Anglesey Mining PLC Annual Financial Report


 
TIDMAYM 
 
Anglesey Mining plc 
 
Anglesey Mining plc today announces it final results for the year to 
31 March 2014 condensed to exclude the Directors Remuneration and 
Corporate Governance Reports available in the Annual Report. The remaining 
information presented is extracted from the Annual Report. 
Copies of the Annual Report 2014 will be posted to shareholders 
together with the Notice of the 2014 Annual General Meeting ("AGM Notice") 
to be held at the offices of the company's lawyers, DLA Piper UK LLP, 
1 London Wall, London, EC2Y 5EA on 30 September 2014 at 11.00 a.m. 
In accordance with the Listing Rules, the Annual Report 2014, together with 
the AGM Notice, has been submitted to the National Storage Mechanism and 
will shortly be available for inspection at: 
http://www.morningstar.co.uk/uk/NSM . 
Shareholder documents can also be accessed on the company's website at: 
www.angleseymining.co.uk 
 
 
Annual Report 2014 
 
* A UK mining company listed on the London Stock Exchange 
 
* In May 2014 Anglesey entered into agreements giving it the right to acquire 
  a controlling interest in the Grangesberg Iron project in Sweden. 
 
* Anglesey is carrying out exploration, evaluation and pre-feasibility work 
  at its 100% owned Parys Mountain underground zinc-copper-lead-silver-gold 
  deposit in North Wales, UK. 
 
* Anglesey holds 15% of Toronto-listed Labrador Iron Mines Holdings Limited 
  (TSX:LIM) which has direct shipping iron ore deposits in western Labrador 
  and north-eastern Quebec. 
 
Strategic report - Chairman's statement 
 
In what has been a quiet year in the resources sector the company maintained 
steady progress on a number of fronts whilst awaiting a general turnaround in 
the underlying markets. Parys Mountain has seen limited activity during the 
year while operations at Labrador Iron have been disappointing and continued 
to suffer from low product prices. 
 
After the year end we began participation in the Grangesberg Iron operation in 
Sweden, which has been a major producer in the past and over the coming year 
we plan to fully evaluate this opportunity and if justified increase our 
interest to a majority position. We believe that Grangesberg should become a 
very exciting project for the company in the future. 
 
Whilst metal prices remained depressed during the financial year there are now 
very positive signs of a marked upturn. The price of zinc is currently over 
US$1.00 per pound, a figure last seen in 2011 and copper after some weakness 
is now back trading at the US$3.25 per pound level. A continuation of this 
improvement will allow us to take a far more positive view on the development 
of Parys Mountain than we have been able to do for some years. Iron ore after 
a very weak second quarter in 2014 is now slowly recovering and expectations 
are for continuing improvement. This bodes well both for Labrador and for 
Grangesberg. 
 
We will continue to monitor these improvements in metal prices and we look 
forward to an ensuing improvement in the financing and equities markets that 
would then enable us to bring our two projects forward and to provide much 
needed support for Labrador Iron. 
 
Parys Mountain 
 
Activity on site has been quiet during the year but Micon International 
Limited has been engaged to review the mineral potential of the entire Parys 
Mountain property in North Wales. This review will cover both those resources 
on which Micon has previously provided JORC compliant indicated and inferred 
resource estimates as well as studying a number of other zones within the 
property that were not included in earlier estimates. 
 
The price for zinc metal is now improving and is getting closer to a level 
that will support the development of a production operation at Parys Mountain, 
and at the same time demand for concentrates in European markets appears to be 
growing. 
 
Grangesberg 
 
In May 2014 Anglesey completed the contractual arrangements to secure 
management control, including the majority of board seats, over the 
Grangesberg iron ore mine in Sweden. This mine was a significant producer of 
iron ore until 1989 and current planning indicates a return to production at 
around 2.0 to 2.5 mtpa later this decade. This could be a very important 
investment for the company, sourcing iron ore in the European market 
commencing when the current world-wide expansion of production begins to 
abate. 
 
A number of technical and commercial activities are in the final planning 
stages and these will commence imminently. These activities are part of a 
longer term plan to assess the optimum development and financing strategy for 
the mine. The company expects to report further progress during the coming 
months. 
 
