Nordic Mining (NOM) Q2 2024 earnings summary

Executive summary

• Engebø Project construction is on schedule for Q4 2024 ramp-up, with NOK 2.3 billion invested to date and key mechanical installations completed.

• No lost time injuries reported over 250,000 working hours, maintaining a strong safety culture and 854 LTI-free days.

• Commissioning of process plant machinery has commenced, with operational readiness progressing through new hires and training.

• Five-year mining operations agreement signed with Sunnfjord Industripartner and offtake agreements secured for garnet sales with Barton Group.

• Sole ownership of Kvinnherad quartz deposit secured, with ongoing assessments for industrial use.

Financial highlights

• NOK 385 million invested in Engebø during Q2 2024, with total investment reaching NOK 2.3 billion.

• NOK 41.3 million reclassified from mine under construction to property, plant, and equipment after administration building completion.

• Cash and cash equivalents at quarter end were NOK 409 million, with NOK 306 million allocated to Engebø and NOK 508 million on bond escrow.

• Final bond escrow release of USD 48 million completed in August, securing full project financing.

• Q2 net profit was NOK 10.3 million due to FX gains, despite no sales revenue as Engebø remains under construction.

Outlook and guidance

• Production ramp-up at Engebø scheduled for Q4 2024, with full production capacity targeted during 2025.

• Estimated remaining project reserve is USD 25 million, covering minimum liquidity and unexpected costs.

• Rutile prices are slightly above forecast, with expectations of further price increases due to global supply constraints.

• Third-party assessment confirms sufficient funding and on-time completion for Engebø Project.

• Guidance on project reserve and liquidity maintained from previous quarter.