By Brenton Cordeiro
March 21 London Mining Plc reported a
smaller full-year loss, helped by higher iron ore production at
its Marampa mine in Sierra Leone, and said it expected output
from the mine to more than double in 2013.
The miner said it expected to produce between 3.3 million
and 3.6 million dry metric tonnes in 2013, and forecast sales in
the range of 3.6 million to 3.8 million dry metric tonnes.
The sales forecast includes a stockpile of around 390,000
wet metric tonnes of ore the company kept aside at the end of
2012 as it sought to ship the ore at higher prices.
Iron ore prices have rebounded from their
2012 low of $87 per tonne and are now at roughly $134, backed by
demand from China as the country's steel mills replenish their
London Mining said its plan to expand capacity at Marampa to
5 million tonnes per year by the end of 2013 was on track.
The company said it had started looking for strategic
partners as it plans to eventually boost Marampa output to 16
million tonnes per year.
"Marampa is a strong-value proposition producing really
high-quality ore and we've got more ore to come that we haven't
placed with either Glencore or Vitol, so there's potential for
further finance-related offtake arrangements there as well,"
Chief Executive Graeme Hossie said on a post-earnings call.
The company, which also has operations in Greenland, Saudi
Arabia and Colombia, said it was in talks with potential
partners for its Isua magnetite iron ore project in Greenland.
London Mining's loss before interest, tax, depreciation and
amortisation narrowed to $14.2 million in the year ended Dec. 31
from $36.4 million a year earlier.
Full-year production of 1.63 million wet metric tonnes, or
1.52 million dry metric tonnes, was ahead of its target of 1.5
million dry metric tonnes, the company had said in January.
London Mining shares, which have halved in value over the
past year, were up marginally at 136 pence at 1030 GMT on
Thursday the London Stock Exchange.