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