Note 1- GENERAL INFORMATION
Nordic Mining ASA (\u201cthe Company\u201d) and its subsidiaries (together \u201cthe Group\u201d) is a resource Company with focus on high-end industrial minerals and metals. The Group is undertaking a large-scale industrial development at Engeb\u00f8 on the west coast of Norway where the Group has mining rights and permits to a substantial eclogite deposit with rutile and garnet. The address to Nordic Mining\u2019s office is Munkedamsveien 45, N-0250 Oslo, Norway.
These financial statements were approved for issue by the Board of Directors on 24 April 2025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__7": { "value": "Nordic Mining ASA (\u201cthe Company\u201d) and its subsidiaries (together \u201cthe Group\u201d) is a resource Company with focus on high-end industrial minerals and metals. ", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__6": { "value": "Nordic Mining ASA ", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__8": { "value": "Nordic Mining ASA ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__9": { "value": "Nordic Mining ASA ", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__10": { "value": "Norway ", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__11": { "value": "Norway ", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__12": { "value": "Munkedamsveien 45, N-0250 Oslo, Norway. ", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__13": { "value": "These financial statements were approved for issue by the Board of Directors on 24 April 2025. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__14": { "value": "Note 2- SUMMARY OF MATERIAL ACCOUNTING POLICIES
Basis of preparation
Material accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied unless otherwise stated. The consolidated financial statements of Nordic Mining ASA have been prepared in accordance with IFRS\u00aeAccounting Standards as adopted by the EU.
The consolidated financial statements have been prepared on a historical cost basis with some exceptions outlined below; the main exceptions being plan assets under defined benefit pension plans and derivative instru-ments measured at fair value.
Significant accounting judgments, estimates and assumptions
The preparation of the Group\u2019s financial statements requires Management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. Uncertainty about these assumptions and estimates could result in significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Key areas of judgement and estimation uncertainty:
Royalty liability (Note 15):The future royalty payments under the royalty agreement equal to 11% of gross revenue from the Engeb\u00f8 Project. The royalty liability is therefore subject to a high degree of judgment and estimation involved in establishing assumptions for the estimation of the expected future royalty payments. It requires long-term assumptions to be made concerning a number of economic factors such as future production levels, price expectations and market conditions. At each reporting period, modifications to production plans and price expectations are evaluated, and when required, a modification gain/loss is recognized.The royalty liability lasts for the entire operational life of the mine, with an upper
limit of 90 years. The current expected life of the mine is 39 years, but the life of the mine could end up being shorter or longer and changes to the expected life of the mine may impact the assessment of the royalty liabilityThe Group has the option to reduce the royalty rate from 11% to 5.5% on certain conditions in 2028 or 2029. The buyback fee for such a reduction event is based on a calculation securing the royalty holder a certain return on the reduced portion of the royalty instrument for the duration it was held. If the Group assesses that a future reduction event is the most economic and likely scenario it may impact the assessment of the royalty liability. At this stage this option to reduce the royalty rate has not been included in the calculations.
Impairment of Mine under construction (note 9):The Group reviews whether its Mine under construction has suffered any impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is written down to its recoverable amount when the recoverable amount is lower than the carrying value of the asset. The recoverable amount is the higher of fair value less expected cost to sell and value in use (present value based on the future use of the asset).The Group has performed an impairment test due to indicators of impairment being
present at year end 2024 for the value of the mine in Engeb\u00f8. Indicators considered are delays in production and shipment volumes compared to original plans, resulting in a reduction of expected revenue generated from ERG in 2025. In addition, there has been an overall reduction in rutile prices from 2025 and onwards compared to previous price estimates, which affects the market outlook.All impairment assessments require a high degree of estimation, including assessments of expected future cash flows from the mine and the estimation of applicable discount rates. Impairment testing requires long-term assumptions to be made concerning economic factors such as future production levels, market conditions, production expense, discount rates and political risk among others, in order to establish relevant future cash flow estimates. There is a high degree of reasoned judgment involved in establishing these assumptions. In our assessment of future cash flows, we have made assumptions on future production levels, marked conditions and prices, and production expenses. Future production levels are based on our internal financial model for the first five years and the UDFS for the remaining years of the mine. Market conditions and prices are based on offtake agreements for the first five years, and estimated market prices are based on an external marked expert, TZMI, for the remaining years of the mine. Production
expenses are based on our internal financial model for the first five years and the UDFS for the remaining years of the mine.The required return on equity is estimated using the Capital Asset Pricing Model (CAPM) and the Weighted Average Cost of Capital (WACC) to determine the required rate of return. The WACC calculation is sensitive to its input factors. The 10-year US government bond loan rate per 31 December 2024 is used as the risk free rate. The beta estimate is based upon industry levered beta and the market risk premium is the country risk. The debt interest is the weighted average of the IRR on the bond loan and the royalty loan. The WACC used is 16.5%.Results of the impairment test showed that the net present value of the future cash flows of ERG is above the net carrying amount of the mine. As a result, no impairment was recognized.
Functional currency:The functional currency of all entities in the Group is the Norwegian Kroner (NOK). The determination of functional currency involves judgement to identify the primary economic environment in which the entity operates, and the management needs to reconsider the functional currency of the entity if there is a change in events and conditions which can determine the primary economic environ-ment assessment.In the case of the subsidiary Engeb\u00f8 Rutile and Garnet AS, it is considered appropriate using NOK as the functional currency as NOK most faithfully represent the currency of
the primary economic environment in which the entity operates.
Capitalization of deferred tax assets (Note 7):The Group has incurred substantial tax losses carried forward. At year-end 2024, the Group cannot substantiate that there will be sufficient future taxable income to be able to realize the Group\u2019s unused tax losses, and therefore the Group has not recognized deferred tax assets at 31 December 2024. At year-end 2024, the Group has NOK 201.6 million in unrecognized net deferred tax assets.
Inventories
Rutile and garnet ore stockpiles are valued at the lower of cost or net realizable value. Net realizable value is the estimated future sales price of the product the company expects to rea-lize when the product is processed and sold, less estimated costs to complete production and bring the product to sale. The sales price of the products is determined based on relevant market prices and offtake agreements.
Cost of finished goods is determined using the weighted-average method and comprises direct purchase costs and an appropriate portion of fixed and variable overhead costs, including depreciation and amortization, incurred in converting materials into finished goods, based on the normal production capacity. The cost of production is allocated to rutile and garnet products with an equal value.
Costs of ore stockpiles which is stored at desired locations around the pit is valued to costs from ore extraction operations which includes blasting and transportation. Ore in
circuit includes crushed ore stored in silos which represent material that is currently in process of being converted to saleable product. In-process material is measured based on assays of the material fed to process and the projected recoveries at the respective plants. In-process inventories are valued at the average cost of the material fed to process attributable to the source material coming from the mine or stockpile plus the in-process conversion costs, including the applicable depreciation relating to the process facility, incurred to that point in process. Materials, production supplies and spare parts are measured using the first-in, first-out (FIFO) method.
Basis for consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. The subsidiaries include Engeb\u00f8 Rutile and Garnet AS, Nordic Titanium AS and Nordic Quartz AS, all 100% owned and located in Norway. The accounting principles of the subsidiaries have been changed when necessary to ensure consistency with the policies adopted by the Group. All intra-group transactions, balances, income and expenses are eliminated.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environ-ment in which the entity operates (the functional currency). NOK is the functional currency of all entities in the Group. NOK is also the presentati-on currency of the Group.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates, are recognized in the income statement.
Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities is capita-lized as Mine under construction. There is a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production starts, all costs included in Mine under construction are transferred to the category \u2018Producing mine\u2019 and other relevant categories. Mine under construction is not depreciated until construction is completed and the assets are available for their intended use. Mine under construction is stated at historical cost less accumulated depreciation and any impairment.
Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and any impairment.
Depreciation is calculated on a straight-line basis over the useful life of the asset.
The carrying amount of the asset is written down to recoverable amount when the carrying amount is higher than the estimated recoverable amount.
Borrowing costs
Borrowing costs that are directly attributable to the acquisition or construction of the mine are capitalized during the period of time that is required to complete and prepare the mine for its intended use. Interest income from the Bond Escrow is
deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.
Borrowing costs related to the bond loan up to the satisfaction of the condition of the Engeb\u00f8 Project being fully financed are recognized as expense in the income statement. Following the satisfaction of the financing conditions on 8 March 2023, net borrowing costs are capitalized as part of Mine under construction. Borrowing costs are presented in the cash flow statement as Interest and fees, loans and borrowings.
Bond loan
The bond loan is initially recognized at cost, being the fair value of the consideration received net of issue costs associated with the borrowing (including any discounts and premium). After initial recognition, the bond loan is subsequently measured at amortized cost using the effective interest method; any difference between proceeds (net of transaction cost including any discounts and premium) and the redemption value is recognized on the income statement over the period of the loan.
Bond Escrow
The restricted cash balances from the bonds were previously classified as \u201dBond Escrow\u201d in the consolidated statement of financial position, and have been recognized as cash in the consolidated statement of financial position when the funds were released from the escrow account.
Royalty liability
The Group completed in 2023 the drawdown of a USD 50 million non-dilutive royalty instrument, with future royalty payments under the Royalty Agreement equal to 11% of gross revenue from the Engeb\u00f8 Project.
