London Mining Plc REVISION OF 2013 GUIDANCE (3596V)

TIDMLOND

RNS Number : 3596V

London Mining Plc

12 December 2013

London Mining Plc

Quoted on London AIM (LOND LN)

("London Mining" or the "Company")

12 December 2013

REVISION OF 2013 GUIDANCE

Plant upgrades to increase processing capacity to 5.4Mwmt/a have been installed at Marampa. However, production of 3.3 to 3.4Mwmt (down from 3.6 to 3.9Mwmt) is now expected for 2013 due to a combination of events: a negative stockpile adjustment to Q4 production, slower than expected completion of the processing plant upgrades and reduced production due to continued effects from the wet season.

As of 30 November, production for 2013 had reached 3.1Mwmt, with sales of 3.3Mwmt. As previously disclosed, the effects of the wet season at Marampa continued into Q4 2013 with lower mining rates causing full depletion of the run of mine ("ROM") stockpile. This significantly impacted our ability to feed the processing plant with the appropriate ore blend on a consistent basis. ROM stocks have since been replenished. We will continue to improve our management of the issues arising from the wet season during 2014.

Due to longer commissioning times experienced for mills, and a delay in final completion of the spirals circuit until this week, the contribution in Q4 2013 from the upgraded 5.4Mwmt/a plant will be less than previously expected. Commissioning and ramp-up of the gravity circuit is taking place over the next few weeks.

Full depletion of the concentrate stockpiles following logistics upgrades has allowed a comprehensive reconciliation of production volumes with finished product stockpiles and exports which has now resulted in a negative 0.1Mt stockpile adjustment to Q4 production volume. In order to more accurately quantify finished stock in the future, we are upgrading our weight and moisture monitoring capability at the final plant conveyors, installing a truck weighbridge and have recalibrated stockpile survey assumptions.

These factors have been incorporated into revised sales expectations of 3.5 to 3.6Mwmt (down from 3.9 to 4.1Mwmt). Although impacting Q4 production and sales, these factors are not expected to recur nor do they have any impact on business fundamentals.

Export operations have progressed well following the onset of the dry season, with record export volume of 440kt (5.3Mwmt/a on an annualised basis) achieved in November, additional logistics capacity will be added as required.

Graeme Hossie, CEO, Benjamin Lee, CFO, and Jim North, COO will be hosting an audio webcast and conference call today at 9:00am GMT (UK). Details for the conference call are below:

Audio Webcast

The presentation will be available via a live and on-demand audio webcast, a link to the audio webcast can be found on London Mining's website here: http://www.londonmining.com/investors/reports-and-presentations/.

The webcast will include audio from the conference call. You will not be able to post questions through the webcast.

Conference call

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

 
 Dial-in details:    International dial-in   +44 (0)20 3427 1907 
  UK Toll Free                               0800 279 5004 
  USA Toll Free                              1877 280 1254 
  Confirmation code                          8263111

For more information please visit www.londonmining.com or contact:

 
 London Mining Plc 
  Graeme Hossie, Chief Executive Officer 
  Thomas Credland, Head of Investor Relations    +44 (0)20 7408 7500 
 Liberum Capital (Nominated Advisor/Broker) 
  Tom Fyson / Ryan de Franck                     +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 concentrate for the global steel industry and is focused on identifying, developing and operating sustainable mines. London Mining commenced sales from its 100% owned Marampa Mine in Sierra Leone in 2012 and expects to reach production capacity of 6.5Mwmt/a in 2014. Marampa has sufficient resources to support a staged expansion to over 10.8Mwmt/a. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mwmt/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

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