Anglesey Mining Regulatory News (AYM)

Anglesey Mining plc Half yearly report for the six months to 30 September 2013 Chairman's Statement and Management Report The half year to the end of September 2013 has been difficult for the group andparticularly for the investment in Labrador Iron Mines ("LIM"). For the six months ended 30 September 2013, LIM sold six shipments of iron oretotalling 980,000 dry tonnes and expects to achieve its target for theproduction and sale of 1.7 million wet tonnes for the year. However the qualityof that product was below expectations, largely because of lower gradeencountered in the deeper part of the James mine, and the net revenue receivedwas negatively impacted, despite the improvement in iron ore prices. At thesame time LIM's operating costs continued at higher levels than anticipated.The result was a very large loss reported by LIM. Now that LIM is treated as aninvestment this loss does not directly impact the group's accounts. However theLIM share price had declined at the period end and that fall in price is nowreflected as a loss in our income statement. The increase in value of sterlingagainst the Canadian dollar over the period has added further to this loss. At the same time Parys Mountain has been maintained on a low activity levelwith only a limited amount of geological review being conducted. This hasensured that costs have been kept to a minimum and cash conserved. A number ofcost limitation matters have been completed and these should lead to areduction of operating expenses in future periods. We continue to monitor the markets for the various metals that comprise theParys Mountain project with the expectation that we will be able to move theproject forward, with its relatively short lead time, to production once wesense the future upturn in these metal prices is well founded. We also continueto monitor other potential projects in suitable commodities in politicallystable environments. Labrador Iron LIM detailed the following highlights for the three and six month periods ended30 September 2013: · During the quarter, LIM sold four shipments of iron ore totalling652,000 dry tonnes, and reported revenue of C$40.3 million. For the six monthsended September 30, 2013, LIM has completed the sale of six shipments of ironore totalling 980,000 dry tonnes. · Revenues were impacted by value-in-use deductions arising primarilyfrom the lower grade of ore mined. · With a number of cost reduction measures implemented and higherproduction volumes achieved, operating unit costs were lower quarter overquarter. · For the half year ended 30 September 2013, LIM reported a net loss ofC$53.4 million, which included a non-cash depletion and depreciation charge ofC$26.3 million. · During the period, LIM completed the Joint Venture Agreement withTata Steel Minerals Canada ("TSMC") for the exploration and development ofLIM's Howse Deposit and received a cash consideration of C$30 million. Mining, Processing and Rail During the first half of the 2013 operating season, LIM mined a total of 1.33million tonnes of ore from the James Mine, Redmond Mine and Ferrimanstockpiles. At James, approximately 1.12 million tonnes of ore were minedduring the period. Mining activity took place deeper in the pit and the oreexhibited a lower in-situ iron grade and contained a greater fines componentthan previously experienced. Initial mining of the Redmond Mine commenced in July 2013 and 190,000 tonnes ofore was extracted during the period. Waste removal from Redmond was minimal,partially offsetting the additional costs of hauling the material approximately12 kilometres to Silver Yards. High clay content in the Redmond material causeddifficulties in the wet processing plant, resulting in poor recovery levels. Bulk sampling of ore from the Ferriman stockpiles commenced in September 2013and 18,500 tonnes of ore was reclaimed from Ferriman. The Ferriman material hasresponded well to wet processing. Processing activities at Silver Yards increased significantly in the secondquarter, with full operations from both the wet processing and dry screeningfacilities. A total of 1.8 million tonnes of plant feed were processed andscreened during the period, producing an aggregate of 1.1 million tonnes oflump and sinter iron ore product. Product recovery rate was low at 61%, whichwas attributable to a higher amount of fines in the James plant feed extractedfrom deep in the pit, the high clay content of the Redmond plant feed andunderperformance of the newly installed wet high intensity magnetic separator. LIM