Nordic Mining ASA (OAX:NOM) - Interim report per 31 March 2019
Enclosed please find Nordic Mining’s interim report and company presentation for the first quarter of 2019. The interim report and company updates will be presented today, Friday 10 May 2019 at 10.00 (CET) in the company’s office (address details below). A presentation and Q&A session will be held in English and transferred via webcast (details for the webcast below).
Important events in the first quarter of 2019 and year-to-date:
NM Q1 2019 PresentationOptimizing the business case for Keliber lithium Keliber’s definitive feasibility study (“DFS”), which was published in June 2018, confirmed a profitable business case based on production of lithium carbonate. Following an increasing market pull for lithium hydroxide for use in cathodes for lithium-ion batteries in electric vehicles, Keliber has successfully completed a test program for production of lithium hydroxide which significantly improves project economics. Keliber published an updated executive summary of the DFS in April 2019 outlining an increase in post-tax NPV@8% by more than 70% to EUR 384 million and IRR of 24%.
Gain of NOK 98m reflecting increased values in Keliber In February 2019, Keliber raised EUR 10 million from existing shareholders to finance ongoing development work and other pre-construction activities. The implied value in the capital raise exceeded the book value recorded by Nordic Mining by NOK 98 million which is recognized as a gain in the consolidated financial statements for Q1 2019. The gain is not subject to tax. Following the share issue, Nordic Mining’s shareholding in Keliber is approximately 18.5%.
Definitive feasibility activities progressing well All major test work has been completed and the flow sheet is optimized with respect to the dual product combination. Full scale waterjet cutting testing using garnet products from Engebø indicate performance according to expectations for premium quality garnet products for cutting speed, finish as well as for abrasive consumption.
Agreement with Japanese trading house on offtake and construction financing In January 2019, Nordic Mining signed a Heads of Agreement with a reputable Japanese trading house relating to long term offtake for rutile and participation with a substantial portion of the construction financing for the Engebø project. The offtake on rutile is complementary to the Heads of Agreement previously entered into with the Barton Group relating to offtake and commercial cooperation for garnet from Engebø. Nordic Mining is in constructive dialogue with both parties and the agreements will be further developed over the next months to secure future cashflows and strengthen the ability to provide financing for the project.
Engagement of financial advisor for the Engebø construction financing In January 2019, Nordic Mining entered into an agreement with Northcott Capital Ltd for provision of financial advisory services for the debt financing of the Engebø project.
Application for operating license filed In February 2019, Nordic Mining filed an application for operating licence for the Engebø project with the Norwegian Directorate of Mining. Approval is expected within 12 months. The operating license will regulate operational scope, methodology and procedures to secure safe and efficient production of the mineral resources. The zoning plan for the mining and processing areas and the environmental permit for the project have already been granted.
The first quarter presentation will be held today, Friday 10 May 2019 at 10:00 (CET) in Nordic Mining’s office at Vika Atrium, Munkedamsveien 45 (Entrance A, 5th floor), N-0250 Oslo.
The presentation and Q&A session will be held in English and transferred via webcast. You will have the opportunity to post questions online throughout the webcast session. The webcast will be available on: https://webtv.hegnar.no/presentation.php?webcastId=97815752 and at www.nordicmining.com.
For further information, please contact CFO Birte Norheim, telephone +47-95293321.
Oslo, 10 May 2019
Nordic Mining ASA
Nordic Mining ASA (www.nordicmining.com)
Nordic Mining ASA (“Nordic Mining” or the “Company”) is a resource company with focus on high-end industrial minerals and metals. The Company’s project portfolio is of high international standard and holds significant economic potential. The Company’s assets are in the Nordic region.
Nordic Mining is undertaking a large-scale project development at Engebø on the west coast of Norway where the Company has rights and permits to a substantial eclogite deposit with rutile and garnet. Nordic Mining also holds 18.5% of the shares in Keliber Oy, which is developing a lithium project in Finland to become the first European producer of battery grade lithium hydroxide.
In addition, Nordic Mining holds interests in other initiatives at various stages of development. This includes patented rights for a new technology for production of alumina which are jointly owned with the Institute for Energy Technology. The Group has also taken initiatives related to seabed mineral exploration in Norway and participates in the MarMine research project. Further, the Group is investigating a high-quality quartz deposit in Kvinnherad in western Norway and holds exploration rights for nickel and PGE in a prospective geologic province in Reinfjord in northern Norway.
Nordic Mining is listed on Oslo Axess with ticker symbol “NOM”.