From the CEO

The year 2024 was a time of significant change for us. Our financial performance turned positive, and our revenue grew for the second consecutive year by 46 %, reaching EUR 28.7 million (EUR 19.7 million). The Group’s EBITDA was EUR 5.8 million (-EUR 0.7 million), representing 20 % of revenue, and our net result was positive. The EBITDA of the Pampalo production segment was EUR 10.3 million (EUR 3.3 million), or 36 % (17%) of revenue. The unit cost per ounce excluding investments was EUR 1,281/ounce (EUR 1,278/ounce). The change has been immense, and the journey to this point has been eventful. Two years ago, the Endomines Group’s EBITDA was -EUR 6.4 million, and our net result was -EUR 17.5 million in the red. I am very pleased with the strong results and the transformation achieved in all areas of our business.

From 2022 to 2024, we focused on laying the foundation for our business. We are now entering a new phase, where our focus is on bringing new areas into production and growing the company to a significantly larger scale. Our long-term goal is to increase our production level from the current annual production of over 14,300 ounces to 70,000–100,000 ounces, estimated in the year 2030. In this new phase, we will focus on the technical and economic planning of a new production facility and the actions required by the permitting processes. At the same time, we will continue to develop our current production and conduct extensive exploration to increase gold resources.

In 2024, our exploration efforts focused on the Southern and Northern Gold Lines. We achieved excellent results both in the Kuittila-Korvilansuo axis in the south and in Kartitsa in the north. In Kuittila, our gold resources increased by 98 % as a result of exploration, and in Korvilansuo by 107 %. The gold resources of the Southern Gold Line have grown by 200,000 ounces in two years; the total resource of the area is now 270,000 ounces.

In addition to gold, high concentrations of tungsten and molybdenum were also found in the Kuittila area. Tungsten is one of the 14 critical raw materials of the European Union, and Endomines intends to apply for the status of a critical minerals producer in 2025. This status could open opportunities for new funding channels and an accelerated permitting process. The utilization of critical minerals alongside gold is a new strategic focus area for us and part of the company’s ongoing renewal.

In 2024, we also conducted nature surveys and an environmental impact assessment program in the Southern Gold Line area. We plan to submit the program for review in the spring of 2025. According to our estimate, the environmental permit decision could be realized by 2028.

The Kartitsa area in the northern part of the Karelian Gold Line is a relatively new exploration target for us. We conducted the first extensive exploration drilling in Kartitsa in the summer and autumn of 2024. We identified a high-grade gold deposit in the area, which appears to be extensive and significant in scale. In 2025, our strategic exploration will focus on Kartitsa and the Southern Gold Line in Kuittila and Korvilansuo. Additionally, we will conduct the first research drillings in the Ukkolanvaara area. In 2024, we collected bedrock samples in the area, which indicate high gold potential in this yet unexplored area.

We still own the rights to seven gold deposits in the United States. The operations in the United States are not part of our strategic focus areas, and a simpler company structure would bring us significant cost savings. We continue to actively negotiate partnerships in the United States and aim to find a solution as quickly as possible. The direct operational impact of the United States on Endomines’ EBITDA in 2024 was approximately MEUR -0.7 million (MEUR -1.0).

Sustainability is a core part of Endomines’ strategy and firmly at the heart of our operations. We strive to be a partner that acts responsibly, respects biodiversity, keeps its promises, and treats people well. We aim to be a clear leader in setting sustainability goals and implementing actions. In 2024, we published our first sustainability report. Additionally, we conducted a Double Materiality Assessment, which served as the basis for updating our sustainability program. The focus of our new sustainability program includes carbon-free gold, clean water, preserving biodiversity, employee safety and well-being, local community trust, and promoting ethical practices in governance. Our goal is to reflect on our operations with pride for years to come.

Our vision is to grow Karelian gold line into an important responsible gold production area on a global scale. We believe in the benefits of growing production and a in the strong gold market. The price of gold is particularly influenced by global geopolitical uncertainty. Unfortunately, we live in a world where the rivalry between superpowers leads to ongoing uncertainty. The future price outlook for gold is very positive, and its price is currently significantly higher than the average price of USD 2402/ounce in 2024.

We enter 2025 with a positive outlook. Behind us is an incredible journey that enabled the company’s positive turnaround in 2024. However, the journey is not over – we will continue at the same speed towards 2026.

Kari Vyhtinen CEO, Endomines Finland Oyj