The royalty liability is initially recognized at the USD 50 million drawdown received net of directly attributable transaction costs at drawdown. After initial recognition the royalty liability under the Royalty Agreement is subsequently amortized at the effective interest rate, and the difference between the drawdown received net of transaction costs and the royalty payments is recognized as financial cost in the income statement, over the period for the expected royalty payments. At each reporting period, modifications to production plans and price expectations are evaluated, and when required, a modification gain/loss is recognized. Estimated royalty payments due within 12 months are classified as current liabilities.
Until construction of the Engeb\u00f8 project is completed, amortized cost is recognized as borrowing cost and capitalized under Mine under construction.
Derivative instruments
Derivative instruments are classified as financial assets or liabilities at Fair Value Through Profit or Loss (FVTPL). The carrying value of derivative instruments at FVTPL represents the instrument\u2019s fair market value. Any gains or losses arising on remeasurement are recognized in the income statement as incurred.
The Group has entered into a fixed price contract for the purchase of electricity to the mining facilities in Engeb\u00f8. The fixed price contract covers a portion of the estimated use by the production facilities over the next three years (2025-2027). The contract qualifies for the own use exemption under IFRS 9 and is not defined as a financial instrument.
Cost of equity transactions
Share issuance cost that is incremental and directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. When deferred tax assets are not recognized, items recorded directly to equity are accounted as gross, without any deduction of deferred taxes.
Contingent liabilities
Contingent liabilities are defined as:
Possible obligations resulting from past events whose existence depends on future events.
Obligations that are not recognized because it is not probable that they will lead to an outflow of resources.
Obligations that cannot be measured with sufficient reliability.
Contingent liabilities are not recognized on the balance sheet unless arising from assuming assets and liabilities in a business combination. Significant contingent liabilities are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Reference is made to Note 9 and 25 in the consolidated financial statements regarding contingent liabilities.
New standards, amendments and interpretations adopted by the Group
New standards and amendments to standards and interpretations effective from 1 January 2024, including the amendments to IAS 1 \u2013 Non-current Liabilities with Covenants, did not have any significant impact on the financial statements.
New standards, amendments and interpretations issued and effective as of 1 January 2025 not adopted by the Group
A number of new standards and amendments to standards and interpretations are effective for annual periods beginning on or after 1 January 2025 and have not been applied in preparing these financial statements. None of these new standards and amendments to standards and interpretations are expected to have any significant impact on the Group\u2019s financial statements, except for IFRS 18 Presentation and Disclosure in Financial Statements effective from 1 January 2027. The Group is currently assessing the potential impact of this new standard.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__15": { "value": "Basis of preparation
Material accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied unless otherwise stated. The consolidated financial statements of Nordic Mining ASA have been prepared in accordance with IFRS\u00aeAccounting Standards as adopted by the EU.
The consolidated financial statements have been prepared on a historical cost basis with some exceptions outlined below; the main exceptions being plan assets under defined benefit pension plans and derivative instru-ments measured at fair value.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__16": { "value": "Basis of preparation
Material accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied unless otherwise stated. The consolidated financial statements of Nordic Mining ASA have been prepared in accordance with IFRS\u00aeAccounting Standards as adopted by the EU.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__17": { "value": "ASA ", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__18": { "value": "Significant accounting judgments, estimates and assumptionsThe preparation of the Group\u2019s financial statements requires Management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. Uncertainty about these assumptions and estimates could result in significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Key areas of judgement and estimation uncertainty: Royalty liability (Note 15):The future royalty payments under the royalty agreement equal to 11% of gross revenue from the Engeb\u00f8 Project. The royalty liability is therefore subject to a high degree of judgment and estimation involved in establishing assumptions for the estimation of the expected future royalty payments. It requires long-term assumptions to be made concerning a number of economic factors such as future production levels, price expectations and market conditions. At each reporting period, modifications to production plans and price expectations are evaluated, and when required, a modification gain/loss is recognized.The royalty liability lasts for the entire operational life of the mine, with an upper limit of 90 years. The current expected life of the mine is 39 years, but the life of the mine could end up being shorter or longer and changes to the expected life of the mine may impact the assessment of the royalty liabilityThe Group has the option to reduce the royalty rate from 11% to 5.5% on certain conditions in 2028 or 2029. The buyback fee for such a reduction event is based on a calculation securing the royalty holder a certain return on the reduced portion of the royalty instrument for the duration it was held. If the Group assesses that a future reduction event is the most economic and likely scenario it may impact the assessment of the royalty liability. At this stage this option to reduce the royalty rate has not been included in the calculations.Impairment of Mine under construction (note 9):The Group reviews whether its Mine under construction has suffered any impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is written down to its recoverable amount when the recoverable amount is lower than the carrying value of the asset. The recoverable amount is the higher of fair value less expected cost to sell and value in use (present value based on the future use of the asset).The Group has performed an impairment test due to indicators of impairment being present at year end 2024 for the value of the mine in Engeb\u00f8. Indicators considered are delays in production and shipment volumes compared to original plans, resulting in a reduction of expected revenue generated from ERG in 2025. In addition, there has been an overall reduction in rutile prices from 2025 and onwards compared to previous price estimates, which affects the market outlook.All impairment assessments require a high degree of estimation, including assessments of expected future cash flows from the mine and the estimation of applicable discount rates. Impairment testing requires long-term assumptions to be made concerning economic factors such as future production levels, market conditions, production expense, discount rates and political risk among others, in order to establish relevant future cash flow estimates. There is a high degree of reasoned judgment involved in establishing these assumptions. In our assessment of future cash flows, we have made assumptions on future production levels, marked conditions and prices, and production expenses. Future production levels are based on our internal financial model for the first five years and the UDFS for the remaining years of the mine. Market conditions and prices are based on offtake agreements for the first five years, and estimated market prices are based on an external marked expert, TZMI, for the remaining years of the mine. Production expenses are based on our internal financial model for the first five years and the UDFS for the remaining years of the mine.The required return on equity is estimated using the Capital Asset Pricing Model (CAPM) and the Weighted Average Cost of Capital (WACC) to determine the required rate of return. The WACC calculation is sensitive to its input factors. The 10-year US government bond loan rate per 31 December 2024 is used as the risk free rate. The beta estimate is based upon industry levered beta and the market risk premium is the country risk. The debt interest is the weighted average of the IRR on the bond loan and the royalty loan. The WACC used is 16.5%.Results of the impairment test showed that the net present value of the future cash flows of ERG is above the net carrying amount of the mine. As a result, no impairment was recognized.Functional currency:The functional currency of all entities in the Group is the Norwegian Kroner (NOK). The determination of functional currency involves judgement to identify the primary economic environment in which the entity operates, and the management needs to reconsider the functional currency of the entity if there is a change in events and conditions which can determine the primary economic environ-ment assessment.In the case of the subsidiary Engeb\u00f8 Rutile and Garnet AS, it is considered appropriate using NOK as the functional currency as NOK most faithfully represent the currency of the primary economic environment in which the entity operates.Capitalization of deferred tax assets (Note 7):The Group has incurred substantial tax losses carried forward. At year-end 2024, the Group cannot substantiate that there will be sufficient future taxable income to be able to realize the Group\u2019s unused tax losses, and therefore the Group has not recognized deferred tax assets at 31 December 2024. At year-end 2024, the Group has NOK 201.6 million in unrecognized net deferred tax assets.", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__19": { "value": "Significant accounting judgments, estimates and assumptions
The preparation of the Group\u2019s financial statements requires Management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. Uncertainty about these assumptions and estimates could result in significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Key areas of judgement and estimation uncertainty:
Royalty liability (Note 15):The future royalty payments under the royalty agreement equal to 11% of gross revenue from the Engeb\u00f8 Project. The royalty liability is therefore subject to a high degree of judgment and estimation involved in establishing assumptions for the estimation of the expected future royalty payments. It requires long-term assumptions to be made concerning a number of economic factors such as future production levels, price expectations and market conditions. At each reporting period, modifications to production plans and price expectations are evaluated, and when required, a modification gain/loss is recognized.The royalty liability lasts for the entire operational life of the mine, with an upper
limit of 90 years. The current expected life of the mine is 39 years, but the life of the mine could end up being shorter or longer and changes to the expected life of the mine may impact the assessment of the royalty liabilityThe Group has the option to reduce the royalty rate from 11% to 5.5% on certain conditions in 2028 or 2029. The buyback fee for such a reduction event is based on a calculation securing the royalty holder a certain return on the reduced portion of the royalty instrument for the duration it was held. If the Group assesses that a future reduction event is the most economic and likely scenario it may impact the assessment of the royalty liability. At this stage this option to reduce the royalty rate has not been included in the calculations.
