Third Quarter
* Result after financial items -6,647 TSEK (-3,110)
* Investments have been 56,088 TSEK (10,066)
First nine month
* Result after financial items -19,184 TSEK (-9,031)
* Investments have been 110,670 TSEK (67,764)
Key ratio
Jan-Sept Jan-Sept Full year
2008 2007 2007
Profit/loss after financial items -19 184 -9 031 -10 861
Equity/Debt ratio 75,0% 96,7% 96,5%
Total Assets 351 118 266 654 265 516
Equity 263 246 257 906 256 224
Number of yearly employee at the end of
period 47 14 15
Equity per share before dilution 4,18 4,27 4,24
Equity per share after dilution 4,10 4,27 4,24
P/L per share before dilution -0,30 -0,15 -0,18
P/L per share after dilution -0,30 -0,15 -0,18
Number of shares before dilution at the
end of period, thousands 63 001 60 401 60 401
Number of shares after dilution at the
end of period, thousands 64 131 60 401 60 401
P/L of fiscal period
The most important goal of an exploration company that is focused on
becoming a producer is to transform funds raised through financing
into increased ore reserves and mineral resources, and to develop the
projects technically and economically. During the fiscal period the
company has continued extensive exploration on several objects. The
company capitalizes expenses on mature projects, and due to this the
P/L reported depends both on the total expenditures and the relative
distribution between mature and early projects. The Company asses
that gold production can generate positive cash flow during the first
half of 2009.
For information:
Karl-Åke Tel: +46 950 275 E-mail: karl-ake.johansson@lgold.se
Johansson, CEO 01, +46 70 625
22 57
Tomas Björklund, Tel: +46 70 662 E-mail: tomas.bjorklund@lgold.se
Director 35 35
Significant events
* The first assessment of mineral resources for Haveri Gold project
in southern Finland, in compliance with NI 43-101 was presented.
The Company has, together with independent consultants, analyzed
and compiled the substantial amount of geological information
present. The first assessment of the project's mineral resource
in compliance with the Canadian NI 43-101 consisting of 6.9
million tonnes of measured and indicated mineral resources with
an average grade of 1.37 g/t Au equivalent to 308,663 troy ounces
of Au, for those parts of the project included in this study. The
mineral resource is 24.7 Mtonne with 0.89 g/t Au at a cut off at
0.5 g/t Au, equivalent to 710,238 troy ounces of Au.
* Test run generated profits at the Pahtavaara processing plant in
Finnish Lapland. After routinely replacing of wear parts in the
mill, production resumed on July 15. During August, the operation
has gradually increased up to a continuous three shifts, and is
expected to produce approx. 25 Kg (800 oz) of gold per month. The
production was based on material that previously had been
classified as waste rock. The test run indicates that a
relatively high percentage of previously mined waste rock holds
gold grades at a level that makes them profitable when mined at a
low cost. The Company estimates that the plant can be operated at
full capacity for at least two years using exclusively such
material. The cost of processing previously mined material is
low, and the profits for processing this material alone is
estimated at approx. SEK 2 million/month before depreciation and
interest.
* The Company has from the receiver in bankruptcy for Scan Mining
AB and its subsidiaries Blaikengruvan AB, acquired the processing
plant and the mines at Blaiken for SEK 40 million. The
acquisition will be paid in four segments for a period of three
years. The Company calculates that the operations will resume
during autumn 2008, and that the entire purchase sum will be
earned back during 2009. Initially, the operation will focus on
mining of the Ersmarksberget gold deposit. The acquisition was
financed with a directed new share issue of SEK 26 million to a
group of institutions. A part of that was the for the first
installment. The remaining part of the issue was operating
capital. The issue price was 10 SEK/share
* The Supreme Environmental Court announced on September 17 its
ruling regarding the mine and processing plant at Fäboliden in
the municipality of Lycksele in Västerbotten. The ruling gives
the Company approval to fully develop and operate the project.
Fäboliden, with the planned processing plant, is centrally
located in the so-called "Gold Line", where the Company already
has several projects with the potential of being developed into
profitable mines.
Events after the end of the reporting period
* The environmental permit, for the Fäboliden mine, process plant
and tailing facility, gained legal force at October 23. This
means, since no additional appeal was submitted, that the permit
for Fäboliden cannot be further contested.
* The Company has completed planning work and arranged the required
financing by loan to start mining production at the Pahtavaara
mine in northern Finland, with mine production for at least three
years. The plan is to start production immediately, and to bring
it up to full capacity during spring 2009. The production through
the processing plant is estimated to be 400 000 tons of ore from
the mine and 100 000 tons from the waste rock deposit, totaling
500,000 ton/year, equivalent to approx. 900 kg (29,000 oz)
gold/year, at a production cost of around 480 USD /oz with the
exchange rate of 8.10 SEK/USD. The annual profit for the
wholly-owned subsidiary Lappland Goldminers OY, starting from
spring 2009, is estimated to be around 50 MSEK (6.5 MUSD) with
current exchange rate, before depreciation and interest.
* The verdict from the Supreme Environmental Court of Appeals,
which has gained legal force means that the Fäboliden Gold
Project now is ready for financing. With the reference to the
deep decline of the economic situation, and the difficulties
which now exist regarding financing of major projects, the
Company has decided to priorities the start up of the two mines
at Pahtavaara and Blaiken. An upgrade of the Feasibility Study
will be done and financed by the cash flow from these activities.
