Thu, 20 Feb 2014 11:36:00 +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

The operations

Significant events during the period

Raising of capital

During the fourth quarter, the company received a loan of SEK 10 million from the state-owned venture capital company Inlandsinnovation AB as a first important step in the funding of the feasibility study's completion.

Project studies

Mineral resources

During the period, work continued on the feasibility study with a focus on quality assurance and development of mineral resources within the licence area in Blötberget.

Process development

Procurement of the procedural technique studies was completed during the period and TATA Steel Consultants were appointed as the company's procedural technique consultants for the tests at GTK in Finland which commenced at the start of February.


During the period the Swedish Transport Administration and the company initiated planning of the delivery railway station in Skeppmora and related signal installations in the switchboard plant in Ställdalen.


In order to conduct hazardous operations, a permit is required from the Land and Environment Court (MMD) in accordance with the rules in the Environmental Code. The main proceedings for the company's application for Blötberget and Håksberg were initiated during the period and concluded at the start of February.  

In parallel to the processing of the company's application in MMD, the process on preparing detailed development plans for the industrial areas has been ongoing, which is expected to be completed in the latter part of 2014. Thereafter the company will have the important permits which are required for restart of the mining operations in Blötberget and Håksberg.

Events after the reporting period

A new estimate of the company's mineral resources in Blötberget was published in February 2014. The new estimates are based on the afore-mentioned development work and entail that known and indicated mineral resources in Blötberget now amount to 11 million tonnes with 35% iron and 27 million tonnes with 45% iron, while inferred resources amount to 22 million tonnes with 33% iron. This equates to an increase in total tonnage by approximately 50% and 31% more iron content compared to the estimate in the most recent annual report. 

In February the concluding negotiations on the company's application for an environmental permit at the Land and Environment Court in Nacka were conducted. The judgment will be communicated on 20 March.

The share and ownership structure

Share capital at the end of the period was SEK 1,993,110 distributed over 11,492,738 shares with a par value of SEK 0.17 per share. Shareholders were 1751 in number.

Financial position

The Group had a cash balance of SEK 6,004 thousand at the balance sheet date. The equity/assets ratio was 67.6 %. Consolidated equity was SEK 55,112 thousand, equalling SEK 4.80 per share.

In the first half of 2014, the Company intends to raise capital to fund the completion of the definitive feasibility study for Blötberget and the process plant. Thereafter the decision will be made regarding investment in the concentrator and mining equipment, which will require a substantial amount of additional capital.


During the period January – December 2013, investments amounted to SEK 14,360 thousand, of which SEK 13,948 thousand relates to prospecting assets and survey initiatives relating to the planned start-up of mining operations. The survey initiatives are chiefly attributable to the drilling efforts at Blötberget, including analyses. Investments in equipment amounted to SEK 412 thousand.


An average of seven people was employed at the Company during the period.

Financial calendar                                         

The AGM will be held on 22 May 2014 in Ludvika.

Interim report January – March 2014: 22 May 2014

Interim report January – June 2014: 22 August 2014

Interim report January – September 2014: 21 November 2014

Risks and uncertainties

In addition to the risks associated with future global market prices for iron ore products that affect the profitability of the project, as well as the technical risks, the possibility of starting up operations depends on the requisite permits from authorities being obtained and the extensive capital requirements being met.

There have been no significant changes to alter this description.

Annual report and financial reports

The Company’s press releases and financial reports are distributed via Cisionwire and are available at The Annual Report for 2013 will be published week 15.


The board of directors propose to the annual general meeting that no dividend is paid for the financial year 2013.

Stockholm, 20 February 2014

Board of Directors of Nordic Iron Ore AB (publ) reg. nr 556756-0940         

Göran Ekdahl                                  Anders Bengtsson                          Jonas Bengtsson                             Johnas Jansson

Lars-Göran Ohlsson                       Tomas Olofsson                              Per Storm                                         Christer Lindqvist

This report has not been reviewed the auditors.

Technical source material has been reviewed by the Company’s independent qualified person, mining engineer Thomas Lindholm, Geovista AB, Luleå. Lindholm is a qualified Competent Person as defined in the internationally recognised JORC code, based on his training and experience in prospecting, mining and assessment of mineral resources for iron, base metals and precious metals.

For further information, please contact:

Christer Lindqvist
Tel.: +46 70 591 0483


For further information: Christer Lindqvist, CEO 46 (0)240-88301

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