Proactiveinvestors USA & Canada Nordic Gold Inc https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Nordic Gold Inc RSS feed en Tue, 22 Jan 2019 08:11:34 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Nordic Gold shares shine as it provides Laiva mine production update ]]> https://ca.proactiveinvestors.com/companies/news/212717/nordic-gold-shares-shine-as-it-provides-laiva-mine-production-update-212717.html Shares in Nordic Gold Inc (CVE:NOR) surged as it updated on the restart of the Laiva mine in Finland, which saw a first gold pour on November 30 last year.

Since that date, the company has produced a total of 145.3 kilograms of dore (4,100.22 ounces of gold), the Vancouver-based company said in a press release Wednesday.

READ: Nordic Gold expects to produce 67,000 ounces this year, as the Laiva mine in Finland comes into its own

Giving greater detail, the miner said that 38.5kg dore were produced at the first pour (1,028.91oz of gold) and 78kg of dore (1,981.3oz gold) was produced in December 2018.

That resulted in a total 2018 production of 116.5kg of dore (3,010.2 oz of gold). To date, production in 2019 is 39.7kg of dore (1,090oz).

"The team at the mine has done an excellent job of restarting the mine. We now need to work towards building a profitable business," said Michael Hepworth, the president and CEO of Nordic, said.

"The next few months will be critical as we ramp up production. As with any mine start up there are many adjustments required to optimise performance and it will be several months before we reach optimal performance."

Nordic also said today that processing operations were shut down for planned maintenance.

"Certain parts of the mill liners were unavailable at start up, however it was decided to press ahead and produce gold. This decision was made to improve cash flow and a maintenance shutdown was planned accordingly. Gold sales provided $5,172,323 of additional cash."

In the same release, the company announced that David Forest had resigned as a director to avoid potential conflicts with other activities. Nordic thanked him for his services and wished him well in his future endeavors.

The mine was acquired by Nordic already built and operational, but losing money. Exactly why it was losing money has been a matter of some debate over the past couple of years.

Nordic agreed to put up some much-needed cash and secured 10% and exclusivity on any other transactions. From there, Nordic moved on to acquiring 60% for US$20 million, and finally 100% via a share-based transaction.

Current estimates are that before Nordic came in, the project had already had €220 million spent on it, a figure which makes the US$98 million NPV (net present value) seem somewhat tame, as Nordic Gold's Michael Hepworth has pointed out.

"At one point, in bull market conditions, this mine generated a market capitalization for its owners of €500mln. In a gold bubble, it could go up to those sorts of levels again."

Shares in Toronto added over 18% on Wednesday, to stand at $0.13.

]]>
Wed, 16 Jan 2019 10:48:00 -0500 https://ca.proactiveinvestors.com/companies/news/212717/nordic-gold-shares-shine-as-it-provides-laiva-mine-production-update-212717.html
<![CDATA[News - Nordic Gold expects to produce 67,000 ounces this year, as the Laiva mine in Finland comes into its own ]]> https://ca.proactiveinvestors.com/companies/news/212307/nordic-gold-expects-to-produce-67000-ounces-this-year-as-the-laiva-mine-in-finland-comes-into-its-own-212307.html It’s billed as “Europe’s newest producing gold mine.”

Nordic Gold Inc (CVE:NOR) has poured its first gold at the Laiva mine in Finland, with plenty more to come.

“We got this mine financed a year ago,” says Nordic Gold’s Michael Hepworth.

“We got started in May, did our first gold pour in November and our second and third in December. The plan is to produce between 67,000 ounces this year.”

With the gold price showing signs of testing US$1,300 again, it’s not a bad time to be going into production, although margins look fairly comfortable even in a bearish gold price environment, as cash costs are likely to ring in at US$838 an ounce, according to a preliminary economic assessment completed last year.

All told, the mine is expected to generate a pre-tax internal rate of return of around 44%, and cash flow over the six-year life of mine of US$138mln.

The NPV was set at US$98mln.

That, however, only tells half the story.

Changes at Laiva

The mine was acquired by Nordic Gold already built and operational, but losing money. Exactly why it was losing money has been a matter of some debate over the past couple of years. Some industry-watchers thought the mill wasn’t performing to spec, but according to Hepworth, the real story’s much simpler.

“They were bulk mining instead of selective mining,” he says.

Nordic agreed to put up some much-needed cash and secured 10% and exclusivity on any other transactions. From there, Nordic moved on to acquiring 60% for US$20mln, and finally onto 100% via a share-based transaction.

Current estimates are that before Nordic came in, the project had already had €220mln spent on it, a figure which makes the US$98mln NPV seem somewhat tame, as Hepworth points out.

“At one point, in bull market conditions, this mine generated a market capitalisation for its owners of €500mln. In a gold bubble, it could go up to those sorts of levels again.”

The gold price has been creeping up of late, to be sure, but we’re not in bubble territory yet. Instead, more immediately, Nordic has concrete plans to increase value.

“One of our objectives is to expand the mine life,” says Hepworth.

