...have a mine with planning permission in Anglesey. They have been drilling this year after raising funds.

Things are starting to look encouraging after a long time in the doledrums.

LONDON (AFX) - Anglesey Mining PLC said drilling results from Parys Mountain
in North Wales are "highly encouraging", including an intersection grading 40
pct combined base metals and 886 grams per tonne of silver over 2.5 metres.
The company said the high grade intersections recorded in both zones in AMC
15 contain metal grades which are amongst the highest recorded at Parys
Mountain. Previous drilling had encountered quite a number of intersections with
a total metal content over 30 pct.
Chairman John Kearney said: "We have been waiting for results like this for
some years."
He said the high grade of the mineralisation, particularly of zinc and
copper, demonstrates the potential of the Parys Mountain property, confirms the
validity of the group's geological model and justifies its confidence in this
drilling programme.

http://www.advfn.com/p.php?pid=nmona&article=12387465

Ding dong,better bring your bucket & spade.

Going well that 12.66 buy early doors yet,and just up the road to boot.

Solid as rock !!

Blue again 17/18 soon,,,dont all laugh at once.

Blue again !

This is a small company that could get much much bigger

Or taken over winpik!

On 15 March 2006 the company was informed that Golden Prospect plc has a holding
of 15,750,000 ordinary shares in Anglesey Mining plc.

This holding represents 11.5% of the 137,508,051 ordinary shares in issue.

Contact:
Ian Cuthbertson Finance director + 44 1248 361333

Have held this share for a while, the company seem to be making good progress towards renewed production at Parys Mountain and their Labrador Iron Ore project in Canada is very promising. I won't make any predictions however!

Yes or taken over. Should Parys prove to be half as good as projected, these shares are worth at lease 1. Golden Prospect are in this business and can spot a potential winner although I don't think they are an acquiror, they are merely clever investors.

This statement doesn't set my world alight, but it is 'encouraging' as they say!

LONDON (AFX) - Anglesey Mining plc said results from the three holes it drilled at Parys Mountain in Anglesey in 2005 are extremely encouraging.

A total of 1875 metres were drilled in three deep holes in the Parys Mountain property. This area has been named Garth Daniel after an old nearby shallow shaft to distinguish it from the bulk of the company's resources in the Morris Shaft area.

The company said the latest three holes indicate that three mineralised horizons exist in the Garth Daniel area.

Based on the revised interpretations and on the results from the latest three holes, coupled with the two earlier holes, the company's geologists are confident that the mineralised horizons will continue further to the north east, the company said.

This area has been virtually untested by both Anglesey Mining and previous companies who operated on the site. It said that such a continuation, if demonstrated, would provide a significant extension of the resource base and could make a major impact on the economics of mining at Parys Mountain.

Executive Director of Anglesey Mining, Bill Hooley said the results from the three 2005 holes, and particularly the geological interpretation provided from these results, is 'very exciting'.

The fact that we intersected three different mineralized zones in all three holes, 400 metres apart, and the high grade in the Engine Zone in particular is very encouraging, he added

The company intends to continue drilling in the Garth Daniel area and in the north east extension to follow up on these results with the objective of adding to the resource base in a relatively short time frame.

Drill holes for this next round of drilling are being laid out and drilling will recommence here in the next few weeks.



newsdesk@afxnews.com

This is a careful statement, it is better not to get investors over exited. I still believe there is little downside risk to this story.

Very interesting development today with the arrival of what I gather is a serious Australian mining company, with the value of this sale and the iron ore mine coming into production next year in Canada, this little main market mining stock in my way of thinking is worth somewhere between 35 to 40p.....way above current valuations and will be next year cash rich, with a decent cash flow and a good future !

There is another thing of note that in the middle of a so called (credit crunch), is that : it will be increasingly difficult for wannabe mines to raise significant cash through share placings, AYM has done well to get this Australian help in. This decisive investment by the Aussies could turn Anglesey mining in my view into a sort of Mining cash shell...what with the Labrador iron ore development on the way ;... in the future they could be on the acquisition trail for some other mine of a sort....loads to ponder on...!

It is virtually an all share deal where does the cash come from? As for Labrador reaching production this is just another example of the mining rampers " jam tomorrow tactics".

AYM can always sell their shares in the Aussie company if they want cash...or some of the payment could be cash straight up.....the bottom line is that AYM could turn into a sort of investment mining company worth a lot more than the present value....!, as for Labrador reaching production....well...that's the objective and we all know the value of iron ore at the moment don't we ?.

TIDMAYM

Anglesey Mining plc LSE:AYM

6 November 2009

Labrador Iron Mines Environmental Impact Statement Accepted for Schefferville
Area Iron Ore Project

Anglesey Mining plc is pleased to report that its 50% owned associate company
Labrador Iron Mines Holdings Limited (TSX: LIM) has advised that the
Newfoundland Minister of Environment and Conservation today announced that
review of the Environmental Impact Statement ("EIS") for LIM's proposed
Schefferville Area Iron Ore Project in Western Labrador has been completed.

