Angel Mining Share Price Drops

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Angel Mining Plc (LSE:ANGM) released a statement containing unaudited financial information for the six month period ending 31 August, 2011.  The news propelled the share price down as far as 28% in early trading on Wednesday.

Financial Results

The company reported a loss of $1,654,000 for the period, a dramatic reduction from the same period last year, which saw a loss of $2,625,000. However, according to the news release, there was a positive impact of $834,000 on the profit and loss statement from the accounting treatment of the company’s Joint Share Ownership Plan, which reduced their reported losses.

The Directors set a production target of 2,000 ounces of doré per month, a target that, under the latest assessment, is reported to be out of reach until Q1 2012. The company also reported that while they are producing and selling gold regularly, for accounting purposes they have not reached commercial production levels yet. Commercial production will be achieved when it can produce 1,400 ounces per month, or 70% of their monthly production target.

Until commercial production can be achieved, the Nalunaq process plant is considered under construction, costs will be capitalised, and no revenue from gold sales will be recognised in the income statement according to the news release.

Operations Update

The company also included an update on their operations at their Nalunaq site and the Black Angel mine.

Nalunaq

According to the company, the first doré bar was poured 31 May, 2011. Since then, the site has recovered 1,512 ounces of gold and 179 ounces of silver. The focus is now on improving the rate of ore production and improving recovery from the plant.

Black Angel

The cable car upper terminal was completed this year according to the company’s statement. Contractors have left the site and the fjord has frozen over for the year, leaving the site inaccessible by ship until Q2 2012. At this time the company plans to complete the cable car and begin to develop the mine and process plant.

Company Spotlight

Angel Mining Plc is an AIM listed company registered in England and Wales with an operational focus on Greenland. The company mines precious and semi-precious metals including gold, silver, zinc and lead with plans to expand and include coal and other minerals.

References
 Official Website

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