Grangex (GRANGEX) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 were 3,232 KSEK, down from 10,522 KSEK in Q4 2023; full-year net sales were 17,518 KSEK, down from 35,372 KSEK year-over-year.

• Operating loss (EBIT) for Q4 was -17,849 KSEK (vs. -7,042 KSEK); full-year EBIT was -78,220 KSEK (vs. -20,574 KSEK), impacted by one-off costs for the Sydvaranger acquisition.

• EPS for Q4 was -5.35 SEK (vs. -0.36); full-year EPS was -13.66 SEK (vs. -3.20).

• Completed acquisition of Sydvaranger Mining AS in May 2024; published updated feasibility study for Dannemora and a positive PEA for Sydvaranger.

• Signed offtake agreement with Anglo American for all Sydvaranger production and entered a sustainability-focused partnership with SKF Group.

Financial highlights

• Q4 net sales: 3,232 KSEK (Q4 2023: 10,522 KSEK); full-year: 17,518 KSEK (2023: 35,372 KSEK).

• Q4 EBIT: -17,849 KSEK (Q4 2023: -7,042 KSEK); full-year EBIT: -78,220 KSEK (2023: -20,574 KSEK).

• Full-year net result: -178,089 KSEK (2023: -27,838 KSEK), including significant financial costs from royalty and loans.

• Cash and cash equivalents at year-end: 81,136 KSEK (2023: 34,489 KSEK); total assets: 978,018 KSEK (2023: 261,201 KSEK).

• No dividend proposed for 2024.

Outlook and guidance

• Sydvaranger PEA estimates NPV8 (pre-tax) at USD 1,215 million, IRR 46.9%, with production start targeted for 2027.

• Focus in 2025 on securing financing for Sydvaranger and progressing Dannemora toward final investment decision.

• Current working capital insufficient for all planned activities in the next 12 months; ongoing efforts to secure additional funding.