Lovisagruvan (LOVI) Q2 2024 earnings summary

Executive summary

• No ore deliveries occurred in Q2 2024, resulting in zero revenue compared to 8.2 MSEK in Q2 2023; ongoing negotiations for sales and long-term contracts continue.

• Ore production decreased as planned to 6,460 tons (7,433 tons in Q2 2023); ore stock increased to 31,130 tons, valued at 21.6 MSEK.

• Net result after financial items was -5.0 MSEK (2.7 MSEK in Q2 2023); EPS was -1.01 SEK (0.62 SEK in Q2 2023).

Financial highlights

• Revenue was 0.0 MSEK (8.2 MSEK in Q2 2023); operating result before depreciation was -1.5 MSEK (5.8 MSEK); after depreciation, -4.2 MSEK (3.8 MSEK).

• Cash flow from operations for H1 2024 was -11.9 MSEK (1.1 MSEK in H1 2023); investments totaled -2.5 MSEK (-7.7 MSEK).

• Liquid assets at quarter-end were 0.1 MSEK, with an unused credit facility of 5.0 MSEK.

• Net result for H1 2024 was -6.0 MSEK (4.3 MSEK in H1 2023).

Outlook and guidance

• Sales efforts for ore inventory and future production are ongoing; commercial terms for new contracts are not yet finalized.

• The recent directed share issue is expected to bridge liquidity needs until a new sales agreement is in place.