Second and third shipments of LIM iron ore sold in June
Anglesey Mining’s 26% owned associate Labrador Iron Mines Holdings Limited (TSX: LIM) has released its March 2012 year-end financial results and provided an outlook for the 2012 mining season.
LIM is pleased to report that it continues to successfully deliver results on a number of key initiatives for the start of the 2012 operating season, including sales of iron ore totalling 515,000 tonnes.
Highlights for 2012
- Signed an iron ore sales agreement with the Iron Ore Company of Canada for the sale of LIM’s 2012 production.
- Completed an equity financing for gross proceeds of $71.6 million.
- Commenced waste stripping at the James Mine in March in preparation for the start of production in April.
- Full-scale mining operations re-commenced at the James Mine in early April in its first full season of production.
- Sold three shipments of LIM iron ore for a total of 515,000 tonnes by mid-June 2012. LIM has advanced its shipping season and anticipates a fourth shipment to depart the Port of Sept-Îles around the end of June.
- Expanded railway capacity from two to four trains in moving LIM closer to its ‘a train a day’ objective.
- Restarted the Silver Yards processing facility in mid-May.
- Announced an increase in National Instrument NI 43-101 mineral resources to 22.9 million tonnes for the Houston deposits and a new NI 43-101 resource estimate of 5.7 million tonnes for the Knob Lake deposit.
- Launched its 2012 exploration program to expand and extend resources.
“Given the strong start and progress made to date, we fully expect to achieve our two million tonne production target in 2012” commented Rod Cooper, LIM’s President and COO.
During the fiscal year ended March 31, 2012, LIM sold three shipments totalling 386,000 tonnes of iron ore and received proceeds of $32 million from the sale of these pre-commercial production ore shipments.
During the 2012 fiscal year, LIM invested approximately $70 million in its mineral property interests. This investment was mainly related to the development, stripping and operating expenditures at James and exploration drilling on other deposits. LIM also invested approximately $55 million in property, plant and equipment.
For the fiscal year ended March 31, 2012, LIM reported a loss of $14.7 million compared to a loss of $4.0 million during the prior year. The variance relates largely to transportation related start-up costs of approximately $9.6 million.
At March 31, 2012, LIM had current assets of $105.5 million including $71.1 million in unrestricted cash and cash equivalents, and an additional $8.9 million in restricted cash. LIM had working capital of $60.6 million as at March 31, 2012 and no debt.
The full release is available on the LIM website at www.labradorironmines.ca. The consolidated financial statement and the Management Discussion and Analysis can also be found on the LIM website as well as on SEDAR, the official website for public securities documentation in Canada, at www.sedar.com.
Conference Call and Webcast: Fourth Quarter and Year End Results
Members of the LIM senior management team will host a conference call and webcast today at 11:00 am Toronto time (4:00pm BST). To participate call 001-416-340-2218 at least five minutes prior to the scheduled start of the call.
About Labrador Iron Mines Holdings Limited
Labrador Iron Mines is Canada’s newest iron ore producer. It owns a portfolio of direct shipping iron ore operations and projects located in the prolific Labrador Trough. Initial production commenced at the 100%-owned James Mine in June 2011 and LIM recorded the sale of nearly 400,000 tonnes of iron ore in the first start-up season. The first full production season commenced on April 2, 2012, with a sales target of 2 million tonnes of iron ore for the 2012 year.
LIM is focused on a strategic and robust growth plan arising from its portfolio of 20 iron ore deposits in Labrador and Quebec, all within 50 kilometres of the town of Schefferville. The James Mine is connected by a direct rail link to the Port of Sept-Iles, Québec. The area also benefits from established infrastructure including the town, airport hydro power and railway service. Starting with the James Mine and leading to the development of the expanding Houston flagship project, the objective is to provide shareholders with long-term value as production and sales ramp up towards 5 million tonnes per year by 2015.
LIM is currently the only independently-owned Canadian iron ore producer listed on the Toronto Stock Exchange and trades under the symbol LIM.
About Anglesey Mining plc
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited which is now producing iron ore from its James deposit, one of LIM’s twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec.
Anglesey is also carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is estimated to be a total historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Ian Cuthbertson, Finance Director +44 (0)1248 361333;
Samantha Harrison / Klara Kaczmarek: RFC Ambrian +44 (0)2076 344700;
Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155