Operational and financial update
The demand for Dannemora Mineral’s products has been strong and all available production for 2013 is sold out at good price levels. Production of finished products during October and November is approximately 197 000 tonnes whereof 189 000 tonnes left port of Hargs Hamn for delivery to customers. The recovery rate continues to stay at levels above 40 percent.
During the autumn, agreements have been entered into equivalent to the expected production of finished products in 2014 indicating a strong demand for Dannemora Mineral´s products. Dannemora Mineral’s price levels relative to reference price have improved for 2014.
Management considers that operations are approaching the full potential of the current facility. As previously communicated, significant new investments are needed to improve the recovery rate and output of finished products. In the absence of such investments, it is unlikely that the company will be able to operate profitably on a sustainable basis.
During the autumn the company and its advisers have run a comprehensive process for raising the new financing necessary to realize the investment program. A large number of industry leading investors have been contacted, but the capital raising has proved challenging. With efforts still ongoing, it is becoming increasingly evident that a comprehensive restructuring of the company’s balance sheet will be needed to accommodate raising new capital.
In this regard, Dannemora Mineral and its advisers are engaged in a constructive dialogue with major creditors including trade creditors/suppliers and senior bondholders. As previously disclosed, the company is currently not paying interest on its’ debt in understanding and agreement with its’ senior bondholders and most of the convertible bondholders.
For further information, please contact:
Ralf Nordén, President and CEO
Telephone 46 709374891
ralf.norden@dannemoramineral.se
or
Niklas Kihl, CFO
Telephone 46295 - 24 44 20, 46730 797 363
niklas.kihl@dannemoramineral.se
Dannemora Mineral AB is a mining and exploration company of which the primary activity is mining operations in the Dannemora iron ore mine. The Company also intends to engage in exploration activities to increase the iron ore base locally and regionally in several areas in Uppland where the potential for finding workable deposits is considered good.
Dannemora Mineral comprises the parent company Dannemora Mineral AB and the wholly-owned subsidiaries Dannemora Magnetit AB, responsible for operation of the Dannemora mine, Dannemora Iron Ore Development AB, responsible for the Group's exploration, and Dannemora Förvaltnings AB, responsible for the property portfolio.
The Company’s most important asset is the iron deposit in the Dannemora Mine, and activity is focused mainly on the mining of this deposit at present.
The Company is listed on NASDAQ OMX First North, Stockholm, and Oslo Axess. The Company's Certified Advisor on First North is Remium Nordic AB.
The Company's independent qualified person is mining engineer Thomas Lindholm, Geovista AB, Luleå. Thomas Lindholm is qualified as a Competent Person as defined in the JORC Code based on education and experience in exploration, mining and estimation of mineral resources of iron, base and precious metals.
