Copperstone Resources Year-End Report January-December 2021
OCTOBER – DECEMBER 2021
• The result for the period amounts to -4.475 (16.213) KSEK.
• Earnings per share were -0.01 (0.03) SEK.
• Cash flow during the period was -45,603 (-11,713) KSEK.
• Liquidity at the end of the period was 124,291 (952) KSEK.
JANUARY – DECEMBER 2021
• The result for the period amounts to -16,249 (6,909) KSEK.
• Earnings per share were -0.01 (0.01) SEK.
• Total assets at the end of the period were 606,941 (347,823) KSEK.
• Cash flow during the period was 123,339 (-18,146) KSEK.
• 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 vice-chairman of the board.
SIGNIFICANT EVENTS AFTER THE PERIOD
• In February, a directed share issue was completed through an accelerated bookbuilding process, generating proceeds of MSEK 147.9 before transaction costs.
The end of 2021 and the beginning of 2022 remained intense for us at Copperstone. As previously stated, our goal is to reopen the Viscaria mine in Kiruna, and virtually the entire organization has been focused on working on the environmental permit application which is expected to go to the Land and Environmental Tribunal later this month. There is extensive documentation that needs to be in place and completed. Our ambition for this documentation is very high, and I dare say that we will submit an educational and thorough application of the highest quality. All that remains is to collect and compile the views of parties, internally and externally, where different sections of the nomination have been shared for consultation.
Intensive application process
Overall, our investments increased significantly during the quarter, partly due to the intensification of the environmental permit application process, and partly due to the continued high rate of investment in core drilling and surveying. geophysics on the Viscaria site. During the period, we hired more consultants than before, who were crucial in working with the technical documentation, surveys and reports that need to be included. We have carried out extensive studies on water purification technology to achieve or even reduce the required limit values, and which can also provide us with the opportunity to advance rapid pumping of mine water, constituting a possibility of save time and subsequent investment. to an award-winning environmental permit. We are increasingly convinced that we have a unique opportunity to open a modern mine with an exceptional financial and ecological model. As reported in September 2021, we have adjusted plans to significantly expand the future mining operation, compared to previous plans, with a potentially higher annual processing rate and increased production capacity at our processing plant. This is based on positive indications from our core shed and the overall copper market situation.
Opportunities in existing tailings ponds
In February, we also applied for an exploitation concession for the tailings ponds at Viscaria, as there is an opportunity to re-enrich sand from previous mining operations. This is fully in line with our sustainable business ambitions. We have completed extensive tailings studies and assured the economic potential for copper, gold, zinc, cobalt and silver levels.
We are also financially strong. In early February, we successfully completed a directed equity offering which raised SEK 147.9 million before transaction costs. The directed share issue was subscribed by institutional and qualified investors, including Santhe Dahl Invest AB, Skandinavkonsult i Stockholm AB and RoosGruppen AB. Approximately 70% of the directed share issue was subscribed by new investors in the company. Proceeds from the directed share issue will accelerate further investment ahead of the reopening of the Viscaria mine in Kiruna. A priority area of investment is core drilling to secure and expand mineral resources. With a stronger balance sheet, we will strengthen our position in the dialogues with the various stakeholders and future suppliers, which will intensify during the year. This applies to partners and subcontractors of our future processing plant. In March/April we also plan to restart core drilling in Arvidsjaur. Viscaria remains our primary focus as this project is closer to mining, but we are optimistic that we can develop Arvidsjaur in parallel and see good opportunities to develop our mineral resources there as well.
In-depth sustainability work
We also continued to work with our framework for the sustainability report that will be part of the annual report. This means we look at which areas Copperstone will have the greatest impact and how we, together with our business, can contribute to a sustainable future in the best possible way. We have therefore continued to take clear steps in our vision to provide sustainably produced copper to enable a carbon neutral future. Based on our analyses, we are confident that from the start of production we will be one of the world’s leading copper mines in terms of low CO2 emissions.
Anna Tyni, CEO of Copperstone Resources
ABOUT COPPERSTONE RESOURCES
Copperstone Resources AB is a company that is currently evolving into a modern and responsible mining company with the reopening of the Viscaria mine in Kiruna, Sweden. The deposit’s high-grade copper valued mineral resources, geographic location and growing team of experts offer good opportunities to become a key supplier of quality and responsibly produced copper – a metal that plays a vital role in the climate change from Sweden and Europe towards an electrified society. In addition to the Viscaria mine, Copperstone holds several other mining concessions and exploration permits at Arvidsjaur (Eva, Svartliden, Granliden) and Smedjebacken (Tvistbogruvan), all in Sweden. Shares of the parent company are traded on the Nasdaq First North Growth Market (ticker COPP B). Augment Partners is the company’s certified advisor, [email protected], +46 8 604 22 55.