5th Nov 2013 12:11
LONDON (Alliance News) - African Minerals Limited Tuesday said its full-year sales guidance remains unchanged despite a fall in sales volumes in its third quarter.
The iron ore development company, with operations in Sierra Leone, said its sales volumes fell 18% to 2.8 million tonnes of iron ore for the three months ended September 30 compared with 3.4 million tonnes in the second quarter.
The company said its quarterly production fell 25% to 3.0 million tonnes of iron ore from 4.0 million tonnes the quarter immediately before, as the wet season at the company's Tonkolili iron ore mine led to lower processing.
African Minerals said that its exports were affected by operational issues in each of its trans-shipping vessels, leading to lower sales volumes, but its sales guidance remains unchanged for the full year at 11-13 million tonnes of iron ore.
The company said it has completed its organisational review and has cut back its service and corporate staff by 40% as part of a range of initiatives aimed at driving down cash costs to a goal of roughly USD30 per tonne.
African Minerals said it plans to carry out a drilling programme in the fourth quarter to meaningfully extend the life of its resource at the Sierra Leone mine.
African Minerals shares were up 3.3% to 198.00 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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