Houston Flagship Deposit Development Plan
LIM's Decisive Response to Market Conditions¹
1
Cost
Reduction
2 Production
3.
CAPEX
4 Financing
Focus on cost reduction and cash conservation measures
Utilize new dry classifying system to produce lump and sinter
Scale back production: revised 2012 production target of
1.6 million dry tonnes (1.7 million wet tonnes)
■ DRO production discontinued; wet processing suspended
~$52 million deferred:
>> Silver Yards Phase 3 plant commissioning now planned for 2013
>> Houston development deferred ($37M in 2013 and $20M in 2014)
subject to market conditions
■ 2012 exploration budget reduced to $5.3 million (from $8.6 million)
Successful completion of $30 million financing in November
Rapid development of new strategies and execution of revised plans
to reduce costs, conserve cash and optimize production
1 Forecasts herein subject to permitting, planning, design, financing and market conditions.
Labrador Iron Mines - TSX: LIM LIM
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