Second Quarter
* Result after financial items -8,392 TSEK (-3,388)
* Investments have been 47,221 TSEK (46,052)
First six month
* Result after financial items -12,537 TSEK (-5,718)
* Investments have been 54,582 TSEK (57,698)
Key ratio
Jan-June Jan-June Full year
2008 2007 2007
Profit/loss after financial items -12 537 -5 718 -10 861
Equity/Debt ratio 83,4% 95,6% 96,5%
Total Assets 292 266 273 221 265 516
Equity 243 742 261 221 256 224
Number of yearly employee at the end of
period 47 12 15
Equity per share before dilution 4,04 4,46 4,24
Equity per share after dilution 3,96 4,46 4,24
P/L per share before dilution -0,21 -0,10 -0,18
P/L per share after dilution -0,20 -0,10 -0,18
Number of shares before dilution at the
end of period, thousands 60 401 58 630 60 401
Number of shares after dilution at the
end of period, thousands 61 531 58 630 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 will from
production of gold, at some of its operations, generate cash before
the end of this year.
For information:
Karl-Åke Johansson, CEO
Tel: +46 950 275 01, +46 70 625 22 57
E-mail: karl-ake.johansson@lgold.se
Tomas Björklund, Director
Tel: +46 70 662 35 35
E-mail: tomas.bjorklund@lgold.se
Significant events
* The Company made an agreement with the receiver for ScanMining Oy
to acquire the Pahtavaara Gold Mine in Finnish Lapland. The
agreement states that the Company, at a price of 3.1 Million
Euros, acquires all of ScanMinings assets in Finland, including
the mine, the process plant, claims and concessions.
* A bedrock chip sampling program in the area of Tjålmträsk showed
very interesting elevations in gold grades. The following core
drilling discovered visible gold. Tjålmträsk gold exploration
project is situated on the Gold Line in Västerbotten, around 5 km
south of Sorsele. The project was started a few years ago after
the discovery of gold mineralized boulders in the area, of which
one had an exceptional value of 350 g/t Au and several boulders
with grades of 1 - 31 g/t.
* A gold mineralized zone with a grade of 11 g Au/ton over 6 meters
was discovered during drilling at Gubbträsk. Drilling was
initiated after comprehensive and systematic exploration work,
with bedrock chip and bottom till sampling, geophysical surveys,
trenching and core drilling.
* The Company has presented a feasibility study for the Fäboliden
gold project, addressing the construction and operation of a mine
with a processing plant. The study is based on a conservative
evaluation of the gold grades and tonnage based on an extensive
core drilling program. The feasibility study indicates that
production cost is equivalent to approximately 43 - 60% of the
current gold price.
* A lead-silver mineralisation has been encountered in the bedrock
at Lagbäcken, 4 km south-east of Gubbträsk, after completion of a
drilling program. This mineralization is most probably the source
rock for high grade lead-silver mineralized boulders, which were
reported in August 2007.
* Mr. Kjell Larsson was recruited as new Senior Vice President. Mr.
Larsson has many years of experience from senior positions in
Swedish and International mining operations, among others within
Lundin Mining, Boliden group, Inco Ltd and LKAB.
* The Supreme Environmental Court (Miljööverdomstolen) granted a go
ahead decision regarding the permission to construct and operate
a mine and process facility at Fäboliden.
* The Annual General Meeting and Extraordinary General Meeting of
Lappland Goldminers AB, Lycksele on May 30, 2008. The Income
Statement and Balance Sheet, as well as treating the net loss for
the fiscal period according to the proposal of the Board of
Directors and as recommended by the company's Auditor, were
adopted at the Annual General Meeting. The members of the Board
of Directors and the Managing Director were also discharged from
liability for fiscal year 2007. The ordinary members of the Board
of Directors, Torsten Börjemalm, Tomas Björklund, Leif Carlson,
Ulf Ericsson and Tony Harwood were re-elected, and Svante
Lundbrink was elected as a new Board Member. Jan-Åke Unée was
re-elected as an alternate Board Member. Torsten Börjemalm was
re-elected as the Chairman of the Board. Compensation to the
Board of Directors in the amount of SEK 350,000 was approved. The
Chairman shall receive SEK 100,000 and the other members SEK
50,000 each. Bruno Holmqvist were re-elected as auditor. The
Board of Directors was authorized to, on one or several occasions
before the next Annual General Meeting, issue a maximum of 10
million new shares, and to decide on a waiver of shareholders'
rights of priority. The Extraordinary General Meeting resolved an
option program for Kjell Larsson, Senior Vice President,
including a maximum of 175,000 stock options. Each stock option
entitles the holder to acquire a new share not later than 30
December, 2012. In order to secure the Company's undertakings to
deliver shares and pay social security fees it was resolved to
issue 235,000 warrants with corresponding terms and conditions.
