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Anglesey Mining turns loss into profit of £8.2m
IRON ore exploration firm Anglesey Mining has reported a profit of £8.2m, reversing a loss last year.
The venture – which is listed on the London Stock Exchange’s main market – also said that they were looking for partners to take forward exploitation of their site at Parys Mountain on Anglesey to develop their iron, copper and zinc deposits, which they fully own.
In the year to March 31 2010, the company saw pre-tax profit of £8.2m after a loss last year of £0.57m.
The Amlwch company has a reduced stake in Canadian mining company Labrador Iron Mines Holdings (LIM) after its 50% shareholding was diluted by a successful $35m equity raising by the Canadian subsidiary.
Production at the Canadian mine is due to start later this year with full-scale commercial production scheduled to begin next April.
Anglesey also raised £2.7m through the sale of a small portion of its shares in LIM, which meant that the group’s interest in the Canadian firm was reduced to 41%. In 2011 LIM expects to achieve an output of two million tonnes of iron.
Focus on development for the company has been on the vast site in western Labrador and north-eastern Quebec in Canada, where the company is looking to develop 150 million tonnes of iron ore.
The company had previously carried out more drilling work at the project in Parys Mountain to gain a better understanding of the sub-surface deposits and said when releasing its results that it would conduct further “technical programmes” designed to improve understanding of the deposits.
Chairman John Kearney said: “During most of the year activities at Parys Mountain have been overshadowed by the drive towards production in Labrador. We feel that the best route forward for developing Parys Mountain would be with a partner.
“Efforts in this direction will be increased in conjunction with limited technical programmes designed to improve geological understanding on the Parys deposits and the potential of the property, such as the computer-based geological remodelling.”
Mr Kearney said that the short-term objective remained to put LIM into production and that the Parys Mountain project would be “moved forward” as a medium-term aim.
The company said that high iron ore prices and increased market interest in iron ore generally led to the company’s share price peaking at 44p in April 2010, something it called a “dramatic improvement” on the price of 4.75p when it released its 2009 annual report.
The share price has since settled at around 24p.
The firm also said that iron ore prices had grown “strongly” during the year and despite some softening it expected prices to be supported by “robust” Chinese demand.
Mr Kearney added: “The stock market has been more than usually volatile over the past few months following concerns that growth in the Chinese economy might be weaker than previously anticipated.
“We remain confident that iron ore price levels in 2011 will provide strong cashflows from the Labrador operations.”
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