railed a record of approximately 1.05 million tonnes of iron ore to thePort of Sept-Îles. By the end of July, a fourth train set was operating andrail operations averaged approximately five trains per week. Iron Ore Sales LIM completed six shipments of iron ore totalling 980,000 dry tonnes during theperiod. These shipments were sold to the Iron Ore Company of Canada. LIMrecognized net revenue of C$58.2 million after netting shipping costs and IOC'sparticipation from the CFR China actual realized price for these shipments. LIM's product sales during the period experienced value-in-use deductionsrelated to the silica, iron content and sizing specifications, which deviatedfrom benchmark standards. Parys Mountain There has been a limited amount of work carried out on the Parys Mountainsite. Geological data compilation, assessment and review have continued andthis will increase in the coming months. The group continues to monitor themarkets for its major metals and in particular the medium term prospects forzinc on which the immediate future development of mining and treatmentoperations is highly dependent. The lead time to move Parys Mountain intoproduction, subject to financing, is relatively short. In the meantimeexpenditure will be kept to a minimum consistent with sufficient geologicalreview being maintained. Financial Results There was a net loss for the period of £3.2 million (2012 loss - £7.4 million);almost £3 million of this loss was in respect of the holding in LIM.Administration expenses were slightly reduced. The group has no revenues fromthe operation of its properties. At the period end the cash resources of thegroup were £0.4 million (31 March 2013 - £0.7 million). Outlook The iron ore price has firmed during the half year and has maintained somestability for a couple of months. Recent political signals from China suggestthat infrastructure investment will continue and this should continue tosupport the price around current levels. LIM has to maintain its programme ofcost reductions and couple this with detailed planning for the next stage ofdevelopment at Houston. Together all these should, subject to additionalfinancing, provide a solid basis for future operations. Base metal prices, particularly of lead and zinc, have still to respond to anyChinese stimulus and to the perceived reduction in global production levels inthe next few years. The group is of the view that sustained upward movementswill occur in the near future. John F KearneyChairman25 November 2013 Anglesey Mining plc - GroupCondensed consolidated income statement Notes Unaudited Unaudited six months six months ended 30 ended 30 September September 2013 2012All operations are continuing £ £ Revenue - - Expenses (196,480) (201,885) Share of loss of associate - (7,039,697) Losses on deemed disposals - (133,913) in associate Loss on fair value of investment 10 (2,440,187) - Exchange difference on loss above 10 (527,771) - Investment income 14,267 27,075 Finance costs (57,149) (57,456) Foreign exchange (loss)/profit (1,566) 8,887 Loss before tax (3,208,886) (7,396,989) Tax 8 - - Loss for the period (3,208,886) (7,396,989) Loss per share Basic - pence per share (2.0)p (4.6)p Diluted - pence per share (2.0)p (4.6)p Condensed consolidated statement of comprehensive income Loss for the period (3,208,886) (7,396,989) Other comprehensive income: Exchange difference on - 42,465 translation of foreign holding Total comprehensive loss (3,208,886) (7,354,524)for the period All attributable to equity holders of the company Condensed consolidated statement of financial position Notes Unaudited 30 September Audited 31 2013 March 2013 £ £Assets Non-current assets Mineral property development 9 14,787,943 14,753,566 Property, plant and equipment 204,687 204,687 Investment 10 4,996,574 7,964,532 Deposit 122,454 122,204 20,111,658 23,044,989 Current assets Other receivables 38,071 40,239 Cash and cash equivalents 431,793 670,345 469,864 710,584 Total assets 20,581,522 23,755,573 Liabilities Current liabilities Trade and other payables (78,363) (100,677) (78,363) (100,677) Net current assets 391,501 609,907 Non-current liabilities Loan (2,363,432) (2,306,283) Long term provision (42,000) (42,000) (2,405,432) (2,348,283) Total liabilities (2,483,795) (2,448,960) Net assets 18,097,727 21,306,613 Equity Share capital 11 7,116,914 7,116,914 Share premium 9,848,949 9,848,949 Retained earnings 1,131,864 4,340,750 Total shareholders' equity 18,097,727 21,306,613 All attributable to equity holders of the company Condensed consolidated