Lappland Goldminers AB is hereby announcing its Fourth Quarter and Year End report for 2013 Corporate restructuring process according to plan October - December 2013: · Lappland Goldminers AB’s full scale test of the Karoliina mineralization showed positive results for the gold recovery and confirmed that the mineral process at Pahtavaara is working for the new ore from the Karoliina mineralization. · Lycksele District Court approved the company’s application for an extension of the ongoing corporate restructuring process up to December 27th. · An Extra General Meeting held on December 10th 2013 elected Sven Rasmusson as new member and chairman of the Board. · Thomas Häggkvist was appointed new CEO for the parent company and the Group as per December 12th 2013. · Lappland Goldminers applied for an additional extension of the restructuring process until March 24th 2014. The application was approved by Lycksele District Court on January 10th 2014. · As a result of the non-concluded sales process related to the Group’s gold project in Fäboliden, the Board has decided to impair the value of the project in the balance sheet to 0 resulting in a negative effect in the income statement of SEK 178.8 million. Events after the expiration of the reporting period: · The production of gold at the Company’s gold mine at Pahtavaara during the period January and February 2014 amounted to 100.5 kg. · Lappland Goldminers proposes a composition agreement to its creditors followed by a set off share issue and a subsequent preferential rights issue · The Lycksele District court has set out a date for the creditors meeting to the 1st of April at 13.00. · As a part of the ongoing restructuring process the company has summoned to an EGM, to be held on the 14th of April to decide upon a set off issue and an authorisation for a preferential rights issue. · The District court in Helsinki has during January 2014 approved the 5 year restructuring program for the wholly owned subsidiary Lappland Goldminers Oy. · As a consequence of the impairments made in the annual accounts, the Board has prepared a balance sheet for liquidation purposes (KBR I) to be referred to an upcoming Extra General Meeting to decide upon. Financial overview TSEK October-December January - December 2013 2012 2013 2012 Sales 27,859 34,900 80,955 210,795 Result before depreciation -11,019 -4,762 -22,512 54,431 and write-downs, Pahtavaara Result before depreciation -14,977 -7,678 -41,198 33,106 and write-downs, Group Net income/loss -238,144 -52,476 -296,652 -58,227 Cash flow from operating -10,501 3,980 1,145 34,634 activities* Capital expenditure 5,958 19,406 19,272 80,596 Equity/total assets, % ** -144 29 -144 29 Gold production Pahtavaara, 101 126 344 582 kgs Gold production Pahtavaara, 3,238 4,042 11,045 18,722 ounces Gold deliveries, kgs 118 122 324 613 Gold deliveries, tr.oz 3,798 3,910 104,30 19,717
Fourth Quarter and Year End report 2013 Lappland Goldminers
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