“We have two exploration properties nearby and another one 12 kilometres to the south. In total, we have 27 square kilometres of exploration ground, and to date, the only area that’s been drilled is around the mine.”

And there’s more. For a mine of this kind, it seems unusual that there’s no high-grade feeder system to account for the mineralisation.

“The whole region is mineralised,” says chief operating officer and general manager of Laiva, Joe Ranford.

Balancing act

How soon the company can get out into the field and systematically searching for new resources remains to be seen.

“There’s a balancing act we’ve got to do,” says  Hepworth.

“Commercial production will be at around 5,000-to-6,000 ounces per month. We’ve brought in a contractor, commissioned a plant, we’re developing new mining methods, so it’s going to take us a little bit of time to get fully up and running. In the first quarter of 2019, there’ll be a serious ramp-up of tonnes and grade.”

Refinements of the plant are ongoing, but already it’s operating at a greater efficiency level than it did under its previous owner.

After this year’s 67,000 ounce target, the plan is to move production up slightly to 70,000 ounces per year and then to set about extending the mine life.

Recent fundraising has provided a nice working capital cushion while the ramp-up to commercial production completes, so Nordic looks set very fair to reap the benefits of owning Europe’s newest producing gold mine.

 

 

]]>
Thu, 10 Jan 2019 11:31:00 -0500 https://ca.proactiveinvestors.com/companies/news/212307/nordic-gold-expects-to-produce-67000-ounces-this-year-as-the-laiva-mine-in-finland-comes-into-its-own-212307.html
<![CDATA[Media files - Nordic Gold Corp celebrates first gold pour at Laiva Mine in Finland ]]> https://ca.proactiveinvestors.com/companies/stocktube/11588/nordic-gold-corp-celebrates-first-gold-pour-at-laiva-mine-in-finland-11588.html Wed, 12 Dec 2018 08:43:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/11588/nordic-gold-corp-celebrates-first-gold-pour-at-laiva-mine-in-finland-11588.html <![CDATA[News - Nordic Gold's Finnish mine receives major boost as it secures funding to see it through to production ]]> https://ca.proactiveinvestors.com/companies/news/207310/nordic-gold-s-finnish-mine-receives-major-boost-as-it-secures-funding-to-see-it-through-to-production-207310.html Nordic Gold Corp (CVE:NOR) has reached a major milestone — securing US$7 million of additional funding to see its Laiva gold mine in Finland through to production.

The project is a previously producing open pit and the first gold pour is earmarked for November 27 of this year. The funding comes from  PFL Raahe Holdings (PFL), an investment vehicle controlled by Pandion Mine Finance, and comes with various terms.

WATCH: Nordic Gold Corp celebrates first gold pour at Laiva Mine in Finland

PFl will provide US$3 million immediately and a further US$4 million in November this year, subject to conditions, as partial consideration for the purchase of gold under a pre-paid forward gold purchase agreement (PPF agreement) struck in November last year.

These tranches will be on top of the US$20.6 million, which was provided in December last year.

Nordic, formerly Firesteel Resources, must deliver to Pandion a further monthly quantity of gold at a price equal to the then-current spot price, less a specified discount.

Private placing

The company will aim to raise US$7 million via a private placing to reduce or cancel the gold deliveries, while the start date of gold deliveries under the PPF deal has been extended to January 2020 from May 2019.

Due to a recent amendment to the PPF agreement, PFL will be granted a 2.5% net smelter return (NSR) on gold production from the Laiva mine and will be issued with 36.5 million Nordic Shares, representing 19.99% of the capital.

Nordic will make a payment of US$1,500,000 to PFL within six months of entering into the amendment to the PPF agreement.

"The gold forward sale initially enabled our small company with a market cap of around $3,000,000 to acquire a high-value, fully-built and permitted mine for around $25,000,000. said Michael Hepworth, the president and CEO of Nordic.

"The previous owners, Nordic Mines AB, invested €220,000,000 to build the Laiva Gold Mine.

"In addition, there is a US$155,000,000 tax loss carry-forward provision in place that the Finnish government has already approved for Nordic’s use should the company accrue taxable income.”

The company boss added: "Our financing options have significantly increased, now that the project is largely de-risked, and first gold is scheduled to be poured on November 27th, 2018."

He also noted that a PEA (preliminary economic assessment) on the project gave it an after-tax NPV (net present value) of US$69 million and a 1.7-year payback.

"As production is expected to be 67,000 ounces of gold in the first 12 months, this means that some debt is now an option and consequently we intend to refinance at more favourable terms," he added.

Nordic noted it was already in discussion with several banks and several potential strategic investors, with regard to a refinancing. The goal is to have such financing in place by May 2019.

Nordic Gold shares were unchanged in Toronto at $0.11.

]]>
Wed, 17 Oct 2018 13:54:00 -0400 https://ca.proactiveinvestors.com/companies/news/207310/nordic-gold-s-finnish-mine-receives-major-boost-as-it-secures-funding-to-see-it-through-to-production-207310.html