* Gold is concentrated from low-grade material at the Pahtavaara
gold mine - Finland. On June 4, beneficiation tests started on
low-grade material. Preliminary results indicate a head gold
grade of 0.4 to 1.2 g/ton. The beneficiation tests are carried
out with low-grade material which has been deposited and
previously classified as waste rock. Evaluation of the
preliminary results, carried out during 7 working days, between 4
and 12 of June, showed that around 6 kg of gold had been
produced. During the 17 days test period in June, 17 kg of gold
was produced.
* The Company ceremonially broke ground at the Company's flagship
Fäboliden Gold Project that is planned to become one of Europe's
largest gold mines.
Events after the end of the reporting period
* 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 through a directed new share issue of SEK 26 million to
a group of institutions.
The Interim Report for January to June 2008 has not
been subject to special examination by the Company's
auditors.
Income statement - Group
SEK (,000) 3 month 3 month 6 month 6 month
Full
April-June April-June Jan-June Jan-June year
2008 2007 2007 2008 2007
Income
Changes in inventory 1 261 0 1 261 0 0
Capitalized work 1 072 481 1 953 1 637 3 671
Change in value of
biological assets 0 0 0 0 5 752
2 333 481 3 214 1 637 9 423
-9
Other external costs -5 980 -1 888 -8 187 -3 482 096
-9
Personnel costs -4 575 -2 189 -7 549 -4 233 061
Depreciation of
tangible and
intangible fixed
assets -140 -103 -254 -178 -418
Operating -9
Profit/Loss -8 363 -3 699 -12 776 -6 255 151
P/L from financial
investments:
Financial income 119 324 422 588 1 797
-3
Financial costs -148 -13 -183 -51 507
Profit/Loss after -10
financial items -8 392 -3 388 -12 537 -5 718 861
Taxes 0 0 0 0 0
0 0 0 0
Net Profit/Loss for -10
fiscal period -8 392 -3 388 -12 537 -5 718 861
0 0 0 0
Average number of
shares before dilution, 57
thousand 60 401 54 342 60 401 54 342 731
Average number of
shares after dilution, 57
thousand 61 371 54 342 61 350 54 342 731
P/L per share before
dilution -0,14 -0,03 -0,21 -0,11 -0,19
P/L per share after
dilution -0,14 -0,03 -0,20 -0,11 -0,19
Balance Sheet - Group
SEK (,000) June 30 June 30 Dec 31
2008 2007 2007
Assets
Fixed assets
Intangible fixed
assets 219 376 172 395 200 322
Tangible fixed
assets 62 183 21 063 22 562
Financial fixed
assets 3 028 1 567 3 028
284 587 195 025 225 912
Current assets
Inventory 1 274 0 0
Other receivables 5 997 4 171 2 702
Investments , cash
and bank balances 408 74 025 36 902
Total Current assets 7 679 78 196 39 604
Total Assets 292 266 273 221 265 516
Equity and
Liabilities
Equity 243 742 261 221 256 224
Allocations 4 347 0 0
Long-term
liabilities 29 938 2 000 2 000
Short-term
liabilities 14 240 10 000 7 291
Total Equity and
Liabilities 292 266 273 221 265 516
of which
interest-bearing 29 473 0 0
Changes in Equity - Group
SEK (,000) June 30 June 30 Full year
2008 2007 2007
Equity at the beginning of period 256 224 139 259 139 259
New issue 0 132 777 132 777
Issue cost 0 -5 632 -5 963
Currency effects/acquired equity 54 535 1 012
P/L of fiscal period -12 537 -5 718 -10 861
Equity at the end of period 243 742 261 221 256 224
Cash Flow Analysis - Group
SEK (,000) Jan-June Jan-June Full year
2008 2007 2007
Cash flow from operating activities
before changes in working capital -12 283 -5 540 -9 324
Changes in working capital 898 -6 789 -13 017
Cash flow from operating activities -11 385 -12 329 -22 341
0 0
Cash flow from investing activities -54 582 -57 698 -84 478
Cash flow from financing activities 29 473 94 368 94 037
Changes in liquid assets -36 494 24 341 -12 782
Liquid assets at the beginning of
period 36 902 49 684 49 684
Liquid assets at the end of period 408 74 025 36 902
Unused line of credit 3 488 5 000 5 000
Disposable cash at the end of period 3 896 79 025 41 902
Personnel/consultants
The Company has 47 (last year 12) 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
Interim report January - September 2008
November 28, 2008
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 August 29, 2008
Karl-Åke Johansson
CEO
Lappland Goldminers AB (publ): Interim report January-June 2008
| Source: Lappland Goldminers AB
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