Endomines AB (Public)stock exchange release August 18, 2022 and 13:00 (Central European Time)
1H 2022 (vs. 1H 2021)
highlight
- 108.2 kg (3 478 oz) of gold production at Pampalo
- Decided to start an open pit yeast mine to increase future production in Pampalo.
- East open pit start earlier than planned.
- 49% (ounces) increase in underground gold reserves at Pampalo, driving high-grade drilling results at Friday Mine
- Our long-term strategy has been updated to develop known deposits on the Karelian Gold Line, explore to define deposits in excess of 1 million ounces, and united states of america
- The 12-month LTI rate (lost time injuries per million hours worked) is 8.4.
- New funding of 34 MSEK in June and direct issuance of 63 MSEK in February for strategic activities and deepening of the Pampalo underground mine
financial highlights
- Revenue was 59.1 MSEK (0.01)
- EBITDA is -38.0 MSEK (-40.3)
- Pampalo business profitability improved over the period, Pampalo business EBITDA (non-IFRS, unaudited) Q1 2022 -5.7 MSEK, Q2 2022 7.7 MSEK
- Total cash flow is 24.1 MSEK (16.5)
- Earnings per share is –0.22 Swedish Krona (-0.59)
|
Key figure (consolidated)
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January to June
|
|
Unless otherwise specified, MSEK
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2022
|
2021
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+/-
|
|
Earnings
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59.1
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0.01
|
59.1
|
|
Operating expenses
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-98.7
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-40.4
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-58.3
|
|
EBITDA
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-38.0
|
-40.3
|
2.3
|
|
depreciation
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-69.0
|
-55.2
|
-13.8
|
|
EBIT
|
-107.1
|
-95.5
|
-11.6
|
|
Net income
|
-51.8
|
-120.8
|
69.0
|
|
Earnings per share (SEK)
|
-0.22
|
-0.59
|
0.37
|
important events after
LDA Capital Convertible loans were converted into equity on three occasions, which were published on July 6th, August 9th and August 11th.One investor financing package published in June 22, 2022 0.1 MEUR (1.0 MSEK) convertible loan into equity with conversion announced August 17, 2022.
Outlook
Production continues to increase at Pampalo, with an estimated 10-20% increase in ore production from the eastern open pit. endmin estimates that H2 production will be 30-70% higher than in the first half of 2022. No gold production will materialize after Friday in the second half of 2022. The current focus is to explore partnership options for the operation of the Friday Mine and the Oro Grande Processing Plant.
During Q3 2022 endmin will commence the second phase of a total of 4000 meters of underground core drilling program at the Pampalo Mine for deep extension of the deposit. During the third quarter of 2022, the company will commence a large-scale surface exploration drilling program on the Karelian Gold Line. The program concentrates on the Pampalon Ramit, Pampalo and Lemepro regions, with selected regional exploration targets in the Corbilansuo and Kartitsa regions.
President’s comment Kari Witinen
Uncertainties in the first half of 2022 Europe significantly increased after the unexpected war in UkraineOur hearts and thoughts are with the people UkraineI sincerely hope that this brutal war will end soon and peace will return to the world. Ukraine.
Despite this unfavorable development in the world, the first half of 2022 endminPampalo’s production continued to grow well, with Pampalo producing 108.2 kg, or 3,478 ounces of gold in the first half. Production in Q2 2022 increased by 78% to 69.3 kg (or 2 227 oz) compared to production levels achieved in Q1 2022. Improved production levels have also led to improved EBITDA. Pampalo EBITDA for the second quarter was 7.7 MSEK or 21.6 % compared to -5.7 MSEK or -28.8 % for the first quarter 2022.
