Dannemora Mineral AB: Interim Report January - March 2009
- In the first quarter of 2009, Dannemora Mineral signed a letter of intent with four European steel companies for future iron ore deliveries. In view of the weak economic situation, the steel companies have expressed a wish to postpone the trial deliveries provided for in the agreement. Dannemora therefore decided in March to delay the mine's production start until summer 2011.
- In order to maintain the company's good financial position and not be dependent on external financing in the next few years, Dannemora Mineral decided in the first quarter to postpone non-time-critical investments.
- In February 2009, rock work in the Dannemora mine began with ramp development and and tunnelling work. This has generated iron ore which is mainly intended for trial deliveries to potential customers.
- In January 2009, Dannemora Magnetit AB and a number of interested parties signed a declaration of intent with the Swedish Rail Administration on the renovation of the railway line on the Örbyhus - Dannemora - Hargshamn - Hallstavik section, which will bring Dannemora cost-efficiency and environmental advantages.
- Dannemora Mineral was awarded an exploration permit for Riddarhyttan 3 in the first quarter. The new permit and Riddarhyttan 1 cover historically calculated "proven and probable iron ore" of just over 12 million tonnes. Dannemora Mineral believes there is good scope for substantially increasing the mineral reserves in the area.
- Profit/loss after net financial items in Q1 2009 amounted to SEK -5.7 (-4.6) million.
- Cash flow from operations for Q1 2009 amounted to SEK -8.0 (-5.7) million.
- Investments during the quarter amounted to SEK 26.4 (17.3) million.
- Cash & cash equivalents at 31 March 2009 amounted to SEK 120.6 (55.5) million.
The full report with tables can be downloaded from the following link: