Ferronordic has signed agreements with Chernogorskaya Mining Company ("CMC") to support the development of a new platinum group metal mine site in Russia's Krasnoyarsk region. Ferronordic will assume the role of general contractor for the project. On current parameters and forecasts, the project will contribute approx. 5-6% of Ferronordic's revenue in 2019 in Russia/CIS during 2021 and 2022.
Ferronordic has signed agreements with CMC, a subsidiary of Russian Platinum, to develop a mine site 15 kilometres southeast of Norilsk in Russia's Krasnoyarsk region. Ferronordic will assume the role of general contractor to prepare the site for the subsequent construction of a processing plant and ancillary mining infrastructure by CMC. The project includes drilling and blasting, excavation and removal of rock and overburden, surface levelling, drainage, rock crushing and screening and the construction of access and on-site mine roads. As general contractor, Ferronordic would also engage subcontractors to complete parts of the project.
Ferronordic's CEO, Lars Corneliusson, comments:
"We are very excited about this opportunity to expand our Contracting Services business, which is a core pillar of Ferronordic`s strategy and an area where we see great potential for future growth. Our partnership with CMC will allow us to integrate more closely with an important client in a highly prospective part of Russia's mining industry and precious metal complex. Meanwhile, our broader responsibilities and role as general contractor will allow us to scale capacity to leverage our organization and build relationships with industry experts also for the potential benefit of future projects."
CMC's Deputy CEO responsible for engineering and project management, Sergey Sergienko, comments:
"By engaging Ferronordic as general contractor we continue to build on a close partnership with a trusted and well-regarded construction services company. We are confident in Ferronordic's capabilities to employ modern equipment and technologies to help us achieving our objectives and leadership in our industry. We are looking forward to growing our cooperation as we develop this important site in the Krasnoyarsk region."
The project is expected to run until the end of 2022. On current parameters and forecasts, the project will contribute approx. 5-6% of Ferronordic's revenue in 2019 in Russia/CIS during 2021 and 2022. Due to upfront capital expenditure and working capital investments, incremental cash flows would be negatively impacted in 2020 but expected to turn positive in 2021.
Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has approx. 100 outlets and about 1,400 employees. Ferronordic's vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com
For more information, please contact:
Erik Danemar, CFO, Tel. +46 73 660 72 31, or email@example.com
This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse
Regulation. The information was submitted for publication on 10 September 2020, 14:45 CET.
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