Thu, 23 Aug 2012 17:30:00 +0200

Interim report January – June 2012

Significant events during the second quarter of 2012
- Financing the summer’s drilling campaigns was secured through a convertible loan of SEK 60 million
- Procuring drilling contractors for drilling campaigns at the Väsman field and Blötberget commenced
- Initial test mining was carried out
- Göran Ekdahl, Thomas Olofsson and Johnas Jansson were elected new ordinary board members at the AGM on 29 June

Second quarter, 1 April – 30 June 2012
- Income amounted to SEK 0 million (0)
- Earnings after tax were SEK -7.9 million (-1.2)
- Investments during the period April – June amounted to SEK 1.2 million (6.0)

- Earnings per share before dilution were SEK -1.01 (-0.26)

Interim period 1 January – 30 June 2012
- Income amounted to SEK 0 million (0)
- Earnings after tax were SEK -12.1 million (-1.9)
- Investments during the period January – June amounted to SEK 3.2 million (7.9)- Earnings per share before dilution were SEK -0.56 (-0.26)
- Cash and cash equivalents at 30 June 2012 amounted to SEK 14.4 million (14.9)

Significant events after the end of the period
- An application for an environmental permit was submitted to the Land and Environment Court

- Drilling programmes at the Väsman field and Blötberget commenced

Comments from the CEO
Following a challenging start to 2012 for Nordic Iron Ore, which included a delay in the process of becoming listed on the stock market, the second quarter and July were much more positive and a number of important milestones were passed.

In June, the Company secured new financing through issuing a convertible loan of SEK 60 million, directed at both external lenders and existing owners. The Company then accelerated the start-up of the planned drilling programmes, and drilling at Blötberget commenced in July. Drilling at the Väsman field will commence shortly, and all the necessary permits for the process have been received. The drilling campaigns will form an important part of the forthcoming feasibility study.

At the beginning of July, the Company’s crucial application for an environmental permit was submitted to the Land and Environment Court in Nacka regarding resuming mining operations at Blötberget and Håksberg.

Despite the prevailing major uncertainties in our business environment due to the economic climate, with sagging spot rates for iron ore in the summer, we can observe that many experts continue to emphasise the solid long-term fundamentals for a sustained high iron ore price. While the project is indeed under way, it was delayed in the spring due to the prolonged financing process, and we now intend to make up for lost time. Our plan to start up production in the latter part of 2015 remains in place.

Christer Lindqvist, CEO Nordic Iron Ore

The operations

Technical surveys

A small test mining initiative was carried out in the second quarter. The mined material will primarily be used to conduct various process technology tests, and the results will form part of the final feasibility study.

During the period, planning for the drilling programmes at the Väsman field and Blötberget was carried out, and drilling in the Blötberget concession commenced. The aim is to improve the geological basis, chiefly in order to define mineral resources and transfer them to mineral reserves that can be included in the forthcoming feasibility study. Contractors for the drilling programmes were procured and work commenced at the end of the period.

Application for an environmental permit

An application for an environmental permit regarding resuming operations at the Blötberget and Håksberg mines was completed and submitted to the Land and Environment Court in Nacka at the beginning of July.

The Väsman deposits

During the period, the Company continued its work on analysing available historical information regarding the Vämsan field, which improved knowledge about its geology.

In August, the Company embarked on a drilling campaign, which will continue during the autumn of 2012. The purpose of this drilling campaign is to increase knowledge about the geology of the Väsman field and, if possible, assess the mineral resources according to the international JORC standard. If the results are positive, the Company intends to apply for an exploitation concession for the iron deposits at the Väsman field, which also includes Finnäset on the Väsman’s south bank.


In order to secure the financial resources needed to maintain momentum in the project, the Company completed a round of financing in the second quarter with an offering directed at a limited circle of investors in the form of a short-term loan with mandatory conversion. The loan, which amounts to SEK 60 million, will be converted into shares by 30 October of the current year at the latest. The terms of conversion depend on the outcome of the work regarding a directed new share issue.

While the Company is still prepared for a stock market listing of its shares, the board of directors has, due to the uncertain climate on the financial market, not made a decision regarding the timing of listing the Company’s shares.

The share and ownership structure

Share capital at the end of the period was SEK 1,349,928 distributed over 7,784,000 shares with a par value of SEK 0.17 per share. Shareholders are 38 in number.


Göran Ekdahl, Tomas Olofsson and Johnas Jansson were elected new ordinary board members at the AGM on 29 June.

Financial position

The Group had a cash balance of SEK 14,374 thousand at the balance sheet date. The equity/assets ratio was 34.3%. The Company’s equity was SEK 18 030 thousand, corresponding to SEK 2.32 per share.


During the period January – June 2012, investments equalled SEK 1 167 thousand, of which SEK 3 250 thousand relates to prospecting assets and survey initiatives relating to the planned start-up of mining operations. The survey initiatives chiefly refer to the feasibility study for Blötberget and Håksberg and related planned facilities, as well as measurements and analysis regarding the Väsman deposits. Investments in equipment amounted to SEK 68 thousand.


Four people were employed at the company during the period.

Financial calendar
Interim report January – September 2012: 23 November 2012
Year-end report January – December 2012: February 2013

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

Stockholm, 23 August 2012

Christer Lindqvist

President and CEO       

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 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 (0)70 591 0483