Nordic Mining (NOM) Q2 2026 earnings summary

Executive summary

• Engebø facility has transitioned to ramp-up phase after over NOK 3 billion investment, with throughput near design capacity but mineral recovery and product quality below plan, impacting sales and revenue recognition.

• Operational progress is slower than expected, with technical and quality challenges delaying income and increasing costs.

• Regulatory uncertainty persists after the Supreme Court invalidated the discharge/tailings permit; operations continue under existing conditions pending a temporary permit decision expected in September.

• Immediate liquidity needs are acute, with ongoing efforts to secure both short-term financing and long-term capital restructuring.

• Engebø is positioned as a strategic, long-life asset and key European supplier of rutile and garnet.

Financial highlights

• No revenue recognized in Q2 2026 due to product quality and shipment disputes; operating loss was NOK 154–154.3 million, net loss NOK 223.1 million.

• Operating expenses were NOK 122.1 million, with one-off NOK 10 million penalty provision for Barton.

• Cash and cash equivalents at quarter-end were NOK 149.6–150 million; equity ratio at 25.6–26%.

• Net cash flow from operating activities for H1 2026 was NOK -246.7 million; negative cash flow for Q2 was NOK 210 million.

• Total assets at 30 June 2026 were NOK 3.1–3,112 million; total liabilities NOK 2,317 million.

Outlook and guidance

• Full run-rate production is delayed, with a more conservative production profile and ramp-up/operational improvements prioritized.

• Total liquidity need through 2027 is NOK 475 million, with immediate requirement of USD 10–15 million by early September.

• Targeting long-term financing solution before November coupon payment; constructive discussions ongoing with bondholders and stakeholders.

• Market fundamentals for rutile and garnet remain supportive, with constrained supply.