Lappland Goldminers AB (publ): Interim report January - September
2009
(Thomson Reuters ONE) - Positive cash flow in the third quarterThird quarter * Net turnover amounted to MSEK 32.7 (MSEK 0). * Result after financial items amounted to - MSEK 25.5 (- MSEK 6.6), which included non-recurring preparation and environmental costs of MSEK 21.5 * Free cash flow amounted to MSEK 1.6 (- MSEK 54.0). * Investments stood at MSEK 6.8 (MSEK 56.1) * Gold production was 108 kg. * The company received MSEK 82.4 through a new share issue, which it is going to use to develop the Fäboliden project by updating the existing feasibility study and to finance the continued development of the company's other activities.Period January - September * Net turnover amounted to MSEK 75.5 (MSEK 0). * Result after financial items amounted to - MSEK 57.5 (- MSEK -19.2), of which non-recurring preparation and environmental costs were MSEK 55.2. * Free cash flow amounted to MSEK -86.1 (- MSEK 120.0). * Gold production was 477 kg. * Investments stood at MSEK 19.9 (MSEK 110.7). * The company received MSEK 170.8 through a new share issue (before share issue costs).Events after the end of the report periodThe company made its first assessment of the gold mineral resourcesat the Ersmarksberget deposit. It estimates the Mineral Resource to448,000 tonnes, with 2.85 gram of gold per tonne, which will form thebasis for continuous mining, starting in 2010. This means that theplanned production for two month during the latter part of 2009 hasbeen abandoned. As a result, the annual production for 2009 isestimated to be 700 kg instead of the previously published figure of900 kg.Work on updating the feasibility study for Fäboliden has now gotunderway. The company has also started work on evaluating thedifferent financing options that are available to start constructionof the project as soon as possible after the updated feasibilitystudy is complete.Words from the CEO, Kjell Larsson- In this period we passed important milestones in our strategy - tobecome a growing, producing gold company.The company has made its first assessment of the gold mineralresources in the Ersmarksberget deposit, which is essential forcontinuous mining operation in Blaiken in the future. A comprehensiveupdate of the profitability study for the Fäboliden project is nowunderway, which is core to our growth strategy.We report a positive cash flow for the third quarter. The result forthe quarter was negative, despite the strong gold market. This ispartly due to temporarily low gold grades in Pahtavaara, which isbeing resolved, the extensive costs involved in preparing ourcontinuous and expanding production and the considerable costs whenimplementing environmental measures, that are essential in enablingthe company to move into its next phase, says Kjell Larsson, CEO.Key ratio Jul-Sept Jul-Sept Jan-Sept Jan-Sept Full year 2009 2008 2009 2008 2008Net turn over 32 709 0 75 527 0 6 507Operating profit/losss(EBITDA) -23 101 -6 308 -51 171 -18 830 -29 778Profit/loss afterfinancial items -25 484 -6 646 -57 543 -19 183 -35 625Equity/Debt ratio 67,7% 75,0% 67,7% 75,0% 62,6%Debt/Equity ratio 38,1% 31,7% 38,1% 31,7% 46,3%Free Cash Flow 1 637 -54 000 -86 097 -119 968 -120 940Gold Production (kg) 108 0 477 0 65Gold Sales (kg) 151 0 324 0 35Gold Sales (TSEK) 32 709 0 74 230 0 6 507Average gold price(TSEK) per kg 216 0 229 0 184STATUS OF OPERATIONAL UNITS AND PROJECTSGold production amounted to 108 kg during the third quarter. Duringthe same period, 151 kg were sold at an average price of TSEK 216 perkg. During the first nine months of the year, a total of 477 kg goldwas produced, of which 324 kg were sold at an average price of TSEK229 per kg. Sales contracts for supplying gold concentrate werenegotiated during this period, guaranteeing continued deliveries ofall product qualities from Pahtavaara.PahtavaaraDuring the quarter production at Pahtavaara was affected by miningtaking place in an area that had a lower gold content than originallyplanned. Measures were taken to increase the grade that, after theend of the period, has led to higher grades and improved productionresults.Exploration in order to find new resources at the mine has beencarried out since June, and the results from this drilling will bepart of the reserve and resource assessment that will be carried outat the end of the year. The drilling has resulted in positiveindications at the near surface target at Länsi, a mineralisationjust north-west of the old open pit mine.BlaikenThe company has used results from previous drilling and the drillingfrom the third quarter to make its first mineral resource assessmentof gold. The mineral resource is 448,000 tonnes with 2.85 gram ofgold per tonne. Drilling will continue to increase the two hundredmeter deep mineralisation that is open towards depth and alongstrike. The Company expect to start continual mining operation beforeend of third quarter of 2010. The concentrating plant in Blaiken withits large production capacity is well-equipped for expansion offuture production. Henrik Grind was