Angel Mining share price finally starts to move up

After a sluggish few weeks, Angel mining (ANGM) had its second day of 10% gains to finish at 6.5p. Despite news of the start of production at the process plant at the Nalunaq gold mine in Greenland in mid-December, the shares were struggling to make any headway as new equity was issued through the SEDA ( Standby Equity Distribution Agreement) which allowed Angel to access funds in return for the issue of new discounted shares to the SEDA provider YA Global masters SPV Ltd.. 


News of the first shipment of gold from the plant is expected this week.  The directors expect the Company to produce approximately 65 ounces of gold per day and an annual production of approximately 25,000 ounces. The Company's forecast cash cost per ounce of gold at target production is approximately US$560 which it expects to achieve in Q1 2011. At target production and with an average gold price of US$1,300 per ounce, the Nalunaq mine should produce annualised revenues and free cash of approximately US$32.5 million and US$18.5 million respectively.


In addition to the Nalunaq gold plant, Angel own the Black Angel zinc/lead mine which will be developed from cash flows from gold production. Lots of positive news to come from this company in 2011 after the setbacks and delays of 2009 & 2010.