Financial Performance - The company recorded a profit for the year ending December 31, 2021, despite a decrease compared to previous periods[6] - For the year ended December 31, 2021, the company recorded a pre-tax profit of AUD 4.0 million, down from AUD 10.5 million in 2020, and a post-tax profit of AUD 0.3 million, down from AUD 10.2 million in 2020[83] - The company sold 20,711 ounces of gold in 2021, generating operational revenue of AUD 50.0 million, a decrease of 27.8% compared to AUD 69.3 million in 2020, primarily due to a 26.1% reduction in actual gold sales[85] - The total sales cost for the year was AUD 41.8 million, a decrease of 19.1% from AUD 51.6 million in 2020, with mining costs increasing by 12.9%[86] - The gross profit for the year was AUD 8.3 million, down from AUD 17.7 million in 2020, resulting in a gross margin of 16.5%, compared to 25.5% in the previous year[91] - The company reported a significant increase in reclamation costs, with a 99.0% rise to AUD 2.0 million due to additional obligations related to waste removal[87] - The company’s debt-to-equity ratio as of December 31, 2021, was 3.4%, down from 6.3% in 2020[96] - The company has an unsecured loan financing of AUD 12.0 million from AP Finance Limited, with a voluntary repayment of AUD 3.0 million made on January 6, 2021[97] - The net proceeds from the share placement on January 22, 2021, amounted to AUD 6.6 million, which will be used to pay environmental bond obligations related to operations in Finland and Sweden[103][106] Mining Operations and Production - The Fäboliden trial mining operations have been completed, with the main court hearing for the environmental permit expected in April 2022[7] - The performance of the Jokisivu project in Finland was satisfactory, and the open-pit mining at Kaapelinkulma has been completed[7] - The total gold production from Vammala Production Center (VPC) was 650 tons with an average grade of 4.3 g/t, contributing 90,000 ounces in total[14] - The total gold production from Svartliden Production Center (SPC) was 220 tons with an average grade of 3.4 g/t, contributing 24,000 ounces in total[14] - The overall group total production reached 870 tons with an average grade of 4.1 g/t, resulting in 110,000 ounces of gold[14] - The total mining volume at Jokisivu was 337,150 tons with an average gold grade of 2.5 grams per ton, an increase from 288,641 tons in 2020[56][57] - The total mining volume at Kaapelinkulma was 22,795 tons with a gold grade of 3.6 grams per ton, with mining activities ceasing in April 2021[59] - The gold production at Vammala for 2021 was 23,411 ounces, with an average ore grade of 2.7 grams per ton and a processing recovery rate of 86.6%[52][55] - The group processed 305,933 tons of ore at Vammala, down from 316,237 tons in 2020, due to throughput limitations[55] - The recovery rate for ore processing at Svartliden was 80.8% in 2021, an increase from 80.0% in 2020, while the recovery rate for concentrate processing was 94.4%, down from 94.9%[65] Mineral Resources and Reserves - The estimated mineral resources and ore reserves as of December 31, 2021, were disclosed in accordance with the JORC Code[10] - The company ensures that the estimated mineral resources and ore reserves are derived under good management arrangements and internal controls[10] - The independent mining consultant MoJoe Mining Pty Ltd. is responsible for the estimation of mineral resources and ore reserves[10] - The company will report mineral resources and ore reserves at least annually, or promptly if there are any significant changes during the year[10] - The mineral resource estimates include ore reserves from the Vammala production center in southern Finland and the Svartliden production center in northern Sweden[12] - The total estimated ore reserves for the group amount to 4,300 thousand tons, with an average gold grade of 2.8 grams per ton[24] - The Jokisivu gold mine has an estimated ore reserve of 1,500 thousand tons, with a gold grade of 2.5 grams per ton, based on a variable gold price of $1,730 per ounce[25] - The Fäboliden gold mine has an estimated ore reserve of 2,800 thousand tons, with a gold grade of 3.5 grams per ton, based on a long-term gold price forecast of $1,500 per ounce[25] - The average gold grade across the group's reserves is 2.8 grams per ton, with a total gold content of 380 thousand ounces[24] Environmental and Safety Practices - The company emphasizes responsible environmental practices and aims to improve its environmental performance while adhering to regulatory requirements across four countries[69] - The company is actively pursuing environmental permits for full-scale mining operations at Fäboliden, with a court hearing scheduled for April 2022[66] - The company is committed to maintaining a safety culture and has implemented various health and safety measures across its operations[44] - The lost time injury frequency rate improved to 9.9 in 2021 from 12.81 in 2020, indicating enhanced safety measures[45] - The group has not experienced any work-related fatalities since its establishment[46] - The company continues to monitor the impact of tailings dust on local residents, with assessments indicating no health risks[157] - The company has agreed to install a new crusher to further reduce noise levels at the Vammala facility[157] - The company completed an environmental health and risk assessment update for the Vammala tailings area with the help of Ramboll[160] Exploration and Development - The company continues to maintain exploration rights at both Kaapelinkulma and Orivesi, with ongoing exploration and assessment activities planned for the regions[60][61] - The company is awaiting approval for the closure plan of the Orivesi mine, with exploration activities still ongoing in the area[61] - The company completed 69 diamond drill holes totaling 10,075 meters in Finland and 13 drill holes totaling 1,368 meters in Sweden during the year[132] - The company has produced nearly 800,000 ounces of gold over the past 16 years through its operations in the Nordic region[130] - The company is investigating the potential for reprocessing stored waste rock from Kaapelinkulma as construction aggregate, with further examination planned for 2022[174] - The company received results from 8 diamond drilling holes at Kaapelinkulma, with the best interval being 0.80 meters at 11.65 g/t, which was below expectations[145][146] - The Uunimäki gold project received exploration permits, covering 89.22 hectares, with previous drilling activities totaling 36 holes and 3,424 meters[148] Future Outlook and Strategic Initiatives - The company is actively monitoring risks including political protests and geopolitical developments that may impact operations and costs[80] - The company plans to focus on developing existing and new mining assets within reasonable proximity to its processing plants in Vammala, Finland, and Svartliden, Sweden[122] - The management team emphasized the importance of sustainability initiatives, aiming for a reduction in carbon footprint by H% over the next five years[193] - The company plans to enhance its digital marketing efforts, increasing the budget by I% to improve customer engagement and retention[193] - The board of directors is focused on improving corporate governance practices, with new policies expected to be implemented by the end of the fiscal year[193]
龙资源(01712) - 2021 - 年度财报