Grangex (GRANGEX) Q2 2024 earnings summary

Executive summary

• Completed acquisition of Sydvaranger Mining AS in May 2024, transforming Grangex into a larger mining group with significant assets and production potential.

• Signed a long-term offtake agreement with Anglo American for all Sydvaranger production, securing stable sales channels.

• Published updated feasibility study for Dannemora, confirming technical and economic viability despite higher inflation-driven costs.

• Initiated feasibility study for Sydvaranger, targeting completion within 12 months and a pre-feasibility update in Q4 2024.

• Raised SEK 57.6 million through a new share issue and secured additional project financing via royalty agreements.

Financial highlights

• Net sales for Q2 2024: SEK 4.8 million (Q2 2023: SEK 10.0 million); H1 2024: SEK 11.7 million (H1 2023: SEK 19.5 million).

• Operating result (EBIT) for Q2 2024: SEK -28.9 million (Q2 2023: SEK -4.8 million); H1 2024: SEK -41.8 million (H1 2023: SEK -6.6 million).

• Result per share for H1 2024: SEK -3.46 (H1 2023: SEK -1.61).

• Cash and cash equivalents at period end: SEK 146.5 million (June 2023: SEK 74.8 million).

• Total assets increased to SEK 979.4 million (June 2023: SEK 250.8 million), mainly due to the Sydvaranger acquisition.

Outlook and guidance

• Feasibility study for Sydvaranger expected to be completed in 12 months, with a pre-feasibility study planned for Q4 2024.

• If project financing is secured in 2024, Dannemora could restart production with first shipments around year-end 2026/2027.

• Management expects strong long-term demand for high-grade iron ore concentrate, driven by Europe's green steel transition.