LionOre profits up on nickel price (March 15, 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 revenues of US$399.5 million. Comparable figures in 2003 were US$292.8 million in revenue and earnings of US$57.4 million.

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, production decreased only slightly year-on-year even though the operation was hit with heavy rainfall in the fourth quarter and production from the Phoenix open pit mine was curtailed. Tati produced 11,446 tonnes nickel in 2004, against 11,509 tonnes in 2003.

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