Sierra Leone News: African Minerals seeks to reassure on trading in Sierra Leone

Business

The flagship Tonkolili mine has performed in line with market guidance, it added, with July production on target and nine Cape Size vessels loaded during the month. AML added it remains confident of its performance in August despite now reaching the heights of the wet season. Iron ore prices have been weak, however, with the average of $104/t in the first quarter falling to an average of $83/t in the second quarter including a low of just below $70/t in mid-June. The Platts 58% index now at $77/t and TSI 62% index at $95/t. Operational cashflow at the project level has deteriorated compared to previous quarters as a result of the low prices and remains tight, but AMI said the next two months are expected to deliver a substantial improvement in both costs and revenues due to cost cutting, reworking contracts and selling more dry tonnes. The miner added it continues to assess what would be an optimum debt structure, which may include re-profiling of its current debt facilities, issuing bonds, entering into new offtake arrangements, and temporarily accessing the $284m cash jointly held by AML and Shandong Iron and Steel Group for the project. Shares edged up to 47.15p. They were as high as 218p in January. Friday August 15, 2014

Fill the forms below to register

Please enter your username or email address to reset your password.