Anglesey Mining Share Discussion Threads

[noccer] 22/6/2017 20:52

Thanks guys, London Stock Exchange (LSE) not listing trades or volume. Google Finance not listing trades, but have found TD Direct have them, and thanks for London South East (the other LSE) pointer, and Nex. Handy.

Its good to see Zinc cross above $1.20 again, and LME zinc warehouse stocks continue to fall. Stocks fell 5000 tons yesterday, and 305000 tons on the books. Zinc demand expected to be up 2.6% this year to 14.3 Million tons. Supply deficit is expected to be 226000 tons for 2017. I think its a question of whether there are hidden stocks that will come into play as the price rises, but while demand exceeds supply then outlook must surely be positive for zinc price.

[laserdisc] 21/6/2017 08:09

Hi noccer used to be isdx now nex some trades go through this exchange also

[noccer] 20/6/2017 23:55

LSE issues still the same across all stocks - bloody shameful, how the hell do you know what is going on? This has leapt from 4p to 5p and I have no idea how to track what is going on, can't see trades, can't see volumes. Its less obious on other stockd becaust AT trades are visible - but for AYM we are in a vacuum !

[2driftwood] 19/6/2017 18:53

Must be something in the pipeline..

[keya5000] 19/6/2017 15:32

g2t

LSE data feed issues.

Trades are not showing

[sophisticatedtrader] 19/6/2017 15:17

I'm in ... looks solid

[g2theary] 19/6/2017 15:09

Up over 50% on no volume traded?!

[keya5000] 18/6/2017 07:51

Noccer I got the metals produced figure from the previous PFS by Micon.

[keya5000] 18/6/2017 07:39

Noccer don't think they are anything like that high.

This is old but I guess still a decent base.

[noccer] 17/6/2017 11:11

keya - have you factored in the efficiency of recovery from ore and separation into different ores, and losses in smelting. I have a vague memory of 60% or 65% being used in the past.

[rrr] 16/6/2017 20:56

Many thanks keya, appreciate you sharing your work.
rrr

[keya5000] 16/6/2017 20:23

Labrador Iron Mines Canada 11.9% ownership in 2017 post restructure which the piece below refers to


Labrador Iron

Labrador Iron Mines Holdings Limited engages in the exploration, development and mining of direct shipping iron ore projects near Schefferville in the central part of the Labrador Trough region, one of the major iron ore producing regions in the world.

There is established infrastructure with a direct railway to the Port of Sept-Îles
on the Atlantic Ocean. LIM was formerly an associate company in the Group however, following a dilution of the Group's holding in November 2012, it became an investment in which Anglesey holds a 15% interest.

Mining operation at LIM remained suspended during the 2014 operating season due to a combination of the prevailing low price of iron ore in 2014, an assessment of the current economics of its deposits and a strategic shift in corporate focus towards establishing a lower cost operating framework.

LIM spent the majority of the year seeking new financing particularly for the development of its flagship Houston deposit, however, given iron ore prices continuing to fall, LIM initiated a court-supervised process under the Canadian Companies' Creditors Arrangement Act in April 2015 in order to facilitate a restructuring and
refinancing of its business operations.

These proceedings should provide LIM with the time and stability to restructure its business, negotiate a restructuring plan with stakeholders, compromise creditor claims, restructure key operating contracts, secure new financing, and otherwise consider restructuring and refinancing options.

In view of this situation the value of the Group's investment in LIM has been written down to £1 in the accounts to 31 March 2015.

Source--Beaufort 2015

[keya5000] 16/6/2017 20:13

What else do they have except Pary's?

World Class Iron Ore Project in Sweden

Grangesberg Iron AB (‘GIAB’)

Grangesberg has history of mining in excess of 150 million tonnes of iron ore until its closure in 1989 due to prevailing market conditions. GIAB holds a 25 year exploitation permit covering the previously mined Grangesberg underground mining operations granted by the Swedish Mining Inspectorate in May 2013.
In late May 2014, the Group entered into agreements giving it the right to acquire a majority interest in the Grangesberg iron ore mine situated in the mineral-rich Bergslagen district of central Sweden about 200 kilometres northwestof Stockholm.

In a series of agreements the Group purchased a direct 6%interest in GIAB for US$145,000 from a private Swedish company which was founded in 2007 and had recently
completed a financial and capital restructuring with assistance from the Group.

At the same time the Group obtained an option to acquire 51% of the enlarged share
capital of GIAB for the issue of new ordinary shares of Anglesey to the value of US$1.75m priced at a minimum of 3.375 pence per share.

The Group also entered into shareholder and cooperation agreements such that during the term of the option, Anglesey holds operatorship of GIAB subject to certain conditions and appointed three out of five directors to the board of GIAB. Such option was not exercised due to continuing difficulties with the iron ore price, however, the Group has secured a right of first refusal over its interest, granted in exchange for the Group continuing to co-manage GIAB on a cost recovery basis, until June 2018.


In September 2014, an NI 43-101 Technical Report was prepared by Roscoe Postle Associates Inc (‘RPA’) showing a compliant resource estimate for the Grangesberg Mine of 115.2 million tonnes at 40.2% Fe in the indicated category and 33.1 million tonnes at 45.2% Fe in the inferred category.

RPA concluded that the Grangesberg iron ore deposit hosts a significant iron resource that has excellent potential for expansion at depth. A programme to look closely at geo-mechanical and hydro-geological aspects of the site which will be critical
components of the permitting regime required for the dewatering and reopening of the mine has been completed and a final report is in the course of preparation.

