Interim Report January-September 2011-10-28

Significant events during the period

·       Net sales for the period January - September 2011 amounted to SEK 2.3 million (28.0). Profit after net financial items during the same period was SEK -95.9 million (-41,6). Net sales for Q3 2011 amounted to SEK 0.6 million(13.4), while profit/loss after net financial items was SEK -63.4 million(-12.7).
·       Earnings per share before dilution amounted to SEK   -6.92 (-4.04)
·       Total cash flow for the period January - September 2011 amounted to SEK 424.9 million (-196.8).Cash flow for Q3 2011 was SEK -184.3 million (-.23.3)
·       Investments in the period January - September 2011 amounted to SEK 293.6 million (20.8). Investments during Q3 2011 totalled SEK 115.1 million (13.1).
·       Cash & cash equivalents at 30 September 2011 stood at SEK 775.9 million (257.3).
·       Dannemora Mineral has decided to postpone its application to list its shares on the NASDAQ OMX Main List. 

Significant events after the end of the period

·       Dannemora Mineral has signed a five-year contract with ThyssenKrupp Steel Europe AG for the annual supply of a minimum of 200,000 tonnes of iron ore, with an option to increase up to 300 000 tonnes. Deliveries will commence in the second quarter of 2012. The agreement means that the Company now has contracts in place for its entire planned production in 2012.
·       Dannemora Mineral has signed a five-year contract with Stemcor UK Ltd for the annual supply of up to 600,000 tonnes of iron ore. Deliveries will commence in 2013 and this means that Dannemora has contracts covering the entire planned production for 2013 and up to 80 percent of production in the following three years.
·       Dannemora Mineral has decided to invest approx. SEK 120 million underground, in addition to the previously planned investments, for increased production safety and more efficient transport. The existing ramps have proven to be inadequate and in poor condition.
·       In view of the recently signed customer agreements, Dannemora Mineral decided to build a homogenisation plant to ensure high product quality. The initiative is expected to tie up SEK 20 to 30 million in working capital.
·       The start-up costs until the start of production are expected to be approx. SEK 22 million higher than previously estimated and are mainly related to consultants
·       At 30 September, Dannemora Mineral has cash and cash equivalents of SEK 776 million and is constantly planning which internal and external possibilities are most suitable for managing changes in cash flow arising from investments and changes in working capital.
·       The investment project in Dannemora is proceeding according to schedule with the planned production start-up in the second quarter of 2012.

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(If there are discrepancies between language versions of this report  the original swedish version is valid)