Nordic Mines AB (publ) Interim report January - June 2015

The English text is an unofficial translation of the Swedish original, and in the event of any discrepancies between the Swedish text and the English translation the Swedish text shall take precedence.

Second quarter 2015

• Net income was SEK 0.0 million (SEK 10.0 million) due to the production stop at the Laiva mine.
• The Company reported an operating loss of SEK -28.4 million (SEK -26.0 million) due to the production stop at the Laiva mine.
• Profit/loss after tax for the period amounted to SEK -31.3 million (SEK -27.1 million), corresponding to SEK -0.01 (SEK -0.08) per share.
• Comprehensive income for the period amounted to SEK -31.9 million (SEK -32.8 million), corresponding to SEK -0.01 (SEK -0.10) per share.
• Cash and cash equivalents were SEK 40.7 million (SEK 57.9 million, 31 March 2015) at the end of the period.
• Equity was SEK 403.8 million (SEK 435.7 million, 31 March 2015) at the end of the period.
• As Nordic Mines decided to stop production at the Laiva mine until further notice, no ore was processed during the period.
• The Board of Directors of Nordic Mines AB (publ) ("Nordic Mines", "the Company" or "the Group") appointed Eva Kaijser the new CEO of the Group. More information is available under New CEO of Nordic Mines.
• The Board of Directors of Nordic Mines has decided to delay the start of production at the Laiva mine until further notice. However, the Company is continuing to work on the preparation of a financing solution which given the right conditions would make it possible to restart operations at the Laiva mine with sufficient profitability. More information is available under Nordic Mines delays the start of production at the Laiva mine and Strategy and financing for Nordic Mines and the Laiva mine.
• Nordic Mines held its Annual General Meeting (AGM) for the Company on 30 June 2015. At the AGM a Board of Directors for Nordic Mines was elected consisting of Lennart Schönning (Chair), Ulla-Britt Fräjdin-Hellqvist (Deputy Chair), Krister Söderholm, Tord Cederlund and Manfred Lindvall. More information is available under Annual General Meeting.

January - June 2015

• Net income was SEK 0.0 million (SEK 61.6 million) due to the production stop at the Laiva mine.
• The Company recorded an operating loss of SEK -54.7 million (SEK -62.8 million).
• Profit/loss after tax for the period amounted to SEK -60.5 million (SEK -63.6 million), corresponding to SEK -0.01 (SEK -0.19) per share.
• Comprehensive income for the period amounted to SEK -63.0 million (SEK -69.9 million), corresponding to SEK -0.01 (SEK -0.20) per share.
• Cash and cash equivalents were SEK 40.7 million (SEK 57.9 million, 31 March 2015) at the end of the period.
• Equity was SEK 403.8 million (SEK 435.7 million, 31 March 2015) at the end of the period.

Significant post balance sheet events

• Nordic Mines has implemented a number of measures with the aim of achieving more flexibility before a future re-start of operations at the Laiva mine and realising additional cost savings in the short term. An agreement in principle was reached with Ab Tallqvist Infra Oy, a local mining contracting firm, to operate the Laiva mine in the future. Nordic Mines Oy announced that it will be extending an invitation for codetermination negotiations in order to realise additional cost savings in the near future at the Laiva mine.
• Current General Manager Tom Söderman at his own request has decided to leave his post at the end of 2015. More information is available under Changes at the Laiva mine.
• The Company's lenders have expressed to the Company that they believe that the Group is in violation of the current project financing agreement on a number of points and has submitted a request to the Company on 10 August 2015 for a clarification from the Company regarding the Company's financing. The Company is therefore holding discussions with its lenders. If Nordic Mines is in significant breach of its project financing agreement, the bank consortium is entitled to apply for a default of the Finnish composition plan. More information is available under Significant risks and uncertainties.

For further information, please contact:

Eva Kaijser, CEO, +46 70 932 09 01

Jonatan Forsberg, CFO, +46 76 105 13 10

For further information regarding Nordic Mines, please connect to www.nordicmines.com 

The information above has been made public in accordance with the Securities Market Act and/or Financial Instruments Trading Act. The information was published at 08.05 (CET) on August 13, 2015. 

Nordic Mines is a Nordic mining and exploration company whose vision is to be one of the leading Gold producers in the Nordics and Europe and a role model in respecting the environment. The company started mining gold in the Laiva mine in Finland in summer 2011. These gold deposits are among the largest in the Nordic region. Exploration is in progress in Finland and in Sweden. Nordic Mines was established 2005 and have more the 100 employees with head office in Uppsala, Sweden, The Nordic Mines share is traded on the Nasdaq OMX Small Cap list in Stockholm.