Kaunis Iron's performance deteriorated

This is stated in the company's year-end report presented on Monday.

In 2024, the company had a turnover of SEK 1.8 billion, compared to SEK 2.8 billion in 2023. The operating result was a minus of SEK 181 million, compared to a plus of SEK 784 million the year before.

Production decreased from 2,283,000 tons of iron ore in 2023 to 1,924,000 tons last year.

An important reason for the deterioration in earnings is transportation problems. The unstable situation around the Suez Canal has contributed to an increase in freight costs of around 30%. At the same time, the stoppages on the ore line Malmbanan between December 2023 and June 2024 have had a major impact on profitability and liquidity. The company estimates the financial consequences of the transportation disruptions at almost half a billion SEK.

- To ensure continued stability, important measures have been implemented, where cost savings and efficiency improvements are central to strengthening both the business and creating value for our investors. At the same time, significant investments are underway that are necessary to meet the requirements of our environmental permit and to ensure sustainable and long-term mining operations. Despite the challenges we face, we are equipped to navigate forward and create the conditions for continued growth and sustainable development,” says Klas Dagertun, CEO of Kaunis Iron.

Lennart Håkansson

editor@northswedenbusiness.com