Anglesey Mining

Anglesey Mining (AYM) says  its 33%-owned Canadian-quoted associate Labrador Iron Mine Holdings (LIM) is now producing after £30m of capitalised expenditure. Fully-listed Anglesey has recorded a loss of £1.4m for the year to March, which  reflects LIM's expenses as it has moved to production at Quebec's Schefferville projects, potentially containing 39.6m measured and indicated tonnes of iron ore with up to 125m tonnes estimated historically.

Chaired by the seasoned and entrepreneurial John Kearney,  Anglesey, which also owns 100% of the 7.76m-tonne Parys Mountain project in North Wales with an estimated 9.3% of combined copper, lead and zinc, says LIM is well placed to produce one million tonnes of iron ore this year and 2.5m tonnes in 2012, having raised C$121m (£78.5m) in Canada. Anglesey itself, which raised £1.6m in January at 56p, says it now has cash itself of £3.5m and argues its LIM stake is now worth £129m, or 81p a share.

That compares with its present share price of 61p, down 1p today and 31p below the 92p high for the past year but still a significant increase on Growth Company Investor's recommendation at 37.5p last year. Partial profit taking looks prudent, while retaining a chunk for potential longer-term gains.