Interim Report January-june 2011

Fri, Aug 26, 2011 08:00 CET

Significant events during the quarter

Dannemora has entered into an agreement with Bergteamet AB for ramp connection to the surface and pre-production development work.
Dannemora has contracted Sandvik Mining and Construction Sverige AB for the supply of mobile mining equipment. Financing is provided under an agreement with Swedbank Finans AB.
The foundation work and steel structure for the new sorting plant was completed during the period and the work is proceeding according to plan.
Net sales for the period January-June 2011 amounted to SEK 1.7 (14.6) million. Profit/loss after net financial items during the same period amounted to SEK -32.5 (-28.9) million. Net sales for Q2 2011 amounted to SEK 0.9 (13.9) million, while profit/loss after net financial items was SEK -24.4 (-15.0) million
Cash flow from operating activities for the period January-June 2011 amounted to SEK 25.7 (-24.4) million. After cash flow from investing activities, SEK -280.3 (-2.4) million, and cash flow from financing activities, SEK 864.1 (247.0) million, total cash flow for the period was SEK 609.4 (220.2) million.
Investments in the period January-June 2011 amounted to SEK 178.5 (7.8) million. Investments during Q2 2011 totalled SEK 144.9 (4.4) million.
Cash & cash equivalents at 30 June 2011 amounted to SEK 922.7 (280.6) million.

Significant events after the end of the quarter

Dannemora Mineral has entered into an operator agreement with Green Cargo AB and a rail car leasing agreement with NACCO S.A.S. for rail transport to Hargshamn.
An evaluation of the drilling programme which began in 2010 has resulted in the identification of a new mineral resource, Norrnäs 3. The new calculation of mineral resources, which shows an increase of approx. 2.75 million tonnes, is also due to the fact that iron grades of between 20 and 30 percent have been included in the models and that a new and better density calculation was used.

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