London Mining Plc FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30 JUNE (2411M)

TIDMLOND

RNS Number : 2411M

London Mining Plc

22 August 2013

London Mining Plc

Quoted on London AIM (LOND LN)

("London Mining" or the "Company")

22 August 2013

FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2013

Group EBITDA of USD 24.0 million achieved as costs fall and production volumes double

Operational Highlights

Marampa, Sierra Leone (100% owned)

   --           Zero fatalities and lost time injuries 
   --           Production volumes up 129% year on year to 1,535Mdmt

-- Successful commissioning and ramp up of second processing plant with capacity of 3.6Mdmt/a now installed

   --           Wet season mitigation measures in place and delivering as expected 
   --           Run rate of 5Mdmt/a expected to be achieved by year end 
   --           Life of mine study will be completed in Q3 2013

Financial Highlights

-- Group EBITDA of USD 24.0 million, an increase of USD 24.2 million from H1 2012 (loss of USD 0.2 million)

-- EBITDA contribution from Marampa of USD 39.3 million a 200% increase from H1 2012 (USD 13.1 million )

-- Loss before taxation reduced by USD 14.0 million to USD 5.0 million (H1 2012 : USD 19.0 million)

   --           Revenue of USD 142.1 million at Marampa up 146% compared to the corresponding period 
   --           Operating cost of USD 62/dmt, down 18% year on year from USD 76/dmt

-- Remaining capex of USD 48 million to complete expansion to 5Mdmt/a, total capex of USD 340 million is reiterated

-- 1.1Mdmt of H2 2013 sales hedged at an average price of USD 120/dmt CFR, 0.7Mdmt of H1 2014 sales hedged at USD 118/dmt CFR

-- Drawdown of restructured corporate facility of USD 180 million, permitted consolidation of unsecured loans

   --           Strong balance sheet to complete expansion with USD 71.8 million cash at end of June

Graeme Hossie Chief Executive of London Mining said:

"Today's results show that London Mining continues to make excellent progress as we focus on our Marampa operation and establishing it as a solid and sustainable long term cash producing business. We are pleased to report our first Group operating profit since starting production and remain focused on our continuous improvement plan and reducing costs. We reached the 3.6Mdmt/a production rate in H1 and we are on track to achieve our target run rate of 5Mdmt/a by year end with estimated capital expenditure unchanged. Operating costs for the first half of 2013 were USD 62/dmt as expected and we are on track to achieve an operating cost of around USD 50/dmt as we exit 2013. In addition, corporate cost saving initiatives are being implemented and we look forward to updating investors on our plans for the life of mine operation in Q3 2013 to show how we will deliver sustainable margins at long-term consensus pricing."

Earnings Summary

 
                                                         Six months ended 30 June 
 
                                                                2013          2012 
                                                             USD'000       USD'000 
 
 EBITDA (continuing operations)                                 24.0         (0.2) 
 
 
 Sierra Leone                                                   39.3          13.1 
 Greenland                                                     (0.3)         (0.6) 
 Saudi Arabia                                                  (0.1)         (0.4) 
 Corporate - excluding non-cash share-based payments          (10.1)        (11.6) 
 Corporate - share-based payments                              (4.8)         (0.7) 
 
 Depreciation and amortisation                                (13.8)         (5.4) 
 
 
 Profit/(loss) from operations                                  10.2         (5.6)

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/2411M_-2013-8-21.pdf

http://www.rns-pdf.londonstockexchange.com/rns/2411M_1-2013-8-21.pdf

Webcast and conference call

There will be a webcast and conference call for analysts and investors hosted by Graeme Hossie (CEO), Rachel Rhodes (CFO) and Jim North (COO) at 9.00am (BST) today.

The presentation will be available via a live webcast, a link to the webcast can be found on London Mining's website, www.londonmining.com.

The webcast will include audio from the conference call and synchronised power point slides. You will not be able to post questions through the webcast.

Please use the following numbers and conference ID to dial in to the conference call:

 
 Country                  Number 
 International dial-in    +44(0)20 3427 1901 
 UK Toll Free             0800 279 4992 
 
 Confirmation code        9657125

There will be a replay facility available on London Mining's website after the webcast.

For more information, please 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) 
  Christopher Kololian / Tom Fyson               +44 (0)20 3100 2000 
 J.P. Morgan Cazenove (Broker) 
  Ben Davies / Ignacio Borrell                   +44 (0)20 7742 4000 
 Brunswick Group LLP 
  Carole Cable / Rosheeka Field                  +44 (0)20 7404 5959

About London Mining

London Mining is an expanding producer of high specification iron ore for the global steel industry and is focused on identifying, developing and operating sustainable mines. London Mining commenced sales from the Marampa Mine in Sierra Leone in 2012 and expects to reach production capacity of 5Mdmt/a in 2013. Marampa has sufficient resources to support a staged expansion to over 16Mdmt/a. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mdmt/a of iron ore production by developing mines in Greenland and Saudi Arabia. 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.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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