The Minister has confirmed that the EIS complies with the Environmental
Protection Act and requires no further work under the Provincial environmental
assessment process. The Minister has advised LIM that she will be making a
recommendation for consideration by the Government of Newfoundland and Labrador
on release of the Project from further environmental assessment.

The EIS relates to Phase One of LIM's proposed Schefferville Area Iron Ore
Project in Western Labrador and covers the development of the James and Redmond
deposits, which are the first of eight separate deposits that LIM plans to
develop in the coming years.

"Acceptance of our EIS is a major step forward in LIM's Schefferville Area Iron
Ore Project", said John F. Kearney, Chairman, at the annual Mineral Resources
review 2009 and Provincial Mining Week in St. John's, Newfoundland, Canada. "We
are pleased that our efforts in planning the proper development of the Project,
recognizing the requirements of sound environmental management, social
responsibility, the support and aspirations of the Labrador Innu and the
policies of the Province of Newfoundland and Labrador, have been acknowledged
and accepted by this review and recommendation".

Upon Government approval and Project release LIM will progress the applications
for the permits and licenses required for the construction of the necessary
infrastructure for commencement of production planned for 2010. It is expected
that these permits and licenses will be issued during the next few months.

LIM intends to commence construction of infrastructure immediately upon project
release, including re-laying a 4 km rail spur line from the mine site to main
railroad and the construction of the major items of process plant and equipment
ahead of assembly on site in the spring of 2010.

"This successful completion of the environmental assessment process is
particularly timely given the current outlook for both iron ore prices and
demand. LIM is on track and we look forward to first production of direct
shipping iron ore in the summer of 2010, in what we hope and expect will be a
buoyant iron ore market," added John Kearney.


About Anglesey Mining
Anglesey Mining plc is a UK based company listed on the London Stock Exchange
with a 50% interest in a 90 million ton iron ore project in Labrador, Canada,
which is under active development towards mining production in 2010. The company
also holds the Parys Mountain base metals project with a historical resource of
7.7 million tonnes at 9.3% combined copper, lead and zinc in Anglesey, UK.

For further information:
Bill Hooley, Chief Executive +(44) 1492 541981
Ian Cuthbertson, Finance Director +(44) 1248 361333


<< Back

This is not one that I've looked at for a while but it's been rocketing....resource estimate has just doubled....by the look of it there is room for further rises in the sp.

Buy Anglesey Mining at 13.75p (Today's free tip - 12/11/09)

Argues Tom Winnifrith of t1ps.com

Anglesey Mining owns two company making assets
Its listed shares in one have a market value about the same as that of Anglesey!
So the other is valued at circa nil!
This is a fully listed asset backed play with
A strong management team
The shares are a buy at 13.75p with an initial target of 18p

Anglesey Mining (AYM) is a UK based company with a full London Stock Exchange Listing. This is one I have watched for a while now and it looks set for a prosperous return to form in the coming months. Its holdings in Labrador Iron Mines, the Canadian listed iron ore producer are worth little more than Anglesey's entire market cap. And Labrador shares look pretty cheap too. That leaves Anglesey's other assets - notably the Parys Mountain mine in Anglesey in for more or less nothing. I have followed this one for a while, met up with its very sensible and cautious FD earlier this week and now feel happy to suggest you buy at 13.75p a with an initial (low ball) target of 18p.

Assets

Anglesey's main asset is a 50% interest in Labrador Iron Mines Holdings - that is 18.6 million shares in the Toronto listed company. Labrador Iron Mines Holdings Limited (TSX: LIM) is focused on the development and production of eight direct-shipping iron ore deposits located across a 100km strike length in the Labrador Trough of the Province of Newfoundland and Labrador near Schefferville, Quebec. The company's properties are part of the historic Schefferville area iron ore district from which over 150 million tonnes of iron ore was mined by the Iron Ore Company of Canada from 1954 to 1982.

LIM is on track to be the first to reactivate direct-shipping iron ore production in Labrador commencing in 2010. Labrador Iron plans to mine ore from within the Schefferville Project, which is located in Northwestern Labrador. This is in the heart of the Labrador Trough, home to most of Canada's iron ore production, which supplies 9% of the total world production. The IOCC mined ore at Scherfferville for 28 years from 1954 to 1982. What is of vital importance to Labrador and Anglesey is that the IOCC outlined the resource and established the infrastructure. Those tasks in themselves would cost today around C$1 billion. The extensive infrastructure in place includes power, airport, roads, 564 kilometres of rail and a deep sea port. LIM is fully funded to bring itself into production.

