NORDIC MINES AB (publ) (A translation) Interim report January-September 2013
(Thomson Reuters ONE) -
Third quarter 2013
Net sales proceeds for gold and silver amounted to SEK 74.4 m. (SEK 65.6 m.).
The operating income amounted to SEK -52.8 m. (SEK -53.5 m.).
The net income amounted to SEK -47.0 m. (SEK -49.9 m.), corresponding to EPS of
SEK -0.14 (SEK -0.65).
The comprehensive income amounted to SEK -19,4 m. (SEK -107.1 m.), corresponding
to EPS of SEK -0.06 (SEK -1.39).
Cash and cash equivalents were SEK 44.5 m. (SEK 55.7 m. adjusted for
comparability)
Investments were SEK 6.2 m. (SEK 26.5 m.).
In total, 259 kilograms of gold (257 kilograms) were produced at the Laiva mine.
On July 8, 2013, Nordic Mines filed for reorganization of all non-dormant
companies within the Group since the Finnish subsidiary's liquidity at the end
of June 2013 was strained.
Since the filing for corporate reorganization, the bank consortium is utilizing
an administrative possibility to retain payments from sales of gold, which
increases the risk for the delay of or missed payments to other creditors, such
as suppliers, authorities and employees.
On July 29, 2013, the Uppsala District Court decided that the reorganization
proceedings in the Swedish companies would continue.
On August 2, Berne Jansson, Eldorado Gold Corporation, left the Board of
Directors at his own request since his assignment at Eldorado ended. Eldorado
will not appoint a new candidate to the Board until further notice.
On August 31, Stefan Romedahl left the Board of Directors at his own request due
to a lack of time since he had taken on a new international assignment as of
September.
On September 9, the Finnish administrator presented a basic report to Uleåborg
District Court. The work with the corporate reorganization continues.
During the quarter a total of 44 employees in Finland were placed on temporary
unpaid leave, of which
14 employees have chosen to terminate their employment. A total of 3 employees
were notified and made redundant in Sweden.
January - September 2013
Net sales proceeds for gold and silver amounted to SEK 257.1 m. (SEK 170.7 m.).
The company recorded a loss of SEK -121.9 m. (SEK -120.1 m.).
The period's loss after tax amounted to SEK -119.2 m. (SEK -131.3 m.),
corresponding to SEK -0.37 (SEK -2.64) per share.
The period's comprehensive income amounted to SEK -4,2 m. (SEK -174.0 m.),
corresponding to SEK -0.01 (SEK -3.49) per share.
Cash and cash equivalents were SEK 44.5 m. (SEK 55.7 m. adjusted for
comparability) at the end of the period
Investments amounted to SEK 42.2 m. (SEK 75.6 m.), including an environmental
deposit of SEK 8.1 m. in the first quarter.
In total, 881 kilograms of gold (647 kilograms) were produced at the Laiva mine.
In January 2013, a preferential rights issue of SEK 282 m. was oversubscribed
without having to utilize the warranties.
In April, the company settled its forward contract for the price of gold for the
volume for the second quarter of 2013 at a cost of EUR 150,000.
In May, the company settled the total remaining balance of the forward contract
for the price of gold for 65,236 troy ounces for the period July 2013 to March
2015 at a cost of EUR 1.8 m.
Post balance sheet events
On October 15, 2013, the Uppsala District Court decided that the reorganization
proceedings in the Swedish companies would continue an additional 3 months. The
Swedish proceedings are dependent on the Finnish subsidiary's reorganization
plan, which is scheduled to be presented on November 18, 2013, at Uleåborg
District Court.
One supplier has initiated legal proceedings related to compensation for loss of
work compared to original contractual agreements. The company has made a
provision of SEK 5.5 m. for this in the third quarter of 2013, which has been
reported as an expense and in accounts payable.
CEO comments
"Work on a corporate reorganization plan and the search for a strategic partner
continue"
"Yet another intense quarter has passed with continued efforts to implement the
action plan that was decided on in November 2012. Since the company filed for
corporate reorganization on July 8, 2013, the work has been expanded to include
the preparation of a corporate reorganization plan to try to safeguard future
operations at the Laiva mine. The goal is to find opportunities to achieve
future profitable production taking into consideration a lower initial head
grade. The search for a strategic financier, partner or buyer continues," opens
Thomas Cederborg, CEO.
In total, 259 kilograms of gold were produced during the third quarter, compared
to 343 kilograms during the second quarter. Since the end of July, the company
has temporarily ceased mining in the mine in order to achieve cost savings
during the reorganization efforts. During this period, the processing plant is
processing previously mined ore from the stockpile, which contains a lower head
grade. As of September 30, there were 936,570 tons of ore in the stockpile. The
lower production is primarily due to the lower head grade from the ore in
stockpile and two long planned maintenance stoppages during the quarter, one at
the beginning of July for around six days and one in September for around four
days. Throughput has stabilized at a higher level, but was negatively affected
during the quarter by a lower availability due to two long maintenance
stoppages.
Net sales proceeds were SEK 74.4 million during the third quarter, compared to
SEK 97.3 million during the second quarter. The decrease is due to lower
production as well as the fact that the price of gold continues to hold at a low
level compared to the prices prior to April 2013. At the end of September, there
were doré bars in inventory valued at SEK 4.6 million, which were delivered/sold
in the opening days of October.
The company recorded an operating loss of SEK -52.8 million compared to SEK
-10.1 million in the previous quarter. The difference is primarily due to lower
income of SEK 23.0 million, extraordinary expenses stemming from a provision of
SEK 5.5 million related to compensation for loss of work at a supplier compared
to original contractual agreements and reorganization expenditure for
technological and legal support totaling SEK 13.3 million. In addition, foreign
exchange rate effects were negative in the third quarter compared to the
positive effects in the second quarter of 2013, which resulted in a higher cost
of net SEK 24.1 million quarter-on-quarter. However, operating profit/loss was
positively affected by a total of around SEK 25 million from achieved cost
savings since the company has temporarily stopped mining in the mine,
temporarily reduced personnel costs and gained savings from relocating the pre-
crushing function.
On October 15, 2013, the Uppsala District Court decided that the reorganization
proceedings in the Swedish companies would continue and be extended until
January 8, 2014. The Swedish proceedings are dependent on the Finnish
subsidiary's reorganization plan, which is scheduled to be presented on November
18, 2013, at Uleåborg District Court.
"Given that there is a relative large amount of ore in stockpile, it provides
the company with good conditions to continue the corporate reorganization work,"
concludes Thomas Cederborg, CEO.
For further information, please contact:
Thomas Cederborg, CEO, +46 708 480 521
Susanne Andersson, CFO, +46 730 668 904
For further information regarding Nordic Mines, please connect to
www.nordicmines.com
The information above has been made public in accordance with the Securities
Market Act and/or Financial Instruments Trading Act. The information was
published at 08.00 (CET) on October 31, 2013.
Nordic Mines is a Nordic mining and exploration company whose vision is to be
one of the leading gold producers in the Nordics and Europe and a role model in
respecting the environment. The company started mining gold in the Laiva mine in
Finland in summer 2011. These gold deposits are among the largest in the Nordic
region. Exploration is in progress in Finland and in Sweden. Nordic Mines was
established 2005 and have more the 100 employees with head office in Uppsala,
Sweden, The Nordic Mines share is traded on the Nasdaq OMX Small Cap list in
Stockholm.
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#1739494]
Unternehmensinformation / Kurzprofil:
Datum: 31.10.2013 - 08:01 Uhr
Sprache: Deutsch
News-ID 311278
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