Business
LIM signs new sales and off-take agreements
LIM signs new sales and off-take agreements.
About this update from Anglesey Mining Plc
[{"type":"text","content":"\n \nAnglesey Mining plc\n\n14 May 2013 LSE:AYM\n\nLIM signs new sales and off-take agreements\n\n * Two year iron ore sales agreement with\n Iron Ore Company of Canada for 2013 and 2014\n \n * US$35 million off-take financing with RB Metalloyd\n \nAnglesey Mining's associate Labrador Iron Mines Holdings Limited (TSX: LIM) is\npleased to report that it has entered into a new iron ore sales agreement with\nthe Iron Ore Company of Canada (\"IOC\") for the sale of all of LIM's iron ore\nproduction for the next two calendar years 2013 and 2014.\n\nAt the same time, LIM has announced that it has entered into an off-take\nfinancing agreement with RB Metalloyd Limited (\"RBM\"), a leading international\ncommodity trading house, under which LIM will receive an advance payment of\nUS$35 million to be credited against future sales of a minimum of 3.5 million\ntonnes of iron ore during 2013 and 2014.\n\nLIM commenced its third year of direct shipping iron ore production from its\nSchefferville area iron ore mines in Western Labrador in April 2013 and is\ntargeting production of 1.75 to 2.0 million tonnes of sinter fines and lump in\n2013. The first Capesize shipment of 2013 is expected to be loaded around the\nend of May.\n\nTwo year iron ore sales agreement with IOC\n\nOver the past two years, LIM has sold 13 Capesize shipments of iron ore to IOC,\nfor a total of approximately 2 million tonnes, all of which was resold in\nChina, with the price calculated based on the daily China spot price, subject\nto varying selling discounts, and where the sale of LIM's iron ore experienced\nunpredictable variations based on prevailing market conditions.\n\nUnder LIM's new sales agreement, IOC will pay for the iron ore progressively,\nas the ore is resold, with the price calculation based on the monthly average\nof the market index, which should decrease LIM's exposure to market volatility\nexperienced in the past two years. IOC payments will be later reconciled based\non IOC's net actual aggregate resale price, adjusted for any product quality\nspecification premiums or penalties, after ocean freight and IOC's price\nparticipation.\n\n\"We are very pleased to be able to continue our working relationship with IOC\nas we head into our third year of production from our Schefferville area iron\nore mines\" said John Kearney, LIM's Chairman and Chief Execu...