Anglesey also owns 100% of the Parys Mountain zinc-copper-lead deposit in North Wales. The property is on the island of Anglesey and has been worked for copper since prehistoric times and during the 18th and 19th century it was the largest copper mine in the world. It has a resource of 7.76 million tonnes with life of the mine contributions to revenue of zinc at 30%, copper 44% and lead 18%. The project currently has planning permission, two years to production from completion of financing. The company believes there is excellent exploration potential over an area of several kilometres and work, way back in 1991 resulted in a positive independent feasibility study for a 1,000 tonne per day mine and the area enjoys strong local community and government support. With commodity prices depressed towards the end of 2008, the Parys deposit was placed on a care and maintenance basis, after nearly being sold in mid 2008 to Western Metals of Perth for just over AUS$29 million. It is not clear what the company plans to do with the deposit in the short term but with commodities coming back it has the potential for either a joint venture exercise or a sale of the asset. The project would cost $30 million to bring into production.
*The value of investments can go down as well as up. Past performance is no guarantee of future success. Investing in equities can lose you part or all of your capital. The tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the recommendations contained here should seek independent advice. Investments in smaller company shares, by their nature, can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares.

Valuation

In 2011, as Labrador has its first full year of production, researcher Edison predicts earnings per share for Anglesey of 5.8p, rising to 7.6p the following year. However, development plans for the explorer's other projects: the North Wales-based Parys Mountain copper-lead-zinc project and its exploration property at Dolaucothi in south Wales, are still on the backburner. Options for Parys will only be considered in the event of a sustained recovery in base metal prices, however the firm has reported "some interest" in its exploration property in Dolaucothi, South Wales, in light of the strong gold price. The company has minimal cash costs, and although it has little cash it could easily raise some through the sale of some of its Labrador holdings.

As it stands Labrador shares are trading at CAN$1.89 on the TSX, valuing the company at CAN$72.06 million. At the current exchange rate of GBP1:CAN$1.76 that values Anglesey's stake in the project at GBP20 million. Edison reckons that the shares could be worth up to CS$5 which would value The Anglesey stake at GBP54 million. Put another way, if Edison is half right, Anglesey could sell two thirds of its stake and then bring Parys Mountain onstream on its own.

So what is the company worth? Base case: LIM at the current market price + Parys Mountain at 30% of the most recent takeover offer (GBP6million) plus GBP1.5 million for the quote and South Wales gold play gives a sum of the parts value of GBP27.5 million or 18p per share. But were Edison's LIM target to be valid then that valuation jumps to 39p per share. That is the upside case. For now I initiate coverage with a suggestion that you buy at 13.75p with an initial target of 18p per share.

Key Data
EPIC: AYM
Market: Full List
Spread: 13.5p - 14p (3.6%)

Thanks for that Count Brass....bought some today, a bit late but the value of the metal in the ground in a stable country (Canada)...justifies the purchase....

LIM market cap now 106million (CAD). 20p will be here soon. IMHO

LIM market cap now 165mil (CAD) worth31p to AYM. 25p soon then on an upwards.

DYOR

This really is performing and is isable as well....remarkable increase in the sp and probably much more to come !.

indeed AYM's 50.1% of LIM is currently worth 0.36p.

Thanks to laserdisc.

GUIDE TABLE TO 50.1% LIM STAKE at exch rate 1.67 canadian
to
$2.00 0.145
$3.00 0.217
$4.00 0.290
$5.00 0.362
$6.00 0.434
$7.00 0.507
this is lim exchange only totally disregarding other assets of aym which in last accounts have a book value of app 13.5m

Also, with the recovery in the price of zinc : there could be a strong possibility of The Angelsey mine starting up again....

And theres more...

DJ Labrador Iron Mines Target Raised To C$8.70 From C$3.75 By Canaccord

Decent move so far today.Lets see how many sellers they can suck out.

From t1ps (Thanks Ruudboy99)

"I have been requested to comment on Anglesey Mining (AYM) as a result of its share price having risen from an 11.75p t1p price at the end of October to currently sit at 29p; a gain of more than 146% in less than 3 months. I always endeavour to alert readers where a significant share price movement results in a change of stance since as Benjamin Graham reminds basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.
Although shares in Anglesey have advanced strongly a focus on the fundamentals suggests to me the current share price does not represent a wise selling level and although I dont typically comment on companies when the stance is unchanged and there is no news to update on, there are perhaps a couple of points of some value worth noting in respect of Anglesey Mining;
As per the t1p, Angleseys main asset remains its 18.6 million shares in (50% of) Canada-listed Labrador Iron Mines Holdings. Labrador shares have spiked from CAN$1.89 at the time of the t1p to a current C$6.88 which values Angleseys holding at C$127.97 million or 49p per each of Angleseys 152,858,051 shares in issue (at the current C$1:0.589 exchange rate). Anglesey also had 15.1 million share options outstanding at 31st March 2009 at an average exercise price of 9.75p. Subsequently 300,000 have been exercised but even diluting for the rest and taking no account of the cash that would be received gives 45p per Anglesey share.
Despite Labradors share price performance its shares still look to have further to run. Using an iron ore price of $62/t per 65%Fe for fines, with a 12% premium for lump, a Net Present Value, using a 10% discount rate, of C$449 million can be derived for Labrador. This equates to C$12.09 per share and 79p per diluted Anglesey share. Although there are downside risks various regulatory permits are still required before the targeted commencement of production for example there is also potential upside (e.g. economic recovery helping sale price achieved higher, potential of the mineral claims Labrador announced it had acquired last month). It should additionally be noted that the Schefferville area from which Labrador is looking to produce has a prolific mining history and that Canada can safely be considered mining-friendly which should reassure in terms of permitting.
Researcher Edison forecasts that Labrador will report earnings of C$44 million for the year ending 31st March 2012, meaning that on an earnings multiple the rating just a couple of years out is potentially low too and all of this is without even considering Angleseys own Parys Mountain base metals project in Wales. This is currently on care and maintenance but was the subject of an eventually aborted 13.75 million bid approach in 2008 and the company reported as recently as November that the project has been the subject of renewed interest from a number of companies which are being followed and encouraged. Overall, there thus looks to be some quite significant further upside potential remaining and thus, at 29p, my stance on Anglesey Mining remains strong hold. "

