Green Minerals (GEM) Q4 2023 earnings summary

Executive summary

• Norwegian Parliament voted 80–20 on Jan. 9, 2024, to open the Norwegian shelf assessment area to commercial marine mineral activities, advancing potential licensing and exploration.

• Two discoveries in the Norwegian sector confirmed distinct axial and flank deposit models; Deep Insight was identified as a flank deposit.

• Strategy focuses on integrating seafloor massive sulphide (SMS) ore into existing Nordic copper-processing facilities; GTK tests confirmed blendability with conventional ores.

Financial highlights

• Q4 2023 revenue was NOK 6k vs NOK 206k in Q4 2022; operating expenses were NOK 3.996m, EBITDA and EBIT were each NOK -3.990m, and net loss was NOK 3.990m vs NOK 3.866m.

• FY 2023 revenue was NOK 6k; EBITDA and EBIT were each NOK -10.937m, and net loss was NOK 10.966m vs NOK 11.110m in FY 2022.

• Q4 operating cash flow was NOK -2.674m and net cash flow was NOK -2.021m; FY operating and net cash flow were each NOK -9.528m.

• Q4 EBITDA included a NOK 1.5m non-cash share-incentive charge; underlying EBITDA was NOK -2.5m, broadly in line with prior guidance and run rate.

Outlook and guidance

• License application was scheduled for Q3 2024; potential awards or assets were anticipated in Q4 2024/Q1 2025, with the presentation timeline showing Q1 2025.

• The CCZ nodules-license MoU was extended through end-2024; work continued toward rights transfer and a final contract, with progress described as slow but steady.

• The Oil States Industries study on an SMS mining design was expected to finish in Q1 2024, informing licensing, exploration strategy, and mining-cost estimates.

• Exploration is expected to take longer and revenues to arrive further out; using existing processing plants is intended to shorten the path to first revenues.