Impairment of Mine under construction (note 9):The Group reviews whether its Mine under construction has suffered any impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is written down to its recoverable amount when the recoverable amount is lower than the carrying value of the asset. The recoverable amount is the higher of fair value less expected cost to sell and value in use (present value based on the future use of the asset).The Group has performed an impairment test due to indicators of impairment being
present at year end 2024 for the value of the mine in Engeb\u00f8. Indicators considered are delays in production and shipment volumes compared to original plans, resulting in a reduction of expected revenue generated from ERG in 2025. In addition, there has been an overall reduction in rutile prices from 2025 and onwards compared to previous price estimates, which affects the market outlook.All impairment assessments require a high degree of estimation, including assessments of expected future cash flows from the mine and the estimation of applicable discount rates. Impairment testing requires long-term assumptions to be made concerning economic factors such as future production levels, market conditions, production expense, discount rates and political risk among others, in order to establish relevant future cash flow estimates. There is a high degree of reasoned judgment involved in establishing these assumptions. In our assessment of future cash flows, we have made assumptions on future production levels, marked conditions and prices, and production expenses. Future production levels are based on our internal financial model for the first five years and the UDFS for the remaining years of the mine. Market conditions and prices are based on offtake agreements for the first five years, and estimated market prices are based on an external marked expert, TZMI, for the remaining years of the mine. Production
expenses are based on our internal financial model for the first five years and the UDFS for the remaining years of the mine.The required return on equity is estimated using the Capital Asset Pricing Model (CAPM) and the Weighted Average Cost of Capital (WACC) to determine the required rate of return. The WACC calculation is sensitive to its input factors. The 10-year US government bond loan rate per 31 December 2024 is used as the risk free rate. The beta estimate is based upon industry levered beta and the market risk premium is the country risk. The debt interest is the weighted average of the IRR on the bond loan and the royalty loan. The WACC used is 16.5%.Results of the impairment test showed that the net present value of the future cash flows of ERG is above the net carrying amount of the mine. As a result, no impairment was recognized.
Functional currency:The functional currency of all entities in the Group is the Norwegian Kroner (NOK). The determination of functional currency involves judgement to identify the primary economic environment in which the entity operates, and the management needs to reconsider the functional currency of the entity if there is a change in events and conditions which can determine the primary economic environ-ment assessment.In the case of the subsidiary Engeb\u00f8 Rutile and Garnet AS, it is considered appropriate using NOK as the functional currency as NOK most faithfully represent the currency of
the primary economic environment in which the entity operates.
Capitalization of deferred tax assets (Note 7):The Group has incurred substantial tax losses carried forward. At year-end 2024, the Group cannot substantiate that there will be sufficient future taxable income to be able to realize the Group\u2019s unused tax losses, and therefore the Group has not recognized deferred tax assets at 31 December 2024. At year-end 2024, the Group has NOK 201.6 million in unrecognized net deferred tax assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__20": { "value": "Significant accounting judgments, estimates and assumptions
The preparation of the Group\u2019s financial statements requires Management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. Uncertainty about these assumptions and estimates could result in significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Key areas of judgement and estimation uncertainty:
Royalty liability (Note 15):The future royalty payments under the royalty agreement equal to 11% of gross revenue from the Engeb\u00f8 Project. The royalty liability is therefore subject to a high degree of judgment and estimation involved in establishing assumptions for the estimation of the expected future royalty payments. It requires long-term assumptions to be made concerning a number of economic factors such as future production levels, price expectations and market conditions. At each reporting period, modifications to production plans and price expectations are evaluated, and when required, a modification gain/loss is recognized.The royalty liability lasts for the entire operational life of the mine, with an upper
limit of 90 years. The current expected life of the mine is 39 years, but the life of the mine could end up being shorter or longer and changes to the expected life of the mine may impact the assessment of the royalty liabilityThe Group has the option to reduce the royalty rate from 11% to 5.5% on certain conditions in 2028 or 2029. The buyback fee for such a reduction event is based on a calculation securing the royalty holder a certain return on the reduced portion of the royalty instrument for the duration it was held. If the Group assesses that a future reduction event is the most economic and likely scenario it may impact the assessment of the royalty liability. At this stage this option to reduce the royalty rate has not been included in the calculations.
Impairment of Mine under construction (note 9):The Group reviews whether its Mine under construction has suffered any impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is written down to its recoverable amount when the recoverable amount is lower than the carrying value of the asset. The recoverable amount is the higher of fair value less expected cost to sell and value in use (present value based on the future use of the asset).The Group has performed an impairment test due to indicators of impairment being
present at year end 2024 for the value of the mine in Engeb\u00f8. Indicators considered are delays in production and shipment volumes compared to original plans, resulting in a reduction of expected revenue generated from ERG in 2025. In addition, there has been an overall reduction in rutile prices from 2025 and onwards compared to previous price estimates, which affects the market outlook.All impairment assessments require a high degree of estimation, including assessments of expected future cash flows from the mine and the estimation of applicable discount rates. Impairment testing requires long-term assumptions to be made concerning economic factors such as future production levels, market conditions, production expense, discount rates and political risk among others, in order to establish relevant future cash flow estimates. There is a high degree of reasoned judgment involved in establishing these assumptions. In our assessment of future cash flows, we have made assumptions on future production levels, marked conditions and prices, and production expenses. Future production levels are based on our internal financial model for the first five years and the UDFS for the remaining years of the mine. Market conditions and prices are based on offtake agreements for the first five years, and estimated market prices are based on an external marked expert, TZMI, for the remaining years of the mine. Production
expenses are based on our internal financial model for the first five years and the UDFS for the remaining years of the mine.The required return on equity is estimated using the Capital Asset Pricing Model (CAPM) and the Weighted Average Cost of Capital (WACC) to determine the required rate of return. The WACC calculation is sensitive to its input factors. The 10-year US government bond loan rate per 31 December 2024 is used as the risk free rate. The beta estimate is based upon industry levered beta and the market risk premium is the country risk. The debt interest is the weighted average of the IRR on the bond loan and the royalty loan. The WACC used is 16.5%.Results of the impairment test showed that the net present value of the future cash flows of ERG is above the net carrying amount of the mine. As a result, no impairment was recognized.
Functional currency:The functional currency of all entities in the Group is the Norwegian Kroner (NOK). The determination of functional currency involves judgement to identify the primary economic environment in which the entity operates, and the management needs to reconsider the functional currency of the entity if there is a change in events and conditions which can determine the primary economic environ-ment assessment.In the case of the subsidiary Engeb\u00f8 Rutile and Garnet AS, it is considered appropriate using NOK as the functional currency as NOK most faithfully represent the currency of
the primary economic environment in which the entity operates.
Capitalization of deferred tax assets (Note 7):The Group has incurred substantial tax losses carried forward. At year-end 2024, the Group cannot substantiate that there will be sufficient future taxable income to be able to realize the Group\u2019s unused tax losses, and therefore the Group has not recognized deferred tax assets at 31 December 2024. At year-end 2024, the Group has NOK 201.6 million in unrecognized net deferred tax assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__21": { "value": "Basis for consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. The subsidiaries include Engeb\u00f8 Rutile and Garnet AS, Nordic Titanium AS and Nordic Quartz AS, all 100% owned and located in Norway. The accounting principles of the subsidiaries have been changed when necessary to ensure consistency with the policies adopted by the Group. All intra-group transactions, balances, income and expenses are eliminated.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__22": { "value": "Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environ-ment in which the entity operates (the functional currency). NOK is the functional currency of all entities in the Group. NOK is also the presentati-on currency of the Group.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates, are recognized in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__23": { "value": "Functional and presentation currency
Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environ-ment in which the entity operates (the functional currency). NOK is the functional currency of all entities in the Group. NOK is also the presentati-on currency of the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__24": { "value": "
Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities is capita-lized as Mine under construction. There is a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production starts, all costs included in Mine under construction are transferred to the category \u2018Producing mine\u2019 and other relevant categories. Mine under construction is not depreciated until construction is completed and the assets are available for their intended use. Mine under construction is stated at historical cost less accumulated depreciation and any impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__25": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities is capita-lized as Mine under construction. There is a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production starts, all costs included in Mine under construction are transferred to the category \u2018Producing mine\u2019 and other relevant categories. Mine under construction is not depreciated until construction is completed and the assets are available for their intended use. Mine under construction is stated at historical cost less accumulated depreciation and any impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExplorationAndEvaluationExpenditures", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__26": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities is capita-lized as Mine under construction. There is a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production starts, all costs included in Mine under construction are transferred to the category \u2018Producing mine\u2019 and other relevant categories. Mine under construction is not depreciated until construction is completed and the assets are available for their intended use. Mine under construction is stated at historical cost less accumulated depreciation and any impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMiningAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__27": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities is capita-lized as Mine under construction. There is a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production starts, all costs included in Mine under construction are transferred to the category \u2018Producing mine\u2019 and other relevant categories. Mine under construction is not depreciated until construction is completed and the assets are available for their intended use. Mine under construction is stated at historical cost less accumulated depreciation and any impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__28-1": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities is capita-lized as Mine under construction. There is a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production starts, all costs included in Mine under construction are transferred to the category \u2018Producing mine\u2019 and other relevant categories. Mine under construction is not depreciated until construction is completed and the assets are available for their intended use. Mine under construction is stated at historical cost less accumulated depreciation and any impairment.
Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and any impairment.
Depreciation is calculated on a straight-line basis over the useful life of the asset.
The carrying amount of the asset is written down to recoverable amount when the carrying amount is higher than the estimated recoverable amount.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__30": { "value": "Borrowing costs
Borrowing costs that are directly attributable to the acquisition or construction of the mine are capitalized during the period of time that is required to complete and prepare the mine for its intended use. Interest income from the Bond Escrow is
deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.
Borrowing costs related to the bond loan up to the satisfaction of the condition of the Engeb\u00f8 Project being fully financed are recognized as expense in the income statement. Following the satisfaction of the financing conditions on 8 March 2023, net borrowing costs are capitalized as part of Mine under construction. Borrowing costs are presented in the cash flow statement as Interest and fees, loans and borrowings.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__31-1": { "value": "Bond loan
The bond loan is initially recognized at cost, being the fair value of the consideration received net of issue costs associated with the borrowing (including any discounts and premium). After initial recognition, the bond loan is subsequently measured at amortized cost using the effective interest method; any difference between proceeds (net of transaction cost including any discounts and premium) and the redemption value is recognized on the income statement over the period of the loan.