AYM up this am on the back of a 8.8% rise in LIM the parent company,ptobably due to the increase in iron ore and the new pricing structure? The Labador mine is dur to start 1st production in the summer,which should see a dramtic increase in the SP?
cyril

More news today. Like the last para.

Anglesey Mining over allotment option closes

Raises 2.7 million cash

Anglesey Mining plc ('Anglesey') is pleased to announce that the underwriters
for the recently completed public offering of C$35 million (22 million) by its
associate Labrador Iron Mines Holdings Limited ('LIM') in Toronto, have
exercised their over-allotment option to purchase 810,900 LIM common shares from
Anglesey at a price of C$5.55 per share for gross proceeds of C$4.5 million -
equivalent to 2.9 million.

Following this option exercise Anglesey now holds 17,789,100 shares of LIM which
represent 41% of LIM's 43,369,951 currently issued and outstanding shares.

The estimated net proceeds from this sale of 2.7 million after expenses will be
received entirely by Anglesey and will be used for general corporate costs and
working capital purposes.

Chief Executive Bill Hooley commented "We are very pleased that the underwriters
have exercised their option and this transaction has been completed. Anglesey
now has sufficient funds for its immediate requirements and is looking at using
the opportunity to demonstrate shareholder value at Parys Mountain, and to
investigate and progress new activities. There are a number of possible projects
that have been under active review recently and we are pleased to have the
funding to properly evaluate and progress these projects where appropriate."

what a resource upgrade!

Shares rocketing.

Times reporting on yesterdays news,

Tiddler to watch

Anglesey Mining, which invests in mineral resources, advanced 1p to 36p after a Canadian miner in which it holds a 41 per cent stake revealed that an iron deposit that it owns contains much more ore than previously thought. The Labrador mine in Quebec is scheduled to start producing an estimated 50,000 tonnes of iron a year in the summer."
cyeil

Brokers analysis rating of Labrador Minibg is up from C$7.5 to C$13,at present C$7. Mining to start in the next couple of months with 1st shipping
forecast for August.

Production Targets for 2011/2012 look awesome
cyril

Anglesey Mining - SPECULATIVE BUY

12/04/2010 Robert Tyerman @ Growth Company Investor

Anglesey Mining expects 41%-owned Labrador Iron Mines (LIM) to boost annual production from an initial 650,000 tonnes to 2m tonnes next year. Fully-listed Anglesey, which has put its longstanding Parys Mountain poly-metallic project in North Wales on the back burner, stands to receive nearly 3m from Toronto-quoted LIMs recent 22.2m placing in Canada, which cut its stake from 50%. Entrepreneur John Kearney and chief executive Bill Hooley head both Anglesey and LIM, which they hope will boost annual production from its high-grade Houston deposit near the town of Schefferville to 3m tonnes in 2012 at a cost of little more than $48 a tonne, less than half the prices struck in recent contracts. Hooley maintains Angleseys proceeds from the LIM placing virtually cover the companys commitments to LIMs planned further exploration and insists Anglesey has no more money to raise. The other day, LIM increased its measured and indicated resource estimate 60% to almost 14.7m tonnes at a grade of 59.3% iron ore and Anglesey says that brings its own share, as measured in compliance with industry standards, to 25m tonnes plus an historical resource of 125m tonnes. Anglesey is seeking a joint venture partner to take Parys Mountain forward. Hooley says it will use cash raised through LIMs fundraising to explore zinc and other deposits around the world, though Africa and the former Soviet Union are not destinations of choice. Shares in Anglesey were market dogs for years on disappointment and impatience over Parys Mountain, but have perked up of late from a 12-month low of 4.13p to 37.5p. With iron ore prices surging, bulls argue that represents a 35% discount to its LIM stake alone. Investors comfortable with commodity risk should consider a punt.

http://www.growthcompany.co.uk/recommendations/1247563/anglesey-mining.thtml

Penny Sleuth have just sent this out on e-mail - might bring in a bit of interest.

