Nordic Mining (NOM) Q4 2025 earnings summary

Executive summary

• Ramp-up at Engebø progressed slower than expected due to execution, technical reliability, and process issues, but Q4 2025 marked record garnet output and first quality rutile batch.

• New operational management and technical support from Systemex were implemented to address challenges and accelerate ramp-up.

• NOK 200 million equity raise in January 2026 improved liquidity and supports ramp-up, working capital, and equipment upgrades.

• Five-year offtake agreements for rutile and garnet secure future revenue visibility, with some contract terms under renegotiation.

• Strategic positioning as a key European supplier of rutile and garnet, with strong political support and long-term growth opportunities.

Financial highlights

• Q4 2025 revenue was NOK 1.1 million, with negative EBITDA of -NOK 111.5 million and operating loss of NOK -143 million due to ramp-up phase and limited sales.

• Q4 2025 net loss was NOK -233.5 million; full year net loss NOK -437.9 million.

• Pro-forma cash position post-capital raise is NOK 519.4 million; cash and cash equivalents at year-end 2025 were NOK 329.4 million.

• Cash flow in Q4 was +NOK 56 million, aided by a $22.5 million tap issue; negative free cash flow of NOK 175–200 million expected in 2026.

• One-off NOK 20 million adjustment and $2 million provision for potential garnet delivery shortfall penalty.

Outlook and guidance

• Targeting stable production at design capacity for rutile and garnet by year-end 2026, with annual revenues just under NOK 1 billion and EBITDA just under NOK 500 million at full production.

• Free cash flow expected to turn positive in 2027 as ramp-up completes; fully funded to reach cash-positive operations.

• No additional CapEx expected beyond already budgeted upgrades for the dry plant; commercial longstop date for royalty agreement extended to March 2027.

• Next operational update scheduled for March, with Q1 production update in April and full Q1 report in May.

• Operating cash flow projected to improve as production and sales volumes increase through 2026.