LionOre profits up on nickel price (April 18, 2005)

Higher metal prices and increased production combined to swell revenues for nickel producer LionOre Mining International (LIM-T) in 2004.

LionOre reported annual earnings of US$78.2 million (US40 per share) on revenue of US$399.5 million, compared with US$292.8 million on US$57.4 million in 2003.

LionOre produced 17,435 tonnes nickel in 2004, up from 16,928 tonnes in 2003, and cash production costs increased to US$5,710 per tonne (US$2.59 per lb.) from US$5,090 per tonne (US$2.31 per lb.).

At the Tati nickel mine in Botswana (where LionOre has an 85% interest, and the Botswanan government, 15%), production decreased only slightly, year over year — even though the operation was hit with heavy rainfall in the fourth quarter, curtailing production from the Phoenix open-pit mine. Tati produced 11,446 tonnes nickel in 2004, against 11,509 tonnes in 2003.

LionOre’s wholly owned Emily Ann nickel operation in Western Australia produced 7,706 tonnes nickel last year, up from 7,145 tonnes in 2003.