Interim Report January to March 2011

 

SIGNIFICANT EVENTS DURING THE PERIOD

 

  • At the end of February 2011, Dannemora Mineral secured the financing for the Dannemora iron ore project with a five-year bond issue totalling USD 120 million. This means the mine is expected to be ready for operation in the second quarter of 2012.
  • The Company has entered into a five-year agreement with Salzgitter Flachstahl GmbH for annual deliveries of up to 300,000 tonnes of iron ore. The deliveries are scheduled to start in the second quarter of 2012.
  • A private placement in March 2011, mainly targeting Norwegian and other foreign investors, brought Dannemora Mineral a further SEK 150 million. The issue was completed with a subscription of 126 percent.
  • Dannemora Mineral has decided to apply for its Class B shares to be listed on the Stockholm Stock Exchange main list, which means a move from First North where the shares have been listed for four years.
  • Net sales in the period January - March 2011 amounted to SEK 0.8 (0.8) million. Profit/loss after net financial items during the same period amounted to SEK -8.0 (-13.9) million.

·         During the first quarter, five key individuals were recruited to the Dannemora mine's future management group.

  • Cash flow from operations in the period January - March 2011 was SEK 21.8 (-1.3) million. After cash flow from investing activities, SEK -161.0 (-1.2) million, and cash flow from financing activities, SEK 906.3 (158.4) million, total cash flow for the period was SEK 767.1 (155.9) million.
  • Cash & cash equivalents at 31 March 2011 amounted to SEK 979.2 (216.4) million.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

·         Dannemora Mineral has signed an agreement with Skanska for the construction of the new processing plant at the Dannemora iron ore mine.

·         Dannemora Mineral has signed a contract with ABB for the delivery, installation and commissioning of a new hoist system for the Dannemora Mine.

 

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About Us

Dannemora Mineral AB is a mining and exploration company of which the primary activity is mining operations in the Dannemora iron ore mine. The Company also engages in exploration activities to increase the iron ore base locally and regionally, and to explore for base and precious metals in several areas in Uppland where the potential for finding mineable deposits is considered good. Dannemora Mineral comprises the Parent Company Dannemora Mineral AB and the wholly-owned subsidiaries Dannemora Magnetit AB (responsible for operation of the Dannemora mine and the Group’s exploration activities) and Dannemora Förvaltnings AB (responsible for the property portfolio). The Company’s most important asset is the iron deposit in the Dannemora Mine, and activity is focused mainly on the mining of this deposit at present. The Company is listed on NASDAQ OMX First North, Stockholm, and Oslo Axess. The Company's Certified Adviser on First North is Remium AB.