Gruvaktiebolaget Viscaria (VISC) Q2 2024 earnings summary

Executive summary

• Environmental permit granted in May 2024 enables key project milestones and high-paced mine reopening; construction of a new water treatment plant began August 1.

• Name changed to Gruvaktiebolaget Viscaria in May 2024; high activity in preparations and profitability study.

• Plan to reopen Viscaria mine in 2026 remains unchanged, targeting 30,000 tons copper/year.

• Assets increased from 52 to 93 million tons since 2020 through successful exploration.

• Land allocation for the Viscaria project confirmed by court, reducing compensation to stakeholders and clearing path for development.

Financial highlights

• Q2 2024 operating loss of -11 MSEK, compared to -8 MSEK in Q2 2023.

• H1 2024 operating loss of -22 MSEK, compared to -15 MSEK in H1 2023.

• Q2 2024 net loss of -12 MSEK, compared to -9 MSEK in Q2 2023.

• Cash flow for Q2 2024 was 317 MSEK, up from 186 MSEK in Q2 2023.

• Equity increased to 1,623 MSEK at Q2 2024 from 1,242 MSEK at Q2 2023.

Outlook and guidance

• Focus for 2024 is on completing permitting, preparing for rapid restart, and finalizing the feasibility study by year-end.

• Financing of 440 MSEK secured to support ongoing activities.

• Environmental permit implementation began August 1, 2024; production start remains on track for 2026.

• Solid financial position with 514 MSEK in cash; long-term debt expected to finance up to 60% of future investments.

• Copper prices have risen over 50% in five years; medium- to long-term demand for responsibly produced copper in the EU expected to increase.