UPDATE 2-London Mining boosts iron ore output in Sierra Leone
(Adds CEO and analyst comments, share movement)
By Abhiram Nandakumar
July 17 (Reuters) - London Mining Plc raised quarterly production at its iron ore mine in Sierra Leone after upgrading a processing plant and said it expected to find a strategic partner by the end of the year.
Iron ore production at the Marampa mine rose 21 percent in the second quarter. London Mining stood by its full-year 2014 production target of 4.9 million to 5.4 million wet tonnes of iron ore concentrate.
However, shares in the AIM-listed company fell as much as 3.5 percent after rising 6 percent in early trading. Traders and analysts attributed the fall to profit-taking after the stock gained 85 percent in a month from a life-low of 26.75 pence.
"Despite a good operational showing, the performance of the stock is likely to continue to be dictated by movements in the iron ore price," Citigroup analyst Michael Flitton said in a note to clients.
Iron ore miners worldwide have been hit by weakening prices, even as major producers like Rio Tinto Plc and Vale SA ramp up output and cut costs.
Iron ore prices fell to a 21-month low of $89 a tonne in mid-June as supply continued to outpace demand in China.
Benchmark 62-percent grade iron ore for immediate shipment to China .IO62-CNI=SI was unchanged at $98 per tonne on Wednesday. Continuación...