London Mining - Second quarter 2009 results
(Thomson Reuters ONE) - London Mining today announces a quarterly update for the periodending 30 June 2009.Highlights * First attributable production from China Global Mining Resources ("CGMR") JV post acquisition, with cash costs lower than expected (less than USD 40 per tonne) * Company settles long running dispute with African Minerals and Government of Sierra Leone (GoSL). Clears way for fast track development of 1.5mtpa iron concentrate from the Marampa mine * Company plans admission to London Alternative Investment Market ("AIM") by end of 2009 * JORC compliant resource and bankable feasibility study expected for Wadi Sawawin Project in Q4 2009 * Updated JORC resource expected for Isua in Q4 2009The first attributable production from the China JV contributespositive operating cash flow to the Group in the quarter. Cash costsfor the operations were lower than originally envisaged but areexpected to increase in the second half of the year due toimplementation of initial safety improvements and resourcedevelopment work, although these should be partially offset byoperating efficiencies. CGMR has an immediate expansion opportunitythrough entering into a non-binding MoU to acquire a neighboring minewith additional resources and existing production capacity of 300,000tonnes of iron ore concentrate. London Mining is also in discussionswith Chinese partners regarding potential investment and offtake forits other projects.On 20 August, a resolution was achieved on the dispute withGovernment of Sierra Leone and African Minerals on the MarampaProject. The settlement was facilitated by the Government of SierraLeone (GOSL), who have agreed to grant London Mining with areconfigured mining licence and paves the way for large scaleproduction of iron ore in the region. The company expects to embarkon a fast-track development of the first phase 1.5mtpa mine on formalconfirmation of the mining lease agreement and financial incentiveswhich are expected in October 2009.On 13 July, London Mining announced its intention to seek anadmission of its shares to trading on the Alternative InvestmentMarket of the London Stock Exchange ("AIM"). The admission, scheduledfor the fourth quarter of 2009, will be the start of a process forthe Company to establish itself in London benefiting from thepresence of established mining sector research coverage and improvedaccess to global investors.Work continues on the Group's other iron ore projects: Wadi Sawawin(Saudi Arabia) and Isua (Greenland). A JORC standard resource andbankable feasibility study are expected for Wadi Sawawin by the endof the year. At Isua, a 3600m drilling campaign is nearing completionand will result in an updated JORC resource by the end of 2009 anddelivery of a pre-feasibility study early in 2010.London Mining continues to review its coal investments in SouthAfrica and Colombia. Ongoing due diligence continues on ICC inColombia regarding the acquisition of 100% of ICC and funding of anoption to purchase a stake in a company with operating income and atransport solution to support development of ICC's coal properties.In South Africa the company expects the results of a feasibilitystudy for the Rietkuil project imminently.During the second quarter London Mining also strengthened itstechnical team through key hires. It now has a highly experiencedmanagement team fully in place to deliver on the company's growthstrategy.Colin Knight, Chairman of London Mining said:"I am extremely pleased to announce more significant milestones inachieving London Mining's ambitious growth strategy. We haveexcellent asset potential and a highly experienced management teamfully in place and I remain very optimistic about London Mining'sfuture prospects in 2009."Please see the full report and presentation for the second quarter2009 enclosed (or click on the links below if this release isreceived by e-mail.)For more information, please contact:InvestorsLondon Mining PlcGraeme Hossie, Managing Director +44 (0) 20 7201 5000Rachel Rhodes, Financial DirectorThomas Credland, Head of Investor RelationsMediaCrux Kommunikasjon (Norway)Charlotte Knudsen +47 97 56 19 59Threadneedle Communication (UK)Laurence Read +44 (0) 20 76539850About London MiningFounded in April 2005, London Mining is incorporated and registeredin the UK. In 2007, London Mining raised over USD 185 million toadvance iron ore production from its projects, and listed on the OsloAxess, a marketplace regulated by the Oslo Stock Exchange. In 2008,it sold its Brazilian mine to Arcelor Mittal for USD810m and returnedGBP220m to shareholders. The Company currently has iron ore projectsand mines in China, Sierra Leone, Saudi Arabia and Greenland, andcoal assets in South Africa and Colombia. London Mining trades underthe Reuters symbol LOND.OL and Bloomberg symbol LOND:NO.http://hugin.info/137683/R/1337454/318689.pdfhttp://hugin.info/137683/R/1337454/318696.pdfhttp://hugin.info/137683/R/1337454/318699.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 27.08.2009 - 08:00 Uhr
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