PRESS RELEASE February 13, 2013
Fourth quarter 2012
Â·Â Â Â Â Sales revenue from gold and silver amounted to MSEK 76.4 (-) net,
including a MSEK -16.1 negative effect of gold price hedging.
Â·Â Â Â Â Â Â The operating profit/loss was MSEK -35.2 (MSEK -16.6), of which positive
exchange rate fluctuations were MSEK -9.7.
Â·Â Â Â Â Â Â Profit/loss after tax for the period was MSEK -45.2 (MSEK -22.9),
including financial expenses of
MSEK -16.3, corresponding to SEK -0.53 (SEK -0.66) per share.
Â·Â Â Â Â Â Â Comprehensive income for the period was MSEK 40.5 (MSEK -13.0),
corresponding to SEK 0.47 (SEK -0.37) per share.
Â·Â Â Â Â Â Â Cash and cash equivalents were MSEK 68.6 (MSEK 11.4) at the end of the
Â·Â Â Â Â Â Â Investments were MSEK 67.2 (MSEK 76.3).
Â·Â Â Â Â Â Â The Laiva mine produced a total of 285 kg (-) of gold.
Â·Â Â Â Â Â Â An action plan was announced to ensure long-term profitability in
Â·Â Â Â Â Â Â Thomas Cederborg became new CEO in November
Â·Â Â Â Â Â Â Susanne Andersson became new CFO in November
Â·Â Â Â Â Â Â A minor leakage of tailings along the tailing pipe between the
enrichment works and the paste area was detected in December. No negative impact
on the surrounding natural environment has been detectable.
Â·Â Â Â Â Â Â An Extraordinary General Meeting (EGM) on 20 December approved a rights
issue of a maximum of MSEK 282.
Â·Â Â Â Â An EGM on 20 December resolved that Berne Jansson of Eldorado Gold
Corporation (Eldorado) would replace Paul N Wright of Eldorado as a Board
Full year 2012
Â Â Â Â·Â Â Â Sales revenues from gold and silver amounted to MSEK 247.1 (-) net.
Â Â Â Â·Â Â Â The operating profit/loss was MSEK -155.3 (MSEK -17.6).
Â Â Â Â·Â Â Â Profit/loss after tax for the period was -176.6 (MSEK -25.0),
corresponding to SEK -3.01 (SEK -0.72) per share.
Â Â Â Â·Â Â Â Comprehensive income for the period was MSEK -133.5 (MSEK -182.9),
corresponding to SEK -2.28 (SEK -5.24) per share.
Â Â Â Â·Â Â Â Gold production was 932 kg (-), and sales were 843 kg (-).
Â Â Â Â·Â Â Â A new calculation from May indicates a 4 million tonne increase of the
mineral reserves at the Laiva mine, corresponding to another two years'
Â Â Â Â·Â Â Â A private placement to a number of institutional investors of some MSEK
89 was executed in March.
Â Â Â Â·Â Â Â A private placement of MSEK 15 was made to Eldorado in June, who thus
became a new trade owner.
Â Â Â Â·Â Â Â A rights issue of MSEK 236 was executed in July, which was
oversubscribed without requiring the utilization of guarantee commitments.
Â Â Â Â·Â Â Â A private placement of MSEK 40.5 was executed to Eldorado in August.
Â Â Â Â·Â Â Â A pipeline was completed in October, with a permit secured to commence
the transfer of surplus water from the Laiva
"Focusing on our action plan to ensure long-term profitability"
"Last year was turbulent and we still haven't achieved satisfactory gold
production," began Thomas Cederborg, who became Nordic Mines' CEO on 20
November. "Accordingly, in November 2012, an action plan was initiated, whose
primary aims are to strengthen the company's liquidity and enable further
investments at the Laiva mine to improve availability, throughput and gold
content to the process plant, thus increasing gold production.
A total of 285 kg of gold was produced in the fourth quarter, compared to 257 kg
of gold in the previous quarter. Again, production was affected by a number of
armed planned maintenance stoppages with various causes, mainly at the beginning
and end of the quarter. November went as planned, with availability of 92% and
gold production of 120 kg. The corresponding number for October was 87 kg, and
for December, 78 kg.
Sales revenues were MSEK 76.4 in the fourth quarter, up MSEK 10.8 quarter on
quarter, mostly due to slightly better gold content. Availability was 72% for
the quarter, which will be possible to improve through activities in our action
plan, to enable our target of availability of over 90%.
We negotiated a new repayment plan in the quarter. Amortization payments for
December and March have been deferred to the end of the amortization plan in
2014 and March 2015. A rights issue of MSEK 282 before issue expenses was
conducted in January 2013, which was oversubscribed without requiring the
utilization of guarantee commitments. Accordingly, the company has improved its
cash position and will be able to execute its plans for further investments,
targeting increased production and reduced production expenses. Planning for
improvement activities is ongoing.
"Largely, the plant at the Laiva mine is good, but with demanding ore that makes
it challenging for us to extract enough gold and keep down waste dilution and
ore losses. Accordingly, we now have our full focus on our action plan to
achieve increased gold production," concluded Nordic Mines' CEO, Thomas
For additional information, please contact:
Thomas Cederborg, CEO, +46Â 708Â 480 521
Susanne Andersson, CFO, +46 730Â 668Â 904
For additional information about Nordic Mines and the Year-End Report 2012,
please visit; www.nordicmines.se
Uppsala, February 13, 2013
Nordic Mines AB (publ)
The information above has been made public in accordance with the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
published at 08.00 on February 13, 2012.
Nordic Mines in brief
Nordic Mines is a Nordic mining and exploration company. Its goal is to be one
of the leading gold producers in Europe as well as a role model in respecting
the environment. At the end of 2011, the company began gold production at the
Laiva mine in Finland. The gold deposits there are among the biggest in the
Nordic region, with a mineral reserve of 16.9 million tonnes and a gold content
of 1.6 grams per tonne. Exploration is in progress in Finland and Sweden. Nordic
Mines was founded in 2005, has over 100 employees and its head office is in
Uppsala. The Nordic Mine share is traded on Nasdaq OMX Small Cap in Stockholm.
For more information about the company and its operations, visit our website
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Source: Nordic Mines AB via Thomson Reuters ONE