Gold production has started First quarter * Turnover of 20 240 TSEK (0 TSEK) * EBITDA - 19 903 (-4 299) * Result after financial items was -21 986 TSEK (-4 145) * The Company secured 51.8 MSEK through a directed issue before issue cost. * Investments during the period amounted to 10 550 KSEK (7 361), Debt/Equity ratio, 62.6% (97.3%) * Kjell Larsson appointed as CEO after an extra Annual general Meeting where new members were elected to the Board of Directors. * Operating activities starts at Blaiken * Upgraded listing to First North Premier Events after the end of the reporting period * Fully subscribed rights issue secured 36.6 MSEK to the company, before issue cost. Subscription price was 7 SEK. * Start of gold production at Blaiken operation Words from the CEO, Kjell Larsson The result for the first quarter has been influenced by start-up cost for gold production at two mines. It is a strategic moment in the company's history that we now are an exploration company with gold production. The cash flow from operations will fundamentally improve our ability to develop our unique portfolio of gold projects. With the strong support from our shareholders we have been able to take the next step in developing the company despite difficult financial times. The increasing gold price and the fact that we will have a positive cash flow in the third quarter make me confident about our company's future. Key financial data Jan-Mar Jan-Mar Full year 2009 2008 2008 Profit/loss after financial items -21 986 -4 145 -35 625 Equity/Debt ratio 62,6% 97,3% 62,6% Total Assets 458 213 259 219 414 149 Equity 286 624 252 148 259 353 Number of yearly employee at the end of period 61 17 41 Equity per share before dilution 4,47 4,17 4,12 Equity per share after dilution 4,40 4,15 4,04 P/L per share before dilution -0,34 -0,07 -0,57 P/L per share after dilution -0,34 -0,07 -0,56 Number of shares before dilution at the end of period, thousands 64 096 60 401 63 001 Number of shares after dilution at the end of period, thousands 65 144 60 762 64 131 Net turnover Net turnover for the first quarter are 20 240 TSEK (0 TSEK), due to the continued increased production at the Pahtavaara mine. Result for the period Operating result for the period was -20 841 (-4 413) TSEK . The result was mostly affected by the preparations for start-up of mining production at Pahtavaara and Blaiken operations. Cash flow The cash flow from the operating activity and change in working capital has been influenced by the start-up activities of mine production, build up of receivables and inventories in relation to increased gold production and sales, and are -44 567 TSEK (- 5 999 TSEK). Equity and Equity to debt ratio The company has during quarter through a directed issue secured 51.8 MSEK before cost of issue. Equity to debt ratio after this issue is 62.6 percent compared to last quarter, 62.6 percent. Another 36.6 MSEK has been secured from a fully subscribed rights issue done after the end of the quarter. Total funding raised for the company in 2009 are 88.4 MSEK before cost of issues. Updates * Pahtavaara Production during the first quarter in Pahtavaara exceeded original plans. Production in Pahtavaara started in the summer of 2008 and extraction of gold has increased gradually. The twelve month profit predictions are on line at full production. * Blaiken On February 18th Lappland Goldminers Board of Directors made a decision to start the Blaiken operation. The first two month was characterized by preparation work and the construction of an environmentally adapted system for water cleaning. On April 29 gold production started from a previously mined mineralized pile outside the mill. The first preliminary production analysis of mill feed shows 2 - 2,5 gram per tonne of material after two weeks of production and the mined gold mineralized pile is estimated to 90 000 tonnes. The first production period with current material is expected to end in late July and mining is planned to start through autumn. The operation in Blaiken benefits from increasing gold prices. Despite the delayed start-up the Company expects Blaiken to contribute positively to the 2009 result. * Fäboliden Lappland Goldminers and its unique portfolio of gold projects in The Gold Line make the Fäboliden project, with its environmental permit for immediate investment and production start-up of its leach plant, highly prioritized. An update of