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Trading Symbol: LSE: AYM

8 October 2021

Anglesey Mining plc

(“Anglesey” or “the Company”)

Additional funding secured and work programmes approved

Anglesey Mining plc (LSE:AYM), the UK minerals exploration and development company, is pleased to announce the successful completion of a placing of shares and the commencement of the next work programmes at both the Parys Mountain Cu-Zn-Pb-Ag-Au project on the isle of Anglesey and the Grängesberg Iron Ore Project in Sweden.

Highlights

  • Fund raising secures additional £768,230 via issuance of 22,595,000 shares at a price of 3.4p, a discount of 5.6% to the closing price on 7 October 2021 (being the latest practicable date prior to this announcement)
  • CEO Jo Battershill subscribes for 1,565,588 shares at the placing price as part of the fundraising
  • Funds to be used to assist with work approved by the Board of Anglesey including:
    • Appointment of drilling contractor to complete infill programme at Parys Mountain, with the rig expected to mobilise in the next 3-4 weeks
    • Commencement of environmental studies at Parys Mountain as a requirement for the permitting process; and,
    • Commencement of the Preliminary Economic Assessment (PEA) of the Grängesberg project

Jo Battershill, the CEO of Anglesey Mining, commented: “I am very pleased with the funding for a number of reasons. Firstly, the strong demand demonstrates a genuine investor interest in seeing the Parys Mountain and Grängesberg projects advanced through to their next stages of development. Secondly, it has provided me with an opportunity to align myself with shareholders to participate in the equity upside that I believe is achievable with Anglesey Mining and finally it provides an additional level of comfort from a working capital perspective. I would also like to welcome the new shareholders, which include mining funds and HNWI’s, to the Anglesey Mining register.

On the projects, I am incredibly excited to be able to get the drills turning again at Parys Mountain. The initial infill programme will enable us to convert the remaining portions of the White Rock Zone into the higher confidence Indicated Resource category and provide important geotechnical and metallurgical data, which will provide critical information feeding into the Feasibility Study in 2022.

For Grängesberg, we are pleased to appoint Micon International to complete the PEA, which I believe will demonstrate just how significant that opportunity could become.”


Placing of 22.6 million new shares for £768,230

Anglesey Mining plc entered into subscription agreements with certain sophisticated investors (including Jo Battershill) and Monecor (London) Limited, trading as ETX Capital, to issue 22,595,000 new ordinary shares representing approximately 10.0% of the company’s current issued share capital, at 3.4 pence per share to raise a total of £768,230 gross. The placing price represents a discount of 5.6% to the closing price on 7 October 2021 (being the latest practicable date prior to this announcement).

As part of the subscription, Jo Battershill, the Chief Executive Officer of the company, has subscribed for 1,565,588 new ordinary shares at the placing price of 3.4 pence.

Application will be made for these shares to be admitted to listing on the London Stock Exchange.

Proposed use of funds

The proceeds of the issue will be used for the following activities:

  • Continue the development of the group’s Parys Mountain property with activities to include:
  • Commence the Grängesberg Iron Ore Project Preliminary Economic Assessment (PEA)
  • General group working capital.

Chief Executive Officer participation in the subscription

The table below provides the details of the Chief Executive Officer’s participation in the subscription.

Name

Existing Holding

Number of shares subscribed for

Resultant Holding

Resultant Shareholding on Admission (%)

Jo Battershill1

22,971

1,565,588

1,588,559

0.64%

1 Subscription shares subscribed for by JJB Advisory Limited a company controlled by Jo Battershill

Smaller related party transaction

Jo Battershill as a director of the company is a related party for the purpose of the United Kingdom Listing Rules (the “Listing Rules”). Jo Battershill through JJB Advisory Limited, a company controlled by him, has subscribed for 1,565,588 ordinary shares with a value of £53,230. This subscription by Jo Battershill constitutes a smaller related party transaction for the purposes of Listing Rule 11.1.10R and this announcement is therefore made in accordance with Listing Rule 11.1.10R(2)(c).

