Nordic Mining (NOM) Q1 2025 earnings summary

Executive summary

• Transitioned from construction to production ramp-up at Engebø, with initial operational challenges and pump circuit design issues impacting volumes and delaying ramp-up goals; remedial actions are underway.

• First commercial shipment of 569 tons of garnet completed in May 2025, marking a key milestone in logistics and customer quality validation.

• Rutile production to commence end of May 2025, with first shipment planned for Q3 and steady-state production for both rutile and garnet targeted by year-end.

• New CEO focused on achieving design capacity by year-end and launching a strategic review; new Chief Commercial Officer to start July 2025.

• Operational experience rapidly growing, with 110 employees and five operating shifts established since October 2024.

Financial highlights

• No sales revenue recorded in Q1 2025 as ramp-up continues; operating loss was NOK 78.1 million, but net profit reached NOK 22.0 million due to NOK 115.2–130.7 million net exchange rate gains and a change in royalty liability estimates.

• Net cash increased by NOK 169 million in Q1, mainly due to a USD 33 million (NOK 349 million) high-yield bond tap issue.

• Cash and cash equivalents at quarter-end were NOK 617–636 million, including restricted cash.

• Investment activity of NOK 110 million in Q1, including capitalized operational costs.

• Total assets stood at NOK 3.5 billion and total equity at NOK 1.4 billion as of 31 March 2025.

Outlook and guidance

• Targeting steady design capacity and stable production for rutile and garnet at Engebø by year-end 2025.

• Updated ramp-up plan defers revenue streams by two quarters; first rutile shipment planned for Q3 2025.

• Long-term annual production targets: 35,000 tons rutile and 200,000 tons garnet after ramp-up.

• Cash flow positive operations expected in 2026.

• Strategy process underway, with updates expected in the fall.