London Mining doubles production, trebles sales volumes
London Mining's (LON:LOND) new processing plant made a mark with production at the company's Marampa Mine in Sierra Leone with a full year production at 3.4 million wet metric tonnes (Mwmt), a 108% increase year on year according to the company's Q4 2013 production report.
Production was still better in Q3 compared to Q4, when production was hampered by the wet season and commissioning times at the mill.
"The effects of the wet season at Marampa continued into Q4 2013 with lower mining rates causing full depletion of the run of mine (“ROM”) stockpile. This significantly impacted our ability to feed the processing plant with the appropriate ore blend on a consistent basis," wrote the company in a news release.
Full year sales were also up significantly, going from 1,162Mwmt in 2012 to 3,655Mwmt in 2013.
The company said that the increase in sales was ". . . due to the draw-down of the concentrate stockpile and higher utilisation of the augmented barging and transhipment operation following the end of the wet season."
The company's CEO predicts strong volume growth.
"We increased installed production capacity by 40% to 5.4Mwmt/a by the end of 2013 and are commissioning the plant upgrades which will deliver strong volume growth in 2014," said Graeme Hossie, Chief Executive of London Mining.
The Marampa mine is a brownfields site formerly operated by the Sierra Leone Development Company (DELCO) and William Baird between 1933 and 1975. Marampa reached a peak production of 2.5mtpa before low iron ore prices forced its closure. Continuing weak market economics and civil war prevented redevelopment of the mine until the mining licence was acquired by London Mining in 2006.
London Mining is also developing projects in Greenland and Saudi Arabia.