data assets associated with the La Zarza Project, located in south-west Spain. Based on the information available at the time of signing these interim consolidated financial statements, the Directors have estimated a fair value for these assets of €2.4m, with the assets represented in the financial statements as "assets held for sale". While the Directors believe this estimation to be reasonable, there is no binding agreement presently in place relating to this disposal process and as a result there remains a material uncertainty as to whether such a disposal will take place and/or the final price at which any such disposal will complete. Were a disposal not to materialise the assets held for sale could become impaired in value.

The Board of Directors is satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, being a period of not less than 12 months from the date of the Interim Consolidated Financial Statements. Accordingly, it continues to adopt the going concern basis in preparing the financial information.

The unaudited Interim Consolidated Financial Statements were approved by the Board of Directors on 22 September 2021.

Notes to the Interim Consolidated Financial Statements

2.    Segmental analysis

An analysis by geographical segments is presented below. The Group has geographical segments in Ireland and Spain.

The segment results for the period ended 30 June 2021 are as follows:

Notes to the Interim Consolidated Financial Statements (continued)

3.    Basic earnings per share

The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

Diluted earnings per share

For the six months to 30 June 2021, the share options are anti-dilutive and therefore diluted earnings per share is the same as the basic earnings per share.

For the six months to 30 June 2020 and the year ended 31 December 2020 the basic and diluted earnings per share are the same.

Notes to the Interim Consolidated Financial Statements (continued)

4.         Share capital

5.         Dividends

No dividends were paid or proposed in respect of the six months ended 30 June 2021.

6.         Post balance sheet event

There are no post balance sheet events.

Independent Review Report to Ormonde Mining plc

Introduction

We have been engaged by Ormonde Mining plc ("the Company") to review the Unaudited Consolidated Interim Financial Statements ("the Interim Consolidated Financial Statements") in the half yearly report of the Company as at and for the six months ended 30 June 2021 comprising the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Cashflows, the Consolidated Changes in Equity and the related explanatory notes. We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Interim Consolidated Financial Statements.

Directors' responsibilities

The Interim Consolidated Financial Statements are the responsibility of, and have been approved by, the Board of Directors. The directors are responsible for preparing the Interim Consolidated Financial Statements in accordance with AIM Rule 18 and Euronext Growth Rule 14.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union ("EU"). It is the responsibility of the Board of Directors to ensure that the Interim Consolidated Financial Statements included in this half-yearly report have been prepared on a basis consistent with that which will be adopted in the Group's annual financial statements.

Our responsibility

Our responsibility is to express to the Company a conclusion on the Interim Consolidated Financial Statements in the half-yearly report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the Interim Consolidated Financial Statements in the half-yearly report for the six months ended 30 June 2021 are not prepared, in all material respects, in accordance with AIM Rule 18 and Euronext Growth Rule 14.

Emphasis of matter - carrying value of the intangible assets and the assets held for sale

We draw attention to Note 1 Accounting policies and basis of preparation which describes the material uncertainties relating to the anticipated disposal of the La Zarza assets which are classified as held for sale, and the possible risks of impairment of these assets. Our conclusion is not modified in respect of this matter.

Use of our report

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of AIM Rule 18 and Euronext Growth Rule 14. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report or for the conclusions we have reached.

Nexia Smith and Williamson (Ireland) Limited

Chartered Accountants, Statutory Audit Firm

Paramount Court

Corrig Road

Sandyford Business Park

Dublin 18

22 September 2021

ENDS