Total Voting Rights

Following completion of this issue and admission to listing, the issued ordinary share capital of the company will be 248,070,732 ordinary shares of 1 pence each with voting rights; there are no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations which will determine whether they are required to notify their interest in the company, or any change to that interest, under the Financial Conduct Authority’s Disclosure and Transparency Rules.

About Anglesey Mining plc

Anglesey is developing its 100% owned Parys Mountain copper-zinc-lead deposit in North Wales, UK with a 2020 reported resource of 5.2 million tonnes at 4.3% combined base metals in the Indicated category and 11.7 million tonnes at 2.8% combined base metals in the Inferred category.

Anglesey holds an almost 20% interest, and management rights to the Grangesberg Iron project in Sweden, together with a right of first refusal to increase its interest by a further 50.1%. Anglesey also holds 12% of Labrador Iron Mines Holdings Limited which holds direct shipping iron ore deposits in Labrador and Quebec.

This announcement contains inside information as defined under the Market Abuse Regulation (EU NO. 596/2014) as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“UK MAR”)

For further information, please contact:

Jo Battershill, CEO +44 (0)7540 366000

John Kearney, Chairman + 1 416 362 6686

LEI: 213800X8BO8EK2B4HQ71

07 October 2021

  • Read Alastair Ford's article "Anglesey Mining re-invigorated with new management, and long-term vision" here.

01 October 2021

See Jo Battershill's Interview with Katie Pilbeam of Proactive Investors here


LSE: AYM

30 September 2021

Anglesey Mining plc

(“Anglesey” or “the Company”)

Chairman’s AGM Statement – Outlook remains positive for metal prices

Anglesey Mining plc (LSE:AYM), the UK minerals exploration and development company, is pleased to release the Chairman’s Statement at the Annual General Meeting of Shareholders held in London today, which highlights the drivers behind the Company’s positive outlook for metals prices.

Highlights

  • Strength in metal prices over the last 12-months has been driven by electrification, decarbonisation and global commitments to build new, or replace, critical infrastructure
  • Metals and minerals are essential for addressing climate change and are critical components for governments around the world to hit their green economy targets
  • The current environment provides a unique opportunity for the Company’s Parys Mountain project, with work to commence shortly on feasibility study activities including infill drilling the White Rock Zone and completing geotechnical and metallurgical testwork
  • The results of these work programmes will flow into the updated mine plan and permitting activities

Jo Battershill, the CEO & Managing Director of Anglesey Mining, commented: “With today’s AGM Statement, the Chairman of Anglesey Mining has explained very clearly why the Parys Mountain and Grängesberg assets will most definitely play a part in the supply of minerals for adapting to a green economy.

We have recently hosted visits to Parys Mountain with the Ynys Môn MP, Mrs Virginia Crosbie and a senior member of the North Wales Minerals and Waste Planning Service to discuss and promote our plans for the project and the broader community. We continue to believe Parys Mountain is positioned very strongly and has all the hallmarks of a highly cash generative mine development with a long life.

Initial work programmes are now being planned and will include infill drilling to convert inferred resources within the White Rock and Engine Zones into the higher confidence indicated category together with geotechnical drilling to assist with mine optimisation planning and provide bulk samples for confirmatory metallurgical testwork. We are also targeting a start to the environmental baseline studies as soon as possible.

As disclosed in the recently published Annual Report, our current financial resources are sufficient to undertake these important workstreams and the proposed PEA for Grängesberg. As additional funding becomes available these programmes will be accelerated. Options for additional funding remain open and the Board of Anglesey will pursue all relevant opportunities including strategic investors, partners and consideration to moving the listing to AIM, which could potentially enhance investor interest and provide increased financing flexibility.

As previously stated, the Company will maintain a continued focus on the sustainable development of our resource projects with the use of appropriate environmentally friendly solutions where possible.”


Anglesey Mining plc (“Anglesey”) is pleased to release the Statement of Anglesey’s Chairman, John Kearney, to Shareholders at the AGM held in London today.