Bond Escrow
The restricted cash balances from the bonds were previously classified as \u201dBond Escrow\u201d in the consolidated statement of financial position, and have been recognized as cash in the consolidated statement of financial position when the funds were released from the escrow account.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__33-1": { "value": "Bond loan
The bond loan is initially recognized at cost, being the fair value of the consideration received net of issue costs associated with the borrowing (including any discounts and premium). After initial recognition, the bond loan is subsequently measured at amortized cost using the effective interest method; any difference between proceeds (net of transaction cost including any discounts and premium) and the redemption value is recognized on the income statement over the period of the loan.
Bond Escrow
The restricted cash balances from the bonds were previously classified as \u201dBond Escrow\u201d in the consolidated statement of financial position, and have been recognized as cash in the consolidated statement of financial position when the funds were released from the escrow account.
Royalty liability
The Group completed in 2023 the drawdown of a USD 50 million non-dilutive royalty instrument, with future royalty payments under the Royalty Agreement equal to 11% of gross revenue from the Engeb\u00f8 Project.
The royalty liability is initially recognized at the USD 50 million drawdown received net of directly attributable transaction costs at drawdown. After initial recognition the royalty liability under the Royalty Agreement is subsequently amortized at the effective interest rate, and the difference between the drawdown received net of transaction costs and the royalty payments is recognized as financial cost in the income statement, over the period for the expected royalty payments. At each reporting period, modifications to production plans and price expectations are evaluated, and when required, a modification gain/loss is recognized. Estimated royalty payments due within 12 months are classified as current liabilities.
Until construction of the Engeb\u00f8 project is completed, amortized cost is recognized as borrowing cost and capitalized under Mine under construction.
Derivative instruments
Derivative instruments are classified as financial assets or liabilities at Fair Value Through Profit or Loss (FVTPL). The carrying value of derivative instruments at FVTPL represents the instrument\u2019s fair market value. Any gains or losses arising on remeasurement are recognized in the income statement as incurred.
The Group has entered into a fixed price contract for the purchase of electricity to the mining facilities in Engeb\u00f8. The fixed price contract covers a portion of the estimated use by the production facilities over the next three years (2025-2027). The contract qualifies for the own use exemption under IFRS 9 and is not defined as a financial instrument.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__34-1": { "value": "Bond loan
The bond loan is initially recognized at cost, being the fair value of the consideration received net of issue costs associated with the borrowing (including any discounts and premium). After initial recognition, the bond loan is subsequently measured at amortized cost using the effective interest method; any difference between proceeds (net of transaction cost including any discounts and premium) and the redemption value is recognized on the income statement over the period of the loan.
Bond Escrow
The restricted cash balances from the bonds were previously classified as \u201dBond Escrow\u201d in the consolidated statement of financial position, and have been recognized as cash in the consolidated statement of financial position when the funds were released from the escrow account.
Cost of equity transactions
Share issuance cost that is incremental and directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. When deferred tax assets are not recognized, items recorded directly to equity are accounted as gross, without any deduction of deferred taxes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__38": { "value": "Derivative instruments
Derivative instruments are classified as financial assets or liabilities at Fair Value Through Profit or Loss (FVTPL). The carrying value of derivative instruments at FVTPL represents the instrument\u2019s fair market value. Any gains or losses arising on remeasurement are recognized in the income statement as incurred.
The Group has entered into a fixed price contract for the purchase of electricity to the mining facilities in Engeb\u00f8. The fixed price contract covers a portion of the estimated use by the production facilities over the next three years (2025-2027). The contract qualifies for the own use exemption under IFRS 9 and is not defined as a financial instrument.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__39": { "value": "Derivative instruments
Derivative instruments are classified as financial assets or liabilities at Fair Value Through Profit or Loss (FVTPL). The carrying value of derivative instruments at FVTPL represents the instrument\u2019s fair market value. Any gains or losses arising on remeasurement are recognized in the income statement as incurred.
The Group has entered into a fixed price contract for the purchase of electricity to the mining facilities in Engeb\u00f8. The fixed price contract covers a portion of the estimated use by the production facilities over the next three years (2025-2027). The contract qualifies for the own use exemption under IFRS 9 and is not defined as a financial instrument.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__40": { "value": "Derivative instruments
Derivative instruments are classified as financial assets or liabilities at Fair Value Through Profit or Loss (FVTPL). The carrying value of derivative instruments at FVTPL represents the instrument\u2019s fair market value. Any gains or losses arising on remeasurement are recognized in the income statement as incurred.
The Group has entered into a fixed price contract for the purchase of electricity to the mining facilities in Engeb\u00f8. The fixed price contract covers a portion of the estimated use by the production facilities over the next three years (2025-2027). The contract qualifies for the own use exemption under IFRS 9 and is not defined as a financial instrument.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__43": { "value": "Contingent liabilities
Contingent liabilities are defined as:
Possible obligations resulting from past events whose existence depends on future events.
Obligations that are not recognized because it is not probable that they will lead to an outflow of resources.
Obligations that cannot be measured with sufficient reliability.
Contingent liabilities are not recognized on the balance sheet unless arising from assuming assets and liabilities in a business combination. Significant contingent liabilities are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Reference is made to Note 9 and 25 in the consolidated financial statements regarding contingent liabilities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__44-1": { "value": "New standards, amendments and interpretations adopted by the Group
New standards and amendments to standards and interpretations effective from 1 January 2024, including the amendments to IAS 1 \u2013 Non-current Liabilities with Covenants, did not have any significant impact on the financial statements.
New standards, amendments and interpretations issued and effective as of 1 January 2025 not adopted by the Group
A number of new standards and amendments to standards and interpretations are effective for annual periods beginning on or after 1 January 2025 and have not been applied in preparing these financial statements. None of these new standards and amendments to standards and interpretations are expected to have any significant impact on the Group\u2019s financial statements, except for IFRS 18 Presentation and Disclosure in Financial Statements effective from 1 January 2027. The Group is currently assessing the potential impact of this new standard.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__45-1": { "value": "New standards, amendments and interpretations adopted by the Group
New standards and amendments to standards and interpretations effective from 1 January 2024, including the amendments to IAS 1 \u2013 Non-current Liabilities with Covenants, did not have any significant impact on the financial statements.
New standards, amendments and interpretations issued and effective as of 1 January 2025 not adopted by the Group
A number of new standards and amendments to standards and interpretations are effective for annual periods beginning on or after 1 January 2025 and have not been applied in preparing these financial statements. None of these new standards and amendments to standards and interpretations are expected to have any significant impact on the Group\u2019s financial statements, except for IFRS 18 Presentation and Disclosure in Financial Statements effective from 1 January 2027. The Group is currently assessing the potential impact of this new standard.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__48": { "value": "NOTE 3- SEGMENTS
The Group presents segments based on of the Group\u2019s mineral projects. The only reportable segment of the Group is the Rutile and Garnet segment. These are the minerals which can be produced from the mineral deposit at Engeb\u00f8. The Chief Operating Decision Maker (\u201dCODM\u201d) for the segment is the board of Nordic Mining ASA.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__49-1": { "value": "NOTE 4- SALARIES
(Amounts in NOK thousands) | 2024 | 2023 |
Wages and salaries | 44 579 | 25 970 |
Social security costs | 7 213 | 4 732 |
Pension costs defined benefit plan | 391 | 512 |
Pension costs defined contribution plan | 1 976 | 984 |
Board members, etc | 1 840 | 1 840 |
Other personnel costs | 1 389 | 1 139 |
Capitalized payroll costs | (46 262) | (20 095) |
Total | 11 126 | 15 082 |
Average number of full time employees | 47 | 18 |
Reference is made to Note 22 for further information about remuneration of Senior Management and guidelines for remuneration.
NOTE 21- RELATED PARTIES AND COMPENSATION OF MANAGEMENT
Compensation to Board members and Senior Management in 2024\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Total |
Ivar S. Fossum, CEO | 3 279 | - | 170 | 307 | 3 756 |
Jens Gisle Schnelle, former Interim CFO1 | 232 | - | 1 | 51 | 284 |
Tord Meling, CFO2 | 839 | - | 4 | 48 | 891 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 009 | - | 9 | 97 | 2 115 |
Trond Langeng, Manager Resource and Development3 | 823 | - | 9 | 61 | 893 |
Maurice Kok, Commercial Director | 1 362 | - | 11 | 106 | 1 479 |
Ole Klevan, Nomination Committee (Chair) | - | 60 | - | - | 60 |
Brita Eilersen, Nomination committee | - | 40 | - | - | 40 |
Torger Lien, Nomination committee | - | 40 | - | - | 40 |
Kjell Roland, Chair of the Board | - | 500 | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | - | 300 | - | - | 300 |
Eva Kaijser, Board member | - | 300 | - | - | 300 |
Benedicte Nordang, Board member | - | 300 | - | - | 300 |
Tom Lileng, Board member | - | 300 | - | - | 300 |
Total | 8 544 | 1 840 | 205 | 669 | 11 259 |
1. Jens Gisle Schnelle left the Company on 31 January 2024, and compensation shown in the table above is for the period up to this date. Consultancy fee for the period after 31 January 2024 paid to Exman AS, a company owned by Jens Gisle Schnelle, is NOK 2.4 million.