employed as the President ofLappland Goldminers Sorsele AB.During this nine-month period, gold was extracted from a stock pileof previously mined material. The quality in this material wasuneven, with a fluctuating gold content due to inclusions of zinc,lead and graphite in the stock pile. A total of 92,000 tonnes wereenriched, compared with the estimated 65,000 tonnes, and there was anaverage gold content of 1.5 gram per tonne. A total of 94 kg of goldwas extracted, of which 45 kg was sold.FäbolidenWork with updating the current feasibility study got underway afterthe end of the period, with two well-known engineering companies, SRKConsulting and Golder Associates, competing in the first step, thereview. In parallel with this work, the company is starting toevaluate different financing options that are available to enable thecompany to start building the project as soon as possible after theupdated feasibility study is complete. The gold price is currentlyaround 30 percent higher, and there are indications of much lowerinput costs than when the feasibility study was carried out. The aimfor the update and possible revision of this study, according tocurrent plans, is to be complete during the first half of 2010.OUTLOOKAs previously disclosed the company expects to report a goldproduction of about 700 kg for the current year.Results for the periodResult after financial items for third quarter was MSEK -25.5 (-6.6)and -57.5 (-19.2) MSEK for the period as a whole.During the January-September period, the environmental costs amountedto MSEK 17.5, of which MSEK 13.6 was in the January-June period. Thepreparation costs for production amounted to MSEK 37.7, of which MSEK20.1 was in the January-June period. The environmental andpreparation costs amounted to a total of MSEK 55.2.The environmental costs relate to handling a leaking pile of minewaste as well as the cost of running surface water through an oreconcentration plant, which used to flow directly into the riverJuktan. These costs will continue in the fourth period, but to alesser extent.Cash flow and financingThe company reported a positive cash flow of MSEK 0.3 (MSEK 2.1) forthe third quarter and a free cash flow of MSEK 1.6 (- MSEK 54.0)The cash flow from operating activities amounted to - MSEK 75.5 (-MSEK 9.3) for the whole period. The free cash flow amounted to - MSEK86.1 (- MSEK 120.0), where the net result for the period was affectedby - MSEK 57.5, changes in operating capital by -MSEK 11.4,investments by - MSEK 19.9 and depreciation and amortisation by MSEK2.8. Environmental costs and preparation costs for production in thisperiod affected results by - MSEK 55.2. This is a result of thecompany preparing and starting production in Pahtavaara during theyear, and not completing the planned and partly prepared productionin Blaiken before the end of the year.The nature of the sales process affects our stocks and therefore ourcash flow, as the time to receive payment, for most of the productssupplied, is at least a month and in some cases longer.Free cash flow is defined as the total of the period's net results,restored depreciation, changes in operating capital and investments.InvestmentsInvestments for the third quarter amounted to MSEK 6.8 (MSEK 56.1)and MSEK 19.9 (MSEK 110.7) for the whole period, and relate to miningand prospecting.EquityThe company received an injection of capital on three occasionsduring the year, including a directed share issue of MSEK 134.2 and apreferential share issue of MSEK 36.6 (a total of MSEK 170.8 beforeissue costs). The equity ratio amounted to 67.7 percent at the end ofthe period.Share capital development during the third quarterActivity Issue Increase in number Total number Share capital Quota rate of of SEK value shares shares per share, SEKNew share 10.7 7,700,000 83,327,509 1,666,550.18 0.02 issueEmployeesThe company has 61 employees (47 last year). The company alsocontinually hires consultants and contractors for different projects.In total, the number of full-time employees at the companycorresponds to 110 (75 last year).Reporting datesNotice of year-end statement 2009 19February 2010Accounting principlesThe accountings has been prepared according to (ÿRL- Annual AccountsAct), RFR 2.1 "Reporting for legal entities", International FinancialReporting Standards (IFRS) and interpretations by InternationalFinancial Reporting Interpretations Committee (IFRIC), as adopted byEU, and according to RFR 1.1 "Complementary reporting principles forgroups". The parent company also applies to RFR 2.1 "Reporting forlegal entities" and ÿrsredovisningslagen (ÿRL - Annual Accounts Act).This report has been prepared in compliance with IAS 34 - InterimFinancial Reporting.Same accounting principles have been applied as in the last issuedAnnual Report.For detailed information regarding accounting principles, refer toAnnual Report 2008.The annual report and the group report have been approved for issueby the Board on April 8, 2009. The group Income statements andbalance sheet and the parent company income statements and balancewas adopted at the