"The recent improvement in the price of zinc may be the sign that we have been waiting for a number of years,” said chairman John Kearney.
The group said that its 100%-owned Parys Mountain project will benefit from the expected improvements in base metals and particularly from an increase in the price of zinc, which it said will be the predominant metal to be produced in the early years of the project.
In a recent note, ICBC Standard Bank suggested that zinc stocks could fall to a critical point by as early as November this year. On that basis it forecasts that zinc prices will at least double from the recent level of $US0.95 per pound within a year.
“We share this optimism and see no reason to doubt this analysis and we are therefore now embarking on a technical review and updated scoping and economic study of the Party Mountain project,” said Kearney.
The group said that despite a number of uncertainties in the metals markets, there is sound reason to believe that it has passed the low point in the commodities cycle.
China is expected to reposition its economy to be less reliant upon construction, but increasing urbanisation, the demand for metals will continue. Coupled with reductions on the supply side, this will inevitably lead to much higher metal prices, said Kearney.
For the year ended March 2016 loss after tax eased to £256,450 compared to a loss of £1,736,610 in the 2015 fiscal year.
The 2015 loss was due to a drop in the value of its Labrador iron investment.
There were also significant expense reductions during the year, which including the waiver of salaries and fees by directors.
Elsewhere, gold and silver increased in value over the last year and is trading near to 12 month highs.
But the price of iron ore, on which both Labrador and Grangesberg rely, did not improve to levels that would sustain a return to production at Labrador and prices have fallen back to lower levels.
“We trust that this time next year we will be able to report upon a positive outlook for the future and for Anglesey Mining,” said Kearney.