Positive Metal Price Outlook

The strength of metal prices to date in 2021 is very encouraging. Over the past year, base metal prices have posted strong gains, driven by resilience in the global economy, investment speculation, supply disruptions and inventory depletion.

In 2021, continued fiscal and monetary policy support is providing additional momentum to prices against a backdrop of multi-year low exchange stocks. Because China accounts for more than half of global base metal demand and a significant share of global metal supply, economic developments in China will continue to be a major factor in metal markets and prices over the long term. Notwithstanding a mid-summer slowdown and negativity surrounding property developer Evergrande, Chinese demand is expected to remain strong in 2021.

The principal reason for our positive outlook for metal prices, as discussed in our recent 2021 Annual Report, is the growing recognition that metals and minerals are essential for addressing climate change and adapting to a green economy. Metals are essential for electrification: copper for power generation, transmission and energy storage; nickel and lead for energy storage; and zinc for extending the lifespan of products. The two key metals for Parys Mountain are copper and zinc.

At current mid 2021 metal prices, copper production from a Parys Mountain mine would represent a little over 50% of the net smelter revenue under the expanded Case C of the 2021 PEA, while zinc and lead would represent 28% and 12% respectively. The PEA indicates production of 103,500 tonnes of copper over the project’s 12-year mine life, equivalent to an average production of 8,500 tonnes of copper per year.

The need for metals and minerals – Minerals are essential for a green economy

It is expected that post-pandemic global stimulus plans and the challenging targets of the Paris Agreement to achieve climate neutrality by 2050 will provide long term demand and support for critical and strategic minerals and thus for metal prices, including in particular copper, and indeed lead and zinc.

Amid resurging demand and as the world recovers from the pandemic, trillions of dollars being invested to rebuild infrastructure as well as transitioning to a green economy, the outlook for copper is extremely bullish. Governments around the world are launching huge stimulus programmes focused on job creation and environmental stability, leading to the potential for a multi-decade commodity cycle ahead driven by decarbonisation of the global economy and a shift to cleaner energy.

The International Energy Agency (IEA), in its May 2021 report, The Role of Critical Minerals in Clean Energy Transitions, states that the rapid deployment of clean energy technologies as part of energy transitions implies a significant increase in demand for minerals. The IEA report suggests that an energy system powered by clean energy technologies differs profoundly from one fuelled by traditional hydrocarbon resources. It concludes that solar photovoltaic plants, wind farms, and battery-electric vehicles (BEVs) generally require more minerals to build than their fossil fuel-based counterparts.

According to the IEA, a typical electric car requires six times the mineral inputs of a conventional car and an onshore wind plant requires nine times more mineral resources than a gas-fired plant.

Internal combustion engine vehicles (ICEVs) are the greatest contributors to carbon emissions in the UK. As recognized by the Committee on Climate Change, for transport to hit ‘net zero’, the internal combustion engine needs to be eliminated from cars. To switch the UK’s fleet of 31.5 million ICEVs to BEVs it would take an estimated 2,362,500 tonnes of copper, plus other critical minerals. In addition, the energy revolution towards renewables, that is, wind, solar, wave, tidal, hydro, geothermal and nuclear, together with the newly built infrastructure for delivery, are highly reliant on mineral-based technologies.

A letter authored by Natural History Museum Head of Earth Sciences, Prof. Richard Herrington, delivered to the Committee on Climate Change, explains that to meet UK electric car targets for 2050 the UK would require at least half of the world’s copper production, as well as other minerals, and to replace all UK-based vehicles today with electric vehicles would take 2.36 million tonnes of copper, representing approximately half of the world’s annual copper production.

The focus on the renewable energy transition has continued to intensify since March 2020, with the world's major economies — the U.S., China and Europe — establishing carbon-neutrality goals through to 2060. As policymakers injected unprecedented amounts of stimulus into the global economy toward recovery from the COVID-19-induced downturn, some of this investment was directed toward boosting the rollout of green energy technologies to reduce global carbon emissions.

