Nordic Mining (NOM) Q3 2024 earnings summary

Executive summary

• Engebø project is nearing completion, with mechanical and civil works finalized, commissioning advanced, and production ramp-up scheduled for Q4 2024; first concentrate expected before year-end.

• Over NOK 2.6 billion has been invested in Engebø, with NOK 278 million invested in Q3, and the project is fully financed until positive cash flow is achieved next year, with NOK 586 million in cash at quarter-end.

• Health and safety performance remains strong, with 924 days without lost time injuries and a focus on safe commissioning and energization.

• Offtake agreements secured for up to full rutile and garnet production for the first five years.

• Application filed to transfer listing from Euronext Expand to Euronext Oslo Børs, expected before year-end.

Financial highlights

• NOK 2.6 billion invested in Engebø to date; NOK 278 million capitalized in Q3.

• Q3 operating loss of NOK 14.8 million, but net profit of NOK 10 million driven by FX gains; year-to-date net loss of NOK 20.5 million.

• Cash and cash equivalents at quarter-end were NOK 586 million, with NOK 490 million allocated to Engebø.

• $48 million USD bond fully drawn in August, securing project funding.

• Project reserve of $25 million maintained to cover liquidity requirements and unexpected costs.

Outlook and guidance

• Production ramp-up at Engebø to begin in Q4 2024, with first mineral concentrate expected before year-end and full production capacity targeted during 2025.

• First product shipment planned for Q1 2025; full-year sales targets remain at 35,000 tons rutile and 125,000 tons garnet.

• Rutile prices expected to recover in 2025 as pigment and metal sector demand improves; garnet demand in North America and Europe remains soft but shows signs of improvement.

• Kvinnherad quartz project bulk sampling underway; drilling and pre-feasibility study planned for mid- to H2 2025.