6th Aug 2014 08:42
LONDON (Alliance News) - African Minerals Ltd Wednesday noted its recent share price fall but said it is operating in line with market guidance and is confident of its performance in August.
The mining exploration and development company's shares have fallen 34% in the last week but in early trading Wednesday its shares rose 2.8% to 48.30 pence.
African Minerals said that building on the 9.1 million tonnes that was exported in the first-half of this year, July production levels were on target, with nine vessels loaded during the month, and it remains confident of performance in August, despite reaching the heights of the wet season in Sierra Leone.
The company did note that the iron ore price has been weak through the second quarter into the start of the third quarter, meaning that its realised prices fell considerably from an average of USD104 per tonne in the first quarter to a low of just below USD70 per tonne in mid-June.
African Minerals said that in order to mitigate the price decreases it continues to focus on cost saving initiatives while actively managing working capital and it expects the next two months to see a substantial improvement in both costs and revenues.
In addition, the company confirmed that no cases of the Ebola outbreak have been suspected or are confirmed at its sites and it continues to operate normally across the mine, plant, rail, port and marine operations.
African Minerals said it continues to monitor the outbreak and it has implemented a number of changes including travel restrictions and access controls to mitigate the risks of infection.
By Tom McIvor; [email protected]; @TomMcIvor1
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