The production rate at the Laiva mine is increasing step by step, our goal is a positive cash flow this summer
(Thomson Reuters ONE) -
Press Release, 9 May 2012
The fine-tuning of our process plant and ramp-up of production at the Laiva mine
continued in the first quarter. The goal is for the company to generate a
positive cash flow in the summer. This is as stated in Nordic Mines' Interim
Report for the first quarter 2012.
Gold production has increased progressively each month. In January and February,
we produced over 30 kg of gold each month, and 68 kg in March. In April, after
the end of the period, we produced a preliminary 90 kg of gold.
"We estimate that production should increase to approximately 5 kg of gold per
day by the summer, which means we would then generate a positive cash flow, even
considering the company's financial obligations. Work will then continue to
reach the production capacity the plant is dimensioned for," commented Nordic
Mines' CEO Michael Nilsson.
The production rate in the quarter was below the long-term production target.
This is because fine-tuning of the process plant at the Laiva mine and the ramp-
up of production was delayed because of late component deliveries.
Net sales for the first quarter were MSEK 22.6 (0 MSEK). The profit/loss after
financial items was MSEK -83.4 (MSEK -6.1), and the profit/loss after tax was
MSEK -62.4 (MSEK -4.7). Net profit/loss per share for the period after dilution
was SEK -1.77 (SEK -0.12). Cash and cash equivalents at the end of the period
were MSEK 15.3 (MSEK 41.1). Un-utilised credit facilities of MSEK 6.2 were
additional.
The delayed production start meant that revenues for the period were lower than
expected. As previously reported, the Board of Directors decided to strengthen
the company's liquidity further, primarily through a new hedging programme.
The Laiva mine is one of the largest gold deposits in Europe. A new calculation,
that indicates a four million tonne expansion of mineral reserves at the Laiva
mine, corresponding to another two years' operations, was published yesterday.
"The original schedule has been delayed, but we have attained significant
production and are continuing to work towards our goal of Nordic Mines becoming
one of Europe's leading gold producers," concluded Michael Nilsson.
The complete Report for the period January - March 2012 is available at
www.nordicmines.se.
For more information, please contact: Michael Nilsson, CEO of Nordic Mines. Tel
+46 (0)18 843 4501, mille(at)nordicmines.se.
Nordic Mines AB (publ) Interim Report Q1 Jan-Mar 2012:
http://hugin.info/138647/R/1610516/511923.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Nordic Mines AB via Thomson Reuters ONE
[HUG#1610516]
Unternehmensinformation / Kurzprofil:
Datum: 09.05.2012 - 16:36 Uhr
Sprache: Deutsch
News-ID 144651
Anzahl Zeichen: 3419
contact information:
Town:
Uppsala
Kategorie:
Business News
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"The production rate at the Laiva mine is increasing step by step, our goal is a positive cash flow this summer"
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