Bad weather and contractor problems hit Anglesey Mining

Bad weather and delays involving contractors hit Canadian iron ore operations part-owned by Anglesey Mining, knocking its shares.Anglesey, whose major business is its 15% stake in Toronto-listed Labrador Iron Mines (LIM), blamed rough weather in March and April and slower-than-expected contractor mobilisation in March for lower-than-planned volumes of mining and sales at LIM.LIM achieved only two iron ore shipments instead of the planned three during the first quarter to June 30th, although the sale of its third shipment came shortly after the end of the quarter.Mining and rail volumes are now hitting targets and LIM is aiming for 10 shipments in 2013. LIM made a quarterly loss of C$28.5m (£17.7m) including adepletion and depreciation charge of C$5.6m (£3.5m) and rail penalties of C$6.2m (£3.9m).LIM has taken steps to reduce costs and expects costs to fall significantly in the second and third quarters as production increases.LIM Chairman and Chief Executive John Kearney said: "With more favourable spot iron ore prices seen in recent weeks, combined with the operational improvements and cost reductions, we expect to achieve stronger results for the balance of the 2013 season."Anglesey, which also owns the Parys Mountain zinc-copper-lead deposit inNorth Wales in the UK, said activity there had been limited but a geological review had begun which is set to lead to reappraisal of development targets. Anglesey voiced confidence that the market for its metals such as zinc will improve in the medium term as the world exits recession and the Chinese economy continues to grow.Shares in Anglesey fell more than 8.0% to 5.5p at 12:00 in London.PW Anglesey Mining