London - London Mining Plc, whose only operating
mine is in Sierra Leone, reported a first-half loss
due to a drop in iron ore prices and said the
outbreak of the deadly Ebola virus across West
Africa could hurt production in the second half.
The company's shares fell as much as 18 percent to
32.75 pence in early trading, making them the
biggest percentage loser on the London Stock
Exchange on Thursday.
London Mining, which operates the Marampa mine
in Sierra Leone, said the Ebola outbreak had
disrupted its supply chain and delayed a plant
optimisation programme at the mine.
Also Read: Ebola: Liberia police fire on
protesters
The company cut the top end of its full-year iron
ore production forecast to 5.1 million wet metric
tonnes from 5.4 million, while maintaining the
lower end at 4.9 million tonnes.
London Mining said it had deferred more than $20
million of non-essential capital expenditure
planned for the year until market conditions
improve or it completes the search for a strategic
partner that it began earlier this year.
The company posted a loss of $10.8 million before
interest, tax, depreciation and amortisation for the
six months ended June 30, compared with a profit
of $24.0 million a year earlier.
Revenue fell 22 percent to $110.6 million.
Production rose 24 percent to 2.1 million wet
metric tonnes.
Iron ore prices fell to a 21-month low of $89 per
tonne in mid-June as supply continued to outpace
demand in China.
Benchmark 62-percent grade iron ore for
immediate shipment to China >
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