TORONTO (miningweekly.com) – Iron-ore producer Labrador Iron Mines (LIM) on Wednesday said that low spot prices, particularly a 33% drop during the 2012 autumn, had weighed on its revenue in the 2013 financial year, resulting in a sharp widening of its full-year loss.

For the year ended March 31, LIM reported a loss of C$129.7-million or C$1.56 a share, resulting mainly from an operating loss before depletion and depreciation of C$28.9-million, a depletion and depreciation charge of C$29.7-million and write-downs totalling C$61.2-million, comprising a write-down of mineral property interests of C$58.1-million and a C$3.1-million provision against certain doubtful receivables.

This compared with losses in the 2012 financial year of C$14.7-million, or C$0.27 a share.

"For 2013, our operational priorities are to minimise costs, maximise production and sales and to ensure that sales revenue is generated as early as possible. We have implemented cost reduction and cash conservation measures across all aspects of our operations. We have implemented cost reduction and cash conservation measures across all aspects of our operations,” chairperson and CEO John Kearney said in a statement.

LIM reported total revenue of C$95.7-million on sales of 1.56-million dry tonnes of iron-ore, in ten shipments completed during the year.

Operating costs for the year totalled about C$121-million, or about C$77.50/t of product sold. Royalties during fiscal 2013 and 2012 were equal to $1.50/t of product sold.

LIM mined 1.8-million dry metric tonnes in the period, up 50% year-on-year on the 1.2-million tonnes reported for the year before. The company sold 1.56-million tonnes of product during the year, significantly more than the 2012 figure of 385 898 t.

The company also published updated measured and indicated mineral resources of 59.5-million tonnes grading 56.7% iron as at March 31, a net increase of 33% over the previous estimate.

The company, which has 20 iron-ore deposits in Labrador and Quebec, said the resources at the Houston 1, 2 and 3 deposits continued to increase, growing to 31.3-million measured and indicated tonnes grading 57.5 % iron, a year-on-year increase of 37%.

LIM also said that it had identified a new measured and indicated mineral resource estimate for its Malcolm 1 deposit of 9.2-million tonnes grading 57.8% iron, more than tripling the previous resource estimate.