Anglesey Mining encouraged by commodity prices, actively reviewing new opportunities

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Anglesey Mining PLC (LON:AYM) said it is “very encouraged” by continued strength in commodity prices over recent months and that it is now “actively reviewing” new exploration and development opportunities.

In an update for the company’s general meeting on October 30, the company’s chairman John Kearney said the firm is taking “a very positive view on copper” and expects the current price to increase further in the medium term, which in turn should benefit the company as it considered deeper resources at its Parys mountain project in Wales, where copper trends tend to dominate over zinc.

READ: Anglesey Mining gets lift as Labrador Iron Mines fires up again

The firm also noted that the price of iron ore has increased to over US$120 per tonne from US$80 in January, which has made its investments in both the Labrador iron mines in Canada and the Grangesberg iron project in Sweden “increasingly attractive”.

“In common with market analysts we believe that increased stimulus demand from China and the continuation of supply problems in Brazil will support the price of iron ore in the US$100 per tonne range for some time to come”, Kearney said.

Meanwhile, Anglesey said a preliminary economic assessment (PEA) is currently underway at the Parys Mountain project, which it said will evaluate a number of different options for the site including potential production from not just indicated resources but also from inferred resources including higher value copper-rich orebodies in the Lower Engine, Garth Daniel and Northern Copper zones.

The company said it has been informed that progress on the PEA is well advanced and it is hoping to release detailed results before the end of the year.

As a result of what it said is the benefit of its listing on the main board of the London Stock Exchange, the current strength in base metal prices and renewed investor interest, the firm said it is “actively reviewing some new opportunities for mineral exploration and development projects” with a focus on advanced copper and other base metal projects that would be complementary to its current operations.

Shares in Anglesey were 3.7% lower at 1.7p in early deals on Monday.

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