Year-end Report January – December 2018

Significant events during the fourth quarter 2018

  • Work on the feasibility study continued at an intensive pace.
  • The company´s share started trading on Nasdaq First North on 1 October 2018.

Fourth quarter, 1 October – 31 December 2018

  • Net income amounted to SEK 0 million (0)
  • Earnings after tax amounted to SEK -2.7 million (-2.0)
  • Investments during the period October – December totalled SEK 6.6 million (1.2)
  • Basic earnings per share were SEK -0.13 (-0.02)

The whole year, 1 January – 31 December 2018

  • Net income amounted to SEK 0 million (0)
  • Earnings after tax amounted to SEK -10.2 million (-9.1)
  • Investments during the period January – December totalled SEK 14.9 million (8.8)
  • Basic earnings per share were SEK -0.67 (-0.09)
  • Cash and cash equivalents on 31 December 2018 amounted to SEK 9.1 million (2.4)

Significant events after the end of the period

  • There are no significant events after the end of the period to report.

Intense work on the feasibility study and positive development of the market.  

And so, the last quarter was over and we can summarize 2018. It has been an eventful year for Nordic Iron Ore: the financial situation strengthened through a new share issue and a conversion of the financial debt; the number of shareholders increased sharply through a dividend from one of our owners, and to give the owners the opportunity to trade in the share, it was listed on Nasdaq First North. Prior to the listing, reversed split of the shares was made and the board was expanded with one person. The final phase of the work on the feasibility study for Blötberget began at mid-year, and this work dominated the activities during the last quarter.

Iron Ore Market

The development on the market has been favourable and corroborated our strategy to produce a very high-grade product. The premium for high grade products has stabilised at a higher level and also the price of standard products has been relatively stable.

The falls in the iron ore prices towards the end of 2018 were a bit of a correction, but as expected, the rebound started quickly and the iron ore price is steadily rising on the basis of the long-term demands, from China, stockpiling. This has seen the main bulk IODEX62%Fe climb back to around $76/t and the higher quality 65%Fe indices has climbed back to around $90/t. This is about the levels expected for 2019 by some of the analysts. The differential between the standard 62%Fe and the premium for the 65%IODEX has slipped quite a bit and the differential has fallen to around $5/t/1%Fe, close to half the peak. This is more in line with the anticipated average over the medium to longer term.

The development of the price difference between the two indexes during 2018 is presented below. The diagram ends before the tragic events at a Brazilian iron ore mine which made the price of iron ore jump significantly, at least temporarily.

Source: S & P Global, Platts

Whilst there has been some pressure on the iron ore futures for high grade, the domestic market for >66%Fe iron ore has been strengthening in China has response to the economic stimulus packages introduced by the government.

Thus, the long-term outlook for the natural market still looks positive for NIO despite recent corrections.

Project development

Our project Ludvika Mines consist of three parts: two are brownfield sites where we will restart operations, and for which we have all necessary permits in place, but the most exciting part of the project is the southern continuation of the Håksberg mineralisation under lake Väsman which we call the Väsman Field. It was to a large extent the magnetic field map over this area that attracted me when I first looked at the project eight years ago, and I know I am not the only one.

It is therefore very pleasing that we are getting external assistance in exploring the area. During 2019 the EU-sponsored research project Smart Exploration will test modern exploration techniques not only around Blötberget but also on the Väsman Field.

Blötberget, where we are approaching start of construction is a good first phase of the project – much is already in place since previous operations and the mine is in proximity to the planned industrial facilities next to the railway line. It will be exciting to see the finished feasibility study for the mine, but its greatest merit is as a catalyst for the development of the Väsman Field.

2019 will be a decisive year, not only for the development of the Blötberget mine itself, but will lay the foundation for the entire project Ludvika Mines. It is my hope that the upcoming fundraising activities for the development of Blötberget will give us sufficient resources to also speed up the development program for the Väsman Field. We will, however, not lose focus – now the work on Blötberget will move from preparation to implementation.

For further information please contact:

Lennart Eliasson Managing Director
phone: +46 70 640 5177

lennart.eliasson@nordicironore.se

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.

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