PITTSBURGH Labrador Iron Mines Holdings Ltd. reported a Canadian $31.71-million ($31.69-million) net loss in its fiscal second quarter ended Sept. 30.
The Toronto-based company attributed the loss to lower revenue due to the slowing global economy, weak iron ore demand and a 33-percent fall in spot iron ore prices c.f.r. China between June and August. Revenue in the fiscal second quarter fell to C$33.03 million ($33.02 million) from C$38 million in the preceding quarter.
"Challenging global economic conditions and, specifically, reduced demand from Chinese steel producers were the main backdrop during a quarter overshadowed by a sharp and unexpected drop in iron ore prices," chairman and chief executive officer John Kearney said in a statement. "In ensuring we stay the course, we made prudent decisions to defer capital expenditure and scale back production to complete the season in a sustainable position.
"Despite these challenging market conditions, we have successfully completed the sale of nine shipments thus far in 2012 and anticipate one more shipment of lump ore before the end of November," he said. "By the end of the 2012 operating season, Labrador Iron Mines will have sold 10 shipments totaling 1.7 million wet tonnes (1.6 million dry tonnes) of iron ore, quadrupling the total tonnes sold in all of 2011."
A version of this article was first published by AMM sister publication Steel First.