AYM Anglesey Mining Plc

 
TIDMAYM 
 
Trading Symbol 
 
                                                                       LSE: AYM 
 
30 September 2021 
 
                              Anglesey Mining plc 
 
                         ("Anglesey" or "the Company") 
 
     Chairman's AGM Statement - Outlook remains positive for metal prices 
 
Anglesey Mining plc (LSE:AYM), the UK minerals exploration and development 
company, is pleased to release the Chairman's Statement at the Annual General 
Meeting of Shareholders held in London today, which highlights the drivers 
behind the Company's positive outlook for metals prices. 
 
Highlights 
 
  * Strength in metal prices over the last 12-months has been driven by 
    electrification, decarbonisation and global commitments to build new, or 
    replace, critical infrastructure 
  * Metals and minerals are essential for addressing climate change and are 
    critical components for governments around the world to hit their green 
    economy targets 
  * The current environment provides a unique opportunity for the Company's 
    Parys Mountain project, with work to commence shortly on feasibility study 
    activities including infill drilling the White Rock Zone and completing 
    geotechnical and metallurgical testwork 
  * The results of these work programmes will flow into the updated mine plan 
    and permitting activities 
 
Jo Battershill, the CEO & Managing Director of Anglesey Mining, commented: 
"With today's AGM Statement, the Chairman of Anglesey Mining has explained very 
clearly why the Parys Mountain and Grängesberg assets will most definitely play 
a part in the supply of minerals for adapting to a green economy. 
 
We have recently hosted visits to Parys Mountain with the Ynys Môn MP, Mrs 
Virginia Crosbie and a senior member of the North Wales Minerals and Waste 
Planning Service to discuss and promote our plans for the project and the 
broader community. We continue to believe Parys Mountain is positioned very 
strongly and has all the hallmarks of a highly cash generative mine development 
with a long life. 
 
Initial work programmes are now being planned and will include infill drilling 
to convert inferred resources within the White Rock and Engine Zones into the 
higher confidence indicated category together with geotechnical drilling to 
assist with mine optimisation planning and provide bulk samples for 
confirmatory metallurgical testwork. We are also targeting a start to the 
environmental baseline studies as soon as possible. 
 
As disclosed in the recently published Annual Report, our current financial 
resources are sufficient to undertake these important workstreams and the 
proposed PEA for Grängesberg. As additional funding becomes available these 
programmes will be accelerated. Options for additional funding remain open and 
the Board of Anglesey will pursue all relevant opportunities including 
strategic investors, partners and consideration to moving the listing to AIM, 
which could potentially enhance investor interest and provide increased 
financing flexibility. 
 
As previously stated, the Company will maintain a continued focus on the 
sustainable development of our resource projects with the use of appropriate 
environmentally friendly solutions where possible." 
 
Anglesey Mining plc ("Anglesey") is pleased to release the Statement of 
Anglesey's Chairman, John Kearney, to Shareholders at the AGM held in London 
today. 
 
Positive Metal Price Outlook 
 
The strength of metal prices to date in 2021 is very encouraging.  Over the 
past year, base metal prices have posted strong gains, driven by resilience in 
the global economy, investment speculation, supply disruptions and inventory 
depletion. 
 
In 2021, continued fiscal and monetary policy support is providing additional 
momentum to prices against a backdrop of multi-year low exchange stocks. 
Because China accounts for more than half of global base metal demand and a 
significant share of global metal supply, economic developments in China will 
continue to be a major factor in metal markets and prices over the long term. 
Notwithstanding a mid-summer slowdown and negativity surrounding property 
developer Evergrande, Chinese demand is expected to remain strong in 2021. 
 
The principal reason for our positive outlook for metal prices, as discussed in 
our recent 2021 Annual Report, is the growing recognition that metals and 
minerals are essential for addressing climate change and adapting to a green 
economy. Metals are essential for electrification: copper for power generation, 
transmission and energy storage; nickel and lead for energy storage; and zinc 
for extending the lifespan of products. The two key metals for Parys Mountain 
are copper and zinc. 
 
At current mid 2021 metal prices, copper production from a Parys Mountain mine 
would represent a little over 50% of the net smelter revenue under the expanded 
Case C of the 2021 PEA, while zinc and lead would represent 28% and 12% 
respectively. The PEA indicates production of 103,500 tonnes of copper over the 
project's 12-year mine life, equivalent to an average production of 8,500 
tonnes of copper per year. 
 
The need for metals and minerals - Minerals are essential for a green economy 
 
It is expected that post-pandemic global stimulus plans and the challenging 
targets of the Paris Agreement to achieve climate neutrality by 2050 will 
provide long term demand and support for critical and strategic minerals and 
thus for metal prices, including in particular copper, and indeed lead and 
zinc. 
 
Amid resurging demand and as the world recovers from the pandemic, trillions of 
dollars being invested to rebuild infrastructure as well as transitioning to a 
green economy, the outlook for copper is extremely bullish. Governments around 
the world are launching huge stimulus programmes focused on job creation and 
environmental stability, leading to the potential for a multi-decade commodity 
cycle ahead driven by decarbonisation of the global economy and a shift to 
cleaner energy. 
 
