Labrador Iron Mines completes third operating year

Anglesey Mining plc (“Anglesey”) is pleased to report that Labrador Iron Mines Holdings Limited (“LIM”) in which Anglesey holds a 15% interest today notified the successful completion of 10 shipments of iron ore totalling approximately 1.7 million wet metric tonnes (“wmt”) for its 2013 operating year.

Ship 9, the Myrtalia, departed from the Port of Sept-Îles on November 22, 2013, carrying approximately 169,000 wmt of 58% Fe sinter product. Ship 10, the Anangel Sailor, is scheduled to depart the Port on December 2 2013, carrying approximately 101,000 wmt of 62% lump product.

With the sale of two shipments completed in November and early December, LIM has achieved its production target of approximately 1.7 million wmt in 10 cape-size shipments for 2013. Inventory of approximately 97,000 tonnes of lump and sinter iron ore remain in the port which could not be loaded due to freezing conditions.

LIM has now concluded its third operating season, as mining, processing and railing activities all wrapped up in November. LIM’s exploration program will continue through the winter months with five diamond and two reverse circulation drill rigs on site. To date, LIM has drilled approximately 10,000 metres (“m”), focusing mainly on the Howse, Houston and Gill Deposits. The full 14,000-m program is anticipated to be completed before year end.

LIM’s mining operations are seasonal, with a planned winter closure from December to March. Detailed planning for the upcoming 2014 operating season is now underway and operations will continue to be focused on its Stage 1 deposits, including the James Mine and other smaller satellite deposits and stockpiles, all located within a 15-kilometre radius of the Silver Yards processing plants.  An assessment of the remaining life of James Mine has commenced to evaluate the economics of extraction in 2014 of the remaining ore in the bottom of the open pit and the down-dip depth extensions of some higher grade sections.

LIM is also currently evaluating an interim plan to haul Houston ore to the Silver Yards process and rail loading facilities in 2014 as a first stage, lower initial capital approach for development of the Houston deposit.  The Houston and the adjacent Malcolm deposits are estimated to together contain 40.6 million tonnes grading 57.6% Fe. When in full production, the Houston Project is expected to produce about 2.5 million tonnes of iron ore annually.

Development of the Houston Project is subject to the availability of financing. LIM is evaluating various financing alternatives or off-take arrangements, and/or other potential strategic options, to fund the planned first phase Houston development and related transportation expenditures. LIM is also seeking to pursue strategic initiatives aimed at permanent structural reductions in operating costs and revenue deductions.

In resuming its planned seasonal mining operations in the spring of 2014, LIM will incur regular winter stand-by costs from December 2013 to March 2014 and seasonal start-up mining, processing, rail and transportation and site administration expenses for the months of April and May 2014, before receipt of payment for its first shipment anticipated in June 2014, and will require working capital of approximately $20 million to $30 million to fund these operating expenses.

LIM’s full Press Release can be found on its 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. Initial production commenced at the James Mine and Silver Yards plant in June 2011 and through to the end of its third operating year, LIM has sold 3.8 million wet tonnes in 23 shipments of iron ore into the Chinese spot market.

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.

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Half yearly report for the six months to 30 September 2013

Chairman’s Statement and Management Report

The half year to the end of September 2013 has been difficult for the group and particularly for the investment in Labrador Iron Mines (“LIM”).

For the six months ended 30 September 2013, LIM sold six shipments of iron ore totalling 980,000 dry tonnes and expects to achieve its target for the production and sale of 1.7 million wet tonnes for the year. However the quality of that product was below expectations, largely because of lower grade encountered in the deeper part of the James mine, and the net revenue received was negatively impacted, despite the improvement in iron ore prices. At the same time LIM’s operating costs continued at higher levels than anticipated. The result was a very large loss reported by LIM. Now that LIM is treated as an investment this loss does not directly impact the group’s accounts. However the LIM share price had declined at the period end and that fall in price is now reflected as a loss in our income statement. The increase in value of sterling against the Canadian dollar over the period has added further to this loss.

At the same time Parys Mountain has been maintained on a low activity level with only a limited amount of geological review being conducted. This has ensured that costs have been kept to a minimum and cash conserved. A number of cost limitation matters have been completed and these should lead to a reduction of operating expenses in future periods.

We continue to monitor the markets for the various metals that comprise the Parys Mountain project with the expectation that we will be able to move the project forward, with its relatively short lead time, to production once we sense the future upturn in these metal prices is well founded. We also continue to monitor other potential projects in suitable commodities in politically stable environments.

Labrador Iron

LIM detailed the following highlights for the three and six month periods ended 30 September 2013:

  • During the quarter, LIM sold four shipments of iron ore totalling 652,000 dry tonnes, and reported revenue of C$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.
  • 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 lower quarter over quarter.
  • For the half year ended 30 September 2013, LIM reported a net loss of C$53.4 million, which included a non-cash depletion and depreciation charge of C$26.3 million.
  • During the period, 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 cash consideration of C$30 million.

Mining, Processing and Rail

During the first half of the 2013 operating season, LIM mined a total of 1.33 million tonnes of ore from the James Mine, Redmond Mine and Ferriman stockpiles. At James, approximately 1.12 million tonnes of ore were mined during the period. Mining activity took place deeper in the pit and the ore exhibited a lower in-situ iron grade and contained a greater fines component than previously experienced.

Initial mining of the Redmond Mine commenced in July 2013 and 190,000 tonnes of ore was extracted during the period. Waste removal from Redmond was minimal, partially offsetting the additional costs of hauling the material approximately 12 kilometres to Silver Yards. High clay content in the Redmond material caused difficulties in the wet processing plant, resulting in poor recovery levels.

Bulk sampling of ore from the Ferriman stockpiles commenced in September 2013 and 18,500 tonnes of ore was reclaimed from Ferriman. The Ferriman material has responded well to wet processing.

Processing activities at Silver Yards increased significantly in the second quarter, with full operations from both the wet processing and dry screening facilities. A total of 1.8 million tonnes of plant feed were processed and screened during the period, producing an aggregate of 1.1 million tonnes of lump and sinter iron ore product.  Product recovery rate was low at 61%, which was attributable to a higher amount of fines in the James plant feed extracted from deep in the pit, the high clay content of the Redmond plant feed and underperformance of the newly installed wet high intensity magnetic separator.

