London Mining posts highlights and preliminary financial results for 2009

UK-based emerging international iron ore miner London Mining has issued highlights and preliminary full year results for 2009.

The company which owns iron ore assets in Sierra Leone, Greenland, Saudi Arabia and China said that the group had consolidated cash of $205 million as of December 31, 2009.

Group loss from operations declined to $28.6 million from $36.8 million, reflecting first net earnings from Chinese operations of $6 million. China Global Mining Resources JV (CGMR) mined 1 million mt of iron ore graded 28 percent Fe in 2009. The operation in Anhui province is a JV with equal shares between London Mining and Minneapolis, US-based miner Wits Basin Precious Metals.

The company also achieved AIM listing and placing of 37 million existing shares at GBP 74 million with over 30 new institutional investors in 2009.

The measured, indicated and inferred resources and the quality of iron ore at the group's other three developing operations, namely the Marampa project in Sierra Leone (fully owned), the Isua project in Greenland (fully owned) and the Wadi Sawawin project in Saudi Arabia (equal share JV with state-owned National Mining Company) are summarized as follows:

Commenting on the results, London Mining CEO Graeme Hossie said, "In 2009, we consolidated our assets and strengthened our technical and executive teams with high calibre appointments. We expect to deliver first production at the Marampa project in Sierra Leone in the early part of 2011, with 1.5 million mt per annum from the initial phase of the project and expanding thereafter. We are progressing drilling and development work following the delivery of a bankable feasibility study at Wadi Sawawin and a pre-feasibility study at Isua."