Higher Finance Costs And Expenses Widen Anglesey Mining Annual Loss

(Alliance News) - Anglesey Mining PLC on Monday reported a widened annual loss on expenses and ...

Alliance News 28 September, 2020 | 11:50AM
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(Alliance News) - Anglesey Mining PLC on Monday reported a widened annual loss on expenses and finance costs as it continued to develop its Parys Mountain project.

Shares in Anglesey Mining were up 13% at 1.47 pence in London in late morning trading.

The company, which is developing the Parys Mountain zinc-copper-lead deposit in Wales, reported a widened GBP304,510 pretax loss for its financial year ended March 31, compared with a GBP234,621 loss the year before.

This widened loss results from an increase in expenses to GBP134,796 from GBP75,538 the year before as well as higher finance costs of GBP170,029 from GBP159,336 the previous year,

In August, the company raised GBP200,000 for work on Parys Mountain where QME Mining Technical Services, a division of QME Ltd, is carrying out an agreed programme of engineering and optimisation studies under a project development and cooperation agreement. This ended up being a "major exercise that expanded as it progressed and is now nearing completion".

Once the QME exercise is complete, Chair John Kearney said, the company believes "it will be possible to positively report a total compliant resource figure somewhere around 10 million tonnes at Parys Mountain".

This would substantially enhance the mine plan, including annual production rates and life of mine and would achieve Anglesey Mining's goal of enhancing the project economics indicated by a 2017 scoping study.

"We plan to bring all of the QME work into a compliant basis by incorporating its work into an updated scoping study or preliminary economic analysis as appropriate. We would expect this will be followed, as soon as practicable and subject to funding, with a pre-feasibility or full feasibility study to enable production financing to be achieved. This work is very important to Anglesey and is likely to transform the development prospects of Parys Mountain into a project that should attract keen interest amongst financiers, metal traders, smelters and particularly other and larger mining companies," said Kearney.

"We will continue to examine development opportunities for our iron ore projects as the medium-term outlook for iron ore, particularly for the higher quality concentrates, is positive. We will also continue to seek out new properties suitable for development that would be complementary to or provide synergies with the group's existing projects within the financing capability likely to be available to the company. The directors have identified copper and other [volcanogenic massive sulphide] projects, and gold or precious metals, as the most potentially attractive and we continue to evaluate a number of early stage opportunities," he added.

By Anna Farley; annafarley@alliancenews.com

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