NORDIC MINES AB (publ) Interim report January-June 2013
(Thomson Reuters ONE) -
A translation
Second quarter 2013
* Net sales proceeds for gold and silver amounted to SEK 97.3 million (SEK
82.4 million).
* The company recorded a loss of SEK -10.1 million (SEK -12.6 million), of
which positive exchange rate translations amounted to SEK 24.2 million.
* The period's loss after tax was SEK -26.6 million (SEK -18.5 million),
including financial expenses of
SEK -25.6 million, corresponding to SEK -0.08 (SEK -0.50) per share.
* The period's comprehensive income amounted to SEK 37.7 million (SEK 10.9
million), corresponding to SEK 0.11 (SEK 0.30) per share.
* Cash and cash equivalents were SEK 48.8 million (SEK 23.4 million) at the
end of the period
* Investments were SEK 10.2 million (SEK 11.2 million).
* In total, 343 kilograms of gold (260 kilograms) were produced at the Laiva
mine.
* In April, the company pre-settled its gold price hedging agreement for the
second quarter 2013 at a cost of EUR 150,000.
* In May, the company pre-settled the total remaining balance of the gold
price hedging agreement for 65,236 troy ounces for the period July 2013 to
March 2015 at a cost of EUR 1.8 million.
January - June 2013
* Net sales proceeds for gold and silver amounted to SEK 182.7 million (SEK
105.1 million)
* The Company recorded a loss of SEK -69.1 million (SEK -66.7 million).
* The period's profit after tax amounted to SEK -72.3 million (SEK -81.5
million), corresponding to
SEK -0.23 (SEK -2.26) per share.
* The period's comprehensive income amounted to SEK 15.2 million (SEK -66.9
million), corresponding to SEK 0.05 (SEK -1.85) per share.
* Cash and cash equivalents were SEK 48.8 million (SEK 23.4 million) at the
end of the period
* Investments amounted to SEK 36.0 million (SEK 49.1 million), including a
deposit of SEK 8.1 million in the first quarter.
* In total, 621 kilograms of gold (390 kilograms) were produced at the Laiva
mine.
* In January 2013, a preferential rights issue of SEK 282 million was
oversubscribed without having to utilize the warranties.
* In April, the company pre-settled its gold price hedging agreement for the
second quarter 2013 at a cost of EUR 150,000.
* In May, the company pre-settled the total remaining balance of the gold
price hedging agreement for 65,236 troy ounces for the period July 2013 to
March 2015 at a cost of EUR 1.8 million.
Post balance sheet events
* On July 8, 2013, Nordic Mines applied for a reorganization of all non-
dormant companies within the Group since the subsidiary's liquidity after
amortizations at the end of June 2013 was strained. Despite continuous
development efforts, including several attempts and changes in mining
methods, the company has not succeeded in adequately raising the head grade
to the plant. Furthermore, income was burdened by the substantial fall in
the price of gold during the second quarter.
* On July 29, 2013, the Uppsala District Court decided that the reorganization
proceedings in the Swedish companies would continue. The Swedish
reorganization is dependent on the Finnish subsidiary's reorganization plan,
which will be presented in Finnish court on September 9, 2013.
* Until further notice, a total of 47 employees have been notified, of which
3 in Sweden and 44 in Finland.
* On August 2, 2013, Berne Jansson, Eldorado Gold Corporation, left the Board
of Directors at his own request since his assignment at Eldorado ended.
Eldorado will not appoint another candidate to the Board for the time
being.
Nordic Mines in brief
Nordic Mines is a Nordic mining and exploration company. Its goal is to be one
of the leading gold producers in Europe and the Nordic region as well as a role
model in respecting the environment. Gold production began in the Laiva mine in
Finland at the end of 2011. The deposit is among the largest in the Nordic
region. Exploration is being conducted in Finland and Sweden. Nordic Mines was
founded in 2005 and has approximately 100 employees. Its head office is in
Uppsala. The Nordic Mines share is traded on the Nasdaq OMX Small Cap exchange
in Stockholm. Also refer to www.nordicmines.se
CEO comments:
"Despite several attempts and changes in mining methods, the company has not
succeeded in adequately increase the head grade to the processing plant"
"The quarter has been intense with continued efforts to implement the action
plan. Efforts at the processing plant continued to have positive effects. The
throughput has stabilized at a higher level. Unfortunately, several tests and
changes in mining methods at the mine have not resulted in higher head grades to
the plant, which had a negative effect on production. Combined with the
substantial fall in the price of gold during the quarter, income was affected
negatively. This in turn strained the Finnish subsidiary's liquidity after
amortizations at the end of June 2013. Since the company has to date not found a
strategic investor, partner or buyer for the operations in Laiva, the company
was forced to apply for a corporate reorganization on July 8, 2013. The goal of
the reorganization proceedings is to model a low-cost production for future
profitable operations that takes into consideration a lower head grade to the
plant and to continue the search for a strategic partner or buyer," opens Thomas
Cederborg, CEO.
The original plan for the liquidity from the preferential rights issue in
January 2013 of SEK 255 million after transaction costs was that around one-
third would be used to pay debts from December 2012, around one-third would be
used for investments to improve production and the remaining one-third would be
cash liquidity. The first third was already used during the first quarter, as
was a part of the investment budget. The remaining liquidity was primarily used
during the quarter for investments in tests of different mining methods in the
mine to try to raise the head grade. Unfortunately, it was also used to cover an
insufficient production volume and weakened income due to a substantial fall in
the price of gold. At the end of the quarter, just over SEK 20 million remained
from the preferential rights issue.
In total, 343 kilograms of gold were produced during the second quarter, which
was the highest quarterly production since operations began, but lower than
planned. The lower production was primarily due to a continued low head grade to
the plant. The throughput has stabilized at a higher level. There were no long
planned maintenance stoppages during the quarter, but there were a few unplanned
stoppages.
Sales proceeds were SEK 97.3 million during the second quarter. Sold/delivered
gold increased by 50 kg compared to the first quarter. By settling the gold
price hedge agreement, income is reported at spot prices starting in the second
quarter. Due to the substantial fall in the price of gold during the second
quarter, income was affected negatively. The company recorded a loss of SEK
-10.1 million, compared to SEK -59.0 million in the previous quarter. The
difference mainly is due to negative exchange losses in the first quarter of
2013 compared to the positive exchange gains in the second quarter.
On July 29, 2013, the Uppsala District Court decided that the reorganization
proceedings in the Swedish companies would continue. The Swedish reorganization
is dependent on the Finnish subsidiary's reorganization plan, which will be
presented in Finnish court on September 9, 2013. Until further notice, a total
of around
47 employees have been notified, of which 3 in Sweden and 44 in Finland.
"Despite extensive efforts to try to raise the head grade in the material to the
processing plant, the company has not succeeded. This is naturally a regrettable
situation and we are placing our full attention on the reorganization plan with
the objective of modeling a low-cost production considering a lower head grade
to the plant, thereby achieving profitable mining operations in the future as
well as finding a strategic partner or buyer for the operations in Laiva,"
concludes Thomas Cederborg, CEO.
NordicMines AB (publ) Interim report January-June 2013:
http://hugin.info/138647/R/1721900/573567.pdf
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(i) the releases contained herein are protected by copyright and
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(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#1721900]
Unternehmensinformation / Kurzprofil:
Datum: 08.08.2013 - 08:00 Uhr
Sprache: Deutsch
News-ID 285868
Anzahl Zeichen: 9666
contact information:
Town:
Uppsala
Kategorie:
Business News
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