Bloomberg News

London Mining Rises After Liberum Says ‘Last Opportunity to Buy’

November 17, 2011

Nov. 16 (Bloomberg) -- London Mining Plc, developer of the Marampa project in Sierra Leone, rose the most in two weeks after Liberum Capital Ltd. urged investors to buy the stock before the company becomes an iron ore producer by year-end.

The shares advanced 7 percent to 298 pence in London trading by 11:12 a.m., the biggest gain since Nov. 3. The FTSE 350 Mining Index was 0.9 percent lower.

London Mining, which is seeking to become a 16 million metric-ton-a-year producer of iron ore in Sierra Leone by 2016, will start output and shipments from Marampa next month, it said in presentation slides posted on the company’s website.

“We think this will be the last opportunity to buy London Mining shares before it becomes a producer,” Liberum said in a note today. African Minerals Ltd., which is developing the Tonkilili iron ore mine in Sierra Leone, gained more than 30 percent in London trading since it announced first production in October, the brokerage said.

London Mining, which invested more than $200 million in the Marampa project and seeks to produce about 1.8 million tons by the end of the year, plans to spend a further $1.8 billion to achieve the 16 million ton-a-year target in 2015, according to the presentation.

--Editors: John Viljoen, Tony Barrett

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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