Interim report July - Sept 2015

(This is a translation of the Swedish version, if any differences the Swedish one is valid)

The third quarter of July to September

  • Operating income totaled -1 189 TSEK (-1 383) TSEK
  • Profit after tax was for the period amounted to -1 342 TSEK (-1 363) TSEK
  • Earnings per share amounted to -0.02 SEK (-0.02) SEK
  • Shareholders ' equity per share was 0.13 SEK (0.20) SEK


The period from January to September

  • Operating income totaled -3 830 TSEK (-5 018) TSEK
  • The result after tax was -3 481 TSEK (-5 018) TSEK
  • Earnings per share amounted to -0.04 SEK (-0.12) SEK
  • Shareholders ' equity per share was 0.13 SEK (0.20) SEK


Significant events during the reporting period

Delta Minerals has signed a frame agreement with the Golden Kingdom Holding Ltd. to purchase magnetite.

Significant events after the end of the reporting period
 

  • The company now supplies iron ore to China. Supply contract and advance payment has been made with Chinese SunGlobe Mining and Resources Corporation. Delta Minerals obtained in October 2015 advance payment on the first delivery.
  • Delta Minerals has signed an agreement concerning sale of construction sand as of October 2015
  • Delta Minerals has decided to broaden the production with bricks.
  • The operations of the Philippines are now assessed to reach a break-even.
  • Delta Minerals is pursuing in November a fully implements guaranteed rights issue of 3.2 MSEK with an option for the Board to decide on an oversubscription about 2 MSEK.


Delta Minerals
Delta Minerals AB is a public Swedish limited company listed on AktieTorget with rights to pursue environmental projects in the Philippines with the support of the regional/local authorities. The company's objective is to operate in river deltas in Northern/Northwestern Philippines for the extraction of minerals and sand.

The company's operations
During the year, a pilot production in Aparri, Cagayan was used to build up sales channels. This work has now been fruitful and the initial payment to the company concerning the sale took place in October.

Magnetite
The company has during the period reached a so-called framework agreement with Golden Kingdom Holding (GKH) for magnetite sale to China. GKH is a trading company in commodities, based in Singapore.

This framework agreement is additional to the company's earlier signed frame contract with SunGlobe Mining and Resources Corporation.

After the end of the reporting period, has a first delivery of magnetite with advance payment has been made with the Chinese SunGlobe Mining and Resources Corporation. The agreement is based on a framework agreement on 60,000 tons of iron ore.

Construction sand
Agreements have been signed with Heritage Resources and Mining Corp. regarding sale of construction sand.

The contract initially amounts to around 4000ton/month. Volumes may increase during the dry season from November to July.

The products are delivered directly from the plant in Aparri and thereby Delta Minerals have no transport costs.

Usage areas are prefab structures as beams for example the ongoing Skyway facility in Manila, cement constructions for buildings, cement pipes for drains in Manila as well as other cities in the Philippines.

Bricks
The river material that Delta Minerals takes out of the Cagayan River includes small particles known as slimes, which must be separated before the being sold.

The material is very suitable for brick production. A company in the southern Philippines provides equipment for this production. The technology is adapted to local conditions. Production is estimated of a few thousand tons per month, leaving a suitable contribution.

This production has several advantages for the company: Delta Minerals gets revenues rather than costs for material handling. The production process is labor intensive and provides local jobs. The final product is affordable and contributes to improving housing standards in the region.

This operation is Delta Minerals´ strive to manage all river materials properly.

Turnover
Recent developments with magnetite sales (iron ore), sale of building material sand and now lately sale of bricks gives a turnover for production in Aparri, Cagayan, which will be in the range of 5-7 MSEK in current annual rate.

The sale should provide a sufficient contribution to the activities of the Philippines to carry its running costs.

The company is now workings in particular on consolidate the sales and began to prepare for the supply of filling sand (reclamation sand) in the first half of 2016 to Chahaya, Singapore.

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