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UPDATE: Labrador Iron Mines Now Down 7.5% as First Quarter Loss Widens

Labrador Iron Mines (LIM.TO) is now down 7.5% at $8 after reporting a first quarter loss of $4.7 million or $0.09 per share, compared to a loss of $0.9 million or $0.02 per share during the first quarter of the prior year. It said the variance in the results of operations relates almost entirely to start-up expenses of approximately $3.5 million incurred in the quarter relating to non-refundable transportation expenses incurred prior to establishing full scale transportation of iron ore to the port. During the quarter, the company made cash expenditures of approximately $21.2 million in property, plant and equipment, compared to approximately $4.9 million incurred in the first quarter of the prior year.

In better news, the company said it is very encouraged by the grade of James Mine ore, which has been in excess of expectations. It added the Silver Yards processing plant is now operating satisfactorily, following commissioning and start-up in June 2011, at the planned initial processing rate of 6,000 tonnes per day, which will be incrementally increased to 10,000 tonnes per day

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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