DAVY VIEW

The news that Ormonde has sold its 30% share in the Barruecopardo mine in Spain to Oaktree, the major shareholder in the project, for a net €6m is disappointing in the context of expectations. However, it may be the best outcome given the news of the additional capital required to access the main tungsten zone. The alternatives of new equity or mine equity to debt swap are so dilutive that management considered a cash in hand option was the best outcome for shareholders.