Based on S&P Global projections for the rollout of solar, wind and EVs to 2025, together with analysis of metals intensities in these use cases, S&P Global Market Intelligence forecasts demand to grow by a CAGR of 15% for copper, 35% for lithium, 28% for cobalt and 35% for nickel.

Copper is a major component of EVs; it is used in the anode current collector of lithium-ion batteries, in the stator and rotor of induction motors, in inverters and wiring. Pure battery electric vehicles, or BEVs, which are powered exclusively by the electricity stored in their battery, are more copper-intensive than plug-in hybrid electric vehicles, or PHEVs, which have both a battery-powered motor and an internal combustion engine.

Global copper demand will be positively impacted by an expansion in electrification infrastructure to support growth in energy demand, as well as from the expansion and upgrade of telecommunications and EV charging networks, particularly in China and the U.S.

Copper demand from solar and wind energy and from EVs, including e-buses, is projected to account for 2.8 Mt in 2025, which represents approximately 10.8% of the total forecast global copper demand. The wide variation in copper usage intensity in the renewable energy sector, however, simultaneously poses significant upside and downside risks to copper demand to 2025.

Mineral resources are the key to a more sustainable future.

To quote Prof. Richard Herrington, “Mineral resources are the lifeblood of our modern society and the key to a more sustainable future. Today, we are in the middle of disruptive innovation in emerging green energy, e-mobility and clean technology, triggered by pressing societal challenges. The growing need for carbon-neutral technology creates a strong demand for minerals, metals and advanced materials”.

Development of a new mine at Parys Mountain, producing copper, zinc and lead with gold and silver credits, can deliver economic growth in the UK, regional jobs for the community and business opportunities for local service providers. Hardly any of these critical and strategic metals, essential for reduction in our carbon footprint and transition to a green economy, are currently produced in the UK leaving the country entirely dependent on imports.

This creates a unique and timely opportunity, both for Anglesey Mining and for the UK, to develop a new, modern, mine at Parys Mountain in an environmentally sustainable manner.

About Anglesey Mining plc

Anglesey Mining is listed on the London Stock Exchange and currently has 225,475,732 ordinary shares in issue.

Anglesey is developing its 100% owned Parys Mountain copper-zinc-lead deposit in North Wales, UK with a 2020 reported resource of 5.2 million tonnes at 4.3% combined base metals in the Indicated category and 11.7 million tonnes at 2.8% combined base metals in the Inferred category.


Anglesey holds an almost 20% interest, and management rights to the Grangesberg Iron project in Sweden, together with a right of first refusal to increase its interest by a further 50.1%. Anglesey also holds 12% of Labrador Iron Mines Holdings Limited which holds direct shipping iron ore deposits in Labrador and Quebec.



For further information, please contact:


Jo Battershill, CEO/MD +44 (0)7540 366000

John Kearney, Chairman + 1 416 362 6686


8th September 2021

Anglesey Mining plc

(“Anglesey” or “the Company”)

Anglesey Mining Financial Results and way forward

Anglesey Mining plc (LSE:AYM), the global minerals exploration and development company, is pleased to announce the release of its full year financial result for 2021, for the year ending 31 March 2021, and provide an update for investors on the Company’s plans for the coming year.

Highlights

· Comprehensive profit of £3.7m compared to the prior year comprehensive loss of £0.3m

· Successful fund raisings totalling £1.1m

· Completion of key operating milestones at Parys Mountain, including the release of an updated PEA

· During the current financial year, the Company will commence work on a Feasibility Study at the Parys Mountain Cu-Zn-Pb-Ag-Au project and update the Pre-Feasibility Study on the Grängesberg Iron Ore Project in Sweden

Jo Battershill, the recently appointed CEO & Managing Director of Anglesey Mining, commented : “Both the Parys Mountain project and the Grängesberg project have all the hallmarks of long life, highly cash generative mine developments. At Parys Mountain, the natural sequence of events through to a decision to mine and financing will require a Feasibility Study, including the environmental baseline studies, which we aim to commence very shortly.

