A billion settlement with lenders and investors could be in place by mid-March, according to Anders Antonsson, director of investor relations at Northland.
The number of consortium currently considering investing in Northland is reported to be more than five.
- Some have very advanced plans. But it takes time to go through a company as closely as they want to do, he says.

- It may be about to go through the documents, to meet people and to visit the business in place.

Otherwise, the crisis of the mining company Northland Resources, which on Tuesday filed for reorganization for two additional subsidiaries, is just the tip of the iceberg. The risks are big when small mining companies go from prospect to production.
Cracked budgets are more the rule than the exception in the mining industry. Expensive loans and large capital, combined with delays can easily derail the project, according Hjalmar Ahlberg, an analyst at Redeye, which follows the Northland and other smaller listed mining companies.
- There are high risks in the startup phase, which can easily be underestimated. There are several companies that the past five years has made its emissions to meet the financing, even those who have managed okay, he says.
Mining companies based activities on individual projects will be easy either success or failure, according to Ahlberg:
- There will be a bit binary.
For the tens of thousands of Swedish retail investors who think that the raw materials and mines are exciting, an option would be to buy certificates linked to futures contracts for various commodities. Alternatively, according to Ahlberg invest in shares of major mining groups, which Lundin Mining and Boliden, which does not stand or fall with occasional projects.
- Price risk is the raw material is still there, but it will be one less company-specific risk, for sure.
Shares in Northland has dropped to 62 cents on the Oslo Stock Exchange, down from 68 cents on Monday. Before the miljardhål the budget was revealed in early January, the price of seven dollars and two years ago you had to pay over 20 dollars for a share.

 

Joakim Goksör / TT

 
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Published 2013-02-12 16:29