Record deliveries for Kaunis Iron

Kaunis Iron’s fifth year of business was yet another profitable year, with new record deliveries.
The net profit for the year was SEK 690 million.
“We can now start realising the vision of a mining industry that generates jobs and growth opportunities in the region for future generations”, says a satisfied Klas Dagertun, CEO of Kaunis Iron.

Net sales for 2023 amounted to SEK 2,831 million, an increase of SEK 107 million compared to 2022. The net profit for the year was SEK 690 million, with a net profit after financial items of SEK 825 million.

Klas Dagertun, CEO, Kaunis Iron:

“We can look back on yet another profitable year, which is important as it makes it possible for us to invest in the future in an economically sustainable manner.”

“In terms of production we were able to produce 2,283,000 tonnes during the year, compared to 2,271,000 tonnes in the previous year. The increase in production is due to the fact that the ore we are now mining has an even higher iron content, which has facilitated a higher production volume.”

Linus Styrman, CFO, Kaunis Iron:

“Globally it was a year characterised by headlines of war and crisis in the world, but 2023 was a significantly less turbulent year for our industry. The year was characterised by stable demand for our products and a more stable price trend for iron ore at a level between USD 115 and USD 150 per tonne, which is a relatively high level. The fact that our revenues are in USD has also had a positive effect on our revenues, given the weakness of the Swedish krona.”

On 1 December 2022, the Swedish Land and Environment Court rendered its judgement and granted Kaunis Iron a new expanded environmental permit. Following an appeal, the judgement will be reviewed in the Swedish Land and Environment Court of Appeal in 2024.

Dagertun:

“The judgement included an enforcement order which enabled us to initiate a series of preparatory investments in the business in preparation for the eventual commencement of operations in the two new open-pit mines, Sahavaara and Palotieva.”

Styrman:

“One of the major investments has been the expansion of the beneficiation plant with a new flotation plant to enable handling and purification of the new ore types in order to achieve the same high-quality end product.”

“We have also developed our organisation through the reorganisation of group management and appointments to newly established positions, including a sustainability manager and a purchasing manager. We are also strengthening our HR department.”

Dagertun:

“2023 marked Kaunis Iron’s 5th anniversary as a company,
a milestone we celebrated with our staff and the local community. It is also worth mentioning that we continue to have exceptionally strong support from the residents of Pajala. The latest opinion survey conducted in 2023 shows that no less than 94 percent have a positive attitude to our business, while the level of support for expanded operations with two new open-pit mines is no less than 90 percent, which must be considered quite fantastic. This, if anything, guarantees that we have good conditions to realise our vision of establishing a mining industry for future generations in the Tornedalen region.”

Read the full year-end report here.

For more information

Klas Dagertun, CEO: klas.dagertun@kaunisiron.se, +46 70 591 00 41
Linus Styrman, CFO: linus.styrman@kaunisiron.se, +46 72 724 44 00