LIM railed a record of approximately 1.05 million tonnes of iron ore to the Port of Sept-Îles. By the end of July, a fourth train set was operating and rail operations averaged approximately five trains per week.

Iron Ore Sales

LIM completed six shipments of iron ore totalling 980,000 dry tonnes during the period. These shipments were sold to the Iron Ore Company of Canada. LIM recognized net revenue of C$58.2 million after netting shipping costs and IOC’s participation from the CFR China actual realized price for these shipments.

LIM’s product sales during the period experienced value-in-use deductions related to the silica, iron content and sizing specifications, which deviated from benchmark standards.

Parys Mountain

There has been a limited amount of work carried out on the Parys Mountain site.  Geological data compilation, assessment and review have continued and this will increase in the coming months. The group continues to monitor the markets for its major metals and in particular the medium term prospects for zinc on which the immediate future development of mining and treatment operations is highly dependent. The lead time to move Parys Mountain into production, subject to financing, is relatively short.  In the meantime expenditure will be kept to a minimum consistent with sufficient geological review being maintained.

Financial Results

There was a net loss for the period of £3.2 million (2012 loss – £7.4 million); almost £3 million of this loss was in respect of the holding in LIM. Administration expenses were slightly reduced. The group has no revenues from the operation of its properties. At the period end the cash resources of the group were £0.4 million (31 March 2013 – £0.7 million).

Outlook

The iron ore price has firmed during the half year and has maintained some stability for a couple of months. Recent political signals from China suggest that infrastructure investment will continue and this should continue to support the price around current levels. LIM has to maintain its programme of cost reductions and couple this with detailed planning for the next stage of development at Houston. Together all these should, subject to additional financing,  provide a solid basis for future operations.

Base metal prices, particularly of lead and zinc, have still to respond to any Chinese stimulus and to the perceived reduction in global production levels in the next few years. The group is of the view that sustained upward movements will occur in the near future.

John F Kearney

Chairman

25 November 2013

Anglesey Mining plc – Group

Condensed consolidated income statement

Notes Unaudited six months ended 30 September 2013 Unaudited six months ended 30 September 2012
All operations are continuing £ £
Revenue
Expenses (196,480) (201,885)
Share of loss of associate (7,039,697)
Losses on deemed disposals
in associate
(133,913)
Loss on fair value of investment 10 (2,440,187)
Exchange difference on loss above 10 (527,771)
Investment income 14,267 27,075
Finance costs (57,149) (57,456)
Foreign exchange (loss)/profit (1,566) 8,887
Loss before tax (3,208,886) (7,396,989)
Tax 8
Loss for the period (3,208,886) (7,396,989)
Loss per share
Basic – pence per share (2.0)p (4.6)p
Diluted – pence per share (2.0)p (4.6)p

Condensed consolidated statement of comprehensive income

Loss for the period (3,208,886) (7,396,989)
Other comprehensive income:
Exchange difference on translation of
foreign holding
42,465
Total comprehensive loss
for the period
(3,208,886) (7,354,524)

All attributable to equity holders of the company

Condensed consolidated statement of financial position

Notes Unaudited 30 September 2013 Audited 31
March 2013
£ £
Assets
Non-current assets
Mineral property development 9 14,787,943 14,753,566
Property, plant and equipment 204,687 204,687
Investment 10 4,996,574 7,964,532
Deposit 122,454 122,204
20,111,658 23,044,989
Current assets
Other receivables 38,071 40,239
Cash and cash equivalents 431,793 670,345
469,864 710,584
Total assets 20,581,522 23,755,573
Liabilities
Current liabilities
Trade and other payables (78,363) (100,677)
(78,363) (100,677)
Net current assets 391,501 609,907
Non-current liabilities
Loan (2,363,432) (2,306,283)
Long term provision (42,000) (42,000)
(2,405,432) (2,348,283)
Total liabilities (2,483,795) (2,448,960)
Net assets 18,097,727 21,306,613
Equity
Share capital 11 7,116,914 7,116,914
Share premium 9,848,949 9,848,949
Retained earnings 1,131,864 4,340,750
Total shareholders’ equity 18,097,727 21,306,613

All attributable to equity holders of the company

Condensed consolidated statement of cash flows

Notes Unaudited six months ended 30 September 2013 Unaudited six months ended 30 September 2012
£ £
Operating activities
Loss for the period (3,208,886) (7,396,989)
Adjustments for non-cash items:
Investment revenue (14,267) (27,075)
Finance costs 57,149 57,456
Share of loss of associate 7,039,697
Losses on deemed
disposals in associate
133,913
Loss on fair value of investment 10 2,440,187
Exchange difference on loss above 10 527,771
Foreign exchange movement 1,566 (8,887)
(196,480) (201,885)
Movements in working capital
Decrease in receivables 2,168 2,221
Decrease in payables (10,123) (50,682)
Net cash used in operating activities (204,435) (250,346)
Investing activities
Investment revenue 14,017 26,825
Mineral property development (46,568) (1,280,091)
Net cash used in investing activities (32,551) (1,253,266)
Financing activities
Proceeds from issue of shares 234,718
Loan received
Net cash generated
from financing activities
234,718
Net decrease in cash
and cash equivalents
(236,986) (1,268,894)
Cash and cash equivalents at start of period 670,345 3,150,644
Foreign exchange movement (1,566) 8,887
Cash and cash equivalents at end of period 431,793 1,890,637

All attributable to equity holders of the company

Condensed consolidated statement of changes in group equity

Share
capital
£
Share
premium
£
Currency translation reserve £ Retained earnings
£
Total
£
Equity at 1 April 2013 – audited 7,116,914 9,848,949 4,340,750 21,306,613
Total comprehensive
income for the period:
Loss for the period (3,208,886) (3,208,886)
Total comprehensive
income for the period:
(3,208,886) (3,208,886)
Equity at 30 September 2013 – unaudited 7,116,914 9,848,949 1,131,864 18,097,727
Comparative period
Equity at 1 April 2012 – audited 7,096,914 9,634,231 3,241,170 35,792,148 55,764,463
Total comprehensive
income for the period:
(Loss) for the period (7,396,989) (7,396,989)
Exchange difference on translation of foreign holdings 42,465 42,465
Total comprehensive
income for the period:
42,465 (7,396,989) (7,354,524)
Shares issued
to discharge a liability
20,000 220,000 240,000
Share issue costs (5,282) (5,282)
Equity-settled benefits credit:
– associate
284,991 284,991
Equity at 30 September 2012 – unaudited 7,116,914 9,848,949 3,283,635 28,680,150 48,929,648