Of course the resource play that RHPS is recommending is AFAICS a completely speculative punt with bugger-all backstop if things don't go perfectly to plan (BPC) and is a share he's been pushing for months now. Anyway...I'll stick with AYM thanks!

"Why junior miners can hardly believe their luck

22nd April 2010
Why the market thinks Angleseys 7m tonne Parys deposit is worthless

Signs that Angleseys market value could double
Dear Reader,

Commodity prices are booming again and thats great news for penny shares.

As I pointed out to readers of Red Hot Penny Shares back in January, this is a key year for many natural resource hopefuls. Its a great opportunity for investors to make some hefty gains.

Mining ventures that were started four or five years ago are now coming to fruition. The money has been raised, the commodity has been found and the mine has been built. These mining minnows have the product to sell which could turn them into next years big fish.

These miners can hardly believe their luck. Even in the middle of a global economy crisis, they are able to sell their new output at prices that are comparable or in some cases even better than those prevailing before the roof fell in on markets two years ago.

Take just two examples. The price of coal is some 40% above last years level. Spot prices for iron ore, meanwhile, are twice those quoted 12 months ago...

That is superb news for a host of penny share companies. Two that spring to mind are Waless last remaining coal producer Energybuild (ticker: EBG) and Anglesey Mining (ticker: AYM).

Energybuild shares have climbed by a massive 50% since January. Over at Anglesey the story is even more impressive. Since I first mentioned this one on 6 October last year, its up a staggering 282%. In fact, chief executive Bill Hooley has seen his companys share price rise nearly ten-fold over the last 12 months!

Why the market thinks Angleseys 7m tonne Parys deposit is worthless

If ever a share has proved the extraordinary power of penny shares Anglesey is it. Key to its success has been the rising price of iron ore and its 41% stake in Canadian iron ore miner Labrador Iron.

Labrador(LIM:CN) is quoted on the Toronto Stock Exchange where at a price of $7.06 it is valued at C$306m. This gives a value of C$125m, or 80m, to Angleseys stake.

Given that this is some way above Angleseys London stock market value of 65m, this implies that its other mining interest, the Parys mountain deposit on the island of Anglesey, is worth less than nothing which I am sure it is not.

Parys is a seven million tonne resource of copper, lead and zinc first exploited by the Romans. But having seen repeated attempts to revive the mine fall flat, the City has become wary.

Anglesey is planning to bring in a partner to finance the resumption of production. But this has become a minor issue, as the stake in Labrador has become the driving force of Angleseys share price. Let me tell you a bit about this Canadian interest.

Labrador has a 150m tonne iron ore resource in Canadas premier iron ore belt, the Labrador trough to the north-east of Quebec. The company plans to start producing later this year, building up to an annual rate of six million tonnes.

This is a low-risk operation. This is partly thanks to the high quality of Labradors ore, but also because mining has been conducted here for over 50 years, so almost all the vital infrastructure has long been in place.

Because this is such a low-risk operation on the production side, the only big thing that Labrador (and by extension, Anglesey) needs to worry about is the price of iron ore. And to gauge this, we need to watch China.

Why Angleseys stock market value could be about to double

Canada s east coast is closer to Europe than the worlds biggest supplier of iron ore, Brazil. With this freight advantage, Hooley expects the majority of Labradors output to be taken to Rotterdam. But the global price is dependent upon China.

Thanks to its plan to shift tens of millions of rural dwellers into its gleaming new cities, China has an insatiable need for iron and steel. Three-quarters of sea-borne supplies end up here.

The questions now are whether China can sustain its extraordinary growth rate and how much it will be prepared to pay for supplies of iron ore.

While predicting a price of over $100 per tonne for iron ore in 2011 and 2012, analysts at Canaccord Adams warn of potential steel demand destruction as steel producers attempt to pass on substantially higher input prices during 2010.

They have assumed that the price will subside to a long-term equilibrium price of $61 per tonne by 2014.

Even on this basis, though, they have set a 12-month target price for Labrador of C$10.80, which takes the value of Angleseys stake to some 123m more than double todays stock market value.

So Bill Hooley is smiling. He is bringing new supplies of iron ore to the market just as the world is prepared to pay a handsome price. Other small miners now find themselves in a similar position. No wonder the junior mining sector is hot.

The next great penny share resource play

Anglesey is not a share Im recommending in Red Hot Penny Shares. This story has already taken off and I think there are more interesting ones with potentially bigger gains on offer.

If you own Anglesey shares and are making money, then congratulations. Youve seen the incredible power of penny share resource stocks."

.cyril

On the move again,yet so little interest in this Gem.
Iron ore prices still rising,mining licence days/weeks away and then all systems go with first shipment expected Aug/Sept?
cyril

From 4th May annouvement, 30days to completion of rail link? So within a week?

cyril

Rail news imminent and along with projected iron ore prices,looks a safe
for a syeady rise(up 9% today?)
cyril

Any news on the recent fall of AYM - Is there any trouble in Canada?