statement of cash flows Notes Unaudited Unaudited six months six months ended 30 ended 30 September September 2013 2012 £ £Operating activities Loss for the period (3,208,886) (7,396,989) Adjustments for non-cash items: Investment revenue (14,267) (27,075) Finance costs 57,149 57,456 Share of loss of associate - 7,039,697 Losses on deemed disposals in associate - 133,913 Loss on fair value of investment 10 2,440,187 - Exchange difference on loss above 10 527,771 - Foreign exchange movement 1,566 (8,887) (196,480) (201,885) Movements in working capital Decrease in receivables 2,168 2,221 Decrease in payables (10,123) (50,682) Net cash used in operating activities (204,435) (250,346) Investing activities Investment revenue 14,017 26,825 Mineral property development (46,568) (1,280,091) Net cash used in investing activities (32,551) (1,253,266) Financing activities Proceeds from issue of shares - 234,718 Loan received - Net cash generated from financing activities - 234,718 Net decrease in cash (236,986) (1,268,894)and cash equivalents Cash and cash equivalents at start of period 670,345 3,150,644Foreign exchange movement (1,566) 8,887 Cash and cash equivalents at end of period 431,793 1,890,637 All attributable to equity holders of the company Condensed consolidated statement of changes in group equity Share Share Currency Retained Total capital premium translation earnings £ £ £ reserve £ £ Equity at 1 April 7,116,914 9,848,949 - 4,340,750 21,306,6132013 - auditedTotal comprehensiveincome for theperiod:Loss for the period - - - (3,208,886) (3,208,886)Total comprehensive - - - (3,208,886) (3,208,886)income for theperiod: Equity at 30 7,116,914 9,848,949 - 1,131,864 18,097,727September 2013 -unaudited Comparative periodEquity at 1 April 7,096,914 9,634,231 3,241,170 35,792,148 55,764,4632012 - audited Total comprehensiveincome for theperiod:(Loss) for the - - - (7,396,989) (7,396,989)periodExchange difference - - 42,465 - 42,465on translation offoreign holdingsTotal comprehensive - - 42,465 (7,396,989) (7,354,524)income for theperiod: Shares issued 20,000 220,000 - - 240,000to discharge aliabilityShare issue costs - (5,282) - - (5,282)Equity-settled - - - 284,991 284,991benefits credit:- associate Equity at 30 7,116,914 9,848,949 3,283,635 28,680,150 48,929,648September 2012 -unaudited All attributable to equity holders of the company Notes to the accounts 1. Basis of preparation This half-yearly financial report comprises the condensed consolidatedfinancial statements of the group for the six months ended 30 September 2013.It has been prepared in accordance with the Disclosure and Transparency Rulesof the UK Financial Services Authority, the requirements of IAS 34 - Interimfinancial reporting (as adopted by the European Union) and using the goingconcern basis (and the directors are not aware of any events or circumstanceswhich would make this inappropriate). It was approved by the board of directorson 25 November 2013. It does not constitute financial statements within themeaning of section 434 of the Companies Act 2006 and does not include all ofthe information and disclosures required for annual financial statements. Itshould be read in conjunction with the annual report and financial statementsfor the year ended 31 March 2013 which is available on request from the companyor may be viewed at www.angleseymining.co.uk. The financial information contained in this report in respect of the year ended31 March 2013 has been extracted from the report and financial statements forthat year which have been filed with the Registrar of Companies. The report ofthe auditors on those accounts did not contain a statement under section 498(2)or (3) of the Companies Act 2006 and was not qualified. The half-yearly resultsfor the current and comparative periods are unaudited. 2. Significant accounting policies The accounting policies applied in these condensed consolidated financialstatements are consistent with those set out in the annual report and financialstatements for the year ended 31 March 2013. The following amendments tointerpretations were effective in the current period and have been adopted: IAS 1 Presentation of Financial Statements: Amendments to revise theway other comprehensive income is presented; Issued - June 2011; Effective -Annual periods beginning on or after 1 July 2012. The amendments to IAS 1require items of other comprehensive income to be grouped into those that willbe subsequently reclassified to profit or loss and those that will not. Thedisclosures will be made in the group's