Nordic Mining (NOM) Q2 2024 earnings summary

Executive summary

• Engebø Project construction is progressing on schedule, with commissioning underway and production ramp-up planned for Q4 2024; NOK 2.3 billion invested to date and all major equipment installations and civil works completed.

• No lost time injuries reported, maintaining a strong safety record over 250,000 working hours and 854 LTI-free days.

• Five-year mining operator agreement secured with Sunnfjord Industripartner; co-branding agreement with Barton Group for garnet offtake enhances market reach.

• Project fully financed with USD 277 million, including final NOK 48 million drawdown and all major EPC contracts activated.

• Sole ownership of Kvinnherad quartz deposit established, with ongoing test work, partner discussions, and environmental/social impact studies.

Financial highlights

• NOK 385 million invested in Engebø during Q2 2024, with total accumulated investment reaching NOK 2.3 billion.

• NOK 41.3 million transferred from mine under construction to property, plant, and equipment after completion of the administration building.

• Cash and cash equivalents at quarter end were NOK 409 million, with NOK 306 million allocated to Engebø and NOK 508 million in restricted bond escrow.

• Final $48 million bond escrow released in August, ensuring full project funding.

• Q2 net profit of NOK 10.3 million due to FX gains, despite operating loss; H1 2024 net loss was NOK -30.5 million, improved from NOK -57.1 million year-over-year.

Outlook and guidance

• Production ramp-up at Engebø scheduled for Q4 2024, with full production capacity targeted during 2025.

• Remaining project reserve estimated at $25 million, covering minimum liquidity and unexpected costs.

• Rutile prices are slightly above forecast, with expectations of further price increases due to global supply drops.

• Titanium metal segment outlook remains strong, driven by projected growth in aircraft production and robust demand.

• Third-party assessments confirm sufficient funding and on-time completion.