All attributable to equity holders of the company

Notes to the accounts

1.  Basis of preparation

This half-yearly financial report comprises the condensed consolidated financial statements of the group for the six months ended 30 September 2013. It has been prepared in accordance with the Disclosure and Transparency Rules of the UK Financial Services Authority, the requirements of IAS 34 – Interim financial reporting (as adopted by the European Union) and using the going concern basis (and the directors are not aware of any events or circumstances which would make this inappropriate). It was approved by the board of directors on 25 November 2013. It does not constitute financial statements within the meaning of section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for annual financial statements. It should be read in conjunction with the annual report and financial statements for the year ended 31 March 2013 which is available on request from the company or may be viewed at www.angleseymining.co.uk.

The financial information contained in this report in respect of the year ended 31 March 2013 has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified. The half-yearly results for the current and comparative periods are unaudited.

2.  Significant accounting policies

The accounting policies applied in these condensed consolidated financial statements are consistent with those set out in the annual report and financial statements for the year ended 31 March 2013. The following amendments to interpretations were effective in the current period and have been adopted:

IAS 1          Presentation of Financial Statements: Amendments to revise the way other comprehensive income is presented; Issued – June 2011; Effective – Annual periods beginning on or after 1 July 2012. The amendments to IAS 1 require items of other comprehensive income to be grouped into those that will be subsequently reclassified to profit or loss and those that will not. The disclosures will be made in the group’s financial statements for the year ended 31 March 2014.

IFRS 13     Fair Value Measurement: Original issue; Issued – May 2011; Effective – Annual periods beginning on or after 1 January 2013. The application of IFRS 13 has not significantly impacted the fair value measurement of any financial assets or liabilities held by the group. IFRS 13 also requires additional disclosures at the interim period which have been incorporated into IAS 34 These disclosures are given in note 12.

The adoption of the following amendments and new interpretations has not resulted  in a change to the accounting policies nor had a material effect on the financial performance and position of the group. In preparing these financial statements any accounting assumptions and estimates made by management were consistent with those applied to the aforesaid annual report and financial statements.

IFRS 11         Joint Arrangements: Original issue; Issued – May 2011; Effective – Annual periods beginning on or after 1 January 2013.

IAS 19            Employee Benefits: Original issue; Issued – Amended June 2011; Effective – Annual periods on or after 1 January 2013.

IAS 27            Separate Financial Statements (as amended in 2011): Original issue; Issued – May 2011; Effective – Annual periods beginning on or after 1 January 2013

IAS 28            Investments in Associated and Joint Ventures: Original issue; Issued – May 2011; Effective – Annual periods beginning on or after 1 January 2013

IFRIC 20        Stripping Costs in the Production Phase of a Surface Mine; Effective – Annual periods beginning on or after 1 January 2013

Annual improvements 2009-2011: these amendments to IAS 1, IAS 16 and IAS 32 are effective for accounting periods beginning on or after 1 January 2013.

3.  Risks and uncertainties

The principal risks and uncertainties set out in the group’s annual report and financial statements for the year ended 31 March 2013 remain the same for this half-yearly financial report and can be summarised as: development risks in respect of mineral properties, especially in respect of permitting and metal prices; liquidity risks during development; and foreign exchange risks. More information is to be found in the 2013 annual report – see note 1 above.

4.  Statement of directors’ responsibilities

The directors confirm to the best of their knowledge that: (a) the condensed consolidated financial statements have been prepared in accordance the requirements of IAS 34 Interim financial reporting (as adopted by the European Union); and (b) the interim management report includes a fair review of the information required by the FSA’s Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R). This report and financial statements were approved by the board on 25 November 2013 and authorised for issue on behalf of the board by Bill Hooley, Chief Executive Officer and Danesh Varma, Finance Director.

5.  Activities

The group is engaged in mineral property development and currently has no turnover. There are no minority interests or exceptional items.

6.  Earnings per share

The loss per share is computed by dividing the loss attributable to ordinary shareholders of £3.2 million (2012 loss £7.4m), by 160,608,051 (2012 – 159,328,270) – the weighted average number of ordinary shares in issue during the period. Where there are losses the effect of outstanding share options is not dilutive.

7.  Business and geographical segments

There are no revenues. The cost of all activities charged in the income statement relates to exploration and development of mining properties. The group’s income statement and assets and liabilities are analysed as follows by geographical segments, which is the basis on which information is reported to the board.

Unaudited six months ended 30 September 2013 Unaudited six months
ended 30 September 2012
UK Canada – investment Total UK Canada – associate Total
£ £ £ £ £ £
Expenses (196,480) (196,480) (201,885) (201,885)
Loss on fair value of investment (2,440,187) (2,440,187)
Exchange difference on loss above (527,771) (527,771)
Share of loss in associate (7,039,697) (7,039,697)
Loss on deemed disposals (133,913) (133,913)
Investment income 14,267 14,267 27,075 27,075
Finance costs (57,149) (57,149) (57,456) (57,456)
Exchange rate movements (1,566) (1,566) 8,887 8,887
Loss for the period (240,928) (2,967,958) (3,208,886) (223,379) (7,173,610) (7,396,989)
Unaudited 30 September 2013 Audited 31 March 2013
UK Canada – investment Total UK Canada – associate Total
£ £ £ £ £ £
Assets 15,584,948 4,996,574 20,581,522 15,791,041 7,964,532 23,755,573
Liabilities (2,483,795) (2,483,795) (2,448,960) (2,448,960)
Net assets 13,101,153 4,996,574 18,097,727 13,342,081 7,964,532 21,306,613

8.  Deferred tax

There is an unrecognised deferred tax asset of £1.2 million (31 March 2013 – £1.2m) which, in view of the group’s results, is not considered to be recoverable in the short term. There are also capital allowances, including mineral extraction allowances, exceeding £11 million (unchanged from 31 March 2013) unclaimed and available. No deferred tax asset is recognised in the condensed financial statements.