The initial steps of the study will include infill drilling to convert inferred resources within the White Rock and Engine Zones into the higher confidence indicated category and geotechnical drilling to assist with mine optimisation planning together with the provision of bulk samples for confirmatory metallurgical testwork. The exploration upside at the project remains significant and we very much look forward to completing a review of the historical data over the next few months and pushing ahead with further exploratory programmes.

I am very excited about the development opportunity here at Parys Mountain with a project that will generate significant employment on Anglesey and the greater region for a generation. All of the commodities available for extraction at Parys Mountain are critical to the supply chain for the global push of decarbonisation and electrification of the economy and will remain in strong demand over the coming decades.

Given that the green economy cannot be advanced without the extractive industries, we will maintain a continued focus on the sustainable development of our resource projects with the use of appropriate environmentally friendly solutions where possible. We also believe the development of our projects will enable the shortening of global supply chains with the commensurate reductions in carbon emissions – particularly the high-grade iron ore concentrate that will be produced from the Grängesberg iron ore project in Sweden.”

Anglesey Mining plc (“Anglesey”) announces the recent publication of its Annual Report and Accounts for the year ended 31 March 2021.

Anglesey is pleased to report comprehensive income for the year of £3.7 million and the achievement of several key operational milestones over the past year, including significant progress on the Parys Mountain copper-zinc-lead project on the island of Anglesey in North Wales, in our iron ore projects in Sweden and Canada, and in raising new financing of £1,068,200.

Financial results

There were no revenues from the operation of the properties. The Company recorded a gain of £4,053,506 in the value of the group’s holding in Labrador Iron Mines and this has been reported in other comprehensive income, resulting in total comprehensive profit for the year of £3,714,921, compared to a comprehensive loss for the prior year of £327,860.

The loss before other comprehensive income for the year ended 31 March 2021 after tax was £328,518 compared to a loss of £304,510 in the 2020 fiscal year. The administrative and other costs excluding investment income and finance charges were £162,824 compared to £134,796 in the previous year.

The successful placement of shares during the year resulted in a cash inflow of £1,068,200, after fees and expenses. The cash balance at 31 March 2021 was £891,767. These funds will be used for ongoing work on the Parys Mountain project, as well as for general corporate purposes.

Financial position

At 31 March 2021 the Group held mineral property exploration and evaluation assets with a carrying value of £15.3 million.

These carrying values are supported by the results of the 2021 Preliminary Economic Assessment of the Parys Mountain project which estimated a pre-tax net present value, discounted at 10%, of £96 million under Case C, which assumed very conservative commodity prices including US$2.81/lb Cu, US$1.20/lb Zn and US$16.67/oz Ag compared to current prices of US$4.28/lb, US$1.36/lb and US$24.68/oz respectively, but may not reflect the realizable value of the properties if they were offered for sale at this time.

At 31 March 2021 there were 225,475,732 ordinary shares in issue (2020 – 186,975,732), the increase being due to the financing events referred to above. At 2 September 2021 there were 225,475,732 ordinary shares in issue. We are pleased to provide the following review and update on the projects and prospects for the Group.

The Way Forward - Future Steps

The PEA demonstrates that a major copper-zinc-lead mine can be developed at Parys Mountain. The results show that once in production Parys Mountain should be able to make very positive financial returns. Nevertheless, as always in the mining industry, there are a number of sequential steps that need to be taken to move any project from the PEA to a full committed decision to proceed to production and these steps do take some time to reach fruition.

The key to this development is now securing the necessary finance to continue to move the project towards production. The PEA indicated a pre-production capital expenditure of $99 million. This together with all other pre-decision project costs as well as ongoing corporate costs needs to be financed.