During the coming year, under Anglesey's direction, and subject to suitable economic conditions prevailing, GIAB will review and update its previous pre-feasibility study on the project incorporating inputs from the compliant resource estimate and from the geo-technical investigations.


Source--Beaufort 2015

[keya5000] 16/6/2017 20:00

Time to production post PFS;

H2 2017 Appoint Project Staff
 Q3 2017 Acquire Suitable Processing Plant
 Q3 2017 Submit Environmental Applications
 Q3 2017 Submit Operational Licence Applications
 Q1 2018 Commence Plant Erection
 Q2 2018 Appoint Mine Contractor, Start Decline
 H2 2018 Commence Production.


All above my own opinion.

[keya5000] 16/6/2017 19:38

Well we are nearing the end of the start to get Pary's into production. The much heralded PFS will be an updated study prodduced by the company, Micon and Fairport based on the existing 78000m of drilling in JORC compliant resource statement of 2,114,000tn indicated and 4,114,000tn inferred metals in situ.

The last RNS states that the company is looking to evaluate mining scenarios up to 1000tpa which is the max allowed under the current planning permission with release by the end of June 2017.

So what does 1000TPA look like in reality?

When in full production at 350,000 tonnes per year the mine is expected to produce about 20,000 tonnes of zinc, 8,000 tonnes of copper and 7,000 tonnes of lead metal in concentrates each year.

In July 2007, Micon International produced a scoping study demonstrating the viability of mining the White Rock area at 500 tonnes per day with capital expenditures of UK pounds 15 million and operating costs of UK pounds 30.25 per tonne mined.

Costs whilst expected to be slightly higher than 2007 will not be much different but a loading of 20% would be prudent so say £36.50 per tn processing. Smelting c$190 per tn and bulk shipping to the smelter/port logistics $10 per tn.

I would expect the larger mine to be cost effective than the 500tpa facility but with the amjority of costs in the smelting best to leave the costs static.

What does that look like in cash revenues;

1000tpd--360,000 tpa.

Equals;

20,000 tn Zinc @ $2,494 ------------ $49,880,000
8,000 tn Copper @ $5,684------------ $45,472,000
7,000 tn lead @ $2,054-------------- $14,378,000
7,000 oz gold @ $1,250-------------- $8,750,000
100,000 oz silver @ $16------------- $16,000,000.

Total revenues--------------------- $134,480,000.

Minus processing mine costs
$46 per tn X 360,000-------------- ($16,560,000).

Minus Shipping/logistics
Concentrate@20%weight-ore
20%/360,000
72000tn @ 10$tn-------------------- ($7,200,000).

Smelting costs @ $200tn (metals)
35,000 X $200---------------------- ($7,000,000).

Total deductions------------------ ($30,760,000)



Revenues/all in costs---------------- $103,720,000
Per annum free cash from operations.


Yes that is a cool $103,720,000 per annum NP from operations per annum at Pary's.

All metal prices/shipping/smelting price units from June 2017.

Assumption in costs based on 2007 with a 20% uplift.

Micon forecast £15m to build a 500tpa plant,, so say 1000tpa will cost £30m. The company suggests the price to construct now will be less than 2007 and a plant twice the size would not require twice the capex but for this scenario we keep the capex at say $40m.

Pay back is clearly in year one subject to other overheads/salaries/plc costs etc.

This is one serious project with a mine life of at least ten years possibly much longer if further exploration is conducted.

Depreciate the mine cost at $4m per annum into the project and deduct that from the free cash flow and you get roughly $99,372,000 per annum return.

All figures pre tax but with low UK corporation tax and no other tariffs to pay the mine represents in my opinion some of the best economics for its type in the world.

[btfd] 12/6/2017 13:26

yes going higher again.maybe heading towards early year highs before PFS later this month

[someuwin] 12/6/2017 13:24

Looking strong today.

[keya5000] 12/6/2017 10:15

Just getting back to value after a low volume drop.

BH emailed me at weekend to explain the reasons behind the delay, very sincere email that suggested the PFS was only re-worked due to the smaller project they intended was not deemed of the right size to evidence the scale of the resource.

Email also eluded to adding younger board member who could drive on the project post the event.

[noccer] 12/6/2017 10:09

But why? Its certainly not the metals prices ..

[btfd] 12/6/2017 09:50

nice jump.

[keya5000] 01/6/2017 15:21

Yes indeed, added another 100k today.

Cannot see these prices remaining the further we get into June.

[no1larafan] 01/6/2017 15:21

Interesting times over the next 4 weeks leading up to the scoping study if it comes out on time!

[btfd] 01/6/2017 15:08

load up while the herd sleepsPFS by end of June!

[rrr] 24/5/2017 14:58

Thanks btfd, trouble is we don't yet produce any zinc ;)

From last RNS:

"Based on an initial review of the preliminary results of the draft Scoping
Study, Anglesey has asked both Micon and Fairport to consider alternative
production and throughput scenarios, at various levels between 500 and 1,000
tonnes per day, and expects to receive modified mine production schedules and
alternative capital cost estimates in the near future. The inputs will then be
incorporated into updated financial models, with a view to having optimized
development scenarios available for consideration before the end of June 2017." [my bold]

Whether we hear about them then is another matter I suppose.

rrr