Nordic Iron Ore

Financial development 
First quarter, 1 January – 31 March 2024 

• Sales amounted to SEK 0 million (0) 
• Earnings after tax amounted to SEK -3.1 million (-2.7) 
• Investments amounted to SEK 0.3 million (0.2) during the period January-March 
• Earnings per share before amounted to -0.08 SEK (-0.07) 
• Cash and cash equivalents amounted to SEK 2.2 million (1.7) on March 31, 2024 

Significant events during the first quarter 2024 

• Nordic Iron Ore AB has received an approval from Bergsstaten on its application for an additional exploration permit in the proximity of Blötberget. The reason for the application is that initial exploration has given very positive signals. A successful exploration of the area could potentially increase Nordic Iron Ore’s mineral resources. 
• Nordic Iron Ore entered into an agreement with ABG Sundel Collier (ABGSC) for the company’s upcoming capital raise. Nordic Iron Ore will evaluate options for the capital structure together with ABGSC and Cargill Metals. 
• Nordic Iron Ore appointed Ulf Kasshag as the company’s new CFO. Ulf Kasshag, born 1959, has extensive experience of controlling, accounting, reporting and finance, and has had the role as CFO at several fast-growing international companies, most recently at Findity AB. 
• Nordic Iron Ore and the Swedish Transport Administration have agreed upon a technical solution for connecting Nordic Iron Ore’s planned industrial rail to the nearby main line railway. This means that Nordic Iron Ore may proceed with its plans for environmentally friendly railway transport of its future production of ultra high-grade iron ore concentrate to Oxelösund’s harbour. 
• Nordic Iron Ore entered into loan agreements to prolong the term for repayment for existing outstanding loans of SEK 32.0 million until August 31, 2024. The loan agreements were entered with the company’s main shareholders Bengtssons Tidnings AB, Ludvika Holding AB and Kopparinvest AB, as well as the company’s CEO Ronne Hamerslag, a former board member and a group of investors. 
• Nordic Iron Ore AB extended its short terms loans by SEK 6 million to SEK 38 million. The loans are due for repayment on August 31, 2024. The loans agreement has been entered with Lubrica Equity AB and Bizcap AB. 

Significant events after the period 

• Nordic Iron Ore and Cargill Metals entered into an amendment agreement in order to adjust the existing financing agreement which was announced on July 12, 2023. The amendment agreement has been made due to the FDI-law which requires application for certain foreign direct investments. 

CEO comments 
Dear shareholder, 
During the quarter we continued intensive work to secure sufficient funding for the establishment of an iron ore mine with a green profile at Blötberget. An important step was taken through the agreement with ABG Sundal Collier (ABGSC) for financial advisory in the upcoming capital raise. We are now in the process of finalizing the final details, together with ABGSC and Cargill Metals, concerning the structure and time plan for the next step of financing. In parallel, we have continued work to secure our environmental permit and we expect a decision from the Land and environmental court concerning the working time for water operations during the third quarter 2024. 

The company is now finalizing the last preparations ahead of the next step of financing. The capital raise together with Cargill Metals is expected to take place in the near future, whereby also outstanding short term loans and interest are mainly subject to set-off. After the quarter, we entered into an amendment agreement together with Cargill Metals due to the law regulating foreign direct investments (“FDI-law”) which requires that the Inspectorate of Strategic Products (“ISP”) makes a review of certain foreign direct investments. We have not yet received any news from the ISP following Cargill Metals’ application but the amendments that we have made to the agreements means that we have a robust foundation for collaboration and the coming investment regardless of the timing and final decision from the ISP. 

The company has continued its efforts to update and secure the environmental permit and has previously made an application to the Land and environmental court for an extended working time regarding water operations. During the quarter, a round of referral was completed regarding the application and some referral replies made demands for complementary information. After the period, the company has responded to the referral replies and provided requested complementary information. We are hopeful to receive a positive verdict during third quarter or at least the current financial year from the court. In the end I expect that we will receive all necessary permits. Some smaller changes to the environmental permit do not require treatment by the court and smaller changes that we’ve applied for have been approved by the County Administrative Court and Ludvika municipality. 

During the quarter, the company received an approval from Bergsstaten on its application for an additional exploration permit in the proximity of Blötberget. The reason for the application is that initial exploration has given very positive signals. Through Nordic Iron Ore’s own exploration and and participation in the EU-funded project Smart Exploration, knowledge has increased regarding the geology in the proximity of the area. In addition to Smart Exploration’s measures, additional magnetic measures indicate that mineralization in Blötberget continues to the north-east which makes the area highly interesting for continued exploration. We will now initiate exploration work in the area. After the quarter, the company has made an extension-application to Bergsstaten regarding the exploration permit Ludvikafältet nr 1 and we expect to be granted a threeyear extension during the coming months. 

According to the current time plan and calculations, we have a lead time of approximately four years before mining can begin at Blötberget. If initial funding is secured as planned in the near future, engineering work and studies can begin in the second half of 2024 and be completed by mid-2025 and form a basis for funding of the mine construction, so called Project Financing. Provided that the Land and environmental court approve our application for extended working time during 2024 we expect to initiate mining production at Blötberget in 2028, at the earliest. We plan to increase annual production in steps up to approximately 1.6 million tonnes ultra high-grade iron ore concentrate. Such an iron ore concentrate is an essential raw material in order to reduce CO2 intensity in the entire steel value chain. 

We also continue to evaluate the existence of rare earth elements (REE) and phosphates in proximity of the mine and after the quarter a number of tests have been made and initial analysis has begun. Hopefully, these important raw materials can become a complementary source of income for the company. 

During the quarter, we welcomed Ulf Kasshag as the company’s new CFO ahead of the coming capital raise. We plan to make additional recruitments to the company during the year. We have an exiting and decisive time ahead and I look forward to keeping you updated on our continued progress. 

Ronne Hamerslag 
CEO 
Nordic Iron Ore AB (publ)