Green Minerals (GEM) Q2 2024 earnings summary

Executive summary

• All nominated priority areas included in Norway's first deep-sea mining licensing round, with license awards expected in early to mid-2025.

• Completed concept study for a seabed mineral production system, positioning as the only player with a complete solution for the Norwegian Continental Shelf and holding over $50 million in exploration data.

• Extended memorandum of understanding in the Clarion-Clipperton Zone, securing access to a license with over 200 million tons of wet nodules.

• OSI became a 4% shareholder through equity issuance at NOK 15 per share, double the prevailing share price.

• Integrated new geophysical and environmental data to enhance exploration and environmental study preparation.

Financial highlights

• Q2 2024 revenues were NOK 6,000, down from NOK 206,000 in Q2 2023.

• Q2 2024 EBITDA was NOK -3.7 million, including a NOK 0.9 million non-cash share incentive charge; underlying EBITDA was NOK -2.9 million.

• Net loss for Q2 2024 was NOK -3.7 million, compared to NOK -4.3 million in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were NOK 6.9 million, down from NOK 15.9 million a year earlier.

• Equity ratio at 77% as of June 30, 2024, compared to 90% in Q2 2023.

Outlook and guidance

• License application process starts in H2 2024, with awards targeted for early to mid-2025 and pilot production anticipated in 2028.

• Steady-state EBITDA from one HEDSM system projected at $176–200 million annually, with pre-tax CROI over 300% and payback in four months.

• Ongoing integration of new data to inform exploration and environmental baseline studies.