2. Tord Meling joined the Company 12 August 2024.\t
3. Trond Langeng joined the Company 11 March 2024.
Compensation to Board members and Senior Management in 2023\t
(Amounts in NOK thousands) | Salary | Board member fees | Other compensation | Pension costs | Total |
Ivar S. Fossum, CEO | 4 151 | - | 210 | 530 | 4 891 |
Jens Gisle Schnelle, Interim CFO1 | 414 | - | 3 | - | 417 |
Christian Gjerde, former CFO2 | 2 064 | - | 9 | 83 | 2 156 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 168 | - | 16 | 91 | 2 275 |
Mona Schanche, former VP Resource and Sustainability3 | 1 397 | - | 7 | 178 | 1 583 |
Maurice Kok, Commercial Director | 1 225 | - | 13 | 99 | 1 337 |
Terje Gundersen, former Project Director4 | 690 | - | 7 | 43 | 740 |
Ole Klevan, Nomination Committee (Chair) | - | 60 | - | - | 60 |
Brita Eilersen, Nomination committee | - | 40 | - | - | 40 |
Torger Lien, Nomination committee | - | 40 | - | - | 40 |
Kjell Roland, Chair of the Board | - | 500 | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | - | 300 | - | - | 300 |
Eva Kaijser, Board member | - | 300 | - | - | 300 |
Benedicte Nordang, Board member | - | 300 | - | - | 300 |
Antony Beckmand, former Board member | - | 300 | - | - | 300 |
Total | 12 109 | 1 840 | 266 | 1 025 | 15 239 |
1. Jens Gisle Schnelle joined the Company 15 October 2023.\t
2. Christian Gjerde left the Company 30 September 2023.\t
3. Mona Schanche left the Company on 30 June 2023.\t
4. Terje Gundersen left the management group on 2 June 2023, and compensation shown in the table above is for the period up to this date.\t
Senior Management is subject to termination periods of 3-6 months.
Guidelines for management remuneration\t
The main components of the guidelines for Senior Management salaries are as follows:
The compensation package should reflect the responsibility and the tasks of the individual persons in Senior Management, and what the employee contributes towards the long-term creation of value in Nordic Mining.
The Company will offer competitive conditions to attract relevant expertise for the development of the Company.
The compensation package consists of fixed salary plus participation in an option program that has been approved by the annual meeting.
Senior Management participates in pension and insurance plans.
These guidelines have been used to recruit Senior Management in Nordic Mining ASA and to establish salary levels.\t
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2024
Name | No of shares | % owned |
Kjell Roland, Chair of the Board | 29 523 | 0.03 % |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | 17 750 | 0.02 % |
Ivar S. Fossum, CEO | 122 961 | 0.11 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 22 291 | 0.02 % |
Total | 192 525 | 0.18 % |
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2023
Name | No of shares | % owned |
Kjell Roland, Chair of the Board | 590 475 | 0.03 % |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | 355 009 | 0.02 % |
Ivar S. Fossum, CEO | 2 459 230 | 0.11 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 445 822 | 0.02 % |
Total | 3 850 536 | 0.18 % |
NOTE 22- PENSIONS
The Group has a defined benefit plan or a defined contribution plan (for new employees) for its employees in the parent company, Nordic Mining ASA and a defined contribution plan for its employees in Engeb\u00f8 Rutile and Garnet AS. The plans meet the Norwegian statutory requirements for pension plans for employees.
Defined Benefit Plan
The Group has one benefit plan for Norwegian employees with a total of 1 active member at year end 2024. The Group\u2019s defined benefit pension plan is a final salary plan and contributions are made to a separately administered fund. The level of benefits provided depends on the member\u2019s length of service and salary at retirement age.\t.
Pension cost\t
(Amounts in NOK thousands) | 2024 | 2023 |
Pension cost - employee benefit | 425 | 665 |
Pension cost - interest expense | 12 | 43 |
Total pension related costs | 437 | 709 |
Remeasurement gains/(losses) recorded to OCI | 317 | 536 |
Movement in pension obligation during the year\t
(Amounts in NOK thousands) | 2024 | 2023 |
Pension obligations January 1 | 14 009 | 17 404 |
Current value of pension benefits for the year | 437 | 709 |
Interest costs | 380 | 455 |
Payments | (372) | (371) |
Remeasurement loss/ (gain) | (302) | (3 553) |
Other | (37) | (635) |
Pension obligations as of 31 December | 14 116 | 14 009 |
Movement in pension funds during the year\t
(Amounts in NOK thousands) | 2024 | 2023 |
Pension funds 1 January | 13 790 | 15 593 |
Expected return on plan assets | 335 | 388 |
Contributions | 410 | 1 568 |
Payments | (372) | (371) |
Other | 49 | (371) |
Remeasurement (loss)/ gain | 16 | (3 017) |
Pension funds as of 31 December | 14 228 | 13 790 |
Pension liability is classified in the balance sheet as follows\t
(Amounts in NOK thousands) | 2024 | 2023 |
Pension funds | 14 228 | 13 790 |
Pension obligations | (14 116) | (14 009) |
Net pension asset / (liabilities) | 111 | (219) |
Pension asset/(liability) is shown in the balance sheet as | ||
Pension assets | 111 | - |
Pension liabilities | - | (219) |
Assumptions\t
2024 | 2023 | |
Discount interest rate | 3.90 % | 3.10 % |
Annual projected increase in salary | 4.00 % | 3.50 % |
Annual projected G- regulation | 3.75 % | 3.25 % |
Annual projected regulation of pension | 2.40 % | 1.80 % |
The major categories of plan assets as a percentage of the fair value of total plan assets\t
2024 | 2023 | |
Equities | 13.40 % | 13.00 % |
Bonds | 6.70 % | 4.60 % |
Money market | 5.50 % | 11.50 % |
Hold to maturity bonds | 59.10 % | 49.80 % |
Loans and receivables | 3.90 % | 10.40 % |
Real estate | 10.90 % | 10.70 % |
Other | 0.50 % | 0.00 % |
NOTE 4- SALARIES
(Amounts in NOK thousands) | 2024 | 2023 |
Wages and salaries | 44 579 | 25 970 |
Social security costs | 7 213 | 4 732 |
Pension costs defined benefit plan | 391 | 512 |
Pension costs defined contribution plan | 1 976 | 984 |
Board members, etc | 1 840 | 1 840 |
Other personnel costs | 1 389 | 1 139 |
Capitalized payroll costs | (46 262) | (20 095) |
Total | 11 126 | 15 082 |
Average number of full time employees | 47 | 18 |
Reference is made to Note 22 for further information about remuneration of Senior Management and guidelines for remuneration.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__51-1": { "value": "NOTE 4- SALARIES
(Amounts in NOK thousands) | 2024 | 2023 |
Wages and salaries | 44 579 | 25 970 |
Social security costs | 7 213 | 4 732 |
Pension costs defined benefit plan | 391 | 512 |
Pension costs defined contribution plan | 1 976 | 984 |
Board members, etc | 1 840 | 1 840 |
Other personnel costs | 1 389 | 1 139 |
Capitalized payroll costs | (46 262) | (20 095) |
Total | 11 126 | 15 082 |
Average number of full time employees | 47 | 18 |
Reference is made to Note 22 for further information about remuneration of Senior Management and guidelines for remuneration.
NOTE 5- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2024 | 2023 |
Lease expenses | 6 068 | 3 716 |
Consulting and legal fees | 10 684 | 14 236 |
Other costs | 24 001 | 13 089 |
Total | 40 753 | 31 041 |
The Norwegian Supreme Court ruled in March 2024 in favor of Nordic Mining on all counts in the case against Arctic Mineral Resources (\u201dAMR\u201d). The court also ruled that AMR shall pay all legal expenses. Total refund of legal expenses amounted to NOK 12.4 million and has been recorded as a reduction of other operating costs in 2024. The amount was received in April 2024.
Auditor fees\t
(Amounts in NOK thousands) | 2024 | 2023 |
Statutory audit | 2 122 | 1 783 |
Other attestation services | 88 | 492 |
Total | 2 209 | 2 275 |
The amounts exclude VAT.
See note 18 for information about fixed price electricity contract.
NOTE 10- PROPERTY, PLANT, EQUIPMENT AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Property, machinery and equipment | Buildings* | Right-of-use assets | Total |
Cost | ||||
1 January 2023 | 1 577 | - | 664 | 2 241 |
Additions | 2 628 | - | 1 085 | 3 713 |
Disposals | (1 051) | - | - | (1 051) |
31 December 2023 | 3 154 | - | 1 749 | 4 903 |
Additions | 14 388 | 82 085 | - | 96 473 |
Disposals | - | - | - | - |
31 December 2024 | 17 542 | 82 085 | 1 749 | 101 376 |
Depreciation | ||||
1 January 2023 | (487) | - | (558) | (1 045) |
Depreciation expense | (180) | - | (166) | (346) |
Disposals | 575 | - | - | 575 |
31 December 2023 | (92) | - | (724) | (816) |
Depreciation expense | (1 271) | (1 093) | (362) | (2 726) |
Disposals | - | - | - | - |
31 December 2024 | (1 363) | (1 093) | (1 086) | (3 542) |
Net book value: | ||||
31 December 2024 | 16 179 | 80 992 | 663 | 97 834 |
31 December 2023 | 3 062 | - | 1 025 | 4 087 |
1 January 2023 | 1 090 | - | 106 | 1 196 |
*\tAdditions to buildings in 2024 relate to the administration building and the process area workshop that has been completed in 2024. These buildings are classified within Property, plant and equipment in the balance sheet.
