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    Archived articleThis is an archived article from 2010 - please note that any content within the article may be out of date.

    Anglesey Mining Receives £2.7m Cash Boost

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    AnonymousUser3343
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    Anglesey Mining (LON:AYM), the London stock exchange listed junior has recently received a substantial cash boost of £2.7m to its coffers through the sale of shares in Labrador Iron Mines (TSX:LIM). Anglesey Mining, following the sale it now has an undiluted holding of 41% in the Toronto listed company. [ref] Trading Statement - share sale raises £2.7, 31 March 2010, http://www.investegate.co.uk/article.aspx?id=20100401070000W2617 [/ref]  

    The current market capitalisation which stands at around £53m is made up almost entirely from the value of its investment in the Labrador project which is focused on development of direct iron ore deposits. [ref] Labrador Iron Mines Presentation, March 2010, http://www.angleseymining.co.uk/amplc/Presentations/LIM%20PDAC%202010s.pdf [/ref] The Labrador project will receive a major boost as it is due to move into production from its James deposit this summer. Beaufort have rated Anglesey Mining based on their LIM investment as a buy with a target price of 54p. [ref] Beaufort Anglesey Mining Research Note, March 2010, http://www.angleseymining.co.uk/amplc/CorpResearch/BeaufortMar10.pdf [/ref]

    In raising the cash Bill Hooley the Anglesey Mining chief executive, commented,
     

    "We are very pleased that the underwriters have exercised their option and this transaction has been completed. Anglesey now has sufficient funds for its immediate requirements and is looking at using the opportunity to demonstrate shareholder value at Parys Mountain, and to investigate and progress new activities. There are a number of possible projects that have been under active review recently and we are pleased to have the funding to properly evaluate and progress these projects where appropriate."

     

    Parys Mountain is Anglesey Mining’s other main project which is located near Amlwch on the Island of Anglesey, and is one of the oldest mines in the UK. In the 18th century Parys Mountain was even regarded as the most productive copper mine in the world. Parys Mountain has a historical resource in excess of seven million tonnes of copper, lead and zinc. [ref] Parys Mountain project presentation, October 2009, http://www.angleseymining.co.uk/amplc/Presentations/Parys%20Oct%2009.pdf [/ref]

    Having been invested in the company for over 11 years, the current share price heights are a just reward for patience and may appreciate further as the Labrador project moves into its next phase, however with regard to adding value through the Parys Mountain asset, I am a bit more sceptical at this stage.

     

    Disclosure of Interest: The Author has shares in Anglesey Mining plc

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    LON:AYM

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    AnonymousUser3343

    Anglesey Mining New JORC compliant resource estimate for Parys Mountain

    Valuing Parys at around £1.7m when you take into account the 19.7% LIM shareholding in to account seems good value on the JORC compliant resource estimate if they can this time move it forward into production at some stage.


    Bill Hooley Chief Executive said

    "We are very encouraged by the indications at the lower cut-off levels that both the White Rock and the Northern zones could develop into large albeit lower grade deposits that may be amenable to bulk mining. We still intent to look to look to the upper levels of White Rock and the Engine zones for initial development but we now have a clear target for a more substantive operation at Parys Mountain than previously contemplated."

     

    Full JORC RNS: http://www.investegate.co.uk/anglesey-mining-plc-(aym)/prn/new-jorc-compliant-resource-estimate-for-parys-.../20121130070000PBB94/

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    AnonymousUser3343

     

     

    Anglesey Mining (LON:AYM)

    Anglesey Mining has two stings to its bow, a 19.7% holding in Labrador Iron Mines (LIM) and 100% ownership of Parys Mountain on Anglesey.

    Anglesey Mining currently trades at 7p per share and has in recent times seen highs of 80p.

    The 19.7% holding in LIM is a pure play on an Iron Ore producer who during the last six months mined 1.6m tonnes of ore at 61.5% iron.

    LIM currently trades at 80c and in recent times has been as high as $13. AYM’s investment success in LIM is heavily geared on the Iron Ore price and needs to be around its current level of $120 to be attractive. Below this price it’s basically a no go. A move up from this level would do wonders for the share price of both companies.

    The Anglesey Mining 19.7% LIM holding with 97m shares in issue at current market price is worth £9.6m, the current market cap for Anglesey Mining is around £11.3m.

    Anglesey Mining has drilled 12 holes this year at its 100% Parys Mountain asset and the results from all the holes have now been received. Micon has completed a revised ore resource estimate for the entire site and this will be published shortly.

    Commenting on the HY report in relation to Parys, John F Kearney, Chairman noted;


    Base metal prices, particularly for copper, have been fairly robust recently and show no serious signs of retreating. Zinc, which would be the primary source of revenue from the initial White Rock production at Parys, is forecast to be in short supply as concentrate within the European market in the coming two to three years. Should this position develop then it will be opportune for the early development of Parys Mountain.


    AYM HY Report http://www.angleseymining.co.uk/accounts/assets/IR12.pdf

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