ANGLESEY MINING PLC: 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
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
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
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
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.
-0- Nov/15/2013 11:37 GMT
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