Thu, 20 Feb 2014 11:15:00 +0100

Year-end report January – December 2013

Significant events during the fourth quarter of 2013

  • The Company will receive a loan from Inlandsinnovation AB
  • Two of the founders sold parts of the holding to their owners and the number of shareholders in NIO thus increased to 1,751 in total
    • The main proceedings for an environmental permit for the operations in Blötberget and Håksberg were conducted

Fourth quarter, 1 October – 31 December 2013

Income amounted to SEK 0 million (0)

  • Earnings after tax were SEK -3.7 million (-5.1)
  • Investments during the period October – December amounted to SEK 4.3 million (11.9)
  • Earnings per share, basic, were SEK -0.33 (-0.51)
    • Income amounted to SEK 0 million (0)
    • Earnings after tax were SEK -15.8 million (-21.9)
    • Investments during the period January – December amounted to SEK 14.4 million (26.2)
    • Earnings per share, basic, were SEK -1.38 (-2.63)
      • Cash and cash equivalents at 31 December 2013 amounted to SEK 6.0 million (18.9)

Full-year period 1 January – 31 December 2013

 Significant events after the end of the period

  • Published evaluation of prospecting results for Blötberget indicated greater mineral resources, to 38 million tonnes in the classes known and indicated as well as 22 million tonnes in the class inferred
  • The main proceedings at the Land and Environment Court for the application for an environmental permit were concluded

CEO’s comments

Work on preparations for the necessary permits has continued during the period.  The main proceedings at the Land and Environment Court were initiated in October and concluded recently. The detailed development plan process has continued in parallel, which means that we expect to have all the necessary permits ready after the summer for a possible restart of mining operations in both Blötberget and Håksberg.

The work on the project study for Blötberget is ongoing and an important part of this work includes the important process tests which have just started and which will form the basis of the customer contacts and for optimising the structure of the enrichment process[F1] .  

Generally financial investors have become very selective in the choice of investment objects within the raw material sector. Investors have gradually gained greater understanding of which critical conditions result in successful iron ore projects, which is among other things an asset for functioning rail and port logistics in a country with low political risk. 

Our projects fulfil these conditions in a unique way, which puts Ludvika Mines on top of the list of projects which can be implemented.  The support from society for Ludvika Mines through planned infrastructure investments in rail and by the participation of Inlandsinnovation as a financier of the company increases the prerequisites for the implementation of our project.

However, the largest challenge for small mining companies is funding and the problems for a number of Scandinavian mining projects have contributed to increasing the scepticism of investors. Therefore, we aim to establish a financially stable ownership circle before the company is listed. We consider this as being decisive for the company's opportunities of attracting the desired investment funding within the upcoming 12 month period.  The company now has more than 1,700 shareholders and is well-prepared for a market quotation, but the Board is of the opinion that currently it is not in the interest of the company and its shareholders to conduct a quotation of the company's shares.

Christer Lindqvist, CEO Nordic Iron Ore


For further information: Christer Lindqvist, CEO 46 (0)240-88301
                                           christer.lindqvist@nordicironore.se
 

Nordic Iron Ore Group is a mining company with the ambition to revive and develop the iron ore production of Ludvika Mines in Blötberget and Håksberg. The company also intends to expand its mineral resources, and upgrade them to ore reserves, primarily through exploration and other studies of the connecting Väsman field. For more information, see www.nordicironore.se.

Year-end report 2013