Machinery and equipment are depreciated on a straight-line basis over an estimated useful life of 4-10 years. Property is not depreciated. Buildings are depreciated on a straight-line basis over an estimated useful life of 39 years (life of the Mine).\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__52-1": { "value": "NOTE 4- SALARIES
(Amounts in NOK thousands) | 2024 | 2023 |
Wages and salaries | 44 579 | 25 970 |
Social security costs | 7 213 | 4 732 |
Pension costs defined benefit plan | 391 | 512 |
Pension costs defined contribution plan | 1 976 | 984 |
Board members, etc | 1 840 | 1 840 |
Other personnel costs | 1 389 | 1 139 |
Capitalized payroll costs | (46 262) | (20 095) |
Total | 11 126 | 15 082 |
Average number of full time employees | 47 | 18 |
Reference is made to Note 22 for further information about remuneration of Senior Management and guidelines for remuneration.
NOTE 5- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2024 | 2023 |
Lease expenses | 6 068 | 3 716 |
Consulting and legal fees | 10 684 | 14 236 |
Other costs | 24 001 | 13 089 |
Total | 40 753 | 31 041 |
The Norwegian Supreme Court ruled in March 2024 in favor of Nordic Mining on all counts in the case against Arctic Mineral Resources (\u201dAMR\u201d). The court also ruled that AMR shall pay all legal expenses. Total refund of legal expenses amounted to NOK 12.4 million and has been recorded as a reduction of other operating costs in 2024. The amount was received in April 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__53": { "value": "
NOTE 5- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2024 | 2023 |
Lease expenses | 6 068 | 3 716 |
Consulting and legal fees | 10 684 | 14 236 |
Other costs | 24 001 | 13 089 |
Total | 40 753 | 31 041 |
The Norwegian Supreme Court ruled in March 2024 in favor of Nordic Mining on all counts in the case against Arctic Mineral Resources (\u201dAMR\u201d). The court also ruled that AMR shall pay all legal expenses. Total refund of legal expenses amounted to NOK 12.4 million and has been recorded as a reduction of other operating costs in 2024. The amount was received in April 2024.
Auditor fees\t
(Amounts in NOK thousands) | 2024 | 2023 |
Statutory audit | 2 122 | 1 783 |
Other attestation services | 88 | 492 |
Total | 2 209 | 2 275 |
The amounts exclude VAT.
See note 18 for information about fixed price electricity contract.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__55-1": { "value": "NOTE 5- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2024 | 2023 |
Lease expenses | 6 068 | 3 716 |
Consulting and legal fees | 10 684 | 14 236 |
Other costs | 24 001 | 13 089 |
Total | 40 753 | 31 041 |
The Norwegian Supreme Court ruled in March 2024 in favor of Nordic Mining on all counts in the case against Arctic Mineral Resources (\u201dAMR\u201d). The court also ruled that AMR shall pay all legal expenses. Total refund of legal expenses amounted to NOK 12.4 million and has been recorded as a reduction of other operating costs in 2024. The amount was received in April 2024.
NOTE 10- PROPERTY, PLANT, EQUIPMENT AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Property, machinery and equipment | Buildings* | Right-of-use assets | Total |
Cost | ||||
1 January 2023 | 1 577 | - | 664 | 2 241 |
Additions | 2 628 | - | 1 085 | 3 713 |
Disposals | (1 051) | - | - | (1 051) |
31 December 2023 | 3 154 | - | 1 749 | 4 903 |
Additions | 14 388 | 82 085 | - | 96 473 |
Disposals | - | - | - | - |
31 December 2024 | 17 542 | 82 085 | 1 749 | 101 376 |
Depreciation | ||||
1 January 2023 | (487) | - | (558) | (1 045) |
Depreciation expense | (180) | - | (166) | (346) |
Disposals | 575 | - | - | 575 |
31 December 2023 | (92) | - | (724) | (816) |
Depreciation expense | (1 271) | (1 093) | (362) | (2 726) |
Disposals | - | - | - | - |
31 December 2024 | (1 363) | (1 093) | (1 086) | (3 542) |
Net book value: | ||||
31 December 2024 | 16 179 | 80 992 | 663 | 97 834 |
31 December 2023 | 3 062 | - | 1 025 | 4 087 |
1 January 2023 | 1 090 | - | 106 | 1 196 |
*\tAdditions to buildings in 2024 relate to the administration building and the process area workshop that has been completed in 2024. These buildings are classified within Property, plant and equipment in the balance sheet.
Machinery and equipment are depreciated on a straight-line basis over an estimated useful life of 4-10 years. Property is not depreciated. Buildings are depreciated on a straight-line basis over an estimated useful life of 39 years (life of the Mine).\t
NOTE 16- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2024 | 2023 |
Tax withholding and social security accrual | 5 192 | 2 537 |
Employee salary and holiday pay accrual | 4 354 | 2 532 |
VAT payable | - | 241 |
Lease liability | 305 | 305 |
Accrued interest bond loan | 20 105 | 18 015 |
Accrued expenses and other | 126 801 | 62 838 |
Total | 156 757 | 86 468 |
Other current liabilities primarily relates to the short term portion of the royalty liability and amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.\t
NOTE 23- LEASES
The Group\u2019s right-of-use assets recognized are related to the leasing of vehicles; see note 10. Short-term leases have been expensed as incurred; see note 5. The Group\u2019s office lease is cancellable with 4 months\u2019 notice with no more than an insignificant penalty and is as such considered a short-term lease.\t
Lease liability\t
(Amounts in NOK thousands) | 2024 | 2023 |
Lease liability 1 January | 771 | 116 |
Additions lease contracts | - | 1 085 |
Accretion lease liability, included in finance cost | 33 | 9 |
Payments of lease liability | (305) | (439) |
Total lease liability 31 December | 499 | 771 |
Specification of lease liability in the balance sheet\t
(Amounts in NOK thousands) | 2024 | 2023 |
Current* | 305 | 305 |
Non-current | 194 | 466 |
Total lease liability 31 December | 499 | 771 |
* Current lease liability is included in other current liabilities; see note 17.\t
Future minimum lease payments under non-cancellable lease agreements (undiscounted)\t
(Amounts in NOK thousands) | 2024 | 2023 |
Within a year | 305 | 898 |
From year 2-5 | 255 | 560 |
Total | 560 | 1 458 |
NOTE 5- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2024 | 2023 |
Lease expenses | 6 068 | 3 716 |
Consulting and legal fees | 10 684 | 14 236 |
Other costs | 24 001 | 13 089 |
Total | 40 753 | 31 041 |
The Norwegian Supreme Court ruled in March 2024 in favor of Nordic Mining on all counts in the case against Arctic Mineral Resources (\u201dAMR\u201d). The court also ruled that AMR shall pay all legal expenses. Total refund of legal expenses amounted to NOK 12.4 million and has been recorded as a reduction of other operating costs in 2024. The amount was received in April 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__58": { "value": "
Auditor fees\t
(Amounts in NOK thousands) | 2024 | 2023 |
Statutory audit | 2 122 | 1 783 |
Other attestation services | 88 | 492 |
Total | 2 209 | 2 275 |
The amounts exclude VAT.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__59": { "value": "NOTE 6- NET EXCHANGE RATE GAIN/LOSS (-), FINANCE INCOME AND FINANCE COSTS
The following table shows the components of net exchange rate gain/loss (-), financial income and financial expense:
(Amounts in NOK thousands) | 2024 | 2023 |
Foreign exchange gain/loss (-) on bond Escrow in USD | 51 888 | 30 917 |
Foreign exchange gain/loss (-) on the USD bond loan | (118 100) | (31 510) |
Foreign exchange gain/loss (-) on the the USD royalty liability | (66 279) | 31 551 |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | (5 854) | - |
Other net foreign exchange gain/loss (-) | 11 239 | (5 047) |
Net exchange rate gain/loss (-) | (127 106) | 25 911 |
Interest income on bank deposits | 21 945 | 14 335 |
Interest income, Bond Escrow** | 25 497 | 53 517 |
Interest income, Bond Escrow, capitalized** | (25 497) | (41 752) |
Change in estimate royalty liability (see note 16) | 47 860 | - |
Finance income | 69 806 | 26 099 |
Interest cost and transaction cost bond loan** | (158 091) | (152 264) |
Interest cost and transaction cost bond loan, capitalized** | 158 091 | 122 069 |
Amortized cost royalty liability (see note 16) | (111 053) | (12 305) |
Amortized cost royalty liability, capitalized (see note 16) | 111 053 | 12 305 |
Other finance costs*** | (3 114) | (24 805) |
Finance costs | (3 115) | (55 002) |
*\tThe Group has entered into foreign exchange (FX) derivative contracts for forward sale of USD and purchase of NOK in Q2 2024 and Q3 2024. The purpose of the trades was to hedge the USD/NOK foreign exchange rate for the release of USD amounts from bond escrow. The value dates aligned with the expected bond Escrow account release dates for the second and third releases (see note 12). The contracts expired in Q2 2024 and in Q3 2024, with a net loss of NOK 5.9 million.
