Lovisagruvan (LOVI) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached 19.4 MSEK, up from 0.0 MSEK in Q3 2023, driven by a new sales agreement and delivery of 9,000 tons of ore.

• Operating profit after depreciation was 5.6 MSEK (compared to -0.3 MSEK last year), and net profit after financials was 5.3 MSEK (-0.5 MSEK last year).

• Earnings per share for Q3 were 1.08 SEK, compared to -0.12 SEK in Q3 2023.

• For the first nine months, revenue was 19.4 MSEK (27.3 MSEK last year), with a net loss of -2.2 MSEK (4.8 MSEK last year).

Financial highlights

• Q3 ore production was 5,415 tons (7,338 tons last year); 9,000 tons delivered in Q3, with 11,000 tons to be delivered in October.

• Gross mining result for Q3 was 7.7 MSEK (1.9 MSEK last year).

• Cash flow from operations for the first nine months was -18.5 MSEK (-3.6 MSEK last year); investments totaled -2.1 MSEK (-9.1 MSEK last year).

• Net interest-bearing debt increased by 9.3 MSEK; a rights issue in Q2 raised 10.7 MSEK, diluting shares by 12.8%.

• Cash at quarter-end was 0.1 MSEK, with a 5.0 MSEK credit line added after the quarter.

Outlook and guidance

• Remaining 11,000 tons under the new sales agreement to be delivered in October, with final pricing after customer processing in November.

• Over 15,000 additional tons expected to be available for sale by year-end.

• Improved financial position expected to enable new exploration and development initiatives.