Proactiveinvestors recommends
Additional Information
Market: AIM
Sector: General Mining - Iron Ore and Bauxite
EPIC: LOND
Latest Price: 293.00p  (0.26% Ascending)
52-week High: 438.00p
52-week Low: 255.75p
Market Cap: 400.79M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
London Mining
www.londonmining.co.uk

London Mining Plc is a UK-based company that is developing mines for the steel industry. It has 100% of the Marampa hematite iron ore mine in Sierra Leone, 100% of the Isua magnetite iron ore project in Greenland, a 50% stake in on the Wadi Sawawin joint venture in Saudi Arabia, a 50% stake in the China Global Mining Resources joint venture and a 100% stake of an coking coal development project in Colombia. The Company listed on the Oslo Stock Exchange on 9th October 2007 and on London AIM on 6 November 2009.

Full London Mining profile here
Pdf

London Mining successfully closes US$90mln placing

25th Jan 2012, 7:05 am by Giles Gwinnett and Jamie Ashcroft In a statement, after Tuesday's trading on the LSE, the company revealed that it will issue 22.6 million shares at a price of 255p a share. This will raise a total of US$91 million

London Mining (LON:LOND) has confirmed the details of its US$90 million institutional share placing after the books closed yesterday.

In a statement, after Tuesday's trading on the LSE, the company revealed that it will issue 22.6 million shares at a price of 255p a share. This will raise a total of US$91 million.

The new funds will allow London Mining to increase the rate of iron ore production at the firm's flagship Marampa mine in Sierra Leone.

"(The) equity raise allows us to focus on near term delivery of production at Marampa, Phase 1 growth plans to 5Mtpa by 2014 and completion of our BFS for a further expansion to 9Mtpa," said chief executive Graeme Hossie.

Yesterday, the firm said the extra funds meant the expansion of the mine could be accelerated to reach 5 million tonnes per annum (Mtpa) by 2014 instead of the 4.6 Mtpa, previously targeted. Eventually, production at the mine could reach 17 Mtpa.

"The accelerated programme now includes earlier expansion of the existing plant, accelerated development of the second processing plant and earlier than expected enhancement of logistics required to ensure delivery of higher volumes of production," it had said.

The early funding of the expansion programme will allow building to begin before the wet season in Sierra Leone and means the construction teams used on the existing Marampa operation can be retained.

Marampa production is expected to be unchanged at 1.5Mtpa in 2012, increased by 0.7Mt to 4.2Mt in 2013 and by 0.4Mt to 5Mtpa in 2014.

“This increased production provides the operation with significant economies of scale, improving near term operating margins and secures the development of the infrastructure enhancements and support services required for a larger, longer life operation,” the company also said.

The plan provides London Mining with significantly increased cash flow and takes advantage of expected higher pricing over the next three years.

"The expected increased cash flow will also strengthen its capability to self-fund the future expansion at Marampa to 9Mtpa," it added.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.