**\tInterest and transaction costs on bond loan, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023.
***\tOther finance costs in 2023 relates to transaction costs related to the USD 50 milllion non-dilutive royalty financing agreement for the period up to draw down in November 2023 (see Note 15 for details on royalty liability), and other finance costs.\t
NOTE 6- NET EXCHANGE RATE GAIN/LOSS (-), FINANCE INCOME AND FINANCE COSTS
The following table shows the components of net exchange rate gain/loss (-), financial income and financial expense:
(Amounts in NOK thousands) | 2024 | 2023 |
Foreign exchange gain/loss (-) on bond Escrow in USD | 51 888 | 30 917 |
Foreign exchange gain/loss (-) on the USD bond loan | (118 100) | (31 510) |
Foreign exchange gain/loss (-) on the the USD royalty liability | (66 279) | 31 551 |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | (5 854) | - |
Other net foreign exchange gain/loss (-) | 11 239 | (5 047) |
Net exchange rate gain/loss (-) | (127 106) | 25 911 |
Interest income on bank deposits | 21 945 | 14 335 |
Interest income, Bond Escrow** | 25 497 | 53 517 |
Interest income, Bond Escrow, capitalized** | (25 497) | (41 752) |
Change in estimate royalty liability (see note 16) | 47 860 | - |
Finance income | 69 806 | 26 099 |
Interest cost and transaction cost bond loan** | (158 091) | (152 264) |
Interest cost and transaction cost bond loan, capitalized** | 158 091 | 122 069 |
Amortized cost royalty liability (see note 16) | (111 053) | (12 305) |
Amortized cost royalty liability, capitalized (see note 16) | 111 053 | 12 305 |
Other finance costs*** | (3 114) | (24 805) |
Finance costs | (3 115) | (55 002) |
*\tThe Group has entered into foreign exchange (FX) derivative contracts for forward sale of USD and purchase of NOK in Q2 2024 and Q3 2024. The purpose of the trades was to hedge the USD/NOK foreign exchange rate for the release of USD amounts from bond escrow. The value dates aligned with the expected bond Escrow account release dates for the second and third releases (see note 12). The contracts expired in Q2 2024 and in Q3 2024, with a net loss of NOK 5.9 million.
**\tInterest and transaction costs on bond loan, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023.
***\tOther finance costs in 2023 relates to transaction costs related to the USD 50 milllion non-dilutive royalty financing agreement for the period up to draw down in November 2023 (see Note 15 for details on royalty liability), and other finance costs.\t
NOTE 6- NET EXCHANGE RATE GAIN/LOSS (-), FINANCE INCOME AND FINANCE COSTS
The following table shows the components of net exchange rate gain/loss (-), financial income and financial expense:
(Amounts in NOK thousands) | 2024 | 2023 |
Foreign exchange gain/loss (-) on bond Escrow in USD | 51 888 | 30 917 |
Foreign exchange gain/loss (-) on the USD bond loan | (118 100) | (31 510) |
Foreign exchange gain/loss (-) on the the USD royalty liability | (66 279) | 31 551 |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | (5 854) | - |
Other net foreign exchange gain/loss (-) | 11 239 | (5 047) |
Net exchange rate gain/loss (-) | (127 106) | 25 911 |
Interest income on bank deposits | 21 945 | 14 335 |
Interest income, Bond Escrow** | 25 497 | 53 517 |
Interest income, Bond Escrow, capitalized** | (25 497) | (41 752) |
Change in estimate royalty liability (see note 16) | 47 860 | - |
Finance income | 69 806 | 26 099 |
Interest cost and transaction cost bond loan** | (158 091) | (152 264) |
Interest cost and transaction cost bond loan, capitalized** | 158 091 | 122 069 |
Amortized cost royalty liability (see note 16) | (111 053) | (12 305) |
Amortized cost royalty liability, capitalized (see note 16) | 111 053 | 12 305 |
Other finance costs*** | (3 114) | (24 805) |
Finance costs | (3 115) | (55 002) |
*\tThe Group has entered into foreign exchange (FX) derivative contracts for forward sale of USD and purchase of NOK in Q2 2024 and Q3 2024. The purpose of the trades was to hedge the USD/NOK foreign exchange rate for the release of USD amounts from bond escrow. The value dates aligned with the expected bond Escrow account release dates for the second and third releases (see note 12). The contracts expired in Q2 2024 and in Q3 2024, with a net loss of NOK 5.9 million.
**\tInterest and transaction costs on bond loan, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023.
***\tOther finance costs in 2023 relates to transaction costs related to the USD 50 milllion non-dilutive royalty financing agreement for the period up to draw down in November 2023 (see Note 15 for details on royalty liability), and other finance costs.\t
NOTE 7- INCOME TAXES
The Group has incurred substantial tax losses carried forward and the related tax asset is shown in the table below. At year-end 2024, the Group cannot substantiate that there will be sufficient future taxable income to be able to realize the Group\u2019s unused tax losses, and therefore the Group has not recognized deferred tax assets at 31 December 2024. Tax losses can be carried forward indefinitely in Norway.
Amounts in NOK thousands | 2024 | 2023 |
Taxes payable | - | - |
Deferred tax | - | - |
Income tax expense/(income) | - | - |
Tax effects of temporary differences and tax loss carryforwards at 31 December:\t
Amounts in thousands | 2024 | 2023 |
Mine under construction/PP&E | (115 040) | (10 785) |
Pensions | (25) | 48 |
Bond loan | (7 291) | (9 667) |
Royalty liability | 142 350 | 113 866 |
Tax loss carryforwards | 181 620 | 82 629 |
Total net deferred tax assets | 201 614 | 176 091 |
Nominal tax rate (used for measurement) | 22 % | 22 % |
Recognized in the statement of financial position: | ||
Deferred tax asset | - | - |
Deferred tax liability | - | - |
The Group recognized NOK 1.5 million in gross transaction cost of the 2024 share issues directly in equity (2023: NOK 41.5 million) which is included in tax loss carry forwards.
The following table shows the reconciliation of expected tax using the nominal tax rate to the actual tax expense/(income):
Amounts in thousands | 2024 | 2023 |
Income/loss (-) before tax | (115 020) | (46 107) |
Nominal tax rate | 22 % | 22 % |
Expected income tax | (25 304) | (10 144) |
Non-deductible costs | 46 | (16) |
Non-taxable income | - | - |
Effect of non-taxable gains/losses on convertible loan | - | (989) |
Effect of non taxable gains/losses on investments | - | - |
Non-recognized tax assets on current year result | 25 258 | 11 149 |
Tax expense/(income) | - | - |
NOTE 7- INCOME TAXES
The Group has incurred substantial tax losses carried forward and the related tax asset is shown in the table below. At year-end 2024, the Group cannot substantiate that there will be sufficient future taxable income to be able to realize the Group\u2019s unused tax losses, and therefore the Group has not recognized deferred tax assets at 31 December 2024. Tax losses can be carried forward indefinitely in Norway.
Amounts in NOK thousands | 2024 | 2023 |
Taxes payable | - | - |
Deferred tax | - | - |
Income tax expense/(income) | - | - |
Tax effects of temporary differences and tax loss carryforwards at 31 December:\t
Amounts in thousands | 2024 | 2023 |
Mine under construction/PP&E | (115 040) | (10 785) |
Pensions | (25) | 48 |
Bond loan | (7 291) | (9 667) |
Royalty liability | 142 350 | 113 866 |
Tax loss carryforwards | 181 620 | 82 629 |
Total net deferred tax assets | 201 614 | 176 091 |
Nominal tax rate (used for measurement) | 22 % | 22 % |
Recognized in the statement of financial position: | ||
Deferred tax asset | - | - |
Deferred tax liability | - | - |
The Group recognized NOK 1.5 million in gross transaction cost of the 2024 share issues directly in equity (2023: NOK 41.5 million) which is included in tax loss carry forwards.
The following table shows the reconciliation of expected tax using the nominal tax rate to the actual tax expense/(income):
Amounts in thousands | 2024 | 2023 |
Income/loss (-) before tax | (115 020) | (46 107) |
Nominal tax rate | 22 % | 22 % |
Expected income tax | (25 304) | (10 144) |
Non-deductible costs | 46 | (16) |
Non-taxable income | - | - |
Effect of non-taxable gains/losses on convertible loan | - | (989) |
Effect of non taxable gains/losses on investments | - | - |
Non-recognized tax assets on current year result | 25 258 | 11 149 |
Tax expense/(income) | - | - |
NOTE 8- EARNINGS PER SHARE
(Amounts in NOK thousands and number of shares in thousands) | 2024 | 2023 |
Earnings | ||
Attributable to ordinary shareholders | (115 020) | (46 107) |
Number of shares | ||
Weighted average number of ordinary shares outstanding \u2013 basic* | 108 412 | 90 183 |
Weighted average number of ordinary shares outstanding \u2013 diluted* | 108 412 | 90 550 |
(Amounts in NOK) | ||
Earnings per share attributable to ordinary shareholders | ||
Basic earnings per share | (1.06) | (0.51) |
Diluted earnings per share | (1.06) | (0.51) |
*\tIn March 2024 the Company completed a 20:1 reverse split, reducing the number of shares from 2,168,230,655 shares per 31 December 2023 to 108,411,533 shares. In accordance with IAS 33 the share count is adjusted retrospective for the reverse split.
