London Mining narrows 2012 losses as production ramps up

London Mining trimmed its 2012 losses on the back of strong production at its new iron ore facility at Marampa in Sierra Leone.

London Mining trimmed its 2012 losses on the back of strong production at its new iron ore facility at Marampa in Sierra Leone.

The mining company reduced underlying losses in earnings before interest, tax, depreciation and amortisation (EBITDA) by $22.2m to $14.2m.

Overall net losses came to $107.8m as the company wrote-off its coal assets in Colombia at a cost of $66.2m.

Sales came to 1.3m wet metric tonnes (Mwmt) of iron ore and revenues rose to $120m.

Operations at Marampa drove results as it delivered profit of $20.4m and it reached a production target of 1.5m dry metric tonnes (Mdmt).

"We are delighted with the strong operational and financial performance of Marampa which has generated positive earnings for the year," said Chief Executive Officer, Graeme Hossie.

"High grade iron ore was produced and shipped throughout the year, production targets were met and our expansion plan remains on track as we ramp up to 5Mtpa [million tonnes per annum] in 2013."

The company plans on expanding further at Marampa following bank feasibility studies and is in talks with partners for funding to get its Isua Greenland project up and running.

To help fund the projects, London Mining has increased its debt facility by $90m to $165m through a new deal with Standard Chartered, Rand Merchant Bank and Ecobank.

"While the outlook for iron ore pricing continues to be volatile, we are focussed on cash generation," Hossie added.

"Our priority is to complete a robust 5Mtpa operation, while focussing on reducing costs and delivering operational improvements across the business."

Shares fell 0.37% to 134p at 10:16 Thursday.

RD

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
The after effects of the gas-price shock
Economy

The after effects of the gas-price shock

In the wake of the recent spike in the natural gas price, we can expect slower growth, an industrial recession – and a newly assertive Russia, says Ma…
17 Oct 2021