From the feedback received, it has become clear that financing opportunities would be enhanced with some additional work to further de-risk the project and it can be expected that a project financing route will require the delivery of a feasibility study. Micon made recommendations regarding further technical studies to better quantify some aspects of the mining and processing operations, and trade-off studies to determine the best overall mining schedules, metallurgical flowsheet and infrastructure design to further optimise the project, which should lead to improved economics to be included in a feasibility study and improve the overall financial capability of the project.

Following the Micon PEA recommendations, a step series of activities have been identified that will form the necessary preparatory work as a prelude to the commissioning of a feasibility report. These include a surface diamond drilling programme to increase the confidence in some parts of the White Rock zone ahead of first underground development in some of those areas of the resource that are currently classified as Inferred. Such increased data would be aimed at converting parts of the resource to the Indicated category and thereby increasing the bankability of those parts of the resources. Simultaneously drill core samples would be collected for metallurgical testing purposes and these samples would then be subject to process testing to improve the flow-sheet design that has currently been developed.

Whilst Anglesey holds the necessary planning permissions to build a mine at the site, these must be supported by the grant of various environmental operating licenses. This will require collection of further environmental base-line data and a programme of environmental base line data collection is planned, both for inclusion in a formal feasibility report and as a pre-requisite ahead of any formal decision to commence operations.

The Parys Mountain property has a high potential for the discovery of additional mineral resources. There are drill intercepts outside of the planned mining blocks indicating mineralisation may extend into other areas of sparse drilling immediately adjacent to the reported Mineral Resources. Micon included additional exploration costs of $1.6 million for Cases A and B and $7.5 million for Case C. However, much of this additional drilling recommended for Case C, to upgrade the category of the resource in the second half of the project mine life from Inferred to Indicated, should ideally be carried out from an underground drill drive from the area around the bottom of the shaft and would not necessarily be undertaken until some years into the project.

At the end of March 2021, the group had cash resources of £892,000. Following a careful review of the financial resources currently available and considering the normal on-going costs of corporate and site operations, it has been decided that these three activities will be commenced forthwith, and as additional funding become available this programme will be accelerated.

Performance

The Group holds interests in exploration and evaluation properties and, until a mine is placed into production, there are no standardised performance indicators which can usefully be employed to gauge performance. The publication of the independent Preliminary Economic Assessment on the Parys Mountain project in January 2021, which built upon the optimisation studies successfully completed over the previous two years, and included a new expanded mineral resource estimate, with a financial model for an expanded case at 3,000 tpd which indicated a pre-tax NPV10% of £96 million and a 26% IRR, demonstrated a significant improvement on previous studies and steady progress.

The chief external factors affecting the ability of the Company to move its projects forward are primarily the demand for metals and minerals, levels of metal prices and the market sentiment for investment in mining and mineral exploration companies.

A unique and timely opportunity

Development of a new mine at Parys Mountain, producing copper, zinc and lead with gold and silver credits, can deliver economic growth in the UK, regional jobs for the community and business opportunities for local service providers. Hardly any of these critical and strategic metals, essential for reduction in our carbon footprint and transition to a green economy, are currently produced in the UK leaving the country entirely dependent on imports. This creates a unique and timely opportunity, both for Anglesey Mining and for the UK, to develop a new, modern, mine at Parys Mountain in an environmentally sustainable manner.

About Anglesey Mining plc

Anglesey Mining is listed on the London Stock Exchange and currently has 225,475,732 ordinary shares in issue.

Anglesey is developing its 100% owned Parys Mountain copper-zinc-lead deposit in North Wales, UK with a 2020 reported resource of 5.2 million tonnes at 4.3% combined base metals in the Indicated category and 11.7 million tonnes at 2.8% combined base metals in the Inferred category.


Anglesey holds an almost 20% interest, and management rights to the Grangesberg Iron project in Sweden, together with a right of first refusal to increase its interest by a further 50.1%. Anglesey also holds 12% of Labrador Iron Mines Holdings Limited which holds direct shipping iron ore deposits in Labrador and Quebec.



For further information, please contact:


Jo Battershill, CEO/MD +44 (0)7540 366000

John Kearney, Chairman + 1 416 362 6686