11.11.2021

ENDOMINES AB Q3 2021 Business Review

Business review Q3 2021 ENG full (2021-11-10)

ENDOMINES AB Q3 2021 Business Review

 

Friday Mine and Mill started initial production in Idaho, USA

Pampalo Mine decline reached target depth in Ilomantsi, Finland

 

Endomines AB, Stock Exchange Release 11 November 2021 at 08:00 CET

 

Jan-Sep 2021 (Jan-Sep 2020)

Operational highlights

  • The Friday mine commenced stoping and secondary haulage to feed and stockpile ore for the restart of the Orogrande processing facility.
  • The Orogrande processing facility completed commissioning at the end of Q3 2021 and is now gradually ramping up production and forecasted to reach full production by the end of Q4 2021.
  • The development of the Pampalo mine is progressing according to the plan.
  • No lost time injuries reported in the last 12 months; LTIFR 0 (0).

 

Financial highlights

  • Total revenue was 1.8 MSEK (12.4)
  • EBITDA was -76.6 MSEK (-68.4)
  • Total cash flow was -2.1 MSEK (-3.5)
  • Earnings per share was -0.58 SEK (-0.99)

 

  • On October 6th, 2021 Endomines announced that Seppo Tuovinen, Managing Director of Endomines AB’s Finnish subsidiary Endomines Oy, will take over the Interim CEO position for the parent company as of October 6th.
  • On October 15th, 2021 Endomines announced that the execution date of the merger to effect the redomiciliation of the Group to Finland has been postponed because of matters relating to the practicalities and various registrations of the merger. A new date will be communicated as soon as possible.
  • On October 29th, 2021 Endomines announced that its number of shares and votes increased by 2,000,000 during October following the directed new issue of shares made as the first drawdown under Endomines’ financing arrangement with LDA Capital.
  • On November 10th, 2021 Endomines announced that the board has resolved to appoint Kari Vyhtinen to the new CEO of the company with March 1st, 2022 effective starting date at the latest.

Production update and outlook for 2021:

Endomines began stoping on the S4550 level during Q3 2021 at the Friday mine in Idaho, USA. This production will be supported by the addition of a newly overhauled single boom Jumbo drill and the lease to purchase of a second 4-yard underground Loader. The Orogrande processing facility is currently under commenced production and is forecasted to reach planned milling capacity by the end of the Q4 2021.

The development at the Pampalo mine in Finland has proceeded on schedule. Ore production will start in Q4 2021 and ore processing at the mill will begin early Q1 2022.

 

Due to the refocusing of the Pampalo production schedule from previously planned Q2 2022 to Q1 2022, the short-term Q4 2021 gold production guidance for the operations has been amended to approximately 1,200 oz by year end.

 

Key figures (Consolidated)

Jan – Sep

MSEK if not stated otherwise

2021

2020

+/-

Total revenue

1.8

12.4

-10.6

Cost

-78.4

-80.8

2.4

EBITDA

-76.6

-68.4

-8.8

Depreciation and write-downs

-57.1

-17.3

-39.8

EBIT

-133.7

-85.7

-48.0

Net result for the period

-146.8

-112.2

-34.6

Earnings per share (SEK)

-0.58

-0.99

0.41

Cash flow from operating activities

-115.2

-65.3

-49.9

Investments

-34.6

-25.5

-9.1

Financing

147.6

87.3

60.3

Liquid assets at the end of the period

8.4

12.0

-2.8

Personnel at the end of the period

67

34

33

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 Seppo Tuovinen: “Endomines’ journey from junior gold miner to a two-tier gold producer continues. The focus has been on re-starting the Pampalo underground mine in Finland and the Friday underground mine in Idaho. The Pampalo mine decline was driven down to a new production area; the work is on budget and timeline. We are confident that the Pampalo team and contractors on site are on track in bringing Pampalo mine into production as we have said early this year.

In the US, our Operations Director, Vern Langdale, took over the GM position in addition to his current role. The mill commissioning progresses in line with the expectations, most technical challenges have been resolved and full mill production is forecasted to be reached at the end of Q4 2021. An underground core drilling program is being carried out and will be completed at the end of Q4 2021. This will provide us with new information to update the geological model and production plan.

The development of acquired projects, US Grant and Kearsarge deposit, is progressing at a slow pace as planned until current projects are in a solid production stage and cash flows are positive. These deposits will require further technical studies combined with diamond coring to identify fully the real potential of those projects.

To be able to execute Endomines’ long-term growth strategy, more financing is needed during 2021 and 2022. Endomines is currently reviewing different financing possibilities for this matter.”

For further information, please contact:

Seppo Tuovinen, Interim CEO, +358 50 5760 143, seppo.tuovinen@endomines.com

Ingmar Haga, Chairman of the Board, +358 40 700 3518, ingmar.haga@endomines.com

 

This information is information that Endomines AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on 11 November 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).