* The fast decline of prices for steel and other base metals are
expected to have a positive and profound impact on the cost for
the planned investment at Fäboliden. This factor will also affect
the time for the investment decision. The Company will evaluate
the time when the price level for the investment and market
conditions for financing are the best conceivable for the Company
and its share holders.
The fast decline of prices for steel and other base metals are
expected to have a positive and profound impact on the cost for the
planned investment at Fäboliden. This factor will also affect the
time for the investment decision. The Company will evaluate the time
when the price level for the investment and market conditions for
financing are the best conceivable for the Company and its share
holders.
The Interim Report for January to September 2008 has not been subject
to special examination by the Company's auditors.
Income statement - Group
SEK (,000) 3 month 3 month 9 month 9 month
Full
July-Sept July-Sept Jan-Sept Jan-Sept year
2008 2007 2007 2008 2007
Income
Net turnover 3 076 0 3 076 0 0
Changes in inventory 2 209 0 3 470 0 0
Capitalized work 558 763 2 511 2 673 3 671
Change in value of
biological assets 0 0 0 0 5 752
5 843 763 9 056 2 673 9 423
Other external costs -7 188 -2 608 -15 375 -6 363 -9 096
Personnel costs -4 963 -1 893 -12 512 -6 125 -9 061
Depreciation of
tangible and
intangible fixed
assets -185 -137 -439 -315 -418
Operating Profit/Loss -6 494 -3 875 -19 270 -10 130 -9 151
P/L from financial
investments:
Financial income 4 775 426 1 363 1 797
Financial costs -157 -10 -340 -264 -3 507
Profit/Loss after
financial items -6 647 -3 110 -19 184 -9 031 -10 861
Taxes 0 0 0 0 0
Net Profit/Loss for
fiscal period -6 647 -3 110 -19 184 -9 031 -10 861
Average number of
shares before dilution,
thousand 60 876 55 602 60 758 55 602 57 731
Average number of
shares after dilution,
thousand 62 006 55 602 61 712 56 260 57 731
P/L per share before
dilution -0,11 -0,06 -0,32 -0,16 -0,19
P/L per share after
dilution -0,11 -0,06 -0,31 -0,16 -0,19
Balance Sheet - Group
SEK (,000) Sept 30 Sept 30 Dec 31
2008 2007 2007
Assets
Fixed assets
Intangible fixed assets 231 385 180 614 200 322
Tangible fixed assets 106 830 22 762 22 562
Financial fixed assets 3 028 1 567 3 028
341 243 204 943 225 912
Current assets
Inventory 4 174 0 0
Other receivables 4 885 3 507 2 702
Investments , cash and bank balances 817 58 204 36 902
Total Current assets 9 875 61 711 39 604
Total Assets 351 118 266 654 265 516
Equity and Liabilities
Equity 263 246 257 906 256 224
Allocations 4 490 0 0
Long-term liabilities 60 288 2 000 2 000
Short-term liabilities 23 094 6 748 7 291
Total Equity and Liabilities 351 118 266 654 265 516
of which interest-bearing 29 978 0 0
Changes in Equity - Group
Full
SEK (,000) 3 month 3 month 9 month 9 month year
July-Sept July-Sept Jan-Sept Jan-Sept
2008 2007 2008 2007 2007
Equity at the 139
beginning of period 243 742 261 221 256 224 139 259 259
132
New issue 26 000 0 26 000 132 777 777
Issue cost -405 -205 -405 -5 634 -5 963
Currency
effects/acquired
equity 557 0 611 535 1 012
-10
P/L of fiscal period -6 647 -3 110 -19 184 -9 031 861
Equity at the end of 256
period 263 246 257 906 263 246 257 906 224
Cash Flow Analysis - Group
Full
SEK (,000) 3 month 3 month 9 month 9 month year
July-Sept July-Sept Jan-Sept Jan-Sept
2008 2007 2008 2007 2007
Cash flow from
operating activities
before changes in
working capital -6 462 -3 176 -18 745 -8 716 -9 324
Changes in working -13
capital 8 548 -2 578 9 445 -9 367 017
Cash flow from -22
operating activities 2 086 -5 754 -9 299 -18 083 341
0 0
Cash flow from -84
investing activities -56 086 -10 066 -110 670 -67 764 478
Cash flow from
financing activities 54 409 0 83 883 94 368 94 037
Changes in liquid -12
assets 409 -15 821 -36 086 8 520 782
Liquid assets at the
beginning of period 408 74 025 36 902 49 684 49 684
Liquid assets at the
end of period 817 58 204 817 58 204 36 902
Undisposed overdraft
facilities 2 983 5 000 2 983 5 000 5 000
Disposable cash at the
end of period 3 800 63 204 3 800 63 204 41 902
Financing
After the time of this/the report, the Company has been successful in
securing financing for the start up of production at its mines in
Blaiken and Pahtavaara through loans from certain shareholders and
financial institutions together with loans from public authorities.
Total funds secured are almost 40 MSEK. Production at the both sites
will start before end of 2008.
Personnel/consultants
The Company has 47 (last year 14) employees. In addition to this, the
Company engages consultants and contractors for various projects on
continuing basis. Altogether the Company engages the equivalent of 75
full time employees.
Reporting dates
Notice of year-end statement 2008
February 27, 2009
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 issued Annual
Report for 2007.
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 November 28, 2008
Karl-Åke Johansson
CEO
Lappland Goldminers AB (publ): Interim report January-September 2008
| Source: Lappland Goldminers AB
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