Grangex (GRANGEX) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were 2,562 KSEK, down from 5,373 KSEK in Q3 2023; EBIT was -18,590 KSEK versus -6,884 KSEK year-over-year.

• For Jan–Sep 2024, net sales reached 14,286 KSEK (24,850 KSEK in 2023); EBIT was -60,370 KSEK (-13,533 KSEK in 2023).

• Sydvaranger Mining AS acquisition completed in May 2024; feasibility and optioneering studies for mine restart underway.

• Off-take agreement for all Sydvaranger production signed with Anglo American.

• New share issue raised 57.6 MSEK; application submitted for listing on Nasdaq First North Premier.

Financial highlights

• Q3 2024 EPS was -2.85 SEK, compared to -1.23 SEK in Q3 2023.

• Jan–Sep 2024 EPS was -8.08 SEK, compared to -2.84 SEK in 2023.

• Cash and cash equivalents at period end: 110,520 KSEK (43,613 KSEK in 2023).

• Total assets increased to 918,920 KSEK from 244,631 KSEK year-over-year, mainly due to the Sydvaranger acquisition.

• Equity at period end: 62,898 KSEK (107,713 KSEK in 2023).

Outlook and guidance

• Preliminary Economic Assessment (PEA) for Sydvaranger restart expected January 2025; full feasibility study targeted for mid-2025.

• Company expects sufficient liquidity for at least 12 months following the Anglo American royalty agreement.

• Market outlook for high-grade iron ore products is positive, with expected long-term price growth driven by decarbonization trends.