Financial development
Fourth quarter, 1 October - 31 December 2024
- Sales amounted to SEK 0 million (0)
- Earnings after tax amounted to SEK -6.5 million (-3.1)
- Investments amounted to SEK 2.7 million (0.8) during the period
- Earnings per share before and after dilution amounted to SEK -0.11 (-0.08)
Full-year, 1 January - 31 December 2024
- Sales amounted to SEK 0 million (0)
- Earnings after tax amounted to SEK -15.2 million (-12.9 mkr)
- Investments amounted to SEK 3.6 million (2.1 mkr) in January - December
- Earnings per share before and after dilution amounted to -0.29 SEK (-0.35)
- Cash and cash equivalents amounted to SEK 111.7 million (0.9) on December 31, 2024.
Significant events during the fourth quarter 2024
- In a ruling on 14 October 2024, the Land and Environment Court granted Nordic Iron Ore AB a prolonged work time for the water facilities until March 20, 2034 regarding the environmental permit for the mines at Blötberget and Håksberg. The ruling has now gained legal effect. Based on the Company's projections and calculations, the court has decided a new financial set off to the reclamation fund, which has now been set at approx. SEK 201 million from the previous approx. SEK 53 million, thus an increase of SEK 148 million. Correction: In press releases published on October 14 and November 6, it was incorrectly stated that the new amount is SEK 210 million; the correct figure, as noted above, is SEK 201 million.
- Nordic Iron Ore AB recruited Niklas Sternbeck as Project Manager for underground projects. Niklas will lead efforts for the planned ramp development to reach the new main level for the Blötberget mine.
- Nordic Iron Ore AB appointed Magnus Lundin as Director of Technology & Projects. In this role, Magnus will lead the company's Technology and Projects division starting February 1, 2025. Until this start date, Magnus will serve as a part-time consultant.
- Nordic Iron Ore AB has been granted an extension of the exploration permit for Ludvikafältet No. 1 following promising results from previous exploration, which could increase the company's mineral resources.
- Johan Högnäs has been appointed Chief Geologist for Nordic Iron Ore AB, effective January 13, 2025. He will have overall responsibility for the company's geological
activities, including exploration drilling, mine geology, and mineral resource estimations. - Nordic Iron Ore AB has engaged WSP to lead the work on an updated DFS and feasibility study, which will serve as the basis for project financing planned for 2025.
Significant events after the period
- Ylva Wård has been appointed Director of EHSQ & HR for Nordic Iron Ore AB, with a start date no later than March 17, 2025. The role reports to the CEO and includes responsibility for environment, sustainability, quality, and HR.
- Smart Exploration Research Center and Nordic Iron Ore AB have initiated a collaboration to explore promising seismic properties in the Blötberget area through a deep drilling program in partnership with Epiroc. The drilling, carried out by Protek, will begin on January 15, 2025, and continue until April 2025, with a focus on minimal environmental impact, community engagement, and transparency towards local communities. All activities will adhere to high safety and environmental standards.
CEO comments
We are stepping up - an intensive effort is underway!
As I mentioned in the previous quarterly report, we chose to maintain a slightly slower pace in certain activities during the autumn while waiting for the outcome of the environmental permit process for the extended work time for water facilities. This has been a critical issue for the company in order to continue on the path toward future mining operations. Fortunately, the Land and Environmental Court ruled in favour for our application for an extended work time until March 2034 in October. Since no appeals were received during the appeal period, the ruling became final in November.
Thus, the fourth quarter went from a quiet start to an intense finish, as we kicked off the planned activities that had been held back during the autumn.
The original plan was to begin the work on the updated Bankable Definite Feasibility Study (DFS) at the start of the fourth quarter of 2024, aiming to complete it by the end of the second quarter of 2025. However, to exercise caution, we chose to wait for the decision from the Land and Environment Court, which delayed the start of the study. We now expect to accelerate the work on the feasibility study during the first quarter of 2025. The delay has also had some advantages, as the revised timeline now better aligns with the timing of the results from the exploration we have initiated - both for the iron ore deposit at Blötberget and for phosphorus and rare earth metals.
The goal of the ongoing exploration and drilling campaigns in and around Blötberget is to increase the mineral resources by up to 35 million tons - a significant increase. As always in exploration, there are uncertainties, and we won't know what's in the bedrock until we drill. However, through various methods such as magnetic anomalies and seismic profiles, we have strong indications of potential mineralization. The investment in drilling therefore holds great potential to yield positive results, which are expected to materialize in the spring. If successful, these results could be included in the updated feasibility study and in the resource and reserve estimates, which are a key part of this year's work.
Regarding phosphorus and rare earth elements, it's still too early to set specific targets for grades or volumes, as we are still conducting basic mineralogical studies. The goal remains to
produce a sellable byproduct concentrate with high levels of these elements, as we believe that a significant portion of these elements are hosted in phosphate minerals.
The timeline for exploration and the feasibility study now points toward the fourth quarter of 2025. This means our previous goal of completing the feasibility study, securing project financing, and activating the environmental permit to begin site work and drain the old mine shafts within the year is looking more challenging. However, we continue to work intensively with our advisors, engineering consultants, contractors, and suppliers to seize every opportunity to shorten the timeline.
During the fourth quarter, we welcomed several new employees: Karl-Owe Svensson as Logistics Manager, Niklas Sternbeck as Project Manager for the underground project, and Malin Ekåsen as interim Environmental Manager. Additionally, Magnus Lundin was recruited as Director of Technology & Projects, Ylva Wård as Director of EHSQ & HR and Johan Högnäs as Chief Geologist - all three will join during the first quarter of 2025.
The iron ore price had a downward trend for much of 2024 but appears to have stabilized in the fourth quarter. The company's planned production of ultra high-grade iron ore concentrate will result in lower energy consumption and carbon dioxide emissions, regardless of whether the steel is produced via blast furnace or direct reduction. Higher iron content also reduces transportation volumes and slag waste. This makes our product attractive in the ongoing transition of the steel industry. While the market currently points to a surplus of high-grade iron ore products until around 2030, a shortage is expected to arise thereafter as the industry transitions. It is this future market we are focusing on - not short-term price fluctuations.
In summary, with the feasibility study underway, ongoing exploration and drilling programs, and continued recruitment to the organization, I believe a good description of our situation is - intense work is underway!
Ronne Hamerslag
CEO
Nordic Iron Ore AB (publ)
For more information, please contact:
Ronne Hamerslag
Chief Executive Officer
Telephone: +46 (0)240 88 301
E-mail: ronne.hamerslag@nordicironore.se
About Nordic Iron Ore
Nordic Iron Ore is a mining company focused on the Ludvika region. The company plans to produce an ultra high-grade iron ore concentrate with a low carbon dioxide footprint, with a focus on fossil-free iron and steel production. Nordic Iron Ore is actively pursuing critical raw materials like phosphorus and rare earth elements as possible by-products, contributing to society's green transition.
For more information, see www.nordicironore.se.
Nordic Iron Ore's shares and warrants are listed at Nasdaq First North Growth Market. Wildeco is the company's Certified Adviser
This information is information that Nordic Iron Ore is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-02-11 10:00 CET.
