Fri, 22 Nov 2013 07:35:00 +0100

Interim report January – September 2013

Significant events during the third quarter of 2013

  • Main proceedings with the Land and Environment Court commenced in Ludvika
  • Definitive feasibility study for Blötberget initiated

Third quarter, 1 July – 30 September 2013

  • Income amounted to SEK 0 million (0)
  • Earnings after tax amounted to SEK -3.0 million (-4.7)
  • Investments during the period July - September amounted SEK 2.6 million (11.1)
  • Earnings per share before dilution amounted to SEK -0.26 (-0.60)

Interim period, 1 January – 30 September 2013

  • Income amounted to SEK 0 million (0)
  • Earnings after tax amounted to SEK -12.1 million (-16.8)
  • Investments during the period January - September amounted SEK 10.1 million (14.3)
  • Earnings per share before dilution amounted to SEK -1.05 (-2.16)
  • Cash and cash equivalents on 30 September 2013 amounted to SEK 3.4 million (26.4)

Significant events after the end of the period

  • The state-owned venture capital company Inlandsinnovation AB invests SEK 10 million.

Comments from the CEO

There are some glimpses of light despite the dark clouds that are hanging over the Swedish mining industry.

For us, the decision by Inlandsinnovation to select our project as its pilot investment in the mining industry is great news. This strengthens our company on several levels. The company gains a significant and long-term institutional, state-owned partner that, together with Väsman Invest, which has local ties to Ludvika, enhances our credibility internationally. The next step is to find industrial partners.

Environmental review in final stage

We are now in the final stage of the Land & Environmental Court's review of the conditions for re-opening the mines at Blötberget and Håksberg. We recently completed the first part of the court proceedings on site in Ludvika. Some local interest groups raised their concerns and viewpoints there. We will take these viewpoints into consideration during the forthcoming planning process. I believe that we will receive the environmental permit to re-open the Blötberg and Håksberg mines at the beginning of next year.  We will then have the major permits in place that are required to start work on the site.

Stable iron ore market

The iron ore market was stable during the period, with a price of around USD 130-140 per tonne. The World Bank also published some weeks ago its long-term outlook for the future price of iron ore. Its assessment is that the price will not fall below USD 100 per tonne and will fluctuate between USD 100 and USD 140, which is more than sufficient for our project economics. Demand for iron ore continues to increase and the supply of new iron ore tonnage to the market has to date not exceeded the increase in demand. This is to a large extent due to the fact that many of the mines that are expected to produce iron ore are located in difficult geographical areas and have very large investment needs.

Proper project structure important for the capital market

In general, investors in mining projects are more demanding today than they were a few years ago, but the opportunities for small, scalable mining projects in politically stable countries are still good. We are noticing that major financial and strategic investors are now starting to see the unique advantages of our project.  We have structured Ludvika Mines for a gradual expansion and we are starting in Blötberget, which has the best conditions for a fast, effective expansion. Initial production will start already at the end of 2015. When Blötberget reaches full-scale production at the end of 2016, we will take the next step. This will allow us to minimise our initial need for capital as well as the execution risk in the construction phase.

To summarise, our project has taken important steps forward during the period, but the protracted proceedings with the Environmental Court during the year has resulted in a delay to the re-start.

  Christer Lindqvist, CEO Nordic Iron Ore AB

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

Q3 2013