LUXEMBOURG, LUXEMBOURG -- (Marketwired) -- 05/08/13 -- Northland Resources S.A. (OSLO: NAUR)(FRANKFURT: NPK)(OMX: NAURo) together with its subsidiaries "Northland", "NRSA" or the "Company") announced today its financial results for the first quarter ended March 31, 2013.
Comment from the President and CEO
"During the first quarter 2013, Northland delivered the first shipment of its high-quality iron ore concentrate. Following this we are able to report a major milestone - our first income from sales of iron ore concentrate of USD 5.7 million.
The production is well in line with expectations and we are producing continuously at least 2,300 tonnes per day in average with an iron content between 69% and 70.3%.
As announced in the press release dated April 29, 2013, the Company supports the bondholder-led proposal for restructuring of Northland, which was approved by the bondholders in a bondholders' meeting on May 3, 2013. As part of this restructuring, a USD 362 million senior secured bond offering was launched May 7. Three existing bondholders have indicated their intention to make significant investments, amounting to approximately one quarter of the issue.
These proposed measures represent the best available source of financing to resolve Northland's short and long term liquidity requirements on a timely basis, and are expected to provide the required financing to bring the Kaunisvaara Project to full production in the third quarter of 2014. We are very grateful for the support offered by our existing bondholders, shareholders, suppliers and employees which demonstrates their confidence in our business."
The table below provides a summary of selected quarterly data as at March 31, 2013 and 2012 as well 12 months as at December 31, 2012:
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Q1 Q1
(3 months) (3 months) 12 months
ended ended ended
Selected Quarterly and Mar 31, Mar 31, Dec 31,
Annual Information, USD m 2013 2012 2012
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Net Profit / (Loss) (39.4) (1.3) (24.8)
- per share, USD (0.08) (0.00) (0.05)
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Mines under construction
expenditures, Sweden and Norway 131.5 93.3 580.1
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Mineral properties expenditures,
Sweden 1.6 0.5 2.4
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Mineral properties expenditures,
Finland 3.1 4.4 11.5
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Cash, end of period balance 10.2 221.7 53.7
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Number of Common shares 514,178,899 514,178,899 514,178,899
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OUTLOOK
Northland aims to accomplish the following during the remainder of 2013:
1. Secure the long term financing, as proposed on April 29, 2013, to enable
the Company to complete the Kaunisvaara project.
2. Complete a cost optimized logistical chain, including buildings and
shiploader in Narvik as well as delivery of railcars from Kiruna Wagon.
3. Reach the production of 1.2 million dry metric tonnes for the full year
of 2013.
4. Complete the DFSs for the Hannukainen Project and the Pellivuoma
deposit. Both reports are expected to be published shortly after a long
term financial solution has been secured.
A full version of the first quarter 2013 Management's Discussion and Analysis ("MD&A") and the Unaudited Interim Financial Statements has been posted on the Company's website, http://www.northland.eu/en-us/investor-relations/financials today, May 8, 2013 and they will be available on www.sedar.com.
Readers should be advised that the summarized communication presented in this press release is limited in its disclosure. It is not a suitable source of information for readers who are unfamiliar with the Northland Resources, and it is not in any way a substitute for reading the Unaudited Interim Financial Statements and MD&A because a reader relying on this summary alone might overlook decision critical information.
Coming Report Dates
August 8, 2013: Financial Statement and MD&A for Q2 2013
November 14, 2013: Financial Statement and MD&A for Q3 2013
Annual General Meeting
The 2013 Annual General Meeting of Northland S.A. will be held on Wednesday, May 15, 2013, at 10:00 am (CET) in Luxembourg.
Extraordinary General Meeting
An Extraordinary General Meeting will be held on Tuesday, June 4, 2013, at 11:00 am (CET) in Luxembourg.
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland is a producer of iron ore concentrate, with a portfolio of production, development and exploration mines and projects in northern Sweden and Finland. The first construction phase of the Kaunisvaara project is complete and production ramp-up started in November 2012. The Company expects to produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company expects to exploit two magnetite iron ore deposits, Tapuli and Sahavaara. Northland has entered into off-take contracts with three partners for the entire production from the Kaunisvaara project over the next seven to ten years. The Company is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") project in Kolari, northern Finland and for the Pellivuoma deposit, which is located 15 km from the Kaunisvaara processing plant.
Forward-Looking Information
This announcement may include "forward-looking" information within the meaning of applicable securities laws. This forward-looking information can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology. This forward-looking information includes all matters that are expectations concerning, among other things, Northland's ability to meet its continuous disclosure and MCTO obligations, the likelihood of Northland rectify its default under Canadian Securities laws, Northland's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward-looking information involves risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking information is not a guarantee of future performance and that Northland's actual results of operations, financial condition and liquidity, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, even if Northland's results of operations, financial condition and liquidity, and the development of the industry in which Northland operates are consistent with the forward-looking information contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.
Contacts:
Northland Resources S.A.
Karl-Axel Waplan
President and CEO
+46 705 104 239
Northland Resources S.A.
Eva Kaijser
CFO
+46 709 320 901
Northland Resources S.A.
Petter Brunnberg
Investor Relations
+46 727 24 41 09
www.northland.eu
