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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (36619)	5/6/2009 10:04:14 AM
From: LoneClone	Read Replies (1) \| Respond to of 195744

Anglesey Mining Is Looking Forward To First Iron Ore Production From The Schefferville Project In Labrador By Alastair Ford minesite.com Ian Cuthbertson of Anglesey Mining is no stranger to the conference circuit. Anglesey doesn’t spend a lot of money on promotion these days, but it will take booths once or twice a year at investor or industry shows to offer its investors the chance for a face to face chat. And since Ian’s been with Anglesey since it listed on the full board of the London stock exchange all the way back in 1988, he’s seen a fair few trade shows in his time, and a fair few investors too. So it was fitting when, at the recent Master Investor Show, Ian looked across from his own stand, took pity on a bored-looking Minesite sitting unloved in his own booth, and offered the respite of coffee and conversation. As it happened, coffee was already on order, and at that same moment some Anglesey investors drifted by, so the conversation was postponed. But later on, on the high stools at the Anglesey booth, Ian was more than pleased to provide Minesite with a full update. The first thing that should perhaps be noted is that an Anglesey Mining booth now presents to the world a story almost exclusively focused on iron ore in Labrador. That the interest in Labrador is held through a 50 per cent stake in Canadian-listed Labrador Iron Mines, which itself owns 100 per cent of the Schefferville iron ore project, formerly owned by the Canadian Iron Ore Company. Development work at this project is well underway, and although Ian Cuthbertson does qualify his optimism with the statement that it’s “almost” on schedule, he’s pretty confident that Schefferville will be producing cash flow and dividends before too long. The official timetable, as outlined on the Anglesey Mining website, is for production to begin by the end of this year, with a relatively rapid ramp up to 1.3 million tonnes per year by 2010, rising to 3.5 million tonnes after five years. And, with Schefferville fully funded into production, all Anglesey has to do is sit back and wait for the dollars to start rolling in. Ian’s very reluctant, however, to allow Anglesey to be referred to as an investment company, as the company’s aspiration would certainly be to operate assets again at some stage in the future. One advantage of Anglesey’s main market listing, says Ian, is that it actually allows more room for manoeuvre. Not only are fully-listed companies not hindered by the dead hand of a NOMAD in any attempt to sign a deal, but the threshold at which a company has to issue a full prospectus for a new deal is set at a much more reasonable level. The lack of a NOMAD, says Ian, also makes it cheaper to sit on the main board. And on the subject of money, Ian’s fairly upfront. There’s around £100,000 in the bank at the moment. The company does have overheads, he concedes, “but they’re not high”. So, no war chest. But not much pressure on working capital either. There might have been a bit more of a cash pile, of course, had the mooted sale of Parys Mountain gone through. Ian blames the credit crunch for scuppering that deal, as the Australian buyer suddenly found it had more urgent calls on its time. But although by Ian’s own admission the Anglesey side of Anglesey Mining’s operations doesn’t do a great deal at the moment, since the copper price is still too weak to make Parys Mountain viable, the company does at least now have in its possession all the due diligence that was done ahead of the deal. That work by the Australian consultants may yet turn out to have some real value, when the next upswing comes, and new buyers for Parys Mountain come out of the woodwork. In the meantime Ian still manages to drum up plenty of interest from investors at the Master Investor Show, and in spite of Anglesey’s ups and downs, most of the existing shareholders that come up to talk to him are of a fairly friendly disposition. But with the iron ore price likely to drop significantly once the current tortured negotiations between major buyers and major producers finally conclude, don’t expect Anglesey’s share price to re-rate with any real alacrity before the cash starts coming in next year.