9.  Mineral property development

Mineral development costs incurred by the group are carried in the condensed consolidated financial statements at cost, less an impairment provision if appropriate. The recovery of mineral development costs is dependent upon the successful development and operation of the Parys Mountain project which is itself conditional on finance being available to fund such development. During the period expenditure of £34,377 was incurred (six months to 30 September 2012 – £370,623). The 2012 expenditure included more drilling costs and the cost of terminating a net profits royalty agreement in respect of Parys Mountain. There have been no indicators of impairment during the period.

10.  Investment – formerly interest in an associate

Labrador Iron Mines Holdings Limited (LIM) is the 100% owner and operator of a series of iron ore properties in Labrador and Quebec, many of which were formerly held and initially explored by the group. On 6 November 2012 the group’s holding in LIM was diluted from 26% to 15% as a result of LIM share issues to third party interests. From that date its accounting treatment has changed and LIM is now held as an investment.

Unaudited 30 September 2013 31 March 2013
£ £
Value of investment upon
recognition as a financial investment
10,483,858
Value brought forward 7,964,532
Addition to investment 950,927
Loss on adjustment to fair value (2,440,187) (3,791,439)
Exchange difference arising on adjustment above (527,771) 321,186
Amount carried in the group accounts 4,996,574 7,964,532

The published fair value of the group’s investment in LIM at 30 September 2013 is £5 million (31 March 2013 – £8 million). The shares included above represent an investment in listed equity securities that present the group with opportunity for return through dividend income and trading gains. The group holds a strategic non-controlling interest. These shares are not held for trading and accordingly are classified as ‘available for sale’ which is deemed to be the most appropriate classification under IFRS. The fair values of all equity securities are based on quoted market prices. The above investment is measured subsequent to initial recognition at fair value as ‘Level 1’ AFS based on the degree to which the fair value is observable. Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets.

11.  Share capital

Ordinary shares of 1p Deferred shares of 4p Total
Issued and
fully paid
Nominal
value £
Number Nominal
value £
Number Nominal
value £
At 31 March 2012 1,586,081 158,608,051 5,510,833 137,770,835 7,096,914
Issued 11 July 2012 20,000 2,000,000 20,000
At 31 March and 30 September 2013 1,606,081 160,608,051 5,510,833 137,770,835 7,116,914

12.  Financial instruments

Available for sale asset Loans & receivables Financial liabilities
Unaudited 30 Sep 13 31 March 2013 Unaudited 30 Sep 13 31 March 2013 Unaudited 30 Sep 13 31 March 2013
£ £ £ £ £ £
Financial assets
Investment 4,996,574 7,964,532
Deposit 122,454 122,204
Other debtors 38,071 40,239
Cash and cash
equivalents
431,793 670,345
Financial liabilities
Trade creditors (12,533) (33,860)
Loans due to Juno (2,363,432) (2,306,283)
4,996,574 7,964,532 592,318 832,788 (2,375,965) (2,340,143)

13.  Events after the reporting period

None.

14.  Related party transactions

None.

Directors:

John Kearney                Chairman

Bill Hooley                      Chief executive

Danesh Varma               Finance director

David Lean                     Non executive

Howard Miller                Non executive

Roger Turner                 Non executive

Corporate office telephone: 01248 361333

Parys Mountain site: Parys Mountain, Amlwch, Anglesey, LL68 9RE

Phone 01407 831275

London office: Painter’s Hall Chambers, 8 Little Trinity Lane, London, EC4V 2AN

Phone 020 7653 9881

Labrador Iron Mines  TSX:LIM

www.labradorironmines.ca

Phone +1 647 728 4125

Registered office: Tower Bridge House, St. Katharine’s Way, London, E1W 1DD

Share registrars: Capita Registrars  www.capitaregistrars.com

Phone 0871 664 0300 – for all change of address and shareholder
administration matters (calls cost 10p per minute plus network extras,
lines open 0830 to 1730 Mon-Fri)

Web site: www.angleseymining.co.uk

E-mail: mail@angleseymining.co.uk

Shares listed on the London Stock Exchange – LSE:AYM

Company registration number 1849957

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Labrador Iron Mines Reports Second Quarter Results

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.

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Blocklisting – Interim Review

Name of applicant:          Anglesey Mining plc

Name of scheme:             2004 Unapproved Share Option Scheme

Period of return:           from 1 April 2013 to 30 September 2013

Balance of unallotted securities
under scheme from previous return:                    7,550,000

Plus:  The amount by which the block scheme has
been increased since the date of the last return:           nil

Less:  Number of securities issued/allotted
under scheme during period:                                            nil

Balance under scheme not yet issued/allotted
at end of period:                                                          7,550,000

Total number of shares in issue
at end of period:                                                      160,608,051

Name of contact:  Danesh Varma

Telephone number of contact:  +44 (0)207 6539881

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Result of voting at the AGM held on 24 September 2013

In respect of the voting at the company’s AGM held on 24 September 2013 the directors are pleased to report that all resolutions were passed on a show of hands.

The valid proxies recorded in respect of voting at the meeting were as follows:

Resolution In Favour Against Withheld
1 To receive the report and accounts 59,530,893 4,861 0
2 To approve the directors’ remuneration report 59,512,977 4,861 17,916
3 To reappoint John F. Kearney as a director 59,230,393 305,361 0
4 To reappoint Bill Hooley as a director 59,230,393 305,361 0
5 To reappoint David Lean as a director 59,110,393 425,361 0
6 To reappoint Howard Miller as a director 59,110,393 425,361 0
7 To reappoint Roger Turner as a director 59,230,393 305,361 0
8 To reappoint Danesh Varma as a director 59,110,393 425,361 0
9 To reappoint Mazars LLP as auditors 59,528,843 800 6,111
10 To authorise the directors to fix auditor’s remuneration 59,523,403 8,290 4,061
11 To dis-apply pre-emption rights for certain issues of shares 59,399,643 129,911 6,200

Notes

1. Votes were received in respect of 59,535,754 shares representing 37% of the issued share capital.

2. Any proxy appointments which gave discretion to the chairman have been included in the “For” total.

3. The full text of the resolutions is shown in the notice of the AGM which is available in the annual report and on the website.

