Interim Report January – September 2019

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  Significant events during the third quarter 2019

  • A short-term loan amounting to SEK 5 million was raised in July.
  • An application for an exploration permit for an area adjacent to Blötberget was submitted to Bergsstaten.

Third quarter, 1 July – 30 September 2019

  • Income amounted to SEK 0 million (0)
  • Earnings after tax amounted to SEK – 3.1 million (–2.5)
  • Investments in the period July - September totalled SEK 3.3 million (4.6)
  • Basic earnings per share were SEK –0.15 (–0.13)

Interim period, 1 January – 30 September 2019

  • Income amounted to SEK 0 million (0)
  • Earnings after tax amounted to SEK –8.3 million (–7.5)
  • Investments in the period July - September totalled SEK 12.1 million (8.3)
  • Basic earnings per share were SEK –0.42 (–0.55)
  • Cash and cash equivalents on 30 September 2019 amounted to SEK 5.8 million (21.2)

 Significant events after the end of the period

  • Golder presented the definitive feasibility study for Blötberget
  • Swedbank Norway appointed as financial advisor
  • SRK Consulting presented a scoping study for the Väsman Field
  • The board decided upon a rights issue

The Blötberget Feasibility Study completed shows conditions in place for profitable mining operations

During the third quarter, Golder Associates delivered the important feasibility study. The study - which is close to 600 pages - showed clearly that it is possible to start profitable operations at Blötberget. It demonstrates that Blötberget can reach an operating margin of 44 percent and an internal rate of return of 15.4 percent before tax. The net present value is estimated at just over SEK 1 billion at a 6 percent discount rate. Given the assumptions made, all investments are estimated to have a pay-back time of just over 5.5 years.

Impatient wait for the feasibility study

All in all, the third quarter was marked by an impatient wait for the completion of the feasibility study. Various parts were presented successively in draft format for comment and a final draft received on 30 August, including the financial evaluation. 

The main purpose of the study was to obtain an objective basis for deciding whether to proceed with the project according to plan. In addition, the study provides new investors with a basis for deciding whether to invest in the project. Since the results were positive, we can move on in the preparations to start mining in Blötberget.

In the feasibility study, Golder has in some areas been cautious in their assumptions. This is positive because such large investments as this one should not be based upon too optimistic and uncertain assumptions. For example, the study assumes the construction of an entirely new mine under the existing one, which of course increases investment costs while leaving the potential of the historical areas outside the calculations. The reason for this assumption is the uncertainty surrounding the extent and consequences of previous mining and the status of existing underground facilities.


During the period, SRK Consulting completed the scoping study regarding the Väsman Field. In November we received the completed study which include a sketch of how the development of the Väsman field can proceed. Whilst the study is based on a limited mineral resource within our mining concession area, a conclusion we can definitely draw is that there is every reason to continue with the exploration program and feasibility studies, both at greater depth, but also investigate the northern part of Väsman. Successive magnetic anomaly work indicates substantial mineralisation here.


In line with the assessment provided in the report for the second quarter, iron ore prices have generally fallen so that the index for 62% Fe is below USD 90 / ton, while the premiums for higher quality ores remains at around USD 3 / ton per percentage point Fe. This means that the price of NIO's premium product (magnetite 70.5% Fe) can still be as high as USD 110-112 / tonne C&F China.        

The depression in the pricing compared with Q1 2019 is largely down to the continued disquiet regarding the trade dispute between China and USA, a build-up of port stocks and low-cost scrap availability. All this is likely to be of a transient nature and, together with continued talk of temporary closures of some of Vales' mines due to security concerns, this is likely to help restore iron ore prices at a higher level in the coming months.


During the period, we commissioned Swedbank Norway, which has extensive experience from assignments in the iron ore industry, to look for investors. Significant funding must be secured before the construction work is started and we have considered that we must look internationally. While we are looking for investors for equity, we are exploring different financing opportunities in connection with the detailed planning and discussions with suppliers. Only when this work is complete do we know how much of the financing must be made with equity and can carry out a share issue for this purpose. In order to finance operations during this work, which will take a few months, the Board has decided to instigate a rights issue

Overall, I look forward to the future. We are a mining development company that now goes from pre-study to the implementation phase. We have a Feasibility Study that shows good profitability and we also have the expansion opportunities in the Väsman field which, current investigations suggest, may contain considerable mineral assets.

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

Nordic Iron Ore’s shares and warrants are listed at Nasdaq First North Growth Market. Wildeco is the company’s Certified Adviser ( tel +46-8-545 271 00).

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.


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