NIO Invitation to subscribe for shares in Nordic Iron Ore AB (publ) in connection with the Company’s rights issue
Investment case Investment highlights Managing Director comments • The opportunity to invest in an excitjng company with strong antjci - We now face the next milestone in the Company’s development and, pated growth. through this invitatjon, wish to welcome existjng shareholders and other • Nordic Iron Ore AB (publ) (“Nordic Iron Ore” or “the interested partjes to subscribe for shares in this rights issue. We will use Company”) stands well prepared to face the new challenges of the the issue proceeds to complete the next phase of the feasibility study industry. currently in progress. • The Company’s ambitjon is to be listed on an appropriate trading With both the drop in the price of iron ore and the changes in the venue in connectjon with the raising of capital to fjnance the con - global iron ore market in recent years there are new and substantjal structjon of the mining facility. challenges to being profjtable. As a young and modern company in the industry, we have the opportunity to adapt the operatjons in an effjcient Condensed fjnancial data manner to the new market conditjons, hence generatjng sharehold - er value. We do so by optjmising logistjcs and productjon processes Profjt/loss items, SEK ’000 H1 2015 2014 with modern solutjons to minimise the Company’s operatjng expenses, hence paving the way for a stable, satjsfactory and sustainable operatjng Net sales - - margin ahead of the estjmated commencement of productjon in 2019. EBITDA -7,135 -13,542 In additjon, we will focus our productjon on high quality iron ore which we believe will difgerentjate us from competjtors and allow us to charge Operatjng profjt (EBIT) -7,235 -18,528 a premium over and above the most common price indexes for iron ore. Profjt/loss afuer fjnancial income and In order to fjnance future investments in the project, our belief is that the -8,171 -22,533 expense market must expect the price of iron ore to rise in the long-term. Current iron ore prices would however, based on the informatjon we have today, Profjt/loss for the period -8,171 -22,533 be enough to be cash fmow positjve if we were already in operatjon. This 1 H1: January to June. hypothesis is to be confjrmed through the fjnalisatjon of the ongoing feasibility study. Balance sheet items, SEK ’000 H1 2015 2014 We look ahead to the future, and what it has to ofger, with tremendous Non-current assets 107,551 98,898 antjcipatjon and hope that you would like to join us as we embark the next phase to bring these mines into productjon. Current assets ex. cash positjon 1,065 2,646 Cash positjon 3,898 19,711 Kind regards, Total assets 112,515 121,255 D i r e c t o r P a u l M a r s d e n , M a n a g i n g Total liabilitjes 21,746 22,316 Total equity 90,769 98,940 Equity per share, SEK 2 6,3 6.8 2 Based on 14,510,712 outstanding shares. FACTS ABOUT NORDIC IRON ORE History The Company today The future Nordic Iron Ore was founded in 2008 as a Nordic Iron Ore is currently conductjng a de - The Company intends to commence fully op - modern mining and exploratjon company. The fjnitjve feasibility study (DFS), involving the eratjonal actjvity in 2019. Untjl then, Nordic Company’s ambitjon is to resume mining op - optjmisatjon of the mine’s operatjon and ver - Iron Ore will have completed the current fea - eratjons at Blötberget and Håksberget near ifjcatjon of operatjon and maintenance costs. sibility study and hence have optjmised iron Ludvika, and to carry out exploratjon of the The Company has completed fjve of nine ore extractjon in the mine holdings. Accord - adjacent Väsman fjeld. The Company’s explo - stages and is currently working on securing ing to the present plan, the feasibility study is ratjon permit and processing licence are for the mine’s processing procedures. This is the planned to be completed in the fourth quarter historical mining territory, where iron ore has single most important part of the study, and of 2016. Today, the Company is already in on - been mined since the 16th century. In May aims to ensure that the Company has the ca - going discussions with both equipment sup - 2015, Copperstone Resources AB distributed pacity to deliver iron ore in line with the cur - pliers and prospectjve customers. In additjon, the shares in Nordic Iron Ore to its existjng rent objectjves. The Company’s Board of Di - Nordic Iron Ore has the ambitjon, ahead of shareholders, increasing the number of share - holders in the Company to just over 3,000 rectors was boosted recently by the American the commencement of plant constructjon, to today. CEO of reputed consultjng fjrm Applied Value. list its shares on an appropriate trading venue. 2 INVITATION TO ACQUIRE SHARES IN NORDIC IRON ORE AB (PUBL) IN CONNECTION WITH THE COMPANY’S RIGHTS ISSUE
TERMS AND INDICATIVE SCHEDULE Record date for shareholders with the Terms and conditjons 6 right to subscribe in the rights issue. November The ofger Shares in Nordic Iron Ore AB Subscriptjon/applicatjon period 9 commences. Type of issue Rights issue November Issue terms and conditjons 3:2 Size of the issue SEK 21,766,068 23 Subscriptjon/applicatjon period ends. November Price per share SEK 1.00 Approximate date for when the outcome of 26 the issue is made public. November Summary of terms and motives three (3) subscriptjon rights. Two (2) sub - new shares without the support of subscrip - Nordic Iron Ore intends to use the issue proceeds from the rights issue to fjnance scriptjon rights entjtle to subscriptjon to one tjon rights can be submitued at SEK 1.00 per planned concentratjon tests, and to subse - (1) new share. share, and this must take place during the quently fjnance the Company’s working cap - Subscriptjon supported by subscriptjon same period as subscriptjon for new shares ital requirement. The Company intends to rights shall be carried out by means of cash supported by subscriptjon rights, i.e. from 9 conduct a set-ofg issue of an existjng bridge payment no later than 23 November 2015. November 2015 to 23 November 2015 in - loan of SEK 3,112,501, in connectjon with Subscriptjon through cash payment shall clusive. the rights issue. either be carried out using the preprinted This is merely a marketjng document. The Company’s shareholders have pref - paying-in slip accompanying the issue state - For comprehensive informatjon, please erentjal rights to subscribe for new shares in ment, or using the paying-in slip atuached to refer to the informatjon memorandum relatjon to the number of shares they hold the special applicatjon form. available at www.nordicironore.se or at on the record date. For each share held on the record date, shareholders will receive An expression of interest to subscribe for www.mangold.se. Nordic Iron Ore intends to produce high-grade iron ore Iron ore is a mineral containing the element content between 66 and 70 per cent. Met - iron to such an extent that it can be used in allurgical tests have demonstrated that iron and steel productjon. There are a num - Nordic Iron Ore will most likely produce 70 ber of difgerent types of iron ore that afgect per cent magnetjte concentrate, as well as the processing techniques to some extent. a hematjte concentrate with an iron con - centratjon just above 66 per cent. These Hematjte is the predominant iron ore concentrates would be supplied into a high mined and is usually the higher iron con - quality market where buyers are willing to tent in the ground. This type of ore is usu - pay a premium for high-grade ore thanks to ally mined without much processing and is the low contaminatjon of the iron content. shipped as lump and fjnes to the market, In a market increasingly unable to supply direct shipping ore, with an iron content high quality iron products, the Company’s normally between 55 and 63 per cent. assessment is that buyers, in especially Magnetjte ores on the other hand, is in Europe, the Middle East, North Africa and its natural conditjon ofuen of low quality. Asia, will have a growing need for Nordic It is however easily processed to achieve high quality iron ore products with an iron Iron Ore’s products. 3 INVITATION TO ACQUIRE SHARES IN NORDIC IRON ORE AB (PUBL) IN CONNECTION WITH THE COMPANY’S RIGHTS ISSUE
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