Green Minerals (GEM) Q3 2024 earnings summary

Executive summary

• Directed equity issue to Oil States Industries (OSI) at NOK 15 per share, making OSI a 4% shareholder and strengthening industrial partnerships.

• Signed MoU with Soil Machine Dynamics (SMD) for joint development of core sampling and subsea mining technology, targeting readiness by Q2 2026.

• New sulphide mineral discovery in Norway, confirming significant copper potential along the Mohns Ridge.

• Progressed toward license awards, with the Minister of Energy confirming awards expected in Q2 2025.

• Focused on enabling the green shift through responsible seabed mineral production, emphasizing copper resources.

Financial highlights

• Q3 2024 revenues were NOK 6,000, down from NOK 206,000 in Q3 2023.

• Q3 2024 EBITDA and EBIT both at NOK -9.1 million, compared to NOK -1.7 million in Q3 2023.

• Q3 underlying EBITDA was NOK -2.3 million, excluding NOK 0.9 million non-cash gain and NOK 7.8 million non-cash cost related to equity issue.

• Cash and cash equivalents at quarter-end were NOK 4.6 million, down from NOK 13.7 million a year earlier.

• Equity ratio at 71% as of Q3 2024, compared to 94% in Q3 2023.

Outlook and guidance

• License holdership expected in Q2 2025, with first ore from pilot production targeted for 2028–2029.

• Commercialization and production vehicle with SMD expected by Q2 2026.

• Exploration capex estimate revised down by 25%, lowering capital needs until first ore.

• Last twelve months run-rate remains in line with previous guidance.

• No automatic link between license win and funding need due to partnership and asset-light model.