Nordic Mines AB (publ) Interim report January - March 2015
(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.
First quarter of 2015
· Net income was SEK 0.0 million (SEK 51.6 million) due to the production stop
at the Laiva mine.
· Operating loss was SEK -26.3 million (SEK -36.9 million) due to the production
stop at the Laiva mine.
· Profit after tax for the period amounted to SEK -29.2 million (SEK -36.4
million), corresponding to SEK -0.01 (SEK -0.11) per share.
· Comprehensive income for the period amounted to SEK -31.0 million (SEK -37.0
million), corresponding to SEK -0.01 (SEK -0.11) per share.
· Cash and cash equivalents were SEK 57.9 million (SEK 83.2 million, 31 December
2014) at the end of the period.
· Equity was SEK 435.7 million (SEK 466.7 million, 31 December 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
announced schedule, delivered an indicative, updated action plan and an updated
financial model in January to the Company's lenders for approval. The Company's
lenders subsequently invited Nordic Mines to continue discussing the action plan
and the restart of operations at the Laiva mine. The Company's goal is to
conclude the ongoing discussions no later than May 2015.
· Nordic Mines progressed in its planning and evaluated a number of
alternatives to strengthen the Laiva project operationally and financially. The
Company also evaluated during the period partnerships for the refinement process
and possible structural transactions within the Nordic gold mining industry.
Even if the discussions that the Company has conducted to date have not yet
produced any concrete results, Nordic Mines continues to take a positive view on
a consolidation within the Nordic gold mining industry. During the period Nordic
Mines also evaluated different alternatives for strengthening liquidity during
the first months after the Laiva mine restarts operations, for example through
the pre-sale of gold production and gold deliveries, renegotiation of supplier
terms and conditions or other types of bridge financing for working capital.
· On 26 February, Nordic Mines presented an updated mineral reserve
corresponding to five years of gold production. The total proven and probable
mineral reserve in Laiva as of 1 January 2015 is 9,367,000 tonnes with an
average grade of 1.19 grams of gold per tonne (cut-off 0.6 grams per tonne).
The gold content in the mineral reserve corresponds to around 11,200 g (360,000
troy ounces).
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 the mineral reserve and geological model that has been updated by SRK
and focuses on an improved mining method and capacity expansion in the
processing plant adjacent to the mine. The updated mineral reserve for the Laiva
mine corresponds to a gold content of around 11,200 kg (360,000 troy ounces) or
five years of production," says CEO Thomas Cederborg in a statement.
"We also evaluated possibilities to strengthen the Laiva project through
partnerships and structural transactions with other actors in the Nordic gold
mining industry. Even if the discussions we have conducted to date have not
produced any concrete results, Nordic Mines continues to believe 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.
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 April 30, 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 Interim report January-March 2015:
http://hugin.info/138647/R/1917133/685792.pdf
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(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#1917133]
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2015 - 08:00 Uhr
Sprache: Deutsch
News-ID 389730
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