Annual General Meeting on May 28, 2009. Lycksele, November 30, 2009 Kjell Larsson Chief Executive OfficerThe Interim Report for January to September 2009 has been subject tospecial examination by the Company's auditors.For further information please contact:Kjell Larsson, Tel: E-mail:CEO 0950-275 kjell.larsson(at)lgold.se 06, 070-385 03 57Ulf Ericsson, Chairman of the Board Tel: E-mail: 070-529 09 ulf.ericsson(at)lgold.se 59Lappland Goldminers AB (publ)Org nr 556544-3339Storgatan 36SE-921 31 LyckseleTel: 0950-275 00www.lapplandgoldminers.seLappland Goldminers AB is a gold exploration company with producingmines. Lappland Goldminers strategy is to develop a profitable,producing gold company with centrally located processing plants inareas with gold deposits. The company is strategically positionedwith Blaiken processing plant and the fully permitted Fäbolidenproject on the Gold Line in Sweden, with Pahtavaara mine in northernFinland and the gold deposits in the Haveri area in southern Finland.Lappland Goldminers is a member of SveMin and complies with itsreporting rules for public mining and exploration companies. TheCompany is listed on First North Premier under the name GOLD withMangold Fondkommission AB as the Certified Adviser, and on theNorwegian OTC listIncome statement -GroupSEK (,000) 3 month 3 month 9 month 9 month July-Sept July-Sept Jan-Sept Jan-Sept Full year 2009 2008 2009 2008 2008IncomeNet turnover 32 709 3 076 75 527 3 076 6 507Changes in inventory -12 710 2 209 29 475 3 470 5 567Capitalized work 7 558 239 2 512 2 820Change in value of 0 0 0 0 311biological assets 20 005 5 843 105 240 9 057 15 206Other external costs -34 975 -7 188 -129 519 -15 375 -25 947Personnel costs -8 131 -4 963 -26 893 -12 512 -19 037Depreciation of -1 033 -185 -2 827 -439 -1 508tangible and intangiblefixed assetsOperating Profit/Loss -24 133 -6 494 -53 999 -19 270 -31 287Financial items:P/L from financial 0 0 0 0 -2 743investments:Financial income 11 4 71 426 455Financial costs -1 362 -157 -3 616 -340 -2 051Profit/Loss after -25 484 -6 646 -57 543 -19 183 -35 625financial itemsTaxes 0 0 0 0Net Profit/Loss for -25 484 -6 646 -57 543 -19 183 -35 625fiscal periodNumber of share before 83 328 63 001 83 328 63 001 63 001dilution at end ofperiod , thousandNumber of share after 85 283 64 131 85 283 64 131 64 131dilution at end ofperiod , thousandAverage number of 75 754 60 876 68 679 60 758 61 413shares before dilution,thousandAverage number of 77 709 62 006 70 342 61 712 62 324shares after dilution,thousandP/L per share before -0,31 -0,11 -0,69 -0,30 -0,57dilutionP/L per share after -0,30 -0,10 -0,67 -0,30 -0,56dilutionBalance Sheet - GroupSEK (,000) 30 sept 30 sept Dec 31 2009 2008 2008AssetsFixed assetsIntangible fixed assets 261 970 231 385 260 923Tangible fixed assets 150 351 106 830 134 286Financial fixed assets 285 3 028 285 412 606 341 243 395 494Current assetsInventory 36 411 4 174 6 936Other receivables 25 112 3 044 4 053Investments , cash and 57 679 2 657 7 666bank balancesTotal Current assets 119 202 9 875 18 655Total Assets 531 808 351 118 414 149Equity and LiabilitiesEquity 360 133 263 246 259 353Allocations 34 508 4 490 34 832Long-term liabilities 29 542 60 288 51 833Short-term liabilities 107 625 23 094 68 131Total Equity and 531 808 351 118 414 149Liabilitiesof which 41 853 29 978 47 611interest-bearingEquity per share before 4,32 4,18 3,11dilutionEquity per share after 4,22 4,10 3,04dilutionChanges in Equity -GroupSEK (,000) 3 month 3 month 9 month 9 month Full year July-Sept July-Sept Jan-Sept Jan-Sept 2009 2008 2009 2008 2008Equity at the beginning 311 090 243 742 259 353 256 224 256of period 224New issue 82 390 26 000 170 773 26 000 26 000Issue cost -250 -405 -2 750 -405 -405Currency -7 613 557 -9 700 611 13 159effects/acquired equityP/L of fiscal period -25 484 -6 647 -57 543 -19 184 -57 543Equity at the end of 360 133 263 246 360 133 263 246 237period 434Cash Flow Analysis -GroupSEK (,000) 3 month 3 month 9 month 9 month Full year July-Sept July-Sept Jan-Sept Jan-Sept 2009 2009 2009 2008 2008Cash flow from operating -32 554 -6 462 -64 060 -18 745 -17activities before 841changes in workingcapitalChanges in working 32 867 8 548 -11 442 9 445 52 553capitalCash flow from operating 313 2 086 -75 502 -9 299 34 712activitiesFree Cash flow 1 637 -54 000 -86 097 -119 968 -120 940Cash flow from investing -6 778 -56 086 -19 939 -110 670 -139activities 376Cash flow from financing 56 524 54 409 145 704 83 883 75 427activitiesChanges in liquid assets 50 059 409 50 263 -36 086 -29 236Liquid assets at the 10 694 408 7 666 36 902 36 902beginning of periodLiquid assets at the end 57 679 817 57 679 817 7 666of periodUndisposed overdraft 15 235 2 983 15 235 2 983 5 000facilitiesDisposable cash at the 72 914 3 800 72 914 3 800 12 666end of periodThe full press release including chart can be downloaded from thefollowing link.http://hugin.info/134992/R/1357843/330442.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 30.11.2009 - 08:46 Uhr
Sprache: Deutsch
News-ID 8988
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