IGE Resources AB results for the third quarter 2010

IGE Resources AB (formerly International Gold Exploration IGE AB) (“IGE” or the “Company”) announces results for the third quarter 2010, ended September 30, 2010.

Summary third quarter

  •  The exploration target for the Rönnbäcken Nickel Project has been increased to 600-650 million tonnes. After the end of the quarter, an updated resource estimate for the project increased the resource base by 185 million tonnes (inferred resources category).
  •  IGE continued to build diamond revenue. A total of 13,600 carats of rough diamonds were sold in the quarter, including 6,000 carats from the exploration phase at IGE’s partly owned Luxinge, Angola mine. Prices achieved for diamond both from the Cassanguidi and Luxinge mines were in line with expectations.   
  • IGE raised a net amount of NOK 90 million (SEK 104 million) in the third quarter by use of the Company’s standby equity facility and through a private placement. 
  • For the third quarter of 2010 IGE reports a net loss of SEK -101.0 million or SEK -0.09 per share, compared to a loss of SEK -19.4 million or SEK -0.04 per share in the third quarter of 2009. The result is burdened by (non cash affecting) exchange losses amounting to SEK -24.3 million and non recurring costs of SEK -36.4 million related to write downs of non core assets.

 Financial Summary

(TSEK, except per share data) Q3 2010 Nine months, ended Sept 30, 2010 Q3 2009 Nine months ended Sept 30, 2009 Twelve months ended Dec 31, 2009
Revenue from sales 10,389 16,680 - - -
Other income - - 15,174 15,174 15,169
Operating result -98,645 -122,723 -19,759 -55,641 -66,859
Net result -101,000 -132,145 -19,427 -56,888 -65,782
Investments 7,206 500,922 - 16,696 35,463
Cash at the end of the period 97,631 97,631 9,343 9,343 40,807
Interest bearing loans at the end of the period 20,195 20,195 34,732 34,732 12,065
Result per share before and after dilution -0.09 -0.11 -0.04 -0.12 -0.12

Other important events and events after the reporting period:

  •  IGE announced that the resource estimate for the Rönnbäcken Nickel Project in northern Sweden has been increased by additional 185 million tonnes of Inferred mineral resources. The resource estimate update is based on the summer 2010 exploration drilling programme, which included the Sundsberget deposit. The increased resource base suggests that IGE is moving closer to achieving the Rönnbäcken exploration target of 600-650 million tonnes at a grade of 0.10% to 0.15% nickel in sulphide.
  • IGE has during the 6 months period, April to October, sold more than 24 000 Cts of diamonds from its operations in Angola.

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