Tue, 27 Aug 2013 13:34:51 +0200

Interim report January – June 2013

Significant events during the second quarter of 2013

  • Financing through environmental assessment secured by convertible loan of approx SEK 10 million
  • The number of shareholders increased to 389
  • Public consultations within the environmental assessment process concluded
  • First letter of intent concluded for product deliveries

Second quarter, 1 April – 30 June 2013

  • Income amounted to SEK 0 million (0)
  • Earnings after tax amounted to SEK -4.4 million (-7.9)
  • Investments during the period April - June amounted to SEK 2.7 million (1.2)
  • Earnings per share before dilution amounted to SEK -0.38 (-1.01)
    • Income amounted to SEK 0 million (0)
    • Earnings after tax amounted to SEK -9.1 million (-12.1)
    • Investments during the period January - June amounted to SEK 7.5 million (3.2)
    • Earnings per share before dilution amounted to SEK -0.79 (-1.56)
      • Cash and cash equivalents on 30 June 2013 amounted to SEK 6.5 million (14.4)

 Interim period, 1 January – 30 June 2013

Significant events after the end of the period

  • The Land and Environment Court has planned the date for main proceedings as 30 Sept – 3 October

Comments from the CEO
During the past period the mining industry has received a lot of negative attention in the media. Due to problems for several different players, the capital market's interest in new mining projects has declined. However, it is clear that these problems are mainly due to company-specific issues during their project implementation.  As a result of this though, our project has also been delayed through a more lengthy process of capital raising. 

The plan, however, is still to start initial production already during the latter part of 2014. This early production start is the result of an internal study during the year which optimizes the project through a step-by-step development: Production start in 2014 in Blötberget for a less refined product, parallel to preparations for full-scale restart of the Blötberg Mine in 2016, after which the development of the Väsman field and Håksberg Mine will start in order to attain a full production rate of 4.4 million tonnes per year during 2019.


A drilling programme focusing on Blötberget and, in the second instance, on the Väsman field has been planned and will be initiated as soon as the necessary financing for this has been received. The drilling campaigns will also be an important part of the ongoing feasibility studies which will form the basis of the final investment decision.

The main proceedings for the application for an environmental permit to the Land and Environment Court in Nacka for the restart of the mines in Blötberget and Håksberg have been moved to the first week in October.

Despite great continued economic uncertainty in our surrounding environment, with fluctuating spot prices of iron ore, many experts continue to emphasize the good long-term conditions for continued attractive iron ore prices. With our opportunity to benefit from the existing installations in the mines, historical prospecting results and primarily access to a complete logistics solution, our project has unique advantages compared to other iron ore projects. Hence, we eagerly look forward to the continued work on the restart of Ludvika Mines.

                                                                           Christer Lindqvist, CEO Nordic Iron Ore AB

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.

NIO Q2 2013