www.angleseymining.co.uk
26% of Labrador Iron Mines in Canada
100% of Parys Mountain in Wales
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:LIM) which is now producing iron ore from its James deposit, one of LIM’s twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec. Development of other deposits is underway and production of the high grade hematite iron ore is targeted to grow from 2Mt in 2012 to 5Mt in 2015.
LIM’s properties are part of the Schefferville area iron ore district in the Labrador Trough where the Iron Ore Company of Canada mined from 1954 to 1982. See the Labrador Iron Mines website for further details.
Anglesey is also carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is estimated to be a total historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.
Anglesey owns 17.8m LIM shares (26%) and has 158m of its own shares in issue.
Anglesey Mining: UK market has largely overlooked this iron ore play - broker
Anglesey Mining (LON:AYM) is in an "extremely robust" financial position while the recent sell-off is unjustified, according to City broker Ambrian, which initiated coverage of the stock.
It believes the aggressive selling down of Anglesey stock, and by extension, Labrador Iron Mines (in which Anglesey has a 33 percent stake), over the last quarter has been "unjust".
The company's share price has lost around a third of its value since the end of March.
It comes after LIM yesterday released financial statements for Q4 and year to 31 March along with an update on operations.
LIM said the first train carrying shipping ore left for the Sept-Iles port on June 29 - representing the first commercial iron ore train movement from the Schefferville area in almost 30 years.
Full scale mining is underway at the James Mine where around 120,000 tonnes of iron ore have been stockpiled so far and mining will continue until November at a rate of around 15,000 tonnes of ore per day.
It is estimated that around 2.5 million tonnes of ore will be mined from the James Mine during the current financial year and, subject to weather, around one million tonnes of saleable product will be railed to the Port of Sept-Iles, LIM told investors.
LIM's Schefferville project envisages the development of 20 direct shipping iron ore deposits in western Labrador and north-eastern Quebec near Schefferville.
LIM said it had experienced some delays in the delivery of railcars and in finalising port and shipping details - leading to a delay in the first shipment and sale of iron ore.
It expects that the first iron ore shipment will be loaded at the port in early to mid-August and that it was hoping to finalise arrangements for the sale of its 2011 ore production.
Ambrian said: "We do not consider that a few months delay in first ore shipment and sale to be too material a lag forecast. This is especially pertinent given its extremely robust financial position."
The broker added that, while it realised a few negotiations needed to be concluded, it did not see them as major sticking points.
"With a high-grade DSO product within months of the first commercial sales, we believe that the UK market has largely overlooked this iron ore play.
"Instead, the UK market has focused its attention on iron ore development stories in West Africa. We think that Anglesey (though its 33 percent exposure to LIM) offers a far lower long-term geopolitical risk option for investors that want to take equity exposure to the iron ore development space.
"In the UK equities market, this also appears to us the first iron ore development story to be able get its operations: a) into production; and b) at a far lower capital intensity than many of its West African peers."
