TIDMLOND
RNS Number : 3130A
London Mining Plc
29 March 2012
London Mining Plc
("London Mining" or the "Company")
29 March 2012
AUDITED FINANCIAL RESULTS FOR THE FULL YEAR ENDED 31 DECEMBER
2011
A milestone year for London Mining
Highlights
Marampa, Sierra Leone (100% owned)
-- First production of high specification concentrate achieved in December 2011
-- JORC classified Mineral resources increased by 7% to 1,078Mt
grading 31.2% Fe with 81% in the Indicated category
London Mining Colombia (100% owned)
-- First production achieved but behind schedule due to La Nina
-- Ramp up to 200ktpa capacity expected Q4 2012
-- Resource evaluation programme continues
-- USD 10.1 million impairment made relating to delays and increased capital expenditure
Wadi Sawawin (25% owned)
-- Agreement with STX to undertake front end engineering design
Financial
-- Group EBITDA loss USD 40.5 million (2010: USD 31.4 million)
-- USD 218.4 million net cash inflow from financing and USD
192.9 million net cash outflow from investing activities
-- Strong balance sheet to fund projects, cash at 31 December 2011 was USD 67.8 million
Corporate
-- Opened China office in Beijing to focus on marketing and financing
Post period highlights
Marampa, Sierra Leone (100% owned)
-- Over 271,500wmt of concentrate produced at 26 March 2012
-- Five supramax shipments now made with 243,200wmt shipped at mid March
-- Construction has commenced for expansion to 5Mtpa, second
plant start-up expected in Q1 2013
-- BFS for accelerated expansion to 9Mtpa expected by end of Q3 2012
-- Revised MLA ratified by Parliament of Sierra Leone
Isua , Greenland (100% owned)
-- BFS shows robust and attractive economics with NPV of USD 2.37 billion and IRR 20.9%
-- 15Mtpa premium 70.2% Fe blast furnace pellet feed with less than 2% SiO2 and Al2O3
-- JORC classified Mineral Resources increased by 10% to 1107Mt grading 32.6% Fe
-- Additional mineralisation potential of 950Mt to 1,500Mt
Financial
-- USD 45 million offtake related prepayment loan agreement signed with Vitol
Corporate
-- Appointment of Chief Marketing Officer and Head of Sustainability
Commenting on the results Graeme Hossie, CEO, said: "2011 was a
milestone year for London Mining as we made the breakthrough from
developer to producer at our Marampa mine in Sierra Leone and laid
the groundwork for first production in January 2012 at our coking
operation in Colombia. We are now fully funded to expand capacity
to 5Mtpa at Marampa having signed a USD 45 million offtake related
prepayment loan agreement with Vitol. Looking forward, we are
focussed on short term production growth at Marampa and completion
of a BFS for a further expansion to 9Mtpa in Q3 2012. Following the
successful completion of the BFS for the 15Mtpa Isua Project in
Greenland we are preparing to commence the permitting process and
continuing discussions on financing.
Operations
At the end of the year under review we saw first production made
from Marampa and shipments commenced in January 2012. At 26 March
2012, 271,500 wet metric tons ("wmt") had been produced and
243,200wmt shipped. The Marampa resource has increased to 1,078Mt
at 31.2%Fe. A prefeasibility study ("PFS") to expand the mine to
16Mtpa was concluded in April 2011 and a bankable feasibility study
("BFS") for an expansion is expected by the end of Q3 2012. London
Mining also signed an offtake agreement with Glencore including a
USD 27.0 million prepayment facility.
At our Isua project in Greenland a scoping study for a 15Mtpa
operation was completed during 2011 with a BFS also commencing. The
BFS was finalised post period end and demonstrates robust
attractive economics for a 15Mtpa operation. The study was funded
by a USD 30.0 million royalty agreement signed with Anglo Pacific
Group.
At our coking operation in Colombia, we completed the first coke
ovens and secured export logistics at Barranquilla. We continued
exploration work and explored joint venture opportunities with
local businesses though progress was badly hampered by the La Nina.
The operation remains set to reach production capacity of 200ktpa
in Q4 2012.
At the Wadi Sawawin Project in Saudi Arabia (in which we have a
25% stake) we concluded an agreement with Korean engineers STX
Industries for work on pre-construction design.
Financial Summary
The EBITDA loss for the year increased by USD 9.1 million to USD
40.5 million largely due to bringing Marampa into production and
increased corporate costs. The higher corporate costs also reflect
the growth in staff across the group as the company moves from
developer to producer. Legal and consulting fees also grew as we
conducted fundraising activity during the year and opened an office
in China. The company has a strong balance sheet to fund all
projects with USD 218.4 million in net cash inflow from financing
activity in 2011 and USD 192.9 million net cash outflow on
investing activities. Cash was USD 67.8 million as at 31 December
2011. Post period end the company raised gross equity proceeds of
USD 90.1 million and signed an offtake and prepayment facility with
Vitol for USD 45.0 million resulting in the company being fully
funded for the expansion to 5Mtpa at Marampa.
Earnings Summary:
Year ended Year ended
$m 31.12.11 31.12.10
--------------------------------------------------- ----------- -------------
EBITDA (40.5) (31.4)
--------------------------------------------------- ----------- -------------
Depreciation (1.4) (1.0)
--------------------------------------------------- ----------- -------------
Loss from operations (41.9) (32.4)
Impairments (13.4) (61.7)
Fair value gain/ (loss) on deferred consideration 14.7 (5.6)
Net finance (loss)/ income (1.0) -
Other items - (1.2)
Taxation (18.4) 1.3
Loss for the year (60.0) (99.6)
--------------------------------------------------- --------------- ---------
Please find the full operations and financial review, as well as
the company's presentation of the period enclosed.
http://www.rns-pdf.londonstockexchange.com/rns/3130A_-2012-3-28.pdf
http://www.rns-pdf.londonstockexchange.com/rns/3130A_1-2012-3-28.pdf
Webcast and conference call
There will be a webcast and conference call for analysts and
investors hosted by Graeme Hossie, CEO, and Rachel Rhodes, CFO, at
09:00 am BST (UK). Please see below dial in details:
Country Number
UK Toll Free 0800 279 4841
US Toll 1877 249 9037
International dial-in +44 (0)20 3140 8286
Confirmation code 4008069
For more information please visit www.londonmining.co.uk or
contact:
London Mining Plc
Graeme Hossie, Chief Executive Officer
Rachel Rhodes, Chief Financial Officer
Thomas Credland, Head of Investor
Relations +44 (0)20 7408 7500
Liberum Capital (Nominated Advisor/Broker)
Clayton Bush/Christopher Kololian +44 (0)20 3100 2000
J.P. Morgan Cazenove (Broker)
Neil Passmore / Ignacio Borrell +44 (0)20 7742 4000
Brunswick Group
Carole Cable / Rosheeka Field +44 (0)20 7404 5959
About London Mining
London Mining is focused on identifying, developing and
operating mines to become a mid-tier supplier to the global steel
industry. London Mining is producing high specification iron ore
from its Marampa Mine in Sierra Leone and developing two other iron
ore mines in Greenland and Saudi Arabia as well as a coking
operation in Colombia. All London Mining's assets have deliverable
production with potential for expansion. The Company listed on AIM
in London on 6 November 2009. It trades under the symbols LOND.L
(Reuters) and LOND LN (Bloomberg). More information about London
Mining can be found at www.londonmining.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DBGDXRUDBGDI
London Mining (LSE:LOND)
Historical Stock Chart
From Jun 2024 to Jul 2024
London Mining (LSE:LOND)
Historical Stock Chart
From Jul 2023 to Jul 2024
