The financial position
At the end of June 2026,The Group cash and cash equivalents amounted to MEUR 4.8 (31 Dec 2025: MEUR 3.9; 31 Mar 2026: MEUR 9.4). Compared with the end of March, cash and cash equivalents decreased due to an early payment of the final instalment of MEUR 1.9 for the Power Mining business acquisition, a MEUR 1.5 cash deposit collateral and a non-recurring expense of MEUR 0.2 relating to the new financing arrangement.
In H1 net operating cash flow before investments was EUR 11.2 million (EUR 5.1 million). Net cash flow from investing activities was EUR -10.0 million (EUR -6.8 million), which also included the first instalment of the gold deposits sold by Endomines Idaho LLC of EUR +1.9 million.
Financing arrangement
In June, Endomines received a funding decision of up to EUR 1.51 million by Economic Development Centre of Eastern Finland and EU for the producer of critical minerals project. The funding is a grant and consists of approximately EUR 0.96 million allocated to development measures and approximately EUR 0.55 million to investments. The grant will be received in instalments against reported costs and is estimated to be received between June 2026 and September 2028. The first instalment of approximately MEUR 0.5 was received in the second quarter of the year.
In June 2026, Endomines signed an agreement with Pohjois-Karjalan Osuuspankki on a new long-term financing package up to 21 million euros. The agreed package refinances the financing package of 12 million euros that was agreed upon in April 2025, of which the company has utilized approximately 5 million euros to date.
The agreement includes two separate secured loans of 5 million euros each, one with a three-year term and the other with a five-year term. Additionally, the company has increased its overdraft facility to 4 million euros and agreed on a bank guarantee limit of 5 million euros, which can be used, among other things, for environmental guarantees. Approximately MEUR 2.8 of this was drawn during the review period. A MEUR 1.5 cash deposit collateral was paid against the guarantee. The package also includes other financing limits and instruments to be determined at a later stage, totalling 2 million euros.
Convertible loans
In H1, Endomines received conversion notices related to the convertible loans, based on which a total of EUR 3,626,884.92 was converted into new shares in Endomines Finland Plc. As a result of the exchange, 2,404,392 new shares in Endomines Finland Plc were registered and issued (considering the share split). The total number of shares and votes in Endomines increased from 34,162,659 shares and votes to 38,357,541 shares and votes. After registration, the new shares represented approximately 10.9% of the total number of shares and votes in the company.
All of the Company’s remaining convertible loans mature within the next 12 months. If they are repaid on their maturity dates, they entitle holders to a maximum of 4,413,381 new shares, corresponding to 10.3% of the total number of shares and votes in the Company. The Company has the option to request early repayment of the convertible loans.
