Nordic Mining tilannepäivitys

Kirjoittelen taas pienen päivityksen Nordic Mining:sta, norjalaisesta kaivosyrityksestä, jolla on myös toimintaa Suomessa ja paljon suomalaisia osakkeenomistajia.

Osavuosikatsaus oli Syyskuun 30 päivä. Tuolloin kerrattiin uusin rahoituskierros, jossa merkattavaksi laskettiin 77 miljoonaa uutta osaketta hintaan 0,45 NOK ja anti ylimerkkiitn 56 prosenttisesti. Tällä rahoituksella on tarkoitus lähinnä rahoittaa Engebo- projektin jatkoa.

Viimeksi kun kävin yrityksen kotisivuilla, sinne oli lisätty hyvä yritysesittely/sijoittaja video, joka  sisälsi hyvää infoa varsinkin ensi kertaa yritykseen tutustuville. Videoon pääset tästä.

Loppuun vielä vinkki, jos Nordic Mining kiinnostaa, niin keskustelua yrityksestä käydään kauppalehden keskustelupalstan lisäksi myös norjalaisella HegnarOnline sivuston keskustelupalstalla. Google translate kääntää ainakin englanniksi jutut ymmärrettävään muotoon. Tämä oli tälläinen lyhyt päivitys. Päivitetään tilanne taas ensi vuoden puolella.

Walde

Update: Nordic Mining /Approved industrial area plan and discharge permit

Today, it finally happened. The long waited decisions of the industrial area plan and discharge permit for the Engebø rutile project came and the decisions were positive. Yes to both cases.

The Ministry of Local Government and Modernisation and Ministry of Climate and Environment granted the permits. This is a major step towards production of Engebø. Now the political questions is behind and the company can continue to develop mine project as a normal business case. They need to get additional funding going on and get the industrial partner deals done. I continue to be happy shareholder.

In my opinion, below are the main quotations from press release:

"Today, 17 April 2015 KMD has informed that the objection from the Directorate of Fisheries (region west) regarding the industrial area plan has been overruled. The industrial area plan is consequently approved by KMD. "

"Also on 17 April 2015, KLD has granted a discharge permit for mining, mineral processing and tailings deposition for the Engebø rutile project."

"The mineral deposit at Engebø is one of the largest and richest resources of rutile in the world." 

Walde

Update-Nordic Mining

Nordic Mining published interim report for the quarter ended 31 December 2014. You can find it HERE.
  
The report didn't contain anything new information for me. It was noted that the focus is on Engebo Rutile project and decisions about project permits are expected to "as soon as possible".
  
If we do quick calculation about company's value and share price alone Engebo basis. The company gives basic facts itself saying :
  
"Nordic Mining has a Estimated net presented value for the Engebø rutile project of USD 466 million after tax based on a discount rate of 8% and an average rutile price of USD 1,000 per tonne. Based on the outlook for titanium feedstock in general and rutile in the shower, the Estimated project financials indicate a robust project going forward. "

In Nov

Based on that we can make a rough calculation:

USD 466 million x 7.7 USD/NOK exchange rate =about 3.5 billion NOK

3.5 billion NOK / 308,504,805 shares = 11.6 per share

Current share price is 1 NOK. Let's hope the mine project will go on:).

Walde

Company Report: Nordic Mining

NORDIC MINING

Nordic Mining.com

Stock symbol: NOM

Stock exhange: Oslo Axess

Nordic Mining is a mining company which owns mining right for several deposits in Norway and Finland and develops them.

Company's current projects are:

Nordic Rutile AS

-Engebo rutile project

-High grade rutile

Nordic Qvartz AS

-Secured rights for quartz deposit in Kvinnherads in Norway in 2011

-High purity quartz 99.998% SiO2

Keliber Oy (26% ownership)

-Lithium deposit

 

Reinfjörd 

-Platinum, Palladium,  Nickel, copper deposit

 Engebo rutile project

At the moment company is focused to develop Nordic Rutile AS's Engebo rutile project. Nordic Mining acquired mining rights in 2006 from Dupont. Engebo has potential to be Europas's largest producer of natural rutile. Rutile is used in pigment production and titanium metal production.

Company has gone throw extensive permit process and it is now in final stage. In the past year company has done water circulation measurements, modelling of tailings and biological investigations. Now, they are waiting government decisions regarding the industrial area and waste disposal permit.

At the moment, big question is tailing disposal. Company wants to fall the tailings bottom of fjord. There is lot of discussion about waste material environmental effects of fjord's sealife. Decission about permits are coming soon. Production would start somewhere 2017-2019.

In a Scoping study 2009, 

Indicated resources (JORC) 31.7 million tonnes at grade 3.77% (TiO2)

Inferred resources (JORC) 122.6 million tonnes at grade 3.75%

Production estimate is 50 years, if JORC compliant estimates are correct. Open pit for 10-15 years and underground 35 years. Planned production 100 000 rutile concentrate and 100 000 garnet annually. 

Preliminary project financials:

CAPEX: 300M USD

Rutile recovery rate: 55%

IRR: 20.7%

NPV 8% WACC: USD 466 (after tax)

Payback time 4,5 years at rutile price USD 1000/t and garnet USD 300/t

Brake even price for rutile USD 370/t

Other projects

Other project are still early stages. Company is also developing process for environmentally friendly extraction of alumina from anorthosite.

Stock performance 

The Company has financed its operations with new share offerings. They have now 308,504,805 shares out. 2014 Q3 report the Q3 loss was 5.8 million NOK. Stock's 52 week range has been 0.53-1.66 NOK. Current share price is 0.80 NOK.

My opinion

Nordic Mining has a lot of potential. It is high risk, high reward stock. Their most important ore deposits are high grade rutile and high purity qartz which should enable good profits when they are developed fully working mines. They are also part of lithium project in Finland. I believe that lithium demand grows in the future. 

In the near future, Engebo rutile project permits approval or disapproval set the stock price. I currently own over 50 000 shares

More information about company and projects you can find their web page Nordig Mining

Walde

Kuva:http://www.freeimages.com