The International Energy Agency (IEA), in its May 2021 report, The Role of 
Critical Minerals in Clean Energy Transitions, states that the rapid deployment 
of clean energy technologies as part of energy transitions implies a 
significant increase in demand for minerals. The IEA report suggests that an 
energy system powered by clean energy technologies differs profoundly from one 
fuelled by traditional hydrocarbon resources. It concludes that solar 
photovoltaic plants, wind farms, and battery-electric vehicles (BEVs) generally 
require more minerals to build than their fossil fuel-based counterparts. 
 
According to the IEA, a typical electric car requires six times the mineral 
inputs of a conventional car and an onshore wind plant requires nine times more 
mineral resources than a gas-fired plant. 
 
Internal combustion engine vehicles (ICEVs) are the greatest contributors to 
carbon emissions in the UK.  As recognized by the Committee on Climate Change, 
for transport to hit 'net zero', the internal combustion engine needs to be 
eliminated from cars. To switch the UK's fleet of 31.5 million ICEVs to BEVs it 
would take an estimated 2,362,500 tonnes of copper, plus other critical 
minerals.  In addition, the energy revolution towards renewables, that is, 
wind, solar, wave, tidal, hydro, geothermal and nuclear, together with the 
newly built infrastructure for delivery, are highly reliant on mineral-based 
technologies. 
 
A letter authored by Natural History Museum Head of Earth Sciences, Prof. 
Richard Herrington, delivered to the Committee on Climate Change, explains that 
to meet UK electric car targets for 2050 the UK would require at least half of 
the world's copper production, as well as other minerals, and to replace all 
UK-based vehicles today with electric vehicles would take 2.36 million tonnes 
of copper, representing approximately half of the world's annual copper 
production. 
 
The focus on the renewable energy transition has continued to intensify since 
March 2020, with the world's major economies - the U.S., China and Europe - 
establishing carbon-neutrality goals through to 2060. As policymakers injected 
unprecedented amounts of stimulus into the global economy toward recovery from 
the COVID-19-induced downturn, some of this investment was directed toward 
boosting the rollout of green energy technologies to reduce global carbon 
emissions. 
 
Based on S&P Global projections for the rollout of solar, wind and EVs to 2025, 
together with analysis of metals intensities in these use cases, S&P Global 
Market Intelligence forecasts demand to grow by a CAGR of 15% for copper, 35% 
for lithium, 28% for cobalt and 35% for nickel. 
 
Copper is a major component of EVs; it is used in the anode current collector 
of lithium-ion batteries, in the stator and rotor of induction motors, in 
inverters and wiring. Pure battery electric vehicles, or BEVs, which are 
powered exclusively by the electricity stored in their battery, are more 
copper-intensive than plug-in hybrid electric vehicles, or PHEVs, which have 
both a battery-powered motor and an internal combustion engine. 
 
Global copper demand will be positively impacted by an expansion in 
electrification infrastructure to support growth in energy demand, as well as 
from the expansion and upgrade of telecommunications and EV charging networks, 
particularly in China and the U.S. 
 
Copper demand from solar and wind energy and from EVs, including e-buses, is 
projected to account for 2.8 Mt in 2025, which represents approximately 10.8% 
of the total forecast global copper demand. The wide variation in copper usage 
intensity in the renewable energy sector, however, simultaneously poses 
significant upside and downside risks to copper demand to 2025. 
 
Mineral resources are the key to a more sustainable future. 
 
To quote Prof. Richard Herrington, "Mineral resources are the lifeblood of our 
modern society and the key to a more sustainable future. Today, we are in the 
middle of disruptive innovation in emerging green energy, e-mobility and clean 

technology, triggered by pressing societal challenges. The growing need for 
carbon-neutral technology creates a strong demand for minerals, metals and 
advanced materials". 
 
Development of a new mine at Parys Mountain, producing copper, zinc and lead 
with gold and silver credits, can deliver economic growth in the UK, regional 
jobs for the community and business opportunities for local service providers. 
Hardly any of these critical and strategic metals, essential for reduction in 
our carbon footprint and transition to a green economy, are currently produced 
in the UK leaving the country entirely dependent on imports. 
 
This creates a unique and timely opportunity, both for Anglesey Mining and for 
the UK, to develop a new, modern, mine at Parys Mountain in an environmentally 
sustainable manner. 
 
About Anglesey Mining plc 
 
Anglesey Mining is listed on the London Stock Exchange and currently has 
225,475,732 ordinary shares in issue. 
 
Anglesey is developing its 100% owned Parys Mountain copper-zinc-lead deposit 
in North Wales, UK with a 2020 reported resource of 5.2 million tonnes at 4.3% 
combined base metals in the Indicated category and 11.7 million tonnes at 2.8% 
combined base metals in the Inferred category. 
 
 
Anglesey holds an almost 20% interest, and management rights to the Grangesberg 
Iron project in Sweden, together with a right of first refusal to increase its 
interest by a further 50.1%.  Anglesey also holds 12% of Labrador Iron Mines 
Holdings Limited which holds direct shipping iron ore deposits in Labrador and 
Quebec. 
 
 
 
 
For further information, please contact: 
 
 
Jo Battershill, CEO/MD +44 (0)7540 366000 
 
John Kearney, Chairman + 1 416 362 6686 
 
 
 
END 
 
 

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September 30, 2021 08:58 ET (12:58 GMT)

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