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(Translation from Swedish)
The first doré bar was cast just before year-end at the plant at the Laiva mine. This plant has been in continuous operation since the second half of January, and deliveries of gold have commenced. Production of doré got underway a few months behind schedule, mainly due to delayed deliveries of certain components to the processing plant. Against this background, the need for working capital has increased. Accordingly, the Board of Directors intends to strengthen the company's equity through a private placement within the framework of the authorization previously granted by the AGM, for a maximum of 1,750,000 shares (5 %). This, as reported in Nordic Mines' Year-end Report, published today, 16 February. "After several years of preparation, just before year-end, on 27 December 2011, we were able to cast our first doré bar at the Laiva mine in Finland. The start-up took longer than I'd hoped, but the plant has been in continuous operation since the second half of January this year, and production of doré bars is underway," commented Nordic Mines' CEO Michael Nilsson. 6 kg of gold was produced during the first month, December 2011. Production was 32.5 kg in January 2012. The doré bars produced have gold content of some 70 %. Other metals are silver and copper. Initially, gold production has been based on extraction in the low-grade circuit, where until now, the processing yield has been significantly better than expected for the plant. The high-grade circuit was also brought on stream recently. Purification of process water is also working better than expected, and at present, we are well below the limits stated in our environmental permit. The financial statement indicates that in 2011, Nordic Mines expanded its exploration activities in Finland and Sweden. This applies primarily around the Laiva mine, where the scope of the drilling program was nearly doubled compared to 2010. "The results of this drilling are now being processed, and I hope to be able to present a new, expanded ore calculation within a few months," continued Mr. Nilsson. The profit/loss after financial items for the fourth quarter 2011 was MSEK -30.4 (MSEK -9.3) and after tax MSEK -22.9 (MSEK -3.7). The net profit/loss per share after dilution was SEK -0.65 (SEK -0.12). The profit/loss after financial items for 2011 amounted to MSEK -33.3 (MSEK -25.7) and after tax MSEK -25.0 (MSEK -4.2). The net profit/loss per share after dilution was SEK -0.71 (SEK -0.15). Investments were MSEK 518.9 (MSEK 308.5). The complete Report for the period January-December 2011 is available at www.nordicmines.se. For more information, please contact: Michael Nilsson, CEO of Nordic Mines. Tel +46 (0)18 843 4501, mille@nordicmines.se.
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Source: Nordic Mines AB via Thomson Reuters ONE
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