Nordic Mines Plunges on Reorganization Filing: Stockholm MoverKatarina Gustafsson
Nordic Mines AB fell the most since ever in Stockholm trading as losses at its Laiva mine in Finland led the Swedish gold-mining company to file for corporate reorganization.
The shares declined as much as 69 percent, the biggest drop since the company was listed in December 2006. Nordic Mines was 66 percent down at 0.22 kronor as of 11:35 a.m., giving the company a market value of 75 million kronor ($11 million). Trading volume was more than 18 times the three-month average.
Nordic Mines made the filing because its Laiva mine operations have been loss-making since production started in the first quarter of 2012, the Uppsala-based company said today in a statement. Liquidity at the company’s Finnish unit is strained while earnings have suffered from a drop in gold prices during the second quarter, the company said.
“The objective with the corporate reorganization procedure is to model a future profitable low-cost production and to find a strategic partner or acquirer to the operations at the Laiva project,” Nordic Mines said.