Interim Report January to March 2011

Fri, Apr 29, 2011 08:00 CET

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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