by Phil Doel
10. February 2012 00:40
London Mining is held by both Peter Lees in his UK Alpha Fund and in my UK Equity Income and is one of our long-term favoured miners. The first shipment of iron ore from its Marampa mine has just left Freetown in Sierra Leone, en route to a European blast furnace, where a premium over Chinese pricing can be secured.
This marks a major milestone with the start of operating cashflow, which, alongside the recent equity raising (in which we took part), should enable a self financed ramp up in production to around 5m tons per annum by 2014 and to close to 10mtpa in the medium term.
We consider the shares to be materially undervalued. The ordinary shares are held in both Funds, but I also own the convertible bonds in the Equity Income Fund.
