Endomi­nes’ CEO in the hot seat at Karon Grilli

As on previous occasions, the discussion moved seamlessly from day-to-day operations to long-term strategy. This time, topics sizzling on the grill included a strong start to 2026, the turnaround of the Pampalo mine, organizational strengthening, as well as ambitious growth plans and the start of tungsten production.

CEO Kari Vyhtinen described the successful start to the year: when both gold prices and production volumes increase simultaneously, a so-called “double effect” is created, which is directly reflected in earnings. The first quarter was indeed very strong for the company in terms of both revenue and profitability.

Pampalo turnaround and bringing operations in-house

One of the key themes of the discussion was the development of Pampalo. A major shift took place when Endomines brought underground mining back in-house by acquiring the contractor’s business. This transition came with its own challenges — some personnel changes occurred, and despite significant efforts, recruiting new employees proved surprisingly difficult. Vyhtinen explained that as operational control was brought in-house, areas for improvement also became visible, but importantly, this created an opportunity to address them quickly.

Vyhtinen described the end of the year as a turning point. From December onwards, operations became more systematic and production stabilized. The production record at the start of the year confirms that the company is now on the right track.

Strengthening the organization and recruitment

Vyhtinen also emphasized the importance of the organization, highlighting the recruitment of highly skilled professionals and increased resources in mine planning, operational management, and the executive team. Previously, the company faced a constant shortage of resources, but it has now reached a position where the organization can support growth. At the same time, the quality of execution has improved to a new level.

Production and capacity

The discussion also addressed production bottlenecks. According to Vyhtinen, the challenge has not been the processing plant, but the mine itself. The contractor model did not support growth, and priorities were not fully aligned. Now that operations are in-house, investments can be made directly, staffing can be increased in a planned manner, and overall production can be scaled up. Vyhtinen also noted that the processing plant still has unused capacity, and the goal is to move to continuous, around-the-clock operations, further increasing output.

Cost increases are the price of growth

The discussion also covered rising costs. Key drivers include high electricity prices, particularly in winter, the mining of lower-grade deposits during a period of high gold prices, as well as recruitment and organizational strengthening. Vyhtinen emphasized that rising costs are inevitable during a growth phase. If the goal is to reach the next level, it cannot be achieved by running the organization at minimum scale.

Resource growth at the core

Perhaps the most important strategic message of the podcast relates to drilling. This year, Endomines is executing approximately 50,000 metres of drilling—more than in the previous three years combined. Vyhtinen described the link between drilling and resource growth by noting that tens of thousands of metres of drilling are aimed at delivering significant additions—potentially hundreds of thousands of ounces. This lies at the heart of the company’s value creation: the more you drill, the more you discover.

The discussion strongly highlighted the Ukko deposit, which Vyhtinen described as having exceptionally large—almost enormous—potential. The area hosts a broad formation extending over several kilometres, new gold-bearing zones are being identified across the area, and drilling has consistently delivered positive results. According to Vyhtinen, the potential may even exceed that of Pampalo.

Tungsten opens a new dimension

A new theme in the discussion was tungsten, where Endomines has the potential to become a significant producer. The company has signed a memorandum of understanding with a European partner to explore potential collaboration. Currently, China produces over 80% of the world’s tungsten, making increased European production highly desirable. Endomines has applied for EU strategic project status for the initiative. Tungsten has become increasingly important, particularly due to demand from the defense industry, and its recent strong price development makes it an attractive strategic addition.

Local perspective

Vyhtinen also highlighted community relations. In Ilomantsi, attitudes toward the mining project are largely positive, and dialogue with local stakeholders is active and constructive. Local concerns are listened to and taken into account in planning. The most critical and vocal opposition typically comes from outside the local community.

Looking ahead – scaling up

Endomines’ long-term targets are clear: to increase production to 70,000–100,000 ounces, and in the longer term up to 150,000 ounces.

Developing the Southern Gold Line is estimated to require investments of approximately €200 million. Financing will likely consist of a combination of cash flow, debt financing, and so-called streaming agreements, the latter referring to upfront payments in exchange for future production. Vyhtinen also hinted that tungsten and molybdenum—important for the steel industry—could serve as a valuable “wild card” in financing solutions.

Overall, the podcast paints a clear picture of Endomines’ position: the operational turnaround has been achieved, the organization has been strengthened, production is running well, and the company is firmly focused on growth. It will be interesting to see what Karo puts on the grill next time together with Vyhtinen. Quite possibly molybdenum.

You can watch the full episode in Finnish on YouTube.

Or listen in Finnish on Spotify.