Financial development
First quarter, 1 January –
- Sales amounted to
SEK 0 million (0) - Earnings after tax amounted to
SEK -3.1 million (-2.7) - Investments amounted to
SEK 0.3 million (0.2) during the period January-March - Earnings per share before amounted to
-0.08 SEK (-0.07) - Cash and cash equivalents amounted to
SEK 2.2 million (1.7) on March 31, 2024
Significant events during the first quarter 2024
Nordic Iron Ore AB has received an approval from Bergsstaten on its application for an additional exploration permit in the proximity of Blötberget. The reason for the application is that initial exploration has given very positive signals. A successful exploration of the area could potentially increase Nordic Iron Ore’s mineral resources.Nordic Iron Ore entered into an agreement with ABG Sundel Collier (ABGSC) for the company’s upcoming capital raise.Nordic Iron Ore will evaluate options for the capital structure together with ABGSC andCargill Metals .Nordic Iron Ore appointedUlf Kasshag as the company’s new CFO.Ulf Kasshag , born 1959, has extensive experience of controlling, accounting, reporting and finance, and has had the role as CFO at several fast-growing international companies, most recently atFindity AB .Nordic Iron Ore and theSwedish Transport Administration have agreed upon a technical solution for connecting Nordic Iron Ore’s planned industrial rail to the nearby main line railway. This means thatNordic Iron Ore may proceed with its plans for environmentally friendly railway transport of its future production of ultra high-grade iron ore concentrate to Oxelösund’s harbour.Nordic Iron Ore entered into loan agreements to prolong the term for repayment for existing outstanding loans ofSEK 32.0 million untilAugust 31, 2024 . The loan agreements were entered with the company’s main shareholdersBengtssons Tidnings AB ,Ludvika Holding AB andKopparinvest AB , as well as the company’s CEORonne Hamerslag , a former board member and a group of investors.Nordic Iron Ore AB extended its short terms loans bySEK 6 million toSEK 38 million . The loans are due for repayment onAugust 31, 2024 . The loans agreement has been entered withLubrica Equity AB andBizcap AB .
Significant events after the period
Nordic Iron Ore andCargill Metals entered into an amendment agreement in order to adjust the existing financing agreement which was announced onJuly 12, 2023 . The amendment agreement has been made due to the FDI-law which requires application for certain foreign direct investments.
CEO comments
Dear shareholder,
During the quarter we continued intensive work to secure sufficient funding for the establishment of an iron ore mine with a green profile at Blötberget. An important step was taken through the agreement with
The company is now finalizing the last preparations ahead of the next step of financing. The capital raise together with
The company has continued its efforts to update and secure the environmental permit and has previously made an application to the Land and environmental court for an extended working time regarding water operations. During the quarter, a round of referral was completed regarding the application and some referral replies made demands for complementary information. After the period, the company has responded to the referral replies and provided requested complementary information. We are hopeful to receive a positive verdict during third quarter or at least the current financial year from the court. In the end I expect that we will receive all necessary permits. Some smaller changes to the environmental permit do not require treatment by the court and smaller changes that we’ve applied for have been approved by the County Administrative Court and Ludvika municipality.
During the quarter, the company received an approval from Bergsstaten on its application for an additional exploration permit in the proximity of Blötberget. The reason for the application is that initial exploration has given very positive signals. Through Nordic Iron Ore’s own exploration and and participation in the EU-funded project Smart Exploration, knowledge has increased regarding the geology in the proximity of the area. In addition to Smart Exploration’s measures, additional magnetic measures indicate that mineralization in Blötberget continues to the north-east which makes the area highly interesting for continued exploration. We will now initiate exploration work in the area. After the quarter, the company has made an extension-application to Bergsstaten regarding the exploration permit Ludvikafältet nr 1 and we expect to be granted a threeyear extension during the coming months.
According to the current time plan and calculations, we have a lead time of approximately four years before mining can begin at Blötberget. If initial funding is secured as planned in the near future, engineering work and studies can begin in the second half of 2024 and be completed by mid-2025 and form a basis for funding of the mine construction, so called Project Financing. Provided that the Land and environmental court approve our application for extended working time during 2024 we expect to initiate mining production at Blötberget in 2028, at the earliest. We plan to increase annual production in steps up to approximately 1.6 million tonnes ultra high-grade iron ore concentrate. Such an iron ore concentrate is an essential raw material in order to reduce CO2 intensity in the entire steel value chain.
We also continue to evaluate the existence of rare earth elements (REE) and phosphates in proximity of the mine and after the quarter a number of tests have been made and initial analysis has begun. Hopefully, these important raw materials can become a complementary source of income for the company.
During the quarter, we welcomed
Ronne Hamerslag
CEO
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