To be a successful, reputable natural resource company, committed to the responsible development of quality mining projects and the creation of value for our shareholders, employees, and host communities.
To grow our business and create value for all stakeholders, through responsible and sustainable mining and exploration, employing a continuous improvement philosophy throughout our organisation, while seeking out further opportunities for acquisitive growth.
Following several years of investing in mineral exploration and mine evaluation projects in Spain, the Company has successfully permitted, funded and advanced the construction of the Barruecopardo Tungsten Project, in which it now holds a 30% interest. The Project now has a local management team who are managing the day-to-day operations, as the project transitions from commissioning into it production ramp-up phase. The Board’s medium to long-term growth strategy is evolving to reflect this transitional phase of mine development, and it includes the following key components:
Focus on growing shareholder value:
Ormonde’s core investment is its interest in the Barruecopardo Project, and its primary medium-term strategic goal is to deliver successful commercial production, to provide the platform for further growth. The Company will also continue to pursue quality, low cost exploration projects. Longer-term, the Board will seek to invest in growth opportunities which meet the Company’s strategic objectives using one or a combination of the following means:
- Distributions to Ormonde from its share of the Barruecopardo operating company’s profits;
- Reinvestment in a Stage 2 expansion of the Barruecopardo mine involving the development of an underground mine;
- Using its shares as consideration to support acquisitions; and / or
- Cash from sale of Company’s interest in Barruecopardo, if appropriate.
Invest in quality, advanced-stage mining projects in low-risk jurisdictions:
The long-term nature of mining investments means that for a mining project to succeed it must be resilient to global economic volatility and commodity price cycles. Ormonde’s strategy therefore focuses on:
- Commodities with an essential role in society and which have strong supply-demand fundamentals, such as tungsten, copper and gold;
- Advanced-stage projects, where the major technical risks have been addressed through detailed drilling and feasibility studies, and the project is ready for, or close to, the development phase;
- Quality projects with low technical risks, favourable economics and low capital intensity.
Jurisdiction risk has increasingly become a significant challenge facing the mining industry. Ormonde’s political and financial risks are reduced by investing only in safe and stable jurisdictions, where there is a well-established mining industry, demonstrable government and community support, and a sound legislative framework (e.g., Spain).
Retain a skilled and experienced management team and workforce:
Ormonde’s Board and management is staffed with skilled and experienced mining executives who collectively offer a strong background in all stages of international mining projects from grassroots exploration through evaluation, permitting, financing, development and into production. To deliver on its Mission, it is essential for Ormonde to put structures in place so it retains access to the skills required.
Operate with care and responsibility:
The safety and welfare of the workforce, and good relations with host communities, governments, contractors and joint venture partners, are critical to Ormonde’s success. Social and environmental responsibility, and high ethical standards and behaviour across the business, are essential to the successful execution of the Company’s strategy.
Manage finances with discipline:
The Company will continue to manage its business to minimise administrative expenditures, and will seek to fund growth in a manner that limits value dilution.
Key challenges to the execution of this strategy and the success of the Company’s business model include commodity price risk, managing its joint venture interests and availability of finance. The collective skills and experience of the Board and management in the mining and financial sectors provides the ability to overcome these challenges as they arise.