financial statements for the year ended31 March 2014. IFRS 13 Fair Value Measurement: Original issue; Issued - May 2011;Effective - Annual periods beginning on or after 1 January 2013. Theapplication of IFRS 13 has not significantly impacted the fair valuemeasurement of any financial assets or liabilities held by the group. IFRS 13also requires additional disclosures at the interim period which have beenincorporated into IAS 34 These disclosures are given in note 12. The adoption of the following amendments and new interpretations has notresulted in a change to the accounting policies nor had a material effect onthe financial performance and position of the group. In preparing thesefinancial statements any accounting assumptions and estimates made bymanagement were consistent with those applied to the aforesaid annual reportand financial statements. IFRS 11 Joint Arrangements: Original issue; Issued - May 2011;Effective - Annual periods beginning on or after 1 January 2013. IAS 19 Employee Benefits: Original issue; Issued - Amended June2011; Effective - Annual periods on or after 1 January 2013. IAS 27 Separate Financial Statements (as amended in 2011): Originalissue; Issued - May 2011; Effective - Annual periods beginning on or after 1January 2013 IAS 28 Investments in Associated and Joint Ventures: Original issue;Issued - May 2011; Effective - Annual periods beginning on or after 1 January2013 IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine;Effective - Annual periods beginning on or after 1 January 2013 Annual improvements 2009-2011: these amendments to IAS 1, IAS 16 and IAS 32 areeffective for accounting periods beginning on or after 1 January 2013. 3. Risks and uncertainties The principal risks and uncertainties set out in the group's annual report andfinancial statements for the year ended 31 March 2013 remain the same for thishalf-yearly financial report and can be summarised as: development risks inrespect of mineral properties, especially in respect of permitting and metalprices; liquidity risks during development; and foreign exchange risks. Moreinformation is to be found in the 2013 annual report - see note 1 above. 4. Statement of directors' responsibilities The directors confirm to the best of their knowledge that: (a) the condensedconsolidated financial statements have been prepared in accordance therequirements of IAS 34 Interim financial reporting (as adopted by the EuropeanUnion); and (b) the interim management report includes a fair review of theinformation required by the FSA's Disclosure and Transparency Rules (4.2.7 Rand 4.2.8 R). This report and financial statements were approved by the boardon 25 November 2013 and authorised for issue on behalf of the board by BillHooley, Chief Executive Officer and Danesh Varma, Finance Director. 5. Activities The group is engaged in mineral property development and currently has noturnover. There are no minority interests or exceptional items. 6. Earnings per share The loss per share is computed by dividing the loss attributable to ordinaryshareholders of £3.2 million (2012 loss £7.4m), by 160,608,051 (2012 -159,328,270) - the weighted average number of ordinary shares in issue duringthe period. Where there are losses the effect of outstanding share options isnot dilutive. 7. Business and geographical segments There are no revenues. The cost of all activities charged in the incomestatement relates to exploration and development of mining properties. Thegroup's income statement and assets and liabilities are analysed as follows bygeographical segments, which is the basis on which information is reported tothe board. Unaudited six months ended 30 Unaudited six months September 2013 ended 30 September 2012 UK Canada - Total UK Canada - Total investment associate £ £ £ £ £ £ Expenses (196,480) - (196,480) (201,885) - (201,885)Loss on fair - (2,440,187) (2,440,187) - - -value ofinvestmentExchange - (527,771) (527,771) - - -differenceon lossaboveShare of - - - - (7,039,697) (7,039,697)loss inassociateLoss on - - - - (133,913) (133,913)deemeddisposalsInvestmentincome 14,267 - 14,267 27,075 - 27,075Financecosts (57,149) - (57,149) (57,456) - (57,456)Exchange (1,566) - (1,566) 8,887 - 8,887ratemovements Loss for the (240,928) (2,967,958) (3,208,886) (223,379) (7,173,610) (7,396,989)period Unaudited 30 September 2013 Audited 31 March 2013 UK Canada - Total UK Canada - Total investment associate £ £ £ £ £ £ Assets 15,584,948 4,996,574 20,581,522 15,791,041 7,964,532 23,755,573Liabilities (2,483,795) - (2,483,795) (2,448,960) - (2,448,960) Net assets 13,101,153 4,996,574 18,097,727 13,342,081 7,964,532 21,306,613 8. Deferred tax There is an unrecognised deferred tax asset of £1.2 million (31 March 2013 - £1.2m) which, in view of the group's results, is not considered to berecoverable in the short term. There are also capital allowances, includingmineral extraction allowances, exceeding £11 million (unchanged from 31 March2013) unclaimed and available. No deferred tax asset is recognised in thecondensed financial statements. 