Nordic Mines AB (publ) Year-end report January - December 2014
(Thomson Reuters ONE) -
The English text is an unofficial translation of the Swedish original and in
case of any discrepancies between the Swedish text and the English translation,
the Swedish text shall prevail. This is not a legal document.
Fourth quarter 2014
· Net income was SEK 0.0 million (SEK 68.2 million) due to the production
stop at the Laiva mine.
· Due to the production stop, the Company reported an operating loss of SEK
-38.7 million (SEK -610.5 million due to significant write-downs during the
fourth quarter of 2013).
· Profit after tax for the period amounted to SEK -46.7 million (SEK -603.3
million), corresponding to SEK -0.01 (SEK -1.77) per share.
· Comprehensive income for the period amounted to SEK -49.6 million (SEK
-621.7 million), corresponding to SEK -0.01 (SEK -1.82) per share.
· Cash and cash equivalents were SEK 83.2 million (SEK 129.7 million, 30
September 2014) at the end of the period.
· Equity was SEK 466.7 million (SEK 516.3 million, 30 September 2014) at the
end of the period.
· As Nordic Mines decided to stop production at the Laiva mine until further
notice, no ore was processed during the period.
· In order to achieve the overall goal of Nordic Mines to restart operations
at the Laiva mine in a manner that creates conditions for profitable mining, the
Company has implemented a number of measures during the period. These measures
include, among other things, that the Company, in accordance with a previously
disclosed schedule, delivered in January an indicative, updated action plan and
an updated financial model to the Company's lenders for approval. The Company's
lenders have since invited Nordic Mines to continue to discuss the action plan
and the restart of operations at the Laiva Mine.
· Nordic Mines is now progressing in its planning and evaluating a number of
alternatives to strengthen the Laiva project operationally and financially. The
Company is evaluating various partnerships for the refinement process and
possible structural transactions within the Nordic gold mining industry. Nordic
Mines is also evaluating different alternatives for creating more financial
flexibility once operations are restarted, for example through the pre-sale of
gold production and gold deliveries, supplier terms and conditions or other
types of bridge financing for working capital.
· During the fourth quarter of 2014, SRK Consulting (UK) Limited (SRK), an
independent mining consultancy company, re-calculated the mineral resources in
Laiva. As communicated previously, Nordic Mines intends to publish the updated
calculation of the mineral resources in February 2015, and the goal is then in
March 2015 to complete and via a press release present a final, updated action
plan that the Company has prepared in collaboration with SRK.
January - December 2014
· Net income was only SEK 62.9 million (SEK 325.3 million) due to the
production stop at the Laiva mine as of the second quarter.
· The Company reported an operating profit of SEK 305.2 million (SEK -732.4
million) due to the significant debt write-downs.
· Profit after tax for the period amounted to SEK 125.8 million (SEK -722.5
million), corresponding to SEK 0.07 (SEK -2.22) per share.
· Comprehensive income for the period amounted to SEK 104.9 million (SEK
-625.9 million), corresponding to SEK 0.06 (SEK -1.93) per share.
· Cash and cash equivalents were SEK 83.2 million (SEK 129.7 million, 30
September 2014) at the end of the period.
· Equity was SEK 466.7 million (SEK 516.3 million, 30 September 2014) at the
end of the period.
Comments by CEO Thomas Cederborg
"The overall goal of Nordic Mines is to restart operations at the Laiva mine in
a manner that creates conditions for profitable mining. We are now in the final
stages of updating and thoroughly verifying the action plan that Nordic Mines
previously prepared in collaboration with the well-respected international
mining consultancy company, SRK Consulting (UK). The updated action plan is
based on a geological model and mineral resources that have been updated by SRK
and focuses on an improved mining method and capacity expansion in the
processing plant adjacent to the mine. The Company has set a goal to present via
a press release the updated mineral resources before the end of February 2015
and a final, updated action plan in March 2015," says the CEO of Nordic Mines,
Thomas Cederborg, in a statement.
"We are also evaluating possibilities to strengthen the Laiva project through
partnerships and structural transactions with other actors in the Nordic gold
mining industry. Nordic Mines believes that gold concentrate from several Nordic
gold projects could be refined in the Nordic Mines processing plant, thereby
processing the final product all the way from gold concentrate to doré bars and
subsequently improving profitability. There are even clear synergies in the form
of purchasing optimisation and streamlined administration. Finally, the falling
price of gold, which has been the trend for the past few years, has reached a
point where a number of interesting structural transactions may now occur,"
concludes Thomas Cederborg
For further information, please contact:
Thomas Cederborg, CEO, +46 708 480 521
Jonatan Forsberg, CFO, +46 761 051 310
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 February 19, 2015.
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.
Nordic Mines AB (publ) Year-end report 2014:
http://hugin.info/138647/R/1895654/672319.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1895654]
Unternehmensinformation / Kurzprofil:
Datum: 19.02.2015 - 08:00 Uhr
Sprache: Deutsch
News-ID 372672
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Kategorie:
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