Fourth quarter
* EBITDA - 10 948 (1 082)
* Result after financial items was -16 441 TSEK (-2 033)
* Cash flow from operating activities 21 662,( -4 258), Investments
17 605 TSEK (16 714),Equity/debt ratio, 62,6% (96,5%)
* Mining production starts at Pahtavaara gold mine
Full year 2008
* EBITDA - 29 779 (-8 733)
* Result after financial items was -35 625 TSEK (-10 861)
* Acquisition of the gold mines in Pahtavaara and Blaiken including
beneficiary plants
* With the shares issue and through loans from certain shareholders,
total funds of almost 41 000 TSEK has been secured. Investments for
the year is 128 274 TSEK.
* The verdict from the Supreme Environment Court of Appeals on the
Fäboliden Project has gained legal force and can no longer be
challenged.
Events after the end of the reporting period
* Gold production starts at Blaiken operation.
* The Company secured 51.8 MSEK through directed new share issue
before issue cost. The new share issue was primarily directed to a
number of institutional investors in Sweden and abroad. A new share
issue to all other share holders is planned at same conditions.
* Kjell Larsson was appointed CEO after an extra Annual general
Meeting where new members were elected to the Board of Directors.
Words from the CEO, Kjell Larsson
The year has certainly been eventful for the Company. Gold production
started from the Pahtavaara Gold Mine. In February this year
production activities also started in the Blaiken operation for gold
production in the second quarter, two mile stones for the Company. We
are now an exploration company with gold production. The cash flow
from operations will fundamentally improve our ability to develop our
unique portfolio of gold projects. With the strong support from our
shareholders we have been able to take the next step in developing
the company despite difficult financial times. The increasing gold
price and the fact that we will have a positive cash flow in the
third quarter make me confident about our company's future.
Updates
* Pahtavaara
Production was started in Pahtavaara during the summer and extraction
of gold has increased gradually. In December production started from
the underground mine. The company benefits from the positive
development of the gold price. The twelve month income predictions
are on line with the original 50 MSEK target before interest and
depreciations at full production.
* Blaiken
In Blaiken, the only mill on the "Gold Line" to produce a gravity
concentrate, maintenance and preparations for production has been
going on since the acquisition in August 2008.. In February, after
the successful directed new share issue, the Board of Directors
decided to start production at Ersmarksbergets Gold Mine just beside
the Blaiken Mill. The operation in Blaiken benefits from increasing
gold prices the same way as Pahtavaara, and we have now seen the
highest prices ever both in the Swedish Crown as well as in the Euro.
Despite the delayed start-up the Company expects Blaiken to
contribute to the 2009 result.
* Fäboliden
Lappland Goldminers and its unique portfolio of gold projects in The
Gold Line make the Fäboliden project, with its environmental permit
for immediate investment and production start-up of its leach plant,
highly prioritized. An upgrade of the Feasibility Study will be done
in light of recent changes to both the financing situation as well as
cost environment.
Result for the period
Result after financial items for the period was -31 287 (-9 151) TSEK
and for the fourth quarter -12 017 (979) TSEK. The result was mostly
affected by the preparations for start-up of mining production at
Pahtavaara and Blaiken operations.
Key ratio
Full year Full year
2008 2007
Profit/loss after financial items -35 625 -10 861
Equity/Debt ratio 62,6% 96,5%
Total Assets 414 149 265 516
Equity 259 353 256 224
Number of yearly employee at the end of period 41 13
Equity per share before dilution 4,12 4,24
Equity per share after dilution 4,04 4,24
P/L per share before dilution -0,57 -0,18
P/L per share after dilution -0,56 -0,18
Number of shares before dilution at the end of
period, thousands 63 001 60 401
Number of shares after dilution at the end of
period, thousands 64 131 60 401
Income statement - Group
SEK (,000) 3 month 3 month
Oct-Dec Oct-Dec Full year Full year
2008 2007 2008 2007
Income
Net turnover 3 432 0 6 507 0
Changes in inventory 2 098 0 5 567 0
Capitalized work 309 999 2 820 3 671
Change in value of biological
assets 311 5 752 311 5 752
6 149 6 751 15 206 9 423
Other external costs -10 572 -2 733 -25 947 -9 096
Personnel costs -6 525 -2 936 -19 037 -9 061
Depreciation of tangible and
intangible fixed assets -1 069 -103 -1 508 -418
Operating Profit/Loss -12 017 979 -31 287 -9 151
Financial items:
P/L from financial investments: -2 743 -3 436 -2 743 -3 436
Financial income 30 435 455 1 797
Financial costs -1 711 -11 -2 051 -71
Profit/Loss after financial
items -16 441 -2 033 -35 625 -10 861
Taxes 0 0 0 0
Net Profit/Loss for fiscal
period -16 441 -2 033 -35 625 -10 861
Average number of shares before
dilution, thousand 63 001 60 401 61 413 57 731
Average number of shares after
dilution, thousand 64 131 60 401 62 324 57 731
P/L per share before dilution -0,26 -0,03 -0,58 -0,19
P/L per share after dilution -0,26 -0,03 -0,57 -0,19
Balance Sheet - Group
SEK (,000) Dec 31 Dec 31 Dec 31
2008 2007 2007
Assets
Fixed assets
Intangible fixed assets 260 923 200 322 200 322
