Missed forecasts about 10%. It seems that the wet season came as a surprise to the logistics team. Plan for the worst hope for the best. Rainfall was consistent with 10 yr average so hardly a unique season
2013: Revenue £220m, Pre-Tax Profit £17m, at current sp gives P/E 9 2014: Revenue £280m, Pre-Tax Profit £60m, P/E 2.6
These are using production forecasts which are likely to be exceeded. 2014 production now likely to be over 5Mwmt. 2014 H1 has 1.1M hedged at $119, current ore price is looking bullish. Could easily see 2014 revenue of nearer £375m. Do the sums!
started production at the Marampa mine in December 2011, doubled production and export volumes in the first six months of 2013. Is expanding production capacity to 5.4Mwmt/a over the course of 2013 and expect to reach production capacity of 6.5Mwmt/a in 2014. Marampa has a mineral resource of over 1 billion tonnes of iron ore including a Probable ore reserve of 539Mt grading 31.1% Fe, sufficient for over 40 years of mine life.
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