Business
Half-year Report 30 Sept 17
Half-year Report 30 Sept 17.
About this update from Anglesey Mining Plc
[{"type":"text","content":"\n \nAnglesey Mining plc\n\nHalf yearly report for the six months to 30 September 2017\n\nChairman’s Statement and Management Report\n\nWe are pleased to report that the broad trend of improving base metal prices is prevailing during 2017. The current price of zinc is strong and the long-term price outlook remains very positive.\n\nThe rally in base metals, which began in 2016 is continuing with the London Metal Exchange zinc price hitting a new 10-year high of US$1.52 per pound in late September. Since the beginning of 2017, the zinc price is up almost 30% and the year-over-year increase is approximately 40%. \n\nWe therefore believe that it is now opportune to move forward with the development of the Parys Mountain base metal project in North Wales and we are putting in place a number of key elements to facilitate this.\n\nParys Mountain\n\nDuring the half year the updated Scoping Study on Parys Mountain, prepared by Micon International Limited and Fairport Engineering Limited, was received. The positive results from that Study, which were described in some detail in the annual report issued in July, indicate a processing rate for the planned Parys Mountain Mine of 1,000 tonnes per day, generating average copper, lead and zinc concentrate production of approximately 22,000 tonnes per annum in total.\n\nThe Scoping Study was based on copper prices of $US2.50 per pound, zinc of $US1.25 per pound and lead of $US1.00 per pound, generating an overall net smelter return of $US270 million with an IRR of 28% and an NPV10 of $US43 million. \n\nSubsequent to preparation of the Study, metal prices have continued to improve significantly with copper now selling at around $US3.10 per pound, zinc at $US1.45 per pound and lead at $US1.10 per pound. If these current market prices were used in the Study, the financial results indicated would increase substantially.\n\nWe have previously described four key steps in the development of the project. These are: the commencement of an Environmental Impact Assessment; the conversion of the Scoping Study to a Definitive Feasibility Study; the recruitment of key corporate staff; and pursuing discussions with potential providers of project finance.\n\nProgress has been made on each of these areas and discussions have been held with potential new executives with the expectation that they will...