Total voting rights

The issued ordinary share capital of the company is 160,608,051 shares with voting rights; there are no shares in treasury.

The above figure may be used by shareholders as the denominator for the calculations which will determine whether they are required to notify their interest in the company, or any change to that interest, under the FSA’s Disclosure and Transparency Rules.

About Anglesey Mining plc

Anglesey holds 15.3% of Toronto-listed Labrador Iron Mines Holdings Limited which is producing high grade hematite from its James mine, one of LIM’s 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.

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LIM AGM and Operations Update

Anglesey Mining plc

19 September 2013        LSE:AYM

LIM – Annual General Meeting

LIM Operations Update

Anglesey’s 15% owned associate Labrador Iron Mines Holdings Limited (LIM) held its Annual Meeting of Shareholders in Toronto on September 18, 2013, and provided an operations update of its direct shipping iron ore mines and projects in the Schefferville area of the Labrador Trough, with the following highlights:

LIM reported the completion of the Joint Venture Agreement with Tata Steel Minerals Canada for the exploration and development of LIM’s Howse Deposit.

For the fiscal second quarter ending September 30, 2013, LIM expects to report the sale of four iron ore shipments (Ships 3 – 6) totalling approximately 700,000 wet metric tonnes (“wmt”) of 62% Fe lump and sinter product. Three iron ore shipments were completed in July and August 2013 and the next shipment (Ship 6) is awaiting loading at the Port of Sept-Îles.

LIM’s four shipments during the quarter should benefit from more favourable iron ore market conditions, where the average iron ore price on the Platts Index has been above US$125 per tonne (CFR China 62% Fe).

LIM’s 2013 exploration program is budgeted at $8 million to drill approximately 14,000 metres (“m”) on a number of key projects including the Howse, Gill and Houston Deposits.

Iron Ore Sales

For the quarter ending September 30, 2013, LIM expects to report the sale of four iron ore shipments (Ships 3 – 6) totaling approximately 700,000 wet metric tonnes (“wmt”) of 62% Fe lump and sinter products, outlined as follows:

Ship 3, SamJohn Dream, departed the Port in mid-July carrying approximately 186,500 wmt of sinter;

Ship 4, Hydra Warrior, departed the Port in early August carrying approximately 175,000 wmt (combined cargo of 128,000 tonnes of sinter and 47,000 tonnes of lump);

Ship 5, Cape Althea, departed the Port at the end of August carrying approximately 175,000 wmt of sinter; and,

Ship 6, Cape Northville, is currently docked at the Port awaiting loading with approximately 165,000 wmt of sinter.

During the first quarter ended June 30, 2013, LIM completed its first two shipments of iron ore totaling approximately 351,500 wmt, which brings total shipments in 2013 to date to approximately 1,050,000 wmt. LIM is working to complete four more shipments during the balance of the year to achieve its target of 1.7 million tonnes of iron ore production in 2013.

Exploration

In addition to a $5 million Howse exploration program, LIM has budgeted $3 million for exploration drilling mainly on the Gill and Houston Deposits.  Gill is located less than one kilometre north of Silver Yards and is expected to provide ore feed to the process plant in future operating years. The Gill Deposit currently has a historic resource of 4.1 million tonnes at a grade of 56% Fe (dry basis).

Drilling will also be carried out on the Houston Deposits, which will test for potential extensions (Houston remains open along strike) and to collect further metallurgical information.

A copy of LIM’s AGM presentation can be found at: http://www.labradorironmines.ca/pdf/LIM-AGM-2013-f.pdf.

For the full LIM press release regarding the AGM please see LIM’s release today on its 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. LIM has commenced its third year of operations and is targeting 1.7 million tonnes of saleable iron ore production 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 its James mine, one of LIM’s 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.

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LIM finalises joint venture agreement with Tata

LIM finalises joint venture agreement with Tata to develop Howse deposit

$30 million cash injection into LIM

Anglesey’s 15% owned associate Labrador Iron Mines Holdings Limited (LIM) has today announced that the previously announced joint venture agreement with Tata Steel Minerals Canada Ltd. (“TSMC”) for the exploration and development of LIM’s Howse iron ore deposit in the Schefferville region of the Labrador Trough has been finalised.

The Howse Deposit is located in Labrador about 25 kilometres north of LIM’s currently producing James Mine and Silver Yards processing facility and adjacent to TSMC’s Timmins Area mines and new processing plant. The Howse Deposit has a historical resource of 28 million tonnes at a grade of 58% Fe (natural basis).

Under the terms of the joint venture agreement, TSMC and LIM have agreed to form an unincorporated joint venture pursuant to which Howse Minerals Limited, a wholly owned subsidiary of TSMC has acquired an initial 51% participating interest in the Howse Property for a total cash consideration of $30 million.  “Completion of the Howse joint venture agreement with TSMC is an important step forward for LIM and will significantly fast track the development timeline for this new mine” commented John Kearney, LIM’s Chairman and Chief Executive Officer. “We are very pleased to be co-operating with Tata Steel, one of the world’s major steel companies, in this venture and we look forward to working with TSMC to advance the Howse project into production.”

Co-operation Arrangements

As part of the strategic relationship between LIM and TSMC that was announced on March 12, 2013, the two companies have been co-operating with each other in various aspects of their respective iron ore operations in the Labrador Trough. The strategic relationship includes multi-part co-operation agreements in areas of logistics, property rationalisation and various ancillary mutual support and potential off-take arrangements.

As part of the logistics agreements, the companies have formalised arrangements for construction of the new rail line that will extend LIM’s current rail line from Silver Yards to TSMC’s new Timmins Area processing plant and thus connect both companies to the TSH main rail line.

The construction of the rail line between TSMC’s Timmins Area processing plant to LIM’s Silver Yard is already underway. Pending the construction of the new rail line to the Timmins Area plant, TSMC is loading iron ore trains at LIM’s Silver Yards rail facility and the two companies are sharing iron ore rail cars and rail locomotives.

