Northgold (NG) Q3 2024 earnings summary

Executive summary

• Gold prices reached record highs above USD 2,500/oz in Q3 2024, but junior exploration company valuations remain low, prompting a strategic shift to cost-effective asset maintenance and pursuit of partnerships.

• Rights issue in August 2024 raised SEK 7.6 million (50% subscribed), supporting short-term operations and analysis of drilling results.

• Focus remains on preserving asset value in Finland's Middle Ostrobothnia Gold Belt and evaluating structured deals for future growth.

Financial highlights

• Net sales were KSEK 0 for both Q3 and the first nine months of 2024, unchanged from prior periods.

• Q3 2024 operating loss after financial items was KSEK -2,065 (Q3 2023: KSEK -3,243); nine-month loss was KSEK -8,483 (9M 2023: KSEK -10,441).

• EBITDA for Q3 2024 was KSEK -1,773 (Q3 2023: KSEK -2,534); for nine months, KSEK -7,931 (9M 2023: KSEK -9,843).

• Cash and cash equivalents at September 30, 2024 were KSEK 754 (Sep 30, 2023: KSEK 2,106).

• Cash flow from operating activities improved to KSEK -1,172 in Q3 2024 (Q3 2023: KSEK -3,326); nine-month operating cash flow was KSEK -7,417 (9M 2023: KSEK -10,321).

Outlook and guidance

• Company will maintain current asset base cost-effectively and continue to seek partnerships and structured deals.

• Analysis of drilling results from the Kopsa project expected in coming months.

• Long-term vision is to unlock additional value and position as an attractive industry player.