Labrador Iron Mines (LIM) expects uncertainty in the iron ore market in 2020 but plans to monitor the price movements of iron ore before developing a new project in Quebec, Canada.
The direct shipping ore mine, called the Houston Project, is estimated to contain 40.6mn mt of iron ore with 57.6pc iron. The miner expects an output of around 2mn mt annually with an initial mine life expectancy of 10 years. LIM also owns and operates the Elizabeth Taconite Project which has an estimated mineral resource of 620mn mt with 31.8pc iron content and produces close to 5mn mt of iron ore concentrate with 68pc iron content.
In Q3 2019 ended December 31, 2019, LIM did not report any mining activities, and instead focused on site reclamation and exploration activities, the company said in its earnings statement for the quarter. This led to no capital expenditure on property, plant, and equipment during the quarter.
In Q3 2019, the miner incurred a loss of $164,527 compared to a profit of $89,742 during the same time in the previous year. Site costs of $119,656 and administrative expenses of $82,263 contributed to the loss during the quarter but were offset by revenue of $37,392 from reversal of mine equipment prior to sale.
At the end of Q3 2019, LIM had a working capital deficit of $545,930, but had no long-term debt. The company held assets worth $516,016 during the quarter and $1.22mn as non-restricted cash.