25th Nov 2013 10:36
LONDON (Alliance News) - Anglesey Mining PLC Monday said its pretax loss has narrowed in the company's first-half but Anglesey posted particular investment losses.
The exploration and development metals company, with operations in Canada and Wales, said its pretax loss narrowed to GBP3.2 million for the six months ended September 30 from GBP7.4 million the previous year.
Anglesey has no revenues from the operation of its properties at this point.
The company noted that its first-half 2012 figures were hit by a significant GBP7.0 million cost on the company's share of losses by its associate Labrador Iron Mines Holdings Limited.
Anglesey's operating expenses fell slightly to GBP196,480 from GBP201,885 but the company was hit with a GBP2.4 million loss on the fair value of its investment in LIM and a GBP527,771 cost on exchange differences as the Sterling increased against the Canadian dollar.
The company said a number of cost limitation matters have been completed and these should lead to a reduction of operating expenses in future periods.
The quality of iron ore, in shipments by LIM for the six month period was below expectations and the net revenue for LIM was negatively impacted, as such a large loss was announced. The company said that, because it reduced its stake in LIM in November 2012 to 15.3%, this loss does not directly impact the group's accounts.
The company also said it believes there will be a sustained upwards growth in base metal prices on Chinese stimulus measures in the near future.
Anglesey shares were down 5.1% to 4.15 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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