OCTOBER – DECEMBER 2021
• Result of the period amounted to -4,475 (16,213) KSEK.
• Earnings per share was -0.01 (0.03) SEK.
• The cash flow during the period was -45,603 (- 11,713) KSEK.
• The liquidity at the end of the period was 124,291 (952) KSEK.
JANUARY – DECEMBER 2021
• Result of the period amounted to -16,249 (6,909) KSEK.
• Earnings per share was -0.01 (0.01) SEK.
• Total assets at the end of the period were 606,941 (347,823) KSEK.
• The cash flow during the period was 123,339 (-18,146) KSEK.
• Shareholders’ equity at the end of the period increased by 83% to 542,350 (296,802) KSEK.
• Capitalized exploration assets at the end of the period amounted to 454,363 (344,655) KSEK.
SIGNIFICANT EVENTS DURING THE PERIOD
• In November Copperstone Resources appoints Markus Petäjäniemi as Deputy Chairman of the Board of Directors.
SIGNIFICANT EVENTS AFTER THE PERIOD
• In February a directed share issue was completed through an accelerated book building procedure, raising proceeds of 147.9 MSEK before transaction costs.
CEO COMMENTS
The end of 2021 and the beginning of 2022 have remained intense for us at Copperstone. As been communicated previously, our goal is to reopen the Viscaria mine in Kiruna, and virtually the entire organization has focused on the work on the environmental permit application that is planned to be submitted to the Land and Environment Court later this month. There is extensive documentation that must be in place and completed. Our ambition for this documentation is very high, and I dare to say that we will submit an pedagogical and thorough application of the highest quality. What now remains is to collect and compile views from the parties, internally and externally, where different sections of the application have been shared for consultation.
Intensive application process
Overall, our investments have increased considerably during the quarter, partly as a result of the intensification of the process regarding the environmental permit application, and partly due to the continued high investment rate in core drilling and geophysical surveys at the Viscaria site. During the period, we have hired more consultants than before, which have been crucial in the work with technical documentation, investigations and reports that must be included. We have carried out in-depth studies on water purification technology to reach or even undercut required limit values, and which can also provide us with an opportunity to bring forward a timely pumping of mining water, constituting a possibility to save both time and investments subsequent to a rewarded environmental permit. We are increasingly convinced that we have a unique chance to open a modern mine with a financial and an ecological model beyond the ordinary. As reported in September 2021, we have adapted the plans to a significantly enlarge the future mining operation, compared to previous plans, with a potentially higher yearly milled run-rate and an increased production capacity in our processing plant. This is based on positive indications at our core shed and the general situation in the copper market.
Opportunities in existing tailing ponds
In February, we also applied for an exploitation concession for the tailing ponds in Viscaria, as there is a possibility of re-enriching the sand from the previous mining operations. This is fully in line with our ambitions for a sustainable business. We have carried out extensive studies of the tailings and ensured economic potential regarding the levels of copper, gold, zinc, cobalt and silver.
Financial reinforcement
We are also strong financially. At the beginning of February, we successfully completed a directed share issue that raised SEK 147.9 million before transaction costs. The directed share issue was subscribed for by institutional and qualified investors, including Santhe Dahl Invest AB, Skandinavkonsult i Stockholm AB and RoosGruppen AB. Approximately 70 percent of the directed share issue was subscribed for by for the company new investors. The proceeds from the directed share issue will accelerate continued investments ahead of the reopening of the Viscaria mine in Kiruna. A priority investment area is core drilling in order to secure and expand the mineral resources. With a stronger balance sheet, we will strengthen our position in dialogues with various stakeholders and future suppliers, which will be intensified during the year. This applies to partners and contractors for our planned processing plant. During March/April, we also plan to restart core drilling in Arvidsjaur. Viscaria is still our main focus, as this project is closer to mining, yet we are optimistic about the possibility of developing Arvidsjaur in parallel and see good opportunities to expand our mineral resources there as well.
Deepened sustainability work
We have also continued to work with our framework for the sustainability reporting that will be part of the annual report. It means that we are reviewing which areas Copperstone will have the largest impact and how we, with our business, can contribute to a sustainable future in the best way possible. We have thus continued to take clear steps in our vision to deliver sustainably produced copper to enable a carbon-neutral future. Based on our analyzes, we are convinced that right from the start of production, we will be one of the leading copper mines in the world when it comes to low CO2 emissions.
Anna Tyni, CEO Copperstone Resources
ABOUT COPPERSTONE RESOURCES
Copperstone Resources AB is a company now scaling up to become a modern and responsibly producing mining company through the reopening of the Viscaria mine in Kiruna, Sweden. The deposit’s high copper grade assessed mineral resources, geographical location and growing team of experts provides good opportunities to become a key supplier of quality and responsibly produced copper – a metal that plays a critical role in Sweden’s and Europe’s climate change towards an electrified society. In addition to the Viscaria mine, Copperstone holds a number of other exploitation concessions and exploration permits in Arvidsjaur (Eva, Svartliden, Granliden) and Smedjebacken (Tvistbogruvan), all in Sweden. The parent company’s shares are traded on the Nasdaq First North Growth Market (ticker COPP B). Augment Partners is the company’s Certified Adviser, info@augment.se, +46 8 604 22 55.
For further information, please contact Anna Tyni (CEO) anna.tyni@copperstone.se or info@copperstone.se.