Anglesey Mining plc
Anglesey Mining plc released its annual report and
accounts on 27 July 2011. The chairman's statement is shown below and the
complete financial report can be viewed or downloaded as a pdf from here.
A UK mining company listed on
the London Stock Exchange
33% interest in Labrador Iron Mines Holdings Limited, a TSX quoted
Canadian company with 39 million tonnes of compliant direct shipping hematite
iron ore and 125 million tonnes of historical resources near Schefferville in
Canada, where production and processing of iron ore is now underway.
The market value of the group?s investment in LIM at 31 March 2011 was
?156 million compared with ?75 million at the same date in 2010. At 19
July 2011 this value was ?129 million, equivalent to 81 pence per Anglesey
share.
The first
of LIM?s iron ore deposits has
now been brought into production and
LIM is moving towards becoming
a significant producer.
100% of the Parys Mountain copper-lead-zinc project in North Wales with
a total historical resource of 7.76 million tonnes at 9.3% combined copper,
lead and zinc, held awaiting development.
Chairman?s
Statement
This has been the most successful year that Anglesey
Mining has ever experienced with the Schefferville iron ore mining operations
of Labrador Iron Mines (?LIM?), in which the group holds 33% of the equity, moving
into production. The first rail shipment of iron ore to the port of Sept-Iles
was despatched in June 2011 and LIM is now on track to produce over one million
tonnes of iron ore this year, with plans for expansion to enable production of
2.5 million tonnes in 2012.
The key developments and progress since the last
Annual Report were:
?
LIM?s steady
progress towards production saw the price of LIM shares continue to increase
and at 19 July 2011 the market value of the group?s holding in LIM was C$199 million
(?129 million) equivalent to 81 pence per Anglesey share.
?
LIM completed
a share placement in April 2011 in which it raised C$121 million (?78.5
million). It
is now well financed to carry through its expansion plans.
?
The
price of iron ore has remained strong and currently stands at around US$175 per
tonne (CFR China) and the consensus of forecasts by respected market analysts
is for trading in the range of $150 - $200 per tonne for a number of years.
This should be very positive for the future of LIM.
?
In
January 2011 Anglesey raised ?1.6 million through the exercise of share options
with a concurrent private placing and now has a total of around ?3.5 million in
cash.
Parys Mountain
At
Parys Mountain, the group holds 100% of the largest known base metal deposit in
the United Kingdom. Resources of zinc, copper and lead with small but
significant amounts of silver and gold total 7.76 million tonnes, most of which
are historic resources, but which include 1.75 million tonnes of JORC compliant
resource in the indicated category.
The
prices for copper, zinc, lead, gold and silver, which are the major metals to
be mined at Parys Mountain have remained strong. We believe that the Parys
project has the potential to become a very significant base metal producer with
by-products of gold and silver which would generate a substantial value for
shareholders.
It is
intended to undertake a detailed review of the resources and the development
options for Parys Mountain during the remainder of 2011. This review will
include the reappraisal of the previously proposed White Rock mine which would
target near surface resources as a first stage development option, which would
lead to the subsequent development of the deeper lying resources. The review
will also include the identification of drilling targets close to the White
Rock with the objective of increasing the near surface resources.
Financial
The
results of Anglesey are dominated by those of its associate LIM, which during
the financial year was a development company with no revenues and significant
expenses in respect of its administrative costs. Primarily as a result of the
losses reported by LIM, Anglesey recorded an overall loss of ?1.44 million for
the year ended 31 March 2011.
With
a total of around ?3.5 million in cash and administrative cash costs of less
than ?0.4 million per year the group is well placed to finance the review and
the first stages of any subsequent development of Parys Mountain.
I
look forward to the on-going success of Anglesey in what are truly exciting
times.
John F. Kearney
Chairman
The complete financial report can be viewed or
downloaded as a pdf from here.
About Anglesey
Mining plc
Anglesey Mining with its LSE main board listing is primarily
focused on its 34% interest in Labrador Iron Mines (TSX:LIM). In addition to
any new projects that may be brought forward the company owns 100% of Parys Mountain
in North Wales with an historical resource in excess of 7 million tonnes at
over 9% combined copper, lead and zinc.