Miner African Minerals sticks to 2013 target as sales dip

LONDON, Nov 5 (Reuters) - Iron ore miner African Minerals (Other OTC: AMLZF - news) said it was on track to hit its revised 2013 sales target, despite a third quarter dip in both production and sales, after it was hit by maintenance and shipping trouble in the three months.

African Minerals, which mines Tonkolili in Sierra Leone, said it produced 3 million tonnes of ore in the third quarter, down from 4 million tonnes in the previous three months.

Quarterly sales dipped to 2.8 million tonnes, from 3.4 million in the second quarter of the year, taking sales so far to 8.3 million tonnes and closer to the miner's revised full-year target of 11 to 13 million tonnes.

The company had previously forecast 13 to 15 million tonnes, but cut that target after damage to two transport vessels caused a bottle neck at the port in Sierra Leone.

"African Minerals is continuing to make satisfactory progress this year, despite the setbacks suffered in July and August with our transhipping fleet, which have now been resolved," Chief Executive Bernie Pryor said.

He added the company's organisational review was complete, and the miner had slashed service and corporate staff by around 40 percent. He said the company had also sought to improve utilisation, efficiency and procurement.

"African Minerals reiterated full-year sales guidance... we see potential for African Minerals to beat the bottom end of this range," analysts at Jefferies said. "Throughput should be boosted by the arrival of a fourth transhipment vessel in early December, providing more flexibility in infrastructure and lowering operating risks moving forward."