Nordic Mining (NOM) Q3 2024 earnings summary

Executive summary

• Engebø project construction and commissioning are on schedule, with production ramp-up set for Q4 2024 and first concentrate and product shipments targeted for Q1 2025; all major infrastructure and plant milestones achieved.

• Over NOK 2.6 billion invested in Engebø, with the project fully financed until positive cash flow, and NOK 586 million in cash and cash equivalents at quarter end.

• Health and safety performance remains strong, with 924 days without lost time injuries and heightened safety focus during commissioning.

• Mining contractor agreement initiated, ore stockpile ready, and shift work for production operators commenced.

• Offtake agreements secured for up to full rutile and garnet production for the first five years.

Financial highlights

• Q3 operating loss of NOK 14.8–14.9 million, but net profit of NOK 10 million driven by net foreign exchange gains.

• NOK 278 million invested in Engebø during Q3, down from NOK 385 million in Q2, reflecting the tail end of construction.

• Cash and cash equivalents at quarter end were NOK 586–586.3 million, with NOK 490 million allocated to Engebø.

• $48 million bond fully drawn in August, securing project funding.

• Total assets of NOK 3.3 billion and equity of NOK 1.5 billion at quarter end.

Outlook and guidance

• Production ramp-up scheduled for Q4 2024, with full plant capacity and first product shipment expected in 2025.

• Project reserve of $25 million maintained to cover minimum liquidity and unexpected costs.

• Rutile prices expected to recover in 2025 as pigment and metal sector demand improves.

• Garnet demand in North America and Europe remains soft but shows signs of improvement.

• No changes to expected annual production: 35,000 tons rutile and 125,000 tons garnet at full operations.