Lovisagruvan (LOVI) Q4 2024 earnings summary

Executive summary

• Revenue from ore deliveries increased to 36.8 MSEK in 2024 from 28.3 MSEK in 2023, despite a 24% decrease in mined ore volume to 25,923 tons due to delivery uncertainties and liquidity constraints.

• Operating profit after depreciation rose to 3.0 MSEK (0.1), with a margin of 8% (0%), and net profit per share improved to 0.17 SEK (-0.40).

• Cash flow from operations was 9.4 MSEK (-8.4), and liquidity at year-end was 11.2 MSEK (0.7), supported by a directed share issue of 10.7 MSEK.

• No dividend is proposed for 2024; all financial loans except equipment-related ones have been amortized.

Financial highlights

• Gross mining result before depreciation: 11.6 MSEK (9.1).

• Mining margin after depreciation: 11% (-6%).

• Operating profit after depreciation: 3.0 MSEK (0.1); net profit after financials: 1.1 MSEK (-1.5).

• Cash flow from operations: 9.4 MSEK (-8.4); investments: 2.5 MSEK (10.2).

• Equity at year-end: 48.9 MSEK (31.9); equity ratio: 71% (65%).

Outlook and guidance

• 2025 outlook depends on the success of the autumn 2024 trial delivery and potential for long-term contracts.

• Final revenue for 2024 is uncertain due to price setting in January 2025 and pending final ore grade analysis.

• No dividend proposed for 2024; focus remains on securing future deliveries and liquidity.