An update on production and the current financial situation
| Source:Dannemora Mineral AB
Production and recovery from the Dannemora mine have been very positive this
summer and better than expected; this was a result of the investment in June and
the continual process improvement work. Recovery has been approximately 40
percent. High recovery levels in August together with the cost savings presently
indicate a positive EBITDA.
The negotiations with representatives of the company’s bondholders have
continued. The aim of these negotiations is to work together to produce a plan
that will solve the company’s financing needs. The first stage was to receive a
waiver for a cash balance of at least SEK 50 million. Negotiations are now
focusing on the short-term financing of the company’s working capital in the
third and fourth quarter of this year. Approximately SEK 120 million will be
needed in working capital for the rest of 2013, which includes SEK 60 million
for interest payments on bonds and convertible loans. In addition the company
has initiated a discussion with bondholder’s representatives regarding the long
For further information, please contact:
Ralf Nordén, President and CEO
Telephone 46 709374891
Dannemora Mineral AB is a mining and exploration company of which the primary
activity is mining operations in the Dannemora iron ore mine. The Company also
engages in exploration activities to increase the iron ore base locally and
regionally in several areas in Uppland where the potential for finding mineable
deposits is considered good.
Dannemora Mineral comprises the Parent Company Dannemora Mineral AB and the
wholly owned subsidiaries Dannemora Magnetit AB (responsible for operation of
the Dannemora mine and the Group’s exploration activities) and Dannemora
Förvaltnings AB (responsible for the property portfolio) and Dannemora Iron Ore
Development AB, where parts of the company’s future exploration will be
The Company’s most important asset is the iron deposit in the Dannemora Mine,
and activity is focused mainly on the mining of this deposit at present.
The Company is listed on NASDAQ OMX First North, Stockholm, and Oslo Axess. The
Company's Certified Adviser on First North is Remium AB.
The Company's independent qualified person is mining engineer Thomas Lindholm,
Geovista AB, Luleå. Lindholm is qualified as a Competent Person as defined in
the JORC Code based on education and experience in exploration, mining and
estimation of mineral resources of iron, base and precious metals.
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