Friday’s project is also in the launch stage. Idaho, USADuring the spring, gold mineralization is found to be more irregular than originally estimated, and underground drilling must be done before production can continue. Production will therefore be temporarily suspended in early 2022 and the situation remains unchanged. The current focus is to explore partnership options between the mine and the Orogrande processing plant. The Orogrande plant is located in an area where other companies may use processing plants for ore processing. In the second quarter, we also took important steps to bring down our cost base to a level where revenue lagging would not put the company at risk. We are pleased with how quickly and significantly we were able to reduce our costs at united states of america operation. of unaudited EBITDA united states of america Operations in Q2 2022 was -3.9 MSEK.
endmin owns other potential gold assets in united states of americaAll deposits were reviewed and financially assessed during the first half of 2022. From the evaluation it was concluded that: US Grant and Rescue The project is most likely a mid-term development project. rescue mine the project is unity mine in the Warren District of IdahoWe are also exploring partnership options for Rescue (and Unity) development. IdahoThe US Grant plans to continue research with the first grant activity to define the necessary development steps during the second half of 2022.
Over the past few months, we have updated our long-term strategy. This will endmin This will significantly increase shareholder value. Our new strategy is based on the following principles.
** Pampalo production provides the foundation for your business
** Actively developing other known Karelian Gold Line deposits to increase production in Pampalo.
** Active exploration on the Karelian Gold Line to define deposits with gold resources of 1 million ounces or more
**We are actively looking for partners united states of america Operations to acquire more local operational knowledge and local funding
** ESG activities guide the overall development of the company
In the first half of the year, we started the first steps to implement our new strategy. Improved profitability at Pampalo began to form the foundation of the business.of May 2022 endmin It was decided to take the first step in developing the part other than the underground mine, and decided to open the eastern open pit mine. Preparatory work at the east open pit has advanced ahead of schedule, and open pit production has begun. It is estimated that this will increase gold production in Pampalo by 10-20%. Our plan is to continue the development of other known and permitted parts of the Goldline to further increase production levels in Pampalo.
Other significant changes in the company’s strategy are its focus on exploration on the Karelian Gold Line and its focus on ESG. endmin prepared a long-term ESG plan in the first half of 2022 and created a roadmap for improving the company in the coming months and years. We aim to be a leading company in the field of ESG and will ensure that our ESG activities are part of our future reports.
In terms of exploration, the current price of gold makes it possible to develop gold mineralization with lower gold grades than in the past. Exploration activity to date has focused on high-grade gold lenses, but now the focus has shifted to large volumes of low-gold mineralization. The Karelian Gold Line is an area of great potential for the development of this type of deposit and will be an important area of focus for the company in the future. Similar greenstone belts are important gold-producing regions of the world. Australiain the Ability Area Canada Witwatersrand region South Africa. endmin has defined a strategic objective to determine gold resources with gold resources above 1 million ounces. Starting an exploration drilling campaign in August, from 2023 he will explore financing options to continue the large-scale drilling campaign during 2024. We believe this will take the company to new levels, increase shareholder value and open up opportunities for large-scale partnerships.
We sincerely thank our employees for their hard work during this extraordinary time. We believe in our strategy and will continue to work hard to achieve our strategic goals. We also thank our shareholders, partners and other stakeholders who have accompanied us on this journey.
The full Semi-Annual Report Release is attached to this release (pdf) and is also available on our website.
https://endomines.com/investors/materials/financial-reports-presentations/2022-2/
contact person
Kari WitinenCEO, kari.vyhtinen@endomines.com, +358 40 585 0050
Mikko SopanenCFO, mikko.sopanen@endomines.com, +358 50 434 7439
This information has been submitted for publication through the contact information above. 13:00 (Central European Time) upon August 18, 2022.
about endmin
endmin is a mining and exploration company focused primarily on gold. We search for gold along the Karelian Gold Line. eastern finland We are running a mining business. Idaho, USA When Finland. endmin We aim to increase our exploration activities and improve our long-term growth prospects through acquisitions. endmin We aim to obtain deposits that are located in stable jurisdictions and that allow us to start production quickly with limited investment.
The shares are traded on the Nasdaq Stockholm (ENDO) and the Nasdaq Helsinki (ENDOM).
https://news.cision.com/endomines-ab/r/endomines-half-year-interim-report-2022-steady-gold-production-and-new-corporate-strategy,c3616022
https://mb.cision.com/Main/2472/3616022/1616200.pdf
https://mb.cision.com/Public/2472/3616022/9bd28a65f8bebf61.pdf
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