Innu Matimekush no longer wish to discuss jobs,contracts,social benefits, grants and revenue
sharing with LIM.
"Innu Strategic Alliance" are to set up a barricade on friday, june 11, which may block access to mining properties in Schefferville area.
All about ancestral rights on their traditional lands on both sides of quebec/labrador border.
Hope this helps Brigg.

At last we can now get on with the business of producing.This is imo undervalued,ISABLE and worth checking out,was 44p prior to ir's problems.
cyril


Trading Statement - Labrador barriers to be removed


TIDMAYM

3 September 2010 Anglesey Mining plc LSE:AYM

Labrador Iron reaches agreement with Quebec Innu to remove barriers

Mine and plant construction to commence immediately

Anglesey Mining plc's 41% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) has reported that agreement has been reached with the Innu
Matimekush-Lac John to immediately remove the barriers that had restricted
normal access from the town of Schefferville to adjacent mining properties
and thereby enable the ongoing development of the LIMs iron ore projects
in Western Labrador and Quebec.

Thia agreement was achieved following detailed negotiations between LIM and
representatives of the Quebec Innu, including Innu Matimekush - Lac John
(Schefferville) and Innu Takuaikan Uashat Mak Mani-Utenam (Sept-Iles), and
following discussions and consultations between the Quebec Innu and the various
Governments, including meetings in Schefferville attended by representatives of
the Government of Newfoundland and Labrador and the Government of Quebec and
representatives of the Federal Minister of Indian and Northern Affairs. Each of
the Governments has made certain commitments to the Innu towards resolving a
number of issues that will help facilitate the mining projects in the
Schefferville area to move forward on an ongoing basis.

Under the agreement with Innu Matimekush - Lac John, which was ratified by
public meeting of the community on September 1, Labrador Iron Mines, together
with New Millennium Capital Corp., have committed to jointly support a number
of local social activities, including some education, training, health and
youth programs and, with Government participation, improvements to the
community arena facility in Schefferville.

Following the agreement, construction of LIM's iron ore project in Western
Labrador will now proceed on a fast track basis and LIM and will proceed with
negotiations with the Innu Matimekush-Lac John towards concluding an Impact
Benefits Agreement.

LIM will also continue detailed negotiations towards signing an Impact Benefits
Agreement with Innu Takuaikan Uashat Mak Mani-Utenam who, as had been
previously anticipated, have initiated legal action against the Government of
Newfoundland and Labrador regarding the Crown's duty of consultation with
respect to the permitting of LIM's Schefferville Area Iron Ore Project in
Western Labrador.

"LIM is extremely pleased that, with the co-operation of all three Governments,
agreement has been reached with the Quebec Innu paving the way for construction
of our project so that commercial production of iron ore can commence in 2011."
said John Kearney, Chairman and Chief Executive. "We look forward to concluding
negtiations on the IBA agreements and to further developing a harmonious and
long term working relationship with all of our aboriginal partners for the
mutual benefit of all stakeholders" added Mr. Kearney.

Project Construction to Commence Immediately

LIM is now planning to immediately commence ground clearing, in parallel with
contractor mobilization, to be followed by civil construction and mechanical
erection of the plant in the subsequent weeks. It is expected that the
beneficiation plant will be fully erected in about 12 weeks. In parallel to the
plant construction the mine accommodation camp will be brought to site and
erected some 4 kilometers south-east of the plant site.

During the last several weeks a significant portion of the infrastructure and
beneficiation plant has been transported by rail from a railhead near Labrador
City to Schefferville via the TSH aboriginal railroad, which is jointly owned
by the two Quebec Innu communities and the Naskapi Nation. These items are now
being assembled in Schefferville and ready for road transport over three
kilometers to LIM's Silver Yard beneficiation site in Labrador. Further rail
shipments, direct to Silver Yard on LIM's spur line, are planned for the coming
weeks.

Initial open-pit waste removal and mine extraction will also be carried out
using local contractors to enable ore to be stockpiled on the crusher pad ahead
of dry run testing of the beneficiation plant.

The construction of the plant and camp and the initiation of mining activities,
prior to the onset of the mid-winter, will enable commercial production
activities to commence in the spring of 2011.

The last two major operating permits, for the operation of the mine and the
operation of the rail spur, are expected to be issued shortly by the Government
of Newfoundland and Labrador following a consultation process with potentially
affected First Nations.

Labrador Iron Mines Holdings Limited (LIM)

LIM's Schefferville Area project involves the development of twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec. LIM's properties are part of the historic Schefferville
area iron ore district where mining of adjacent deposits was previously carried
out by the Iron Ore Company of Canada from 1954 to 1982. Labrador Iron Mines
contemplates mining in four stages, the first phase of Stage 1 comprising the
James and Redmond deposits, which are located in close proximity to existing
infrastructure and for which construction permits have been issued.

Anglesey Mining plc

http://www.investegate.co.uk/Article.aspx?id=20110630121200PE04E

The 1st shipment of iron ore is most significant by Labrador,after many years and hurdles overcome(a few still to clear)the next few years should see substancial gains?
I'm copying a spreadsheet from probably the most knowledgable and respected pi,regarding the mining sector?

