First Quarter
* Result after financial items -4,145 TSEK (-2,330)
* Investment have been 7,361 TSEK (11,646)
* This Report is the first Q1 report in accordance to IFRS.
* Information about our projects in Sweden and Finland will from this
report and further on be updated on our web site
Key ratio
Jan-Mar Jan-Mar Full year
2008 2007 2007
Profit/loss after financial items -4 145 -2 330 -10 861
Equity/Debt ratio, % 97,3% 88,4% 96,5%
Total Assets 259 219 154 947 265 516
Equity 252 148 136 929 256 224
Number of yearly employee at the end of
period 17 12 15
Equity per share before dilution 4,17 2,55 4,24
Equity per share after dilution 4,11 2,55 4,24
P/L per share before dilution -0,07 -0,04 -0,18
P/L per share after dilution -0,07 -0,04 -0,18
Number of shares before dilution at the
end of period, thousands 60 401 53 630 60 401
Number of shares after dilution at the
end of period, thousands 61 356 53 630 60 401
Significant events
* The verdict of the Environmental Court, which was made public on
Friday December 21, 2007 at 11:00 a.m., granting permission and
stipulating the conditions for the mining and processing plant
project of Lappland Goldminers AB at Fäboliden in the
municipality of Lycksele in Västerbotten, has been appealed to
the Miljööverdomstolen (Supreme Environmental Court). Three
summer house land owners and Naturvårdsverket (Swedish
Environmental Protection Agency) have appealed the decision of
the Court.
* The Company has carried out successful drilling at Knaften gold
project. The Knaften gold project is previously considered as the
largest gold anomaly in bottom moraine in Sweden. The results are
valuable and show that the Knaften deposit has a potential to
become one of the satellite mines for the planned processing
plant at Fäboliden.
* The Administrative Court of Appeal of Sundsvall has in a February
14, 2008, ruling, confirmed the previous decision by the Mining
Inspectorate to grant a number of exploration permits. This
overrules the previous decision by the County Administrative
Court after appeals from the Vapsten Sameby and a local land
owner. The County Court's decision concerning 19 exploration
permits was granted for seven different companies within the area
of Vapsten's sameby. Lappland Goldminers AB holds 10 of these
permits.
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
Events after the end of the reporting period
* The negotiation, for a new mine with processing plant at
Fäboliden which was appealed by three land owners with summer
houses and Naturvårdsverket (the Environmental Agency), were held
at 27-28 of May. The ruling will be public at September 3.
* On April 25 the Company released its feasibility study for the
mine with processing plant at Fäboliden. The feasibility study,
which covers both the open-pit and the underground mine, shows
that the plant at Fäboliden, with currently known resources has a
lifespan of 12 years, without additional satellite mines, like
Stortjärnhobben, Knaften etc, and can produce gold at low costs.
The feasibility study is published in its entirety on the
Company's web site.
* The Company has made an agreement with the receiver for
ScanMining Oy to acquire the Pahtavaara Gold Mine in Finnish
Lapland. The agreement states that Lappland Goldminers AB, at a
price of 3.1 Million Euros, acquires all ScanMinings assets in
Finland, including the mine, the process plant, claims and
concessions. The Company has, during April, worked intensively
with planning a re-start of production in the recently acquired
mine. As a first step a major order for core drilling has been
placed, totaling 15,000 m of drilling, as a basis for evaluating
and planning underground production. On May 5 the drilling
started with one drill rig, and in June and August drilling will
be increased with additional rigs. The aim is to investigate
possibilities for an increased through put and a more even
throughput in the processing.
* The Company has located visible gold when drilling at Tjålmträsk.
The bedrock chip sampling program showed very interesting gold
grades over an area, which now is targeted by continued core
drilling. The drilling carried out, resulted directly in the
discovery of visible gold.
* Lappland Goldminers has found a gold mineralized zone with a
grade of 11 g Au/ton over 6 metres during drilling at Gubbträsk.
The Company has since 2004 carried out exploration work in the
area of Gubbträsk. Comprehensive and systematic work has been
carried out, such as bedrock chip and bottom till sampling,
geophysical surveys, trenching and core drilling.
