Interim Report January-June 2014Second quarter 2014

· Net sales amounted to SEK 136.0 (83.1) million

· EBITDA amounted to SEK -28.3 (-52.0) million

· Earnings per share amounted to SEK -3.68 (-4.45)

· Cash flow was SEK -4.2 (47.7) million

· Production of finished products remained high, amounting to 292 (196) thousand tonnes

· Average recovery rate was 41 (34) percent

· The company filed for and was granted company reorganisation

January - June 2014

· Net sales amounted to SEK 281.9 (171.8) million

· Earnings per share amounted to SEK -6.13 (-11.82)

· Cash flow was SEK 2.9 (-56.1) million

· Production of finished products amounting to 587 (367) thousand tonnes

Significant events after the end of the period· On August 12, Dannemora Mineral applied for extension of the company reorganisation of Dannemora Mineral AB and Dannemora Magnetit AB to 13 November 2014. Uppsala District Court approved the application.

· Dannemora Mineral signed a letter of intent with the Austrian steel group voestalpine for deliveries of about 300,000 tonnes of fines annually.

COMMENTS FROM THE CEOWe are currently dedicated on finding a long-term solution to the company's working and investment capital needs. This is a work that has been ongoing since last year, and since we were not able to find a solution within the necessary time frame, we had to file for company reorganisation on 13 May. Financing activities have therefore continued to be the central focus of both the management team and the Board of Directors.

The initial reorganisation period ended on 13 August. However, we applied for a three-month extension period as the financing discussions we had and currently have are considered very interesting and realistic. The extension was approved, which enables us to continue our financing activities up to 13 November 2014.

Although the management team has focused and continues to focus a great deal of resources on the company's financial situation, we have continued to focus heavily on operational improvements as well. Being able to show that there are conditions for long-term profitable mining is essential for opportunities to ultimately reach a financing solution. For example, we have identified areas with potential for further savings and increased volumes of crude ore. We are dependent on, and grateful for the expertise we have in our operations, with our skilled managers and employees working so well on a daily basis despite the current conditions. During the holiday season we were still able to maintain our production levels and keep costs in accordance with plan.

Demand for our products remains very healthy and sales in this period were better than forecast. We were able to increase our prices relative to IODEX following the company's price rises, accepted by the customers, and the optimisation of our customer mix, achieved by improving our volume distribution. As a result the company has not yet had to use the bridge financing that was pledged when the company started reconstruction. At the moment we estimate that the company will need a bridge financing towards the end of the extended reconstruction period, if a long-term solution has not been reached before then.

The current situation at Dannemora Mineral is tough for all parties involved, but everyone will benefit from us doing our utmost to find a solution that will secure the future of Dannemora Mineral after 13 November. It is our ambition and conviction that we will be able to achieve this.

Ralf Nordén, President and CEO

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