Interim Report January – March 2019
Significant events during the first quarter 2019
- Work on the definitive feasibility study for Blötberget continued
- The mineral resource statement was approved for inclusion in the DFS report
First quarter, 1 January – 31 March 2019
- Income amounted to SEK 0 million (0)
- Earnings after tax amounted to SEK -2.5 million (-2.4)
- Investments during the period January – March totalled SEK 5.4 million (1.1)
- Basic earnings per share were SEK -0.12 (-0.02)
- Cash as per 31 March 2019 amounted to 3.8 million (2.7)
Significant events after the end of the period
- The company received a short-term credit facility of SEK 10 million
- SRK Consulting was retained to perform a scoping study of the Väsman field
- The application for exploration permit for Ludvikafältet no 1 was granted by the Mining Inspectorate
Steady progress internally but some dramatic events on the market
During the first quarter the market offered some dramatic developments. The tragic accident in Brazil which forced Vale, one of the leading suppliers of high-grade iron ore, to close down a number of mines, which led to a significant increase in prices. Gradually the prices have stabilised but the price for standard quality ore of 62%Fe is still somewhat above USD 90 per tonne and the index for 65% Fe is around USD 113 per tonne. This should comfortably give a price of around USD 120 per tonne for the quality NIO is aiming at producing. The market outlook thus seems very favourable for our project.
The feasibility study for the mine in Blötberget has reached a stage where the underlying work has been completed and the various parts of the report are being written. After completing the basic design work requests for tender has been sent to potential suppliers and contractors. This way we will get important input to the calculations of future operating costs and investment needs.
In January we applied for an exploration permit for an area linking our concession areas in Blötberget, Väsman an Håksberg. The application was approved by the Mining Inspectorate in the beginning of May, and we can now plan for continued investigations, primarily aiming at an application for mining concession for the northern part of Väsman, in order to later being able to connect the Väsman field with the Håksberg mine to one integrated mining area.
In February, we had a well-attended information meeting for those living close to the Blötberget mine. Representatives from the Ludvika municipality were also present as the municipality and NIO has a close cooperation regarding questions in connection with the resumption of mining. Among other things there must be plans for actions necessary should the lowering of ground water levels in the vicinity of the mine result in a fresh water well running dry.
In April we retained the internationally renowned consulting firm SRK to study the Väsman field. The dual purpose is to get an updated mineral resource statement and to get a basis for planning of the continued exploration and development of the Väsman field. As we have analysed a number of old drill cores since the last calculation, we now have a better knowledge about the mineralisation. The study will be completed at the same time as Golder will conclude the feasibility study for Blötberget which will give us a better total picture for the development of the Ludvika Mines projects.
During May we have had help with the exploration around Blötberget when researchers from the EU-sponsored project Smart Exploration, in which NIO is an industrial partner, conducted seismic investigations in the area. During June investigations will be continued but this time from the air, using helicopters carrying measurement instruments, that will fly over our mineralisation. The aim of the project is to develop cost effective and environmentally friendly methods for exploration. Instruments are tested by comparing measurement results with the information we have from traditional drill cores. For NIO this means that we will get better information for decisions about where further drilling should be made. There may be significant savings from being able to “see down into the ground” ahead of when drilling campaigns are planned.
In a few weeks’ time we will begin to see the outcome of the feasibility study for Blötberget – An outcome that potential investors will be interested in looking at before making a decision to invest. Let´s hope it will be easy to make a positive decision!
For further information please contact:
Lennart Eliasson Managing Director
phone: +46 70 640 5177
Nordic Iron Ore Group is a mining company with the ambition to revive and develop the iron ore production of Ludvika Mines in Blötberget and Håksberg. The company also intends to expand its mineral resources, and upgrade them to ore reserves, primarily through exploration and other studies of the connecting Väsman field. The Company has all the necessary permits in place for the mine in Blötberget and will be able to produce iron ore of extremely high quality.
For more information, see www.nordicironore.se.
Nordic Iron Ore’s shares and warrants are listed at Nasdaq First North Stockholm. Wildeco is the company’s Certified Adviser.
This information is required and provided by Nordic Iron Ore AB (publ) under the EU Market Abuse Regulation. The information was provided by Cision for publication at the date and time set above.