For the full LIM press release with further details of the joint-venture please see LIM’s release today on its 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. LIM has commenced its third year of operations and is targeting 1.7 million tonnes of saleable iron ore production 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 its James mine, one of LIM’s 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.

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Interim management statement and LIM results for quarter to 30 June 2013

Anglesey’s major activity is its 15% share of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:LIM) which holds twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec and is currently mining the first of these to be developed at the James Mine.

Anglesey also holds 100% of the Parys Mountain zinc-copper-lead deposit in North Wales, UK with a total JORC compliant indicated resource of 2.1 million tonnes and an inferred resource of 4.1 million tonnes.

Labrador

Labrador Iron Mines has published its Financial Statements and Management Discussion and Analysis report for the three months ending 30th June 2013 both of which can be found on SEDAR and on LIM’s website at www.labradorironmines.ca.  Key points are:

During the quarter, LIM sold two shipments of iron ore totalling 328,000 dry tonnes and reported revenue of C$17.9 million (free on board Port of Sept-Îles).

LIM commenced its third operating season in early April 2013 at the James Mine, following a waste removal program in March. The Silver Yards Processing Facility resumed operations in April with initial ore processing activities commencing from the dry plant.

Mining, processing and railing operations during the quarter were hampered by a combination of slower than anticipated contractor mobilization in March and challenging weather conditions in March and April. Train loading, railing and shipping were limited to the availability of saleable product produced, resulting in higher operating costs and lower revenue during the quarter due to fewer ships sold than planned.

For the first quarter ended June 30, 2013, LIM reported a net loss of C$28.5 million.

At June 30, 2013 current assets were C$67.9 million, including inventories with a carrying value of C$11.0 million, accounts receivable and prepaid expenses of C$26.2 million, a total of C$27.3 million in unrestricted cash and cash equivalents and C$8.6 million in restricted cash.  Current liabilities, consisting of accounts payable and accrued liabilities, the current portion of deferred revenue, finance lease obligations and rehabilitation provision, were in aggregate C$67.2 million.

The Phase 3 expansion of the wet plant was largely completed in June, with commissioning of the wet high intensity magnetic separator continuing through July.

Subsequent to the end of the quarter, LIM’s third and fourth shipments of 2013 departed from the Port of Sept-Îles, totalling approximately 361,500 wet metric tonnes of iron ore product at a grade of 62% iron (“Fe”).

With the completion of all construction and commissioning activities at Silver Yards and the addition of a fourth train set in July, mining and railing volumes are now achieving operating plan objectives, while product recoveries in the wet plant are improving.

LIM is currently targeting a total of approximately 1.7 million tonnes of iron ore products in 2013 consisting of ten shipments. Planned shipments for the balance of 2013 will be sinter fines and lump ore at a planned average grade of about 62% Fe.

LIM’s first quarter ended June 30, 2013 was characterized by a disproportionate amount of waste removal, and lower than planned volumes of mining, railing and sales, resulting from slower than anticipated contractor mobilization in March and challenging weather conditions in March and April. As a consequence, train loading, railing and shipping volumes were limited to the availability of saleable product produced. LIM incurred significant rail related volume commitment penalties during the quarter and achieved sales of only two shipments instead of three shipments as planned. The sale of the third shipment occurred shortly after the end of the quarter.

For the quarter ended June 30, 2013, LIM’s loss of C$28.5 million included a depletion and depreciation charge of C$5.6 million and rail take-or-pay transportation penalties of C$6.2 million.

“LIM recognizes its current cost structure is too high and has undertaken a number of immediate and decisive measures to reduce both capital and operating costs” commented John Kearney, LIM Chairman and Chief Executive Officer. “The key to reducing operating costs is to maintain and increase production volumes of iron ore. It is expected that as production volumes increase during the remaining months of the operating season, a significant reduction in operating unit costs will be achieved in the second and third quarters.”

With the increase in production and railing volumes, the minimization in take-or-pay transportation penalties and the implementation of cost savings initiatives, cash operating costs during the remaining three quarters of the fiscal year are expected to be substantially lower than in the first quarter.

“With more favourable spot iron ore prices seen in recent weeks, combined with the operational improvements and cost reductions, we expect to achieve stronger results for the balance of the 2013 season” added John Kearney.

Parys Mountain

Operations at Parys Mountain have been limited since the last report and largely confined to care and maintenance of the facilities.  Nevertheless a geological review of the property based in a large part on the results from last year’s drilling programme has commenced and is expected to lead to a reappraisal of development targets which will be an input into revisions to the Scoping Study.

Meanwhile the company remains confident that the market for its key base metals, particularly zinc, will improve in the medium term as the world comes out of recession and as China continues to show strong growth despite earlier uncertainties.

About Anglesey Mining plc

Anglesey holds 15.3% of Toronto-listed Labrador Iron Mines Holdings Limited which is producing high grade hematite from its James pit, one of LIM’s 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) 20 7653 9881;

Samantha Harrison:  RFC Ambrian +44 (0)20 3440 6800;

Emily Fenton/Jos Simson:  Tavistock Communications +44 (0)20 7920 3155.

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Annual financial report 2013

Anglesey Mining plc

A UK mining company listed on the London Stock Exchange

Anglesey is the founder and holder of 15% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:LIM) which is producing iron ore from its James deposit, one of LIM’s direct shipping iron ore deposits in western Labrador and north-eastern Quebec. Development of other deposits is planned and production of the high grade hematite iron ore is targeted to grow from 1.7 million tonnes in 2012 to between 1.75 and 2 million tonnes in 2013.

Anglesey is carrying out exploration, development and pre-feasibility work at its 100% owned Parys Mountain underground zinc-copper-lead-silver-gold deposit in North Wales, UK.

Anglesey owns 19.3m LIM shares (15%) and has issued 161m of its own shares all of which are admitted to trading on the London Stock Exchange.

Chairman’s Statement

In a year of difficult trading conditions in all resource sectors I am pleased to report that the company is weathering the storm and will see through the remainder of this current downturn. At Labrador Iron which we formed in 2007 and is today Canada’s only independent iron ore producer, the significant variability in iron ore prices during the second half of 2012 resulted in large reported losses and put a drain on the cash resources of that company. However four major funding events in late 2012 and early 2013 provided LIM with the necessary capital to enable it to enter its third year of mining operations which I am happy to report is now well under way. At Parys Mountain, following last summer’s successful exploration programme, we are taking the opportunity to review all the information available on the project and to consider the best alternatives whilst minimising expenditure at the current time.

