JOHANNESBURG (miningweekly.com) – To maintain liquidity in a weak pricing environment, Aim-quoted London Mining has deferred capital expenditure (capex) of nearly $200-million until market conditions improve or its strategic partner process is successfully completed.

The Sierra Leone-focused iron-ore explorer planned to defer nonessential capex of over $20-million for 2014 as the company searched for substantial investment to reduce debt and fund future capex.

Several nonbinding expressions of interest had been received following due diligence and London Mining expected to complete the process by the end of 2014, London Mining CEO Graeme Hossie said on Thursday.

A further $175-million, earmarked for a life-of-mine extension capital programme, was set to be deferred for two years.

“[During the first half of 2014,] we have been resolutely focused on four things – improving liquidity, completing the ramp-up to 5.4-million wet metric tonnes (wmt) a year, reducing costs and keeping our employees safe, healthy and protected from the Ebola virus,” he said.

A slower-than-expected ramp-up and the anticipated impact of the Ebola outbreak in West Africa had prompted the company to cut its production guidance for the full year to between 4.9-million and 5.1-million wet metric tonnes, from the initial 4.9-million to 5.4-million wet metric tonnes.

While production has not been impacted by the outbreak of the Ebola virus to date, post the period-end, we have begun to experience disruption to the supply chain and to a number of services as we optimise the plant beyond its nominal run rate,” Hossie explained.

Ebola-related costs would add up to $1/wmt to the current expected full-year operating cost of around $50/wmt.

“We continue to be vigilant about keeping our employees healthy and are working closely with the Sierra Leonean government and health agencies in this difficult time,” he stated.

Meanwhile, during the half-year ended June 30, production volumes increased 24% year-on-year to 2.1-million wet metric tonnes, with export volumes rising 5% year-on-year to 1.7-million wet metric tonnes.

London Mining reported a 22% decline in revenue to $110.6-million and a widened loss of $12.6-million during the six months under review.

The company’s earnings before interest, tax, depreciation and amortisation fell into the red at a loss of $10.8-million during the half-year under review, compared with the recorded profit of $24-million in the comparative period last year.

The iron-ore miner had $32-million cash on hand as at June 30.