Green Minerals (GEM) Q1 2025 earnings summary

Executive summary

• Achieved an oversubscribed NOK 11 million equity raise in Q1 2025, extending operational runway and optionality, with founders' NOK 24 million in-kind commitment and a guaranteed rights issue in place.

• Implemented an 80% cost reduction program, maintaining core competency while reducing capacity, and extending the CCZ MoU to 2027, covering a large area with significant upside in battery metals.

• Positioned as a frontrunner for Norway's first deep-sea mining license round, with all priority areas included in nominations and authorities increasing exploration funding fivefold.

• Business model leverages asset-light, capital-efficient offshore mining, with superior environmental and economic metrics compared to traditional mining, and partnerships with leading global players.

• Production concept and partner ecosystem in place, focusing on copper and other battery metals, with OSI and SMD as key collaborators.

Financial highlights

• Q1 2025 revenue flat at NOK 6,000; EBITDA and EBIT both at NOK -2.1 million, with net loss slightly higher year-over-year.

• Net cash flow for Q1 2025 was NOK 7.7 million, reflecting the equity raise; cash and cash equivalents at quarter-end were NOK 10.7 million.

• Equity ratio improved to 89% in Q1 2025 from 84% in Q1 2024, reflecting a strong capital structure.

• Cost-cutting measures are expected to lower the quarterly cash run rate by approximately 80% going forward.

• Maximum projected cash drawdown is $35 million, but actual drawdown could be as low as $5 million due to partnerships and PPP models.

Outlook and guidance

• License awards for deep-sea mining in Norway anticipated in Q2 2026, with all priority areas included and application readiness ongoing.

• Government exploration budget for 2025 increased to NOK 150 million, a fivefold rise, with up to USD 15 million in exploration data to be added at zero cost.

• Business development activity is increasing, with a consortium ready for the first license application and a guaranteed rights issue in place.

• Ambitions to scale to three to five production systems, with significant cash generation expected once production begins.

• First cruise and project milestones mapped through 2026.