I have tried to keep it up to date but have not had much time recently for fresh research so please treat with caution.
Chip
............................ . ..... . CY2011 ...... CY2012 ...... CY2013

Breakdown of LIM financials -
Average price of 67% Fines ... US$/t . 162 ......... 170 ......... 179
Average price of 67% Lump .... US$/t . 180 ......... 189 ......... 198
Production level (stage 1/2) . t ..... 1,500,000 ... 2,500,000 ... 3,500,000
Production (Fines) ore ....... t ..... 900,000 ..... 1,875,000 ... 2,625,000
Production (Lump) ore ........ t ..... 600,000 ..... 625,000 ..... 875,000
Production ore (stage 3) ..... t .....
Total tonnage shipped ........ t ..... 1,500,000 ... 2,500,000 ... 3,500,000
Revenue (Fines) .............. US$ ... 145,800,000 . 318,937,500 . 468,838,125
Revenue (Lump) ............... US$ ... 108,000,000 . 118,125,000 . 173,643,750
Total Sales .................. US$ ... 253,800,000 . 437,062,500 . 642,481,875

Total Operating Costs/ton .... US$/t . 55 .......... 50 .......... 50
Operating Costs .............. US$ ... 82,500,000 .. 125,000,000 . 175,000,000

EBITDA ....................... US$ ... 171,300,000 . 312,062,500 . 467,481,875
D&A .......................... US$ ... 1,000,000 ... 1,000,000 ... 1,000,000
EBIT ......................... US$ ... 170,300,000 . 311,062,500 . 466,481,875
Net Interest ................. US$ ... 952,000 ..... 0 ........... 0
PBT .......................... US$ ... 169,348,000 . 311,062,500 . 466,481,875
Tax rate ..................... % ..... 10.0% ....... 39.0% ....... 39.0%
Tax Charge ................... US$ ... 16,934,800 .. 121,314,375 . 181,927,931
NPAT ......................... US$ ... 152,413,200 . 189,748,125 . 284,553,944
LIM shares issued (FD) ....... no. ... 56,084,486 .. 56,084,486 .. 56,084,486
EPS .......................... US$ ... 2.72 ........ 3.38 ........ 5.07
Indicated Share Price (LIM) .. US$ ... 27.18 ....... 33.83 ....... 50.74

CAPEX required ............... US$ ...
Sustaining CAPEX ............. US$ ... 3,000,000 ... 3,000,000 ... 3,000,000
Estimated cash-flow .......... US$ ... 146,413,200 . 151,748,125 . 236,553,944


AYM Financials -
LIM attributable ............. % ..... 32.9% ....... 32.9% ....... 32.9%
Attributable earnings (CF) ... US$ ... 48,177,625 .. 49,933,095 .. 77,838,659
Shares issued (FD) ........... no. ... 170,158,051 . 170,158,051 . 170,158,051
EPS .......................... US$ ... 0.283 ....... 0.293 ....... 0.457
FOREX ........................ /$ ... 1.6153 ...... 1.6153 ...... 1.6153
EPS .......................... p ..... 17.53 ....... 18.17 ....... 28.32
PER .......................... x ..... 10 .......... 10 .......... 10
est share price .............. p ..... 175 ......... 182 ......... 283

Dividend % of EPS ............ % ..... 0.0% ........ 10.0% ....... 10.0%
Dividend payable ............. p ..... 0.0 ......... 1.8 ......... 2.8
Div Yield (on est SP) ........ % ..... 0.0% ........ 1.0% ........ 1.0%


A chance to get in cheap imho as the 33% ownership of Lab/Lim is worth around 90p
alone and represemts a 50% upside.

http://www.proactiveinvestors.com/companies/news/15934/anglesey-mining-uk-market-has-largely-overlooked-this-iron-ore-play-broker-15934.html

Anglesey Mining (LON:AYM) is in an "extremely robust" financial position while the recent sell-off is unjustified, according to City broker Ambrian, which initiated coverage of the stock.



Ref to Labrador(LIM).

http://www.angleseymining.co.uk/shareholders/assets/ScotiaFlash_20110630.pdf

http://www.angleseymining.co.uk/shareholders/assets/ParadigmFirstIronOreRailShipment4Jul11.pdf


Conclusion
We ultimately see Labrador Iron Mines production strategically located within striking
distance of Canadas foremost iron ore producing region. As an up‐and‐coming iron ore
producer in the Labrador Trough, we believe this will attract plenty of attention, coupled
with LIMs low level of capital intensity, competitive operating costs and existing
infrastructure. We maintain our Buy recommendation and $18.50 target price


At $18.5 AYM share in Labrador would worth 1.35p.

Anglesey Mining plc

Annual report and accounts

A UK mining company listed on the London Stock Exchange

33% interest in Labrador Iron Mines Holdings Limited, a TSX quoted Canadian
company with 39 million tonnes of compliant direct shipping hematite iron ore
and 125 million tonnes of historical resources near Schefferville in Canada,
where production and processing of iron ore is now underway.