Tangible fixed assets 134 286 22 562 22 562
Financial fixed assets 285 3 028 3 028
395 494 225 912 225 912
Current assets
Inventory 6 936 0 0
Other receivables 4 053 2 702 2 702
Investments , cash and bank balances 7 666 36 902 36 902
Total Current assets 18 655 39 604 39 604
Total Assets 414 149 265 516 265 516
Equity and Liabilities
Equity 259 353 256 224 256 224
Allocations 34 832 0 0
Long-term liabilities 63 080 2 000 2 000
Short-term liabilities 56 883 7 291 7 291
Total Equity and Liabilities 414 149 265 516 265 516
of which interest-bearing 47 611 0 0
Changes in Equity - Group
SEK (,000) 3 month 3 month Full year Full year
Oct-Dec Oct-Dec
2008 2007 2008 2007
Equity at the beginning of
period 263 246 257 906 256 224 139 259
New issue 0 0 26 000 132 777
Issue cost 0 -329 -405 -5 963
Currency effects/acquired
equity 12 548 477 13 159 1 012
P/L of fiscal period -16 441 -1 830 -35 625 -10 861
Equity at the end of period 259 353 256 224 259 353 256 224
Cash Flow Analysis - Group
SEK (,000) 3 mån 3 mån Full year Full year
Oct-Dec Oct-Dec
2008 2007 2008 2007
Cash flow from operating
activities before changes in
working capital -10 197 -608 -28 942 -9 324
Changes in working capital 31 859 -3 650 41 305 -13 017
Cash flow from operating
activities 21 662 -4 258 12 363 -22 341
0
Cash flow from investing
activities -17 605 -16 714 -128 274 -84 478
Cash flow from financing
activities 2 792 -330 86 675 94 037
Changes in liquid assets 6 849 -21 302 -29 236 -12 782
Liquid assets at the beginning
of period 817 58 204 36 902 49 684
Liquid assets at the end of
period 7 666 36 902 7 666 36 902
Undisposed overdraft facilities 5 000 5 000 5 000 5 000
Disposable cash at the end of
period 12 666 41 902 12 666 41 902
Financing
After the time of this report, the Company has been successful in
securing financing through a directed new share issue. Total funds
secured is 51.8 MSEK before costs for the issue.
Employees
The company has 41 (previous yr 13) employees. In addition to this,
the Company engages consultants and contractors for various projects
on a continuing basis. Altogether the Company engages the equivalent
of 100 (previous yr 40) full time employees.
Reporting dates
Annual General Meeting 2009 May 28, 2009
Interim report January-March 2009 May 28, 2009
Interim report January-June 2009 August 31, 2009
Interim report January-September 2009 November 30, 2009
Annual General Meeting
Lappland Goldminers' annual general meeting is planned for Thursday
May 28, 2009, 2:30 pm at Hotell Lappland in Lycksele.
Dividends
The Board of Lappland Goldminers intends to propose to the annual
general meeting that no dividends will be paid for 2008.
Annual Report
Lappland Goldminers' annual report will upon request be sent by mail
to the shareholders in May 2009. The annual report will also be found
on the Company's web site with possibility for downloading and
printing.
Accounting principles
The accountings has been prepared according to (ÅRL- Annual Accounts
Act), RFR 2.1 "Reporting for legal entities", International Financial
Reporting Standards (IFRS) and interpretations by International
Financial Reporting Interpretations Committee (IFRIC), as adopted by
EU, and according to RFR 1.1 "Complementary reporting principles for
groups". The parent company also applies to RFR 2.1 "Reporting for
legal entities" and Årsredovisningslagen (ÅRL - Annual Accounts Act).
This report has been prepared in compliance with IAS 34 - Interim
Financial Reporting.
Same accounting principles have been applied as in the last issued
Annual Report.
For detailed information regarding accounting principles, refer to
Annual Report 2007.
The annual report and the group report have been approved for issue
by the Board on April 11, 2008. The group Income statements and
balance sheet and the parent company income statements and balance
was adopted at the Annual General Meeting on May 30, 2008.
Lycksele, February 24, 2009
Kjell Larsson
Chief Executive Officer
The Interim Report for January to December 2008 has been subject to
special examination by the Company's auditors.
For further information please contact:
Kjell Larsson, CEO Tel: 0950-275 06, E-mail: kjell.larsson@lgold.se
070-385 03 57
Ulf Ericsson, Tel: 070-529 09 E-mail: ulf.ericsson@lgold.se
Chairman of the 59
Board
Lappland Goldminers AB is an exploration company with producing
mines. The Company is listed on the market place "First North" under
the name GOLD, with Mangold Fondkommission AB as Certified Adviser,
as well as on the Norwegian OTC list. Lappland Goldminers strategy is
to develop into a profitable, producing gold company, with centrally
located processing plants in gold regions. The company is
strategically positioned with the Blaiken Gold Operation and the
fully permitted Fäboliden Gold Project on the Västerbotten Gold Line
in Sweden, with the Pahtavaara Gold Operation in the north of Finland
and with its gold projects in the Haveri area in south of Finland.
The processing plants will be supported by ore from one or several
mines either through the Company's own exploration or through
acquisitions. Lappland Goldminers is a member of SveMin, the Swedish
association for mines, minerals and metal producers, and follows
SveMin's reporting rules for public mining and exploration companies.
Production started at one of two gold mines
| Source: Lappland Goldminers AB
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