Action programme increases ore production

Production of iron ore products during 2012 is expected to be approx. 400,000 tonnes, compared with the planned 500,000 tonnes. This is expected to result in lost revenue of approx. 70 million in 201

The production shortfall is due to the fact that it took longer to fine-tune the sorting plant than predicted. At the same time, crude ore with low average iron content has been mined and processed.  Process and equipment deficiencies have emerged during the fine-tuning of the sorting plant.      

Some of these have been addressed, while others will be dealt with in stages over autumn. The full annual production rate of 1.5 million tonnes of iron ore products is expected to be achieved during the first half of 2013.

Since the summer, ore deliveries to Dannemora's steel customers have been running according to the existing supply contracts.

Iron ore prices during the remainder of 2012 and the early part of 2013 are expected to be slightly lower than the previous assessment, which will also affect the Company's cash flow.

Together, the revenue shortfall and action programme mean that there is a need to strengthen the Company's liquidity by approx. SEK 100 million during the present year. Different financing options are being investigated at present.