* The Company has located a lead-silver mineralization at
Lagbäcken. After the completion of a drilling program, 4 km south
east of Gubbträsk, the mother lode for high grade lead-silver
mineralized boulders, which were reported in August 2007, have
most probably been located.
* The Company has strengthen the management by hiring Kjell Larsson
as Senior Vice President. Kjell Larsson has previous credentials
as Vice President Mining for Lundin Mining and Boliden Limited.
Kjell Larsson has many years of experience from senior positions
in Swedish and International operations, among others within
Lundin Mining, the Boliden Group, Inco Ltd and LKAB. The Board
has by this recruitment taken another strategic step towards
developing the Company's' operations and organization.
Income statement - Group
SEK (,000) 3 month 3 month
Jan-Mar Jan-Mar Full year
2008 2007 2007
Income
Change in value of biological assets 0 0 5 752
Capitalized work 881 1 156 3 671
881 1 156 9 423
Other external costs -2 206 -1 594 -9 096
Personnel costs -2 974 -2 043 -9 061
Depreciation of tangible and intangible
fixed assets -114 -75 -418
Operating Profit/Loss -4 413 -2 556 -9 151
P/L from financial investments:
Financial income 303 264 1 797
Financial costs -35 -38 -3 507
Profit/Loss after financial items -4 145 -2 330 -10 861
Taxes 0 0 0
0 0
Net Profit/Loss for fiscal period -4 145 -2 330 -10 861
0 0
Average number of shares before dilution,
thousand 60 401 53 630 57 584
Average number of shares after dilution,
thousand 60 762 53 630 57 584
P/L per share before dilution -0,07 -0,03 -0,19
P/L per share after dilution -0,07 -0,03 -0,19
Balance Sheet - Group
SEK (,000) March 31 March 31 Dec 31
2008 2007 2007
Assets
Fixed assets
Intangible fixed assets 206 631 101 669 200 322
Tangible fixed assets 23 500 18 115 22 562
0
Financial fixed assets 3 028 1 567 3 028
233 159 121 350 225 912
Current assets
Other receivables 2 517 3 529 2 702
Investments , cash and bank balances 23 542 30 068 36 902
Total Current assets 26 060 33 597 39 604
Total Assets 259 219 154 947 265 516
Equity and Liabilities
Equity 252 148 136 929 256 224
Long-term liabilities 2 000 2 000 2 000
Short-term liabilities 5 070 10 431 7 291
Total Equity and Liabilities 259 219 149 361 265 516
of which interest-bearing 0 0 0
Changes in Equity - Group
SEK (,000) Mar 31 Mar 31 Full year
2008 2007 2007
Equity at the beginning of period 256 224 139 259 139 259
New issue 0 0 132 777
Issue cost 0 0 -5 963
Currency effects 68 0 1 012
P/L of fiscal period -6 309 -7 376 -10 861
Equity at the end of period 249 983 131 883 256 224
Cash Flow Analysis - Group
SEK (,000) Jan-Mar Jan-Mar Full year
2008 2007 2007
Cash flow from operating activities
before changes in working capital -4 031 -2 255 -9 324
Changes in working capital -1 968 -5 715 -13 017
Cash flow from operating activities -5 999 -7 969 -22 341
0 0
Cash flow from investing activities -7 361 -11 646 -84 478
Cash flow from financing activities 0 0 94 037
Changes in liquid assets -13 360 -19 616 -12 782
Liquid assets at the beginning of period 36 902 49 684 49 684
Liquid assets at the end of period 23 542 30 068 36 902
Personnel/consultants
The Company has 17 (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 40
full time employees.
Reporting dates
Annual General Meeting 2008 May 30, 2008
Interim report January - June 2008
August 29, 2008
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
sheet will be adopted at the Annual General Meeting on May 30, 2008.
Lycksele May 30, 2008
Karl-Åke Johansson
CEO
Lappland Goldminers AB: Interim report January-March 2008
| Source: Lappland Goldminers AB
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