The market value of the group's investment in LIM at 31 March 2011 was 156
million compared with 75 million at the same date in 2010. At 19 July 2011
this value was 129 million, equivalent to 81 pence per Anglesey share.

The first of LIM's iron ore deposits has now been brought into
production and LIM is moving towards becoming
a significant producer.

100% of the Parys Mountain copper-lead-zinc project in North Wales with a total
historical resource of 7.76 million tonnes at 9.3% combined copper, lead and
zinc, held awaiting development.


Chairman's Statement

This has been the most successful year that Anglesey Mining has ever
experienced with the Schefferville iron ore mining operations of Labrador Iron
Mines ("LIM"), in which the group holds 33% of the equity, moving into
production. The first rail shipment of iron ore to the port of Sept-Iles was
despatched in June 2011 and LIM is now on track to produce over one million
tonnes of iron ore this year, with plans for expansion to enable production of
2.5 million tonnes in 2012.

The key developments and progress since the last Annual Report were:

LIM's steady progress towards production saw the price of LIM shares continue
to increase and at 19 July 2011 the market value of the group's holding in LIM
was C$199 million (129 million) equivalent to 81 pence per Anglesey share.

LIM completed a share placement in April 2011 in which it raised C$121 million
(78.5 million). It is now well financed to carry through its expansion plans.

The price of iron ore has remained strong and currently stands at around US$175
per tonne (CFR China) and the consensus of forecasts by respected market
analysts is for trading in the range of $150 - $200 per tonne for a number of
years. This should be very positive for the future of LIM.

In January 2011 Anglesey raised 1.6 million through the exercise of share
options with a concurrent private placing and now has a total of around 3.5

The new - 32 page! - note on LIM is now on AYM's web site.....

http://www.angleseymining.co.uk/shareholders/assets/Octagon8112011_InitiatingCoverage.pdf

Intro:

"Market correction provides attractive entry point for emerging iron ore producer

We are initiating coverage of Labrador Iron Mines Holdings Ltd.(Labrador Iron Mines or LIM) with a BUY recommendation and a 12‐month target price of $15.50 per share.

Reason to buy
We believe that the recent market correction has provided an attractive entry point for investors to buy shares in Labrador Iron Mines just as the Company is about to ship its initial iron ore products. The Company appears close to finalizing its port and marketing agreements for iron ore that is currently stockpiled at its Sept‐Iles facilities. We believe this leaves the Company well‐positioned to take advantage of robust iron ore prices and generate attractive cash flow as it ramps up production and sales over the next few years.

Valuation
We believe LIM shares are attractively valued, trading at a 40.1% discount
to our fiscal 2012E 10% DCF NAVPS of $14.88 and at 4.2x, 3.6x, and 1.9x
multiples to our fiscal 2013E EPS, CFPS, and EV/EBITDA estimates,respectively, compared to its peer group market‐cap‐weighted averages of 7.7x, 5.5x, and 4.0x, respectively.

Our $15.50 target price is based upon 80/20 weightings of the average of our fiscal 2012 and 2013 10% DCF NAVPS of $14.88 and $16.52, respectively, and the fiscal 2012‐2013 average of our comparable peer group market‐cap‐weighted multiples applied to our estimates for the Company."

Ive been a holder for almost 6 years from the early stages off this thread,and i am looking to sell in the near future,seems its been quite a ride for this old rock maybe time to call it a day,,and bank some profit.

Any thoughts !

Dave sorry missed your post and only just looked in,my thoughts apart from dreadful market conditions LIM(so AYM) are just getting up steam with regards to production.

Lims cost are i believe $50 a tonne,which makes the following he;pful.


"The reason, says Catherine Raw, natural resources portfolio manager at BlackRock, is that the marginal cost producer is sitting at $150 a tonne. If prices drop below that level, Chinese and, to a lesser extent, Indian miners would start to lose money, triggering production cuts. When prices fell in late 2010 below $150, the loss of supply forced prices back up to that level again in only eight weeks, suggesting a strong floor."

Also,

http://www.ft.com/cms/s/0/acf87fe6-f350-11e0-b11b-00144feab49a.html#axzz1ac2ZBcVh

Bought some this am,looking cheap?

http://uk.advfn.com/cmn/fbb/thread.php3?id=26094858&from=1474#firstpost

Get ready for history to repeat itself here. PFS to be published by end of this month. The resources are still in those rocks.. and looking likely to be extracted again within a year or two..

Rock bottom price. Last time this went to 80p.. from similar lows. Next to no dilution since.. small free float, multibag when a sniff of progress lands.

Countdown to scoping study has begun. Proper tight free float here, so don't try buying when it lands. Scale in while it's low.

The resources are massive at Parys, and ready to be extracted.

As I said lol.. buy when price is discounting assets. Still a long way to go.. could easily do 200% and still be undervalued.