Gruvaktiebolaget Viscaria (VISC) Q3 2024 earnings summary

Executive summary

• Preparation for Viscaria mine reopening in 2026 is progressing, with key permits secured, infrastructure work underway, and construction of a water treatment plant commenced.

• Viscaria is positioned as one of Europe's largest copper projects, with significant resource growth since 2020 and exceptional exploration results, including discovery of the ABBA zone.

• Environmental permit process advanced, with appeals largely resolved and final legal effectiveness expected by December 2024.

• Collaboration agreement reached with Laevas Sami village, resolving local stakeholder concerns and leading to withdrawal of appeals.

Financial highlights

• Activated exploration and evaluation expenditures reached SEK 104M in Q3 2024, up from SEK 60M in Q3 2023.

• Operating loss was SEK -10M in Q3 2024, compared to SEK -8M in Q3 2023.

• Net loss for Q3 2024 was SEK -6M, versus SEK -4M in Q3 2023.

• Cash flow for Q3 2024 was SEK -129M, compared to SEK -83M in Q3 2023; cash and cash equivalents at period end were SEK 385M.

• Equity increased to SEK 1,617M at the end of Q3 2024, up from SEK 1,238M a year earlier.

Outlook and guidance

• The plan to restart Viscaria in 2026 remains unchanged, targeting annual production of 30,000 tons of copper.

• Feasibility study and updated resource estimate expected before year-end 2024.

• Solid financial position with SEK 385M in cash; long-term debt expected to finance up to 60% of future investments.

• Copper market outlook remains strong, with long-term demand growth anticipated, especially in the EU.