All mining stocks are suffering in the current marketplace and both Labrador Iron and Anglesey Mining have been part of this severe downturn. We hope that as LIM demonstrates its current production capability, and with the benefit of a price protection programme in place to guard against any repeat of last year’s low prices, that the market will recognise the inherent value in LIM which should be reflected in the Anglesey share price.

There is undoubtedly pressure on commodity prices largely as a result of some reduction in the growth rate in China, however we do not support the notion that there will be a return to the levels of the early years of this century. Iron ore prices have come off from their all-time highs but remain relatively strong and it is far from certain that the forecast increase in supply will actually occur since many of the previously announced large undeveloped projects are likely to find financing impossible to obtain. Meanwhile base metals, which have slipped from their highs, also remain firm and with limited new production coming on line or even planned, we look for significant improvement in the middle term.

Our strategy therefore is to weather the current turbulent times, to retain cash where possible, to maintain our holding in Labrador Iron which today has a market value of almost £7 million and to leave ourselves ready and able to move forward when metal prices and capital markets return to more positive territory.

Labrador Iron

Following the initial production year in 2011, 2012 began well and production was on target to meet the target of 2.0 million tonnes of saleable product. However a major downturn in iron ore prices in August and September which saw spot prices for 62% Fe CFR China fall from around $120 per tonne to $85 per tonne in just four weeks left LIM in a vulnerable position in which it had no alternative but to cut all expenditure and curtail some production. Nevertheless iron ore sales for the year amounted to just over 1.5 million tonnes and LIM reported revenues from mining operations of C$96 million.

Last year was also very successful on the exploration front with new techniques permitting more and better drilling to be carried out for lower costs, and all this new information led to significant increases in compliant resources particularly on the Houston and Malcolm deposits, which will form the core of the next ten years production, and on the development of a maiden 620 million tonne taconite deposit close to LIM’s current infrastructure.

After the financial difficulties in late 2012 it was necessary to rebuild the LIM balance sheet and I am pleased to report that very encouraging support was received from the market place and $C59 million was raised in two equity issues in late 2012 and early 2013. LIM also entered into a strategic agreement with Tata Steel Canada regarding cooperation on a number of matters including the sale of a 51% interest in the Howse property which will result in the payment to LIM of $C30 million on completion. After the end of the financial year LIM also received a $35 million prepayment from RB Metalloyd as part of a two year iron ore sales agreement.

LIM began its third year of mining operations in late March 2013 and is now in full swing. Sales of between 1.75 and 2.0 million tonnes of iron ore are targeted this year. To guard against what now looks to be an annual dip in iron ore prices during the autumn period, LIM has put in place a price protection programme for 825,000 tonnes of iron ore at a floor price of $105 per tonne.

Parys Mountain

During the summer of 2012 we completed a successful exploration drilling programme at Parys Mountain. This work demonstrated that mineralisation at economic grades exists across at least 1.5 kilometres from the Morris Shaft area in the west of the property to the Pearl engine house area in the east. This work was followed by the production by Micon International of a JORC compliant resource estimate on the majority of the known and readily reachable development targets. Micon had produced a JORC resource for White Rock previously but this new estimate also brought both the Engine zone and Garth Daniel resources into a modern compliant basis compared to the historical estimates upon which the company had been reliant since 1990.

Micon had also made progress on a scoping study for Parys Mountain but given the current market conditions the company has decided to have a fundamental review of the technical and geological information available and to evaluate all the options for moving this project forward to production.

In July 2012 a net profits royalty on production from Parys Mountain was bought out and cancelled and outstanding advance royalty payments of £759,680 were settled for a cash payment of £630,000 and the issue of 2,000,000 ordinary shares. Cancellation of that royalty will improve both the economics and the ability to finance the Parys Mountain project.

We hold freehold title to the area of Parys Mountain that contains all our known resources and infrastructure. We have very low on-going cash commitments and these remain well within the current financial capability of the company, allowing us the benefit of time to make assessment without any risk of loss of resources.

We continue to closely watch base metal markets both from a price perspective as well as from materials supply view. We remain confident that the zinc copper and lead in Parys Mountain will improve firstly in relative demand which will flow through to higher prices in the medium term and we will be well prepared to take advantage of this at the appropriate time.

Financial Results

There was a large loss after tax of £31,451,398 for the year ended 31 March 2013. This compared to a profit of £19,386,555 reported in 2012. In both years a major factor was non-cash charges in respect of the accounting treatment of deemed disposals in LIM. These arise when LIM issues new shares to third parties; in 2012 they resulted in profits and in 2013 in losses due to the lower share prices at which these issues were made in that year. In addition, LIM reported significant operating losses in 2013 as well as amortisation charges and write downs in intangible assets.

During the year the group’s holding in LIM was diluted from 26% to 15% as a result of the new share issues by LIM. Consequently LIM ceased to be treated as an associate for accounting purposes and an accounting loss of £16,149,722 was recorded on recognition of the associate as an investment accounted for at fair value through profit and loss. There was a further non-cash loss of £3,791,439 over the period following the reclassification as an investment at fair value.

The group’s cash balance at 31 March 2013 was £670,345 (2012 – £3,150,644). The decrease from last year was due to the investment in LIM shares in November 2012 for £950,927, the buy-out of the Parys net profits royalty, Parys development expenditures and administrative expenses.

The group’s operating and administrative costs for the year were £398,428 (2012 – £396,807).

Ian Cuthbertson

It would be remiss of me not to mention that Ian Cuthbertson will be leaving us at the end of July. Ian has been with Anglesey since its flotation in 1988 and has been much involved with all the developments with their highs and lows since then. During this time he has held the posts of accountant, company secretary and finance director. However this does not tell the full story and during this 25 year period of service he has been a central part, and indeed for much of that time the major part, of the management of the company. Ian will still be available give us on-going advice using his extensive knowledge of the history and activities of the company – we wish him the very best of good fortune in his retirement and in the years to come.