Labrador 
 
Production activities in Labrador during the summer 2013 operating season 
suffered from deteriorating grade and feed product quality. This caused 
operational difficulties in the processing plant and resulted in lower grade 
and quality product being sold than anticipated and this followed through to 
significantly lower revenues than expected. Labrador Iron has decided to 
suspend production activities for 2014 while it seeks to raise additional 
finance to develop its flagship Houston deposit. Providing it is successful in 
this fundraising then it is expected that production will re-commence in the 
spring of next year. At that time it should be on a substantially firmer 
commercial footing and better able to weather the vagaries of geology and the 
markets. 
 
Outlook 
 
There is certainly more confidence in the air this year than last and while 
the capital markets for junior miners still remain quite depressed there is 
some expectation that they will improve in the near term as the benefits of 
increases in metal prices flows through. Given this expectation we look 
forward to our projects moving forward positively during the current year. 
 
John F. Kearney 
 
Chairman 
 
30 July 2014 
 
 
Strategic report - operations 
 
Principal activities and business review 
 
The group is engaged in the business of exploring and evaluating the 
wholly-owned Parys Mountain project in North Wales and has a 15% holding (2013 
- 15%) in the Labrador iron project in eastern Canada. In May 2014 the group 
acquired an option to manage the Grangesberg iron ore property in Sweden. 
 
At Parys Mountain there were limited activities during the year but since the 
year end evaluation of the geological information revealed by the recent 
drilling programmes is being carried out and a new and more comprehensive 
geological model is under preparation. 
 
Operations at Labrador Iron Mines' James deposit in Labrador are currently 
suspended pending additional fund raising. 
 
The group continues its search for other mineral exploration and development 
opportunities. 
 
The aim of the group is, to create value in the Parys Mountain property, 
including by co-operative arrangements where appropriate, to continue its 
participation in the Labrador projects and to actively engage in other mineral 
ventures using the group's own resources together with such external 
investment and finance as may be required. 
 
Parys Mountain 
 
The Parys Mountain property is a significant UK zinc, copper and lead deposit 
with small amounts of silver and gold. A feasibility study in 1991 
demonstrated the technical and economic viability of bringing the property 
into production at a rate of 350,000 tonnes per annum, producing zinc, copper 
and lead concentrates. In 2012 the first JORC Code compliant resource estimate 
of the property was published. It showed 2.1 million tonnes at 6.9% combined 
base metals in the indicated category and 4.1 million tonnes at 5.0% combined 
in the inferred category. 
 
The site has a head frame, a 300m deep production shaft and planning 
permission for operations; consequently the lead time to production is 
expected to be relatively short. The group has freehold ownership of the 
minerals and surface land and there is substantial exploration potential. 
Infrastructure is good, political risk is low and the project has the support 
of local people and government. 
 
During the financial year activities have been limited to some follow-up 
geological work, however since the year end a programme of further geological 
re-examination across the property has begun dealing particularly with areas 
not covered by the JORC estimate. This remodelling project is being undertaken 
by Micon Consulting, the company which prepared the JORC estimate, with input 
from experienced geologists who have previously worked on Parys Mountain. 
 
There are technical and other matters to be addressed to ensure that the 
project moves towards production, however the directors are of the opinion 
that this project is at an advanced state and the existence of the original 
feasibility study, together with the valid planning permissions, will do much 
to reduce both the volume of work required to move the project into production 
and the risks associated with this work. 
 
After due consideration the directors decided to undertake an impairment 
review, however this review did not indicate any requirement for impairment 
against the value of the Parys Mountain mineral asset on the balance sheet. 
 
Operation of the mine and the receipt of cashflows from it are dependent on 
finance being available to fund the development of the property. 
 
Grangesberg Iron AB 
 
In May 2014 the group acquired an option to develop the Grangesberg iron ore 
property in Sweden. 
 
The Grangesberg iron ore mine is situated in the mineral-rich Bergslagen 
district of central Sweden about 200 kilometres north-west of Stockholm. Until 
its closure in 1989 due to prevailing market conditions, the Grangesberg mine 
was the third largest iron ore mine in Sweden, next only to the Kiruna and 
Malmberget mines in the north of Sweden, with in excess of 150 million tonnes 
of iron ore mined down to around 500 metres deep. 
 
Prior indications are that at least 115 million tonnes of iron ore containing 
around 40% iron remain for exploitation at Grängesberg. The homogenous iron
Anglesey Mining (LSE:AYM)
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