ENDOMINES Year-end report 2020 Endomines completes purchase of US Grant and Kearsarge gold projects and resolves on a rights issue

The full report (PDF)

Endomines AB, Stock Exchange Release 18 February 2021 at 08:45 CET

Full year 2020 (vs. Full year 2019)

Operational highlights

  • Endomines completes purchase of US Grant and Kearsarge Gold Projects and has resolved on a directed share issue in connection therewith
  • Friday operations temporarily under care and maintenance during Q4
  • No injuries reported in the last 12 months; LTIFR 0 (0)

Financial highlights

  • Total revenue was 13.1 MSEK (5.8)
  • EBITDA was -108.0 MSEK (-48.8)
  • Adjusted EBITDA was -78.1 (-48.8), items affecting the EBITDA are US Grant final claims payment
  • Total cash flow was -4.4 MSEK (-3.3)
  • Earnings per share was -1.67 SEK (-1.28)

Significant subsequent events

  • On January 4th, 2021, Endomines EGM resolved and approved the Board of Directors' resolution from 30th November 2020 on a rights issue of approximately MSEK 281. The EGM also resolved and approved a directed share issue by way of set-off of claims, to the Guarantors as payment for their guarantee undertakings and set-off of debts to certain lenders.
  • On January 19th, 2021, Endomines receives additional support for its rights issue – Kyösti Kakkonen and entities affiliated with him have applied for additional subscription of shares amounting to 10 MSEK.
  • On January 28th, 2021, Endomines announces the final outcome of its rights issue, raising approximately 214 MSEK.
  • On January 29th, 2021 Endomines updates on Pampalo mine re-opening.

Production update and outlook for 2021:

During January 2021 Endomines carried out its rights issue, raising approximately 214 MSEK. The company will now focus its attention on operations and ramp-up activities at the Friday and Pampalo gold projects. At Pampalo deepening of the mine will start in late March/early April after mining contractor has been selected and mobilized to the site. Mining starts later in the year once the decline has been driven deep enough for stope development. At Friday the technical problems at the mill are being addressed and production will start as soon as weather conditions permits in late spring.  Endomines will specify its production guidance for 2021 in connection with the release of the Q1-business review.


Key figures (Consolidated)

MSEK if not otherwise stated 2020 2019 +/-
Total revenue 13.1 5.8 7.3
Cost -121.1 -54.6 -66.5
EBITDA -108.0 -48.8 -59.2
Adjusted EBITDA -78.1 -48.8 -29.3
Depreciation and write-downs -76.7 -3.6 -73.1
EBIT -184.7 -52.5 -132.2
Net result for the period -196.9 -76.7 -120.2
Earnings per share (SEK) -1.67 -1.28 -0.39
Cash flow from operating activities -76.9 -78.9 2.0
Cash flow from investing activities -26.6 -80.3 53.7
Cash flow from financing activities 99.0 155.9 -56.9
Liquid assets at the end of the period 11.3 15.7 -4.4
Personnel at the end of the period 30 43 -13
LTIFR 0 0 0

LTIFR = The Lost Time Injury Frequency Rate is based on reported lost time injuries resulting in one day or more off work per 1,000,000 hours worked on a rolling 12-month basis. LTIFR has been calculated for the whole company including contractors

Interim CEO Rauno Pitkänen: “I would like to thank our current shareholders as well as our new investors for their strong support and believe in Endomines and our mine projects. At the operations level, we are now fully focused on the re-opening of the Friday and Pampalo mines. We are re-organising and supplementing the operational structure to be able to move ahead full speed on executing  on our plans. At Friday we estimate to be able to ramp-up gold production by early summer. At Pampalo our goal is to have first gold production by the end of the year. We are also continuing the process of re-domiciling the company from Sweden to Finland.

We also resolved on a rights issue during the fourth quarter, the rights issue was concluded in the end of January 2021 raising approximately 214 MSEK.  I am pleased with the outcome of our rights issue, which demonstrates strong support by our current shareholders and a large number of new investors for our continued development plans. The proceeds from the rights issue will enable us to deepen and re-start the Pampalo mine during the year and to continue exploration along the Karelian Gold Line. The proceeds will also enable us to continue ramping up gold production at the Friday mine in Idaho, USA and carry out further exploration in the area. In addition, we will be able to explore and develop our newly acquired US Grant and Kearsarge mine development projects towards production in 2022. Altogether, the rights issue is an important step in developing the company into a new Endomines with a long-term platform for growth.

Last year was in many senses very challenging for Endomines and combined with the ongoing pandemic truly tested the persistence and patience of all our employees as well as investors. We were however able to expand our project portfolio and are extremely excited about the opportunity in front of us, bringing our next mines into commercial production.”

For further information, please contact:

Rauno Pitkänen, Interim CEO, +358 40 595 4412, rauno.pitkanen@endomines.com
Marcus Ahlström, Deputy CEO and CFO, +358 50 544 68 14, marcus.ahlstrom@endomines.com

This information is information that Endomines AB is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication through the contact persons set out above at 08:45 CET on 18 February 2021.

About Endomines
Endomines is a mining and exploration company with its primary focus on gold. The Company explores for gold along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.

The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).