Anglesey Mining plc
15 November 2013 LSE:AYM
LIM results for the quarter to 30 September 2013
Anglesey Mining plc (“Anglesey”) is pleased to report that Labrador Iron Mines Holdings Limited (“LIM”) in which Anglesey holds a 15% interest today published its Financial Statements and Management Discussion and Analysis report for the three months ending 30th September 2013. Key points are:
During the quarter, LIM sold four shipments of iron ore totalling 652,000 dry tonnes (~700,000 wet tonnes), and reported revenue of $40.3 million. For the six months ended September 30, 2013, LIM has completed the sale of six shipments of iron ore totalling 980,000 dry tonnes (~1,050,000 wet tonnes).
Production volumes increased substantially during the quarter: approximately 983,000 tonnes of ore were extracted from the James Mine, Redmond Mine and Ferriman stockpiles and 1.25 million tonnes of plant feed were processed and screened at the Silver Yards processing facility.
Rail volumes also increased to a quarterly record of 723,000 tonnes, averaging five trains per week by the end of July.
Revenues were impacted by value-in-use deductions arising primarily from the lower grade of ore mined. With a number of cost reduction measures implemented and higher production volumes achieved, operating unit costs were substantially lower quarter over quarter.
For the second quarter ended September 30, 2013, LIM reported a net loss of $24.9 million or $0.20 per share, which included a depletion and depreciation charge of $20.7 million or $0.16 per share.
Subsequent to the end of the quarter, Ships 7 and 8 departed from the Port of Sept-Îles. In addition, almost all remaining product inventory for the final two shipments have been railed to the Port. LIM is on track to achieve production of 1.7 million wet tonnes in 10 shipments for the 2013 operating season.
During the quarter, LIM completed the Joint Venture Agreement with Tata Steel Minerals Canada (“TSMC”) for the exploration and development of LIM’s Howse Deposit and received a total cash consideration of $30 million.
John Kearney, Chairman of both Anglesey and LIM commented “LIM has now recorded the sale of eight shipments of iron ore in the year to date and despite a slow start-up experienced in the first quarter, we are on track to sell 10 shipments of iron ore this year, meeting our production target of 1.7 million tonnes of iron ore in 2013. While the price of iron ore averaged approximately US$133 per tonne in the quarter compared to approximately US$113 per tonne in the same quarter of 2012, this increase was partially offset by value-in-use adjustments arising primarily from the lower quality of ore mined as we got deeper in the James Mine, and by higher ocean freight.”
The LIM Financial Statements and Management Discussion and Analysis report can be found on SEDAR and together with LIM’s full Press Release on LIM’s website at www.labradorironmines.ca.
About Labrador Iron Mines Holdings Limited (LIM)
Labrador Iron Mines (LIM) is Canada’s newest iron ore producer with a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough. Now in its third year of operations, LIM is targeting the sale of 1.7 million tonnes of iron ore products in 10 shipments in 2013.
About Anglesey Mining plc
Anglesey holds 15.3% of Toronto-listed Labrador Iron Mines Holdings Limited which is producing high grade hematite from a number of direct shipping iron ore deposits in western Labrador and north-eastern Quebec.
Anglesey is also carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Danesh Varma, Finance Director +44 (0)207 6539881;
Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800;
Emily Fenton/Jos Simson: Tavistock Communications +44 (0)20 7920 3155.