Vow Green Metals (VGM) H1 2024 earnings summary

Executive summary

• Achieved major milestones in H1 2024, including capital raises, construction start at Hønefoss, and a long-term supply agreement with Elkem for 15,000 tons of biocarbon annually.

• Early production line at Hønefoss (2,500 tons capacity) is operational, accelerating commercial deliveries and product development.

• Secured NOK 344 million green loan for Hønefoss facility, with construction progressing and operations expected in H2 2025.

• Strategic partnerships and investments from Vardar AS and Skagerak Energi AS strengthen financial position and project execution.

• Clear ambition to reach 200,000 tons of biocarbon production by 2028 and exceed 500,000 tons by 2030.

Significant events and developments

• NOK 344 million loan agreement signed with DNB and Eksfin, securing full financing for Hønefoss phase 1.

• NOK 70 million equity investment from Vardar AS and Skagerak Energi AS in H1 2024.

• Vardar AS became a 25% stakeholder in the Hønefoss facility through equity investment and debt conversion.

• Supply agreement with Elkem ASA for up to 15,000 tons of biocarbon annually from Hønefoss.

• Early production line at Hønefoss fully financed through leasing.

Capital allocation and financing

• NOK 70 million capital raised in H1 2024, including NOK 50 million equity from Vardar AS and NOK 20 million from Skagerak Energi.

• NOK 10 million revolving credit facility established with SpareBank 1 SR-Bank.

• Leasing agreement for early production line added NOK 46.3 million to non-current assets and liabilities.

• Vardar AS converted NOK 50 million loan to equity; Skagerak Energi AS invested NOK 20 million in equity.

• Additional pilot equipment added to increase production capacity and develop new products.