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Lappland Goldminers AB 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
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.
