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London Mining shares advance on upbeat financials

Last updated: 09:25 06 Mar 2014 GMT, First published: 10:25 06 Mar 2014 GMT

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London Mining (LON:LOND) shares advanced more than 5% after reporting positive results from the continued ramp up of the Marampa mine in Sierra Leone.

In 2013, full year iron ore production totalled 3.4mln wet metric tonnes which is 108% more than the year before.

The company generated revenues from the sale of 3.7mln wet metric tonnes, this was slightly ahead of guidance (of 3.5 to 3.6 mln tonnes).

Group earnings for the twelve months to December 31 rose to US$54.1mln compared to a US$14.2mln loss in 2012. Group operating profit increased by US$49.8mln to US$22.6mln, from a US$27.2mln loss, and pre-tax losses narrowed to US$19.2mln from US$58mln.

This year London Mining expects to produce between 4.9mln and 5.4mln tonnes, this factors in a slower than expected ramp up of the plant in the first quarter.

"2013 was a year of real progress for London Mining, particularly at our Marampa mine," chief executive Graeme Hossie said.

He added: " During Q4 our production was impacted by an extended wet season combined with a longer than expected completion for the new plant upgrades. 

"This was compounded by a negative stockpile adjustment in December resulting in volumes falling short of expectations and original forecasts. 

"We have made improvements to our operations, in particular to build a substantially increased ROM stockpile, to ensure these issues do not reoccur and, when combined with completion the commissioning of the plant upgrades, we expect to deliver production of 4.9 to 5.4Mwmt in 2014."

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