April 27, 2011 / 2:13 PM / 7 years ago

UPDATE 1-Moly Mines posts first quarterly production at iron ore mine

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April 27 (Reuters) - Moly Mines Ltd said it mined 176,962 tonnes of iron ore at its mine in western Australia, a fifth of its targeted production for the year, achieving the designed production rate three months ahead of schedule.

The Canada-based company’s Spinifex Ridge mine began commercial production in November and is expected to produce 820,000 tonnes of iron ore this year.

The company reported a quarterly operating profit of A$6.6 million ($7.11 million), after stockpile adjustments and before depreciation and amortization, at the mine.

Production cost for the quarter was A$76.6 per tonne, below its budget, Moly Mines said in a statement.

The company expects to ship an additional 700,000 tonnes of ore in 2011 and expects costs to drop to A$60-70 per tonne.

Share of Moly Mines were trading at C$1.02 on Wednesday on the Toronto Stock Exchange. ($1 = 0.928 Australian Dollars) (Reporting by Maneesha Tiwari in Bangalore; Editing by Roshni Menon)

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