Financing

The financial position of the group

At the end of December 2025, the Group’s cash and cash equivalents were MEUR 3.9 (MEUR 2.1). At the end of December, interest-bearing net liabilities were MEUR 9.9 (MEUR 13.2), net gearing was 17% (32%) and equity ratio was 61% (54%). The amount of interest-bearing net liabilities was affected by the conversion of convertible loans into shares. Operating cash flow before investments was MEUR 13.1 (MEUR 6.1). The development was influenced by significantly higher net sales and operational efficiency compared to the comparison period. Endomines invested a total of MEUR 18.3 in 2025, mainly in measures related to increasing production at Pampalo and Hosko and in ore exploration.

Financing arrangement

During the financial year, Endomines has agreed on a new long-term financing facility, consisting of a secured loan of up to MEUR 8.0, an overdraft facility of MEUR 3.0, and bank guarantee and financing facilities, the total amount of which is up to MEUR 1.0. The total amount of the financing facility is up to MEUR 12.0, of which the unused portion at the end of the financial year was MEUR 7.0.

On 31 December 2025, MEUR 5.0 of the secured loan related to the financing facility was drawn down. The principal of the loan is due for payment on 15 December 2028. The total interest on the loan consists of a margin and a 12-month Euribor rate. The total interest rate during the financial year has been 10%. The secured loan is subject to covenants, if the thresholds are exceeded, the lenders may demand immediate repayment of the loans. The covenants relate to the ratio of interest-bearing debt to operating cash flow and the equity ratio. Endomines has fulfilled the covenants related to financing during and at the end of the reporting period.

Convertible loans

January 22, 2025, Endomines agreed on a MEUR 2.3 convertible loan with the company’s largest shareholders. The maturity of the convertible loans is 24 months, with an annual interest rate of 10%. Under the agreement, the convertible loans can be converted wholly or partially into the company’s shares no earlier than 12 months from the date of the loan disbursement. The conversion price is fixed at €7.51 and is based on the average share closing price in December 2024, reduced by 5.5%.

During 2025, Endomines received conversion notifications related to convertible loans, based on which a total of EUR 9,894,115.05 was converted into new Endomines Finland Oyj shares. As a result of the conversion, 1,141,315 new Endomines Finland Oyj shares were registered and issued. The total number of Endomines shares and votes increased from 10,830,029 shares and votes to 11,971,344 shares and votes. After registration, the new shares represented approximately 9.5 percent of the company’s total shares and votes.

The company has not had any other issues during the 2025 financial year.