Anglesey Mining PLC (LSE:AYM) said the six months to the end of September were positive for the company and the minerals industry in general.
Of particular importance to Parys Mountain, the company’s polymetallic development project in North Wales, is the price of copper, which will be the mainstay of the project in the long term.
Copper has continued to make steady gains over the period, hitting a 10 year high of around US$4.90/lb in May and trading at over US$4.00 per pound at the end of September, the company noted.
Similarly, zinc climbed to US$1.36 per pound at the end of the September period and peaked at US$1.73 per pound in October, comfortably above the US$1.20 per pound price used in the 2021 study.
The company said in its half-yearly report that the impact of Coronavirus (COVID-19) on the day-to-day running of Anglesey Mining remains limited.
“We believe that encouraging developments with vaccines will lead to stability in general economic and operating conditions and the inevitable stimulus relief and infrastructure programmes will bolster demand for all metals; in particular the electrification of the economy which is likely to lead to increased demand for copper, zinc and silver,” said chairman John Kearney.
The group had no revenue for the reporting period. The loss for the six months to 30 September 2021 was GBP298,055, versus a loss in the same period of 2020 of GBP152,882.
The expenditures on the mineral property in the period were GBP42,412 compared to GBP27,827 in the comparative period.
Net current assets at 30 September 2021 were GBP539,077 compared to GBP796,920 at 31 March 2021. The drop in value of the company’s Labrador Iron Mines (LIM) shares resulted in a charge to other comprehensive income of GBP2.5 million and a total comprehensive loss for the period of GBP2.7 million, Anglesey said.
“We continue to be encouraged by growing investor interest and a positive commodity price outlook resulting from decarbonisation of the global economy. A further favourable factor is the shift to cleaner energy enhanced by announced global infrastructure programmes as the world recovers from the Covid-19 slowdown,” Kearney said.
“We believe that the ongoing strong fundamentals that have driven commodity prices upwards will continue for the foreseeable future and will provide solid support for our projects. Metals are essential for electrification, copper for power generation, motors, transmission and energy storage, zinc for extending the lifespan of products, and lead for energy storage.
“We look forward to sharing the results of the current Parys Mountain work programmes with investors over the coming months as the drilling is completed and assays returned. We also expect to be in a position to report the results of the PEA [preliminary economic assessment] on Grangesberg early in the New Year,” he added.