Outlook

We are in a period in which patience will be a great virtue. We certainly need to see how LIM develops during 2013 but with its current year production plan well under way and with autumn prices protected we remain comfortable that an improvement is ahead. At Parys Mountain we do have the benefit of time if needed and we will take that opportunity to develop the most rational approach available under current and predicted price and market scenarios.

John F. Kearney

Chairman

23 July 2013

For a full text pdf of the annual report please click here.

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LIM March 2013 year-end results and operational update

Anglesey Mining’s 15% held associate Labrador Iron Mines Holdings Limited (TSX: LIM) today reports its operating and audited financial results for the fiscal year ended March 31, 2013. LIM is also pleased to provide an update on its 2013 operating season, as the second shipment of iron ore departed the Port of Sept-Îles on June 27, 2013.

Recent Operating Highlights

LIM commenced its third season of operations in April 2013 with the re-start of full-scale mining activities targeting 1.75 million to 2.0 million tonnes of saleable iron ore production in 2013. Recent operating highlights include:

  • The first shipment for 2013 sailed from the Port of Sept-Îles in early June carrying approximately 174,000 wet metric tonnes (“wmt”) of iron ore. This was followed by LIM’s second shipment carrying approximately 177,500 wmt on June 27, 2013.
  • The Silver Yards Phase 3 upgrade and expansion for the wet plant was commissioned in June and has been operating in conjunction with the dry plant, which has been processing ore since April.
  • Railway operations recommenced in early April. For the 2013 operating season, LIM is using newly-built, rotary dumper compatible iron ore gondolas, comprising longer, 164-car train sets, allowing for improved productivity and potential cost savings.
  • New, independent National Instrument 43-101 (“NI 43-101”) year-end resource estimates showed a 33% net increase in LIM’s year-end mineral resource to 59.5 million tonnes grading 56.7% Fe, including an increase in the combined Houston and Malcolm resource to 40.6 million tonnes grading 57.6% Fe. In addition, a new indicated and inferred resource was also estimated on historic stockpiles, providing supplementary plant feed for Silver Yards in future years.
  • LIM announced its first independent NI 43-101 inferred mineral resource estimate on the Elizabeth Taconite Project of 640 million tonnes grading 31.8% Fe.

“We are pleased with the solid start to our third operating season, highlighted by two shipments sold in June,” commented Rod Cooper, President and Chief Operating Officer. “Our operating crews have worked hard in addressing the challenging weather conditions experienced in April and May and activities at site have progressed well as we head into the important summer months. The ramp up of the Silver Yards processing facility and connection to the power grid are two positive accomplishments, and with a number of other enhancements made in the areas of the mine, process plants and rail, we look forward to meeting our production targets for the year.”

Addressing important requirements for the 2013 operating season

In preparation for the 2013 operating season, we have executed many important initiatives in securing our working capital requirements, increasing liquidity and addressing volatility in the iron ore markets.” commented John Kearney, Chairman and Chief Executive Officer. “We believe this has allowed us to mitigate some of the challenges we experienced in 2012, which overshadowed our operational achievements during the year.”

  • In May 2013, LIM signed a new, two-year iron ore sales agreement with the Iron Ore Company of Canada (“IOC”) for the sale of LIM’s iron ore production for calendar years 2013 and 2014, with the price calculation based on the monthly average of the market index.
  • At the same time in May 2013, LIM entered into an off-take financing arrangement with RB Metalloyd Limited (“RBM”), under which RBM advanced a pre-payment of US$35 million to LIM, to be credited against the proceeds of LIM’s committed sales of 3,500,000 tonnes of iron ore during 2013 and 2014.
  • LIM has put in place a limited price protection program to address potential iron ore market volatility, purchasing put options on 825,000 tonnes of iron ore over the period August to October 2013, exercisable at a CFR China price of US$105 per tonne.
  • In order to mitigate the risk of significant ocean freight cost escalation, LIM has agreed to fixed freight costs to northern China on seven vessels during 2013.
  • In March 2013, LIM established a strategic relationship with Tata Steel Minerals Canada (“TSMC”), a subsidiary of Tata Steel Limited, which includes multi-part cooperation agreements in various aspects of the companies’ respective iron ore operations in the Labrador Trough. Subject to completion of formal agreements, TSMC will pay $30.0 million to LIM for the sale of a 51% interest in LIM’s Howse deposit, which will be used to fund various expenditures for the 2013 operating season.

John Kearney added, “For 2013, our operational priorities are to minimize costs, maximize production and sales and to ensure that sales revenue is generated as early as possible. We have implemented cost reduction and cash conservation measures across all aspects of our operations.”

Financial Results

For the fiscal year ended March 31, 2013, LIM recognized revenue from mining operations of $95.7 million (FOB Port of Sept-Îles) on sales of 1.56 million dry tonnes of iron ore in ten shipments completed during the year. This revenue is recognized on an FOB Port of Sept-Îles basis and is net of deduction of ocean freight and IOC’s participation.

Revenue for the 2013 fiscal year was negatively impacted by low realized iron ore prices (CFR China spot price less value-in-use adjustments and before ocean freight and IOC participation), particularly in the period from August to October 2012, when the spot price of iron ore suffered a sharp decline of 33%.

For the fiscal year ended March 31, 2013, LIM reported a loss of $129.7 million or $1.56 per share, resulting primarily from an operating loss (before depletion and depreciation) of $28.9 million, a depletion and depreciation charge of $29.7 million and write-downs totalling $61.2 million comprising a write-down of mineral property interests of $58.1 million and a $3.1 million provision against certain doubtful receivables.

Notice: Conference Call and Webcast held today at 11:00 am Toronto time.
Dial-in: +1 (647) 427-7450

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. LIM has commenced its third year of operations and is targeting 1.75 to 2.0 million tonnes of saleable iron ore production 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 its James pit, one of LIM’s 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;

Ian Cuthbertson, Finance Director +44 (0)1248 361333;

Samantha Harrison:  RFC Ambrian +44 (0)20 3440 6800;

Emily Fenton/Jos Simson:  Tavistock Communications +44 (0)20 7920 3155.

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Posted in Labrador | Comments Off on LIM March 2013 year-end results and operational update