Year-end report 2024

2024 resulted in a net loss for the year of SEK -205 million, with a net loss after financial items of SEK -150 million. In terms of production we ended up on 1,924 thousand tonnes, compared to 2,283 thousand tonnes in the previous year.

Linus Styrman, CFO, Kaunis Iron:
“The market for iron ore has been cautious and more weak than strong, largely due to the continued uncertainty in China, where the steel industry is struggling with low margins due to lower demand. The progress of developments in China over the next twelve months will largely shape the global iron ore market.”

The year has been characterised by logistics-related challenges. The troubled situation surrounding the Suez Canal has contributed to an increase in shipping costs by around 30 percent. At the same time, the historic and extensive stoppages on the Malmbanan railway line between December 2023 and June 2024 have challenged the entire Group, with a major impact on our profitability and liquidity.

Additionally, the disruptions have also led to lost revenues as they occurred during a period when iron ore prices were more favourable than at present. In total, the financial consequences of these challenges can be placed at close to half a billion Swedish kronor.

Klas Dagertun, CEO, Kaunis Iron:
“To ensure continued stability, important measures have been implemented with cost savings and efficiency improvements as key factors in strengthening the business and creating value for our investors. At the same time, there are ongoing significant investments that are necessary to meet the requirements set by our environmental permit and to ensure sustainable and long-term mining operations. Despite the challenges we are facing, we are well equipped to navigate our path forward and create conditions for continued growth and sustainable development.”