9. Mineral property development Mineral development costs incurred by the group are carried in the condensedconsolidated financial statements at cost, less an impairment provision ifappropriate. The recovery of mineral development costs is dependent upon thesuccessful development and operation of the Parys Mountain project which isitself conditional on finance being available to fund such development. Duringthe period expenditure of £34,377 was incurred (six months to 30 September 2012- £370,623). The 2012 expenditure included more drilling costs and the cost ofterminating a net profits royalty agreement in respect of Parys Mountain. Therehave been no indicators of impairment during the period. 10. Investment - formerly interest in an associate Labrador Iron Mines Holdings Limited (LIM) is the 100% owner and operator of aseries of iron ore properties in Labrador and Quebec, many of which wereformerly held and initially explored by the group. On 6 November 2012 thegroup's holding in LIM was diluted from 26% to 15% as a result of LIM shareissues to third party interests. From that date its accounting treatment haschanged and LIM is now held as an investment. Unaudited 30 September 2013 31 March 2013 £ £Value of investment uponrecognition as a financialinvestment - 10,483,858Value brought forward 7,964,532 -Addition to investment - 950,927Loss on adjustment to fair value (2,440,187) (3,791,439)Exchange difference arising onadjustment above (527,771) 321,186Amount carried in the group accounts 4,996,574 7,964,532 The published fair value of the group's investment in LIM at 30 September 2013is £5 million (31 March 2013 - £8 million). The shares included above representan investment in listed equity securities that present the group withopportunity for return through dividend income and trading gains. The groupholds a strategic non-controlling interest. These shares are not held fortrading and accordingly are classified as 'available for sale' which is deemedto be the most appropriate classification under IFRS. The fair values of allequity securities are based on quoted market prices. The above investment ismeasured subsequent to initial recognition at fair value as 'Level 1' AFS basedon the degree to which the fair value is observable. Level 1 fair valuemeasurements are those derived from quoted prices (unadjusted) in activemarkets. 11. Share capital Ordinary shares of Deferred shares of Total 1p 4pIssued and Nominal Number Nominal Number Nominalfully paid value £ value £ value £ At 31 March 2012 1,586,081 158,608,051 5,510,833 137,770,835 7,096,914Issued 11 July 2012 20,000 2,000,000 - - 20,000 - At 31 March and 30 September 2013 1,606,081 160,608,051 5,510,833 137,770,835 7,116,914 12. Financial instruments Available for sale Loans & Financial liabilities asset receivables Unaudited 31 March Unaudited 31 March Unaudited 31 March 30 Sep 13 2013 30 Sep 13 2013 30 Sep 13 2013 £ £ £ £ £ £Financial assetsInvestment 4,996,574 7,964,532 - - - -Deposit - - 122,454 122,204 - -Other debtors - - 38,071 40,239 - -Cash and cashequivalents - - 431,793 670,345 - - - -Financial liabilities - -Trade creditors - - - - (12,533) (33,860)Loans due to Juno - - - - (2,363,432) (2,306,283) 4,996,574 7,964,532 592,318 832,788 (2,375,965) (2,340,143) 13. Events after the reporting period None. 14. Related party transactions None. ******************************************************************** Directors: John Kearney Chairman Bill Hooley Chief executive Danesh Varma Finance director David Lean Non executive Howard Miller Non executive Roger Turner Non executive Corporate office telephone: 01248 361333 Parys Mountain site: Parys Mountain, Amlwch, Anglesey, LL68 9REPhone 01407 831275 London office: Painter's Hall Chambers, 8 Little Trinity Lane, London, EC4V 2ANPhone 020 7653 9881 Labrador Iron Mines TSX:LIMwww.labradorironmines.caPhone +1 647 728 4125 Registered office: Tower Bridge House, St. Katharine's Way, London, E1W 1DD Share registrars: Capita Registrars www.capitaregistrars.com

Company registration number 1849957