the Feasibility Study will be done with start fall of 2009 that will include all positive changes to delivery times and costs for planned equipment and constructions. * Haveri The Company has during the quarter started the work with a prefeasibility study on the Haveri project for the planned exploration and development effort of the project. Employees The company has 61 (previous yr 17) employees. In addition to this, the Company engages consultants and contractors for various projects on a continuing basis. Altogether the Company engages the equivalent of 120 (previous yr 40) full time employees. Reporting dates Interim report January-June 2009 August 31, 2009 Interim report January-September 2009 November 30, 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 last issued Annual Report. For detailed information regarding accounting principles, refer to Annual Report 2008. The annual report and the group report have been approved for issue by the Board on April 8, 2009. The group Income statements and balance sheet and the parent company income statements and balance shall be adopted at the Annual General Meeting on May 28, 2009. Lycksele, May 28, 2009 Kjell Larsson Chief Executive Officer The Interim Report for January to December 2008 has been subject to special examination by the Company's auditors. For further information please contact: Kjell Larsson, CEO Tel: 0950-275 06, E-mail: kjell.larsson@lgold.se 070-385 03 57 Ulf Ericsson, Tel: 070-529 09 E-mail: ulf.ericsson@lgold.se Chairman of the 59 Board Lappland Goldminers AB (publ) Org nr 556544-3339 Storgatan 36 SE-921 31 Lycksele Tel: 0950-275 00 www.lapplandgoldminers.se Income statement - Group SEK (,000) 3 month 3 month Jan-Mar Jan-Mar Full year 2009 2008 2008 Income Net turnover 20 240 0 6 507 Changes in inventory 8 304 0 5 567 Capitalized work 217 881 2 820 Change in value of biological assets 0 0 311 28 761 881 15 206 Other external costs -39 774 -2 206 -25 947 Personnel costs -8 891 -2 974 -19 037 Depreciation of tangible and intangible fixed assets -938 -114 -1 508 Operating Profit/Loss -20 841 -4 413 -31 287 Financial items: P/L from financial investments: 0 0 -2 743 Financial income 56 303 455 Financial costs -1 201 -35 -2 051 Profit/Loss after financial items -21 986 -4 145 -35 625 Taxes 0 0 0 Net Profit/Loss for fiscal period -21 986 -4 145 -35 625 Average number of shares before dilution, thousand 64 096 60 401 61 413 Average number of shares after dilution, thousand 65 144 60 762 62 324 P/L per share before dilution -0,34 -0,07 -0,58 P/L per share after dilution -0,34 -0,07 -0,57 Balance Sheet - Group SEK (,000) March 31 March 31 Dec 31 2009 2008 2008 Assets Fixed assets Intangible fixed assets 262 528 206 631 260 923 Tangible fixed assets 142 292 23 500 134 286 Financial fixed assets 285 3 028 285 405 105 233 159 395 494 Current assets Inventory 15 305 0 6 936 Other receivables 29 276 2 517 4 053 Investments , cash and bank balances 8 527 23 542 7 666 Total Current assets 53 108 26 060 18 655 Total Assets 458 213 259 219 414 149 Equity and Liabilities Equity 286 624 252 148 259 353 Allocations 34 851 0 34 832 Long-term liabilities 58 398 2 000 51 833 Short-term liabilities 78 341 5 070 68 131 Total Equity and Liabilities 458 213 259 219 414 149 of which interest-bearing 50 869 0 47 611 Changes in Equity - Group SEK (,000) 3 month 3 month Full year Jan-Mar Jan-Mar 2009 2008 2008 Equity at the beginning of period 259 353 256 224 256 224 New issue 51 800 0 26 000 Issue cost -2 388 0 -405 Currency effects/acquired equity -155 68 13 159 P/L of fiscal period -21 986 -6 309 -26 280 Equity at the end of period 286 624 249 983 268 698 Cash Flow Analysis - Group SEK (,000) 3 mån 3 mån Full year Jan-Mar Jan-Mar 2009 2008 2008 Cash flow from operating activities before changes in working capital -20 838 -4 031 -17 841 Changes in working capital -23 729 -1 968 52 553 Cash flow from operating activities -44 567 -5 999 34 712 Cash flow from investing activities -10 550 -7 361 -139 376 Cash flow from financing activities 55 977 0 75 427 Changes in liquid assets 861 -13 360 -29 236 Liquid assets at the beginning of period 7 666 36 902 36 902 Liquid assets at the end of period 8 527 23 542 7 666 Undisposed overdraft facilities 9 168 5 000 5 000 Disposable cash at the end of period 17 694 28 542 12 666
Lappland Goldminers AB (publ): Interim report January - March 2009
| Source: Lappland Goldminers AB