Year-end report 2015

This is a translation. If any differences the Swedish one is the valid.

Fourth quarter October to December

  • Operating income totaled -3 075TSEK (-2 641) TSEK
  • Profit after tax was for the period amounted to -3 078 TSEK (-2 276) TSEK
  • Earnings per share amounted to -0.04 SEK (-0.04) SEK
  • Equity per share amounted to 0.15SEK  (0.19) SEK

The period from January to December

  • Operating income totaled -6 905 TSEK (-7 659) TSEK
  • The result after tax was -6 560 TSEK (-7 294) TSEK
  • Earnings per share amounted to SEK-0.08 (-0.10) SEK
  • Equity per share amounted to 0.15 SEK (0.19) SEK

Significant events during the reporting period

  • The company now supplies iron ore to China. Supply contract and the deposit has been made with Chinese Mining Sun Globe and Resources Corporation. Delta Minerals obtained in October 2015 advance payment on the first delivery.
  • Delta Minerals signed a contract concerning the sale of construction sand as of October 2015
  • Delta Minerals decided to expand production with brick material.
  • The activities of the Philippines are estimated now to reach break-even.
  • Delta Minerals conducted in November a fully underwritten rights issue of 3.2 MILLION with an option for the Company board to decide on an oversubscription of share issue of about 2 million. The rights issue was subscribed to 706%
  • Delta Minerals president of the Philippine company and Board member of the parent company, Cornelio Casido acquired 2 115 217 A-shares by Patric Perenius, a former board member.

Significant events after the end of the reporting period

Delta Minerals Ltd has completed the new share issues as the Board decided authorized by the extraordinary general meeting on 14 October 2015

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 regional/local authorities. The company's goal is to carry on business in river deltas in northern/North-Western Philippines for the extraction of minerals and sand.

The company's operations
During the year, pilot production in Aparri, Cagayan is 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.

The company has during the period reached a so-called framework agreement with Golden Kingdom Holding (GKH) for the sale of magnetite to China. GKH is a trading company in the field of raw materials based in Singapore.
This framework agreement will complement the company's earlier signed a contract with SunGlobe Mining and Resources Corp-oration.
A first call on magnetite with advance payment has been made with the Chinese SunGlobe Mining and Resources Corporation. The agreement is based on the framework agreement on 60,000 tons of iron ore.

Construction material
Agreements have been signed with Heritage Resources and Mining Corp. regarding the sale of construction sand.
The contract is initially around 4000ton/month. Volumes may increase during the dry season from November to July.
The products are delivered directly from the factory in Aparri and thereby Delta Minerals will have no transport costs.
Uses 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.

The river material as Delta Minerals takes out of the Cagayan River includes small particles known as slimes, which must be separated before the sand can be sold.
The material is very suitable for brick production. A company in southern Philippines provides equipment for this production. The technology is adapted to local conditions. Production is estimated at a few thousand tons per month, leaving an active contribution.
The production has several advantages for the company: Delta Minerals receives revenues rather than costs for handling the material. The production process is labor intensive and provides jobs for local people. The final product is affordable and contributes to the improvement of housing in the region.
This activity is part of Delta Minerals efforts to manage all river materials properly.

Recent developments with magnetite sales (iron ore), sales of building materials sand and last sale of bricks now gives a turnover for production in Aparri, Cagayan, which will be in the range of 5-7 MSEK at current annual rate.
The sale should provide a sufficient contribution to the activities of the Philippines to cover their running costs.
The company is now working in particular on consolidating the sales and prepare for the supply of reclamation sand in the first half of the year 2016 to Chahaya, Singapore.
Intense negotiations are currently underway for nearby supplies of sand.

> The full report can be downloaded as pdf here

For more information please contact
Thomas Lundgren, CEO, Tel. + 46 (0) 70-397 25 24

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