The effect of potentially dilutive shares arising from the previous convertible loan (ref. Note 17) is not included in the calculation of diluted earnings per share for 2023 as these would be anti-dilutive.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__65-1": { "value": "NOTE 9- MINE UNDER CONSTRUCTION
(Amounts in NOK thousands) | Mine under construction |
Cost at 1 January 2023 | 288 410 |
Transfer from evaluation and exploration assets | - |
Additions | 1 088 673 |
Cost at 31 December 2023 | 1 377 083 |
Additions | 1 277 335 |
Cost at 31 December 2024 | 2 654 418 |
Provision for impairment at 1 January 2023 | - |
Impairment | - |
Provision for impairment 31 December 2023 | - |
Impairment | - |
Provision for impairment 31 December 2024 | - |
Net book value 31 December 2024 | 2 654 418 |
Net book value 31 December 2023 | 1 377 083 |
Net book value 1 January 2023 | 288 410 |
2024:
The Engeb\u00f8 project is in a test phase and ramp-up phase, which means that the construction phase has been completed and all significant parts of the mine and processing plant have been installed and commissioned at site. At the end of the period, the company does not consider the plant to be operating in the manner intended by the management and the direct costs related to the work described above have been capitalized in the balance sheet as Mine under construction.\t
2023:\t
The Engeb\u00f8 Project is under construction, which includes continuation of Detail Engineering of the process plant, procurement and fabrication of critical process equipment, groundwork on the mine access road and ground \u2013 and building works on the process plant area, tunnel work and raise drilling of the vertical ore pass. The direct costs related to the work described above have been capitalized in the balance sheet as Mine under construction.\t
Mining concessions Engeb\u00f8\t
The carrying amount for licenses related to the Engeb\u00f8 area was included in the transfer from Evaluation and exploration assets to Mine under construction in 2022. Additionally, the Group has a conditional liability to the seller of NOK 40 million that will be paid when commercial operation commences at Engeb\u00f8. No liability has been recognized as per 31 December 2024 or 31 december 2023 as the Group\u2019s accounting policy is to account for conditional liabilities upon the relevant condition being met, and the condition of commercial operation was not met.
Pledged as security
The USD 100 million bond loan has mortgages over all real properties owned by Engeb\u00f8 Rutile and Garnet AS and property accession rights agreements (Nw. utvinningsavtaler), first priority floating charge over all machinery and plant, vehicles, inventory and trade receivables of ERG, and first priority pledge over any government granted mining or extraction right. For further details on pledges please see ticker ERUGA01 PRO at https://live.euronext.com/nb to read the loan agreement.
Impairment
Management have performed an impairment test of the mine. The recoverable amount was determined to be the value in use, which was determined to be higher than the carrying amount of the mine. The Company has therefore not recognized an impairment charge. The value in use calculation is highly sensitive to the revenue assumptions as a significant reduction in estimated revenue could result in an impairment. The test used assumptions as mentioned in note 2.
In connection with the impairment test of the mine, sensitivity analyses are carried out for the cash generating unit. A reduction of revenue of 6,5% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 19% (from the base of 16,5%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 6 months, it can result in fair value being below carrying value, resulting in an impairment of the mine.
NOTE 10- PROPERTY, PLANT, EQUIPMENT AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Property, machinery and equipment | Buildings* | Right-of-use assets | Total |
Cost | ||||
1 January 2023 | 1 577 | - | 664 | 2 241 |
Additions | 2 628 | - | 1 085 | 3 713 |
Disposals | (1 051) | - | - | (1 051) |
31 December 2023 | 3 154 | - | 1 749 | 4 903 |
Additions | 14 388 | 82 085 | - | 96 473 |
Disposals | - | - | - | - |
31 December 2024 | 17 542 | 82 085 | 1 749 | 101 376 |
Depreciation | ||||
1 January 2023 | (487) | - | (558) | (1 045) |
Depreciation expense | (180) | - | (166) | (346) |
Disposals | 575 | - | - | 575 |
31 December 2023 | (92) | - | (724) | (816) |
Depreciation expense | (1 271) | (1 093) | (362) | (2 726) |
Disposals | - | - | - | - |
31 December 2024 | (1 363) | (1 093) | (1 086) | (3 542) |
Net book value: | ||||
31 December 2024 | 16 179 | 80 992 | 663 | 97 834 |
31 December 2023 | 3 062 | - | 1 025 | 4 087 |
1 January 2023 | 1 090 | - | 106 | 1 196 |
*\tAdditions to buildings in 2024 relate to the administration building and the process area workshop that has been completed in 2024. These buildings are classified within Property, plant and equipment in the balance sheet.
Machinery and equipment are depreciated on a straight-line basis over an estimated useful life of 4-10 years. Property is not depreciated. Buildings are depreciated on a straight-line basis over an estimated useful life of 39 years (life of the Mine).\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__66": { "value": "NOTE 9- MINE UNDER CONSTRUCTION
(Amounts in NOK thousands) | Mine under construction |
Cost at 1 January 2023 | 288 410 |
Transfer from evaluation and exploration assets | - |
Additions | 1 088 673 |
Cost at 31 December 2023 | 1 377 083 |
Additions | 1 277 335 |
Cost at 31 December 2024 | 2 654 418 |
Provision for impairment at 1 January 2023 | - |
Impairment | - |
Provision for impairment 31 December 2023 | - |
Impairment | - |
Provision for impairment 31 December 2024 | - |
Net book value 31 December 2024 | 2 654 418 |
Net book value 31 December 2023 | 1 377 083 |
Net book value 1 January 2023 | 288 410 |
2024:
The Engeb\u00f8 project is in a test phase and ramp-up phase, which means that the construction phase has been completed and all significant parts of the mine and processing plant have been installed and commissioned at site. At the end of the period, the company does not consider the plant to be operating in the manner intended by the management and the direct costs related to the work described above have been capitalized in the balance sheet as Mine under construction.\t
2023:\t
The Engeb\u00f8 Project is under construction, which includes continuation of Detail Engineering of the process plant, procurement and fabrication of critical process equipment, groundwork on the mine access road and ground \u2013 and building works on the process plant area, tunnel work and raise drilling of the vertical ore pass. The direct costs related to the work described above have been capitalized in the balance sheet as Mine under construction.\t
Mining concessions Engeb\u00f8\t
The carrying amount for licenses related to the Engeb\u00f8 area was included in the transfer from Evaluation and exploration assets to Mine under construction in 2022. Additionally, the Group has a conditional liability to the seller of NOK 40 million that will be paid when commercial operation commences at Engeb\u00f8. No liability has been recognized as per 31 December 2024 or 31 december 2023 as the Group\u2019s accounting policy is to account for conditional liabilities upon the relevant condition being met, and the condition of commercial operation was not met.
Pledged as security
The USD 100 million bond loan has mortgages over all real properties owned by Engeb\u00f8 Rutile and Garnet AS and property accession rights agreements (Nw. utvinningsavtaler), first priority floating charge over all machinery and plant, vehicles, inventory and trade receivables of ERG, and first priority pledge over any government granted mining or extraction right. For further details on pledges please see ticker ERUGA01 PRO at https://live.euronext.com/nb to read the loan agreement.
Impairment
Management have performed an impairment test of the mine. The recoverable amount was determined to be the value in use, which was determined to be higher than the carrying amount of the mine. The Company has therefore not recognized an impairment charge. The value in use calculation is highly sensitive to the revenue assumptions as a significant reduction in estimated revenue could result in an impairment. The test used assumptions as mentioned in note 2.
In connection with the impairment test of the mine, sensitivity analyses are carried out for the cash generating unit. A reduction of revenue of 6,5% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 19% (from the base of 16,5%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 6 months, it can result in fair value being below carrying value, resulting in an impairment of the mine.
NOTE 9- MINE UNDER CONSTRUCTION
(Amounts in NOK thousands) | Mine under construction |
Cost at 1 January 2023 | 288 410 |
Transfer from evaluation and exploration assets | - |
Additions | 1 088 673 |
Cost at 31 December 2023 | 1 377 083 |
Additions | 1 277 335 |
Cost at 31 December 2024 | 2 654 418 |
Provision for impairment at 1 January 2023 | - |
Impairment | - |
Provision for impairment 31 December 2023 | - |
Impairment | - |
Provision for impairment 31 December 2024 | - |
Net book value 31 December 2024 | 2 654 418 |
Net book value 31 December 2023 | 1 377 083 |
Net book value 1 January 2023 | 288 410 |
2024:
The Engeb\u00f8 project is in a test phase and ramp-up phase, which means that the construction phase has been completed and all significant parts of the mine and processing plant have been installed and commissioned at site. At the end of the period, the company does not consider the plant to be operating in the manner intended by the management and the direct costs related to the work described above have been capitalized in the balance sheet as Mine under construction.\t
2023:\t
The Engeb\u00f8 Project is under construction, which includes continuation of Detail Engineering of the process plant, procurement and fabrication of critical process equipment, groundwork on the mine access road and ground \u2013 and building works on the process plant area, tunnel work and raise drilling of the vertical ore pass. The direct costs related to the work described above have been capitalized in the balance sheet as Mine under construction.\t
Mining concessions Engeb\u00f8\t
The carrying amount for licenses related to the Engeb\u00f8 area was included in the transfer from Evaluation and exploration assets to Mine under construction in 2022. Additionally, the Group has a conditional liability to the seller of NOK 40 million that will be paid when commercial operation commences at Engeb\u00f8. No liability has been recognized as per 31 December 2024 or 31 december 2023 as the Group\u2019s accounting policy is to account for conditional liabilities upon the relevant condition being met, and the condition of commercial operation was not met.
Pledged as security
The USD 100 million bond loan has mortgages over all real properties owned by Engeb\u00f8 Rutile and Garnet AS and property accession rights agreements (Nw. utvinningsavtaler), first priority floating charge over all machinery and plant, vehicles, inventory and trade receivables of ERG, and first priority pledge over any government granted mining or extraction right. For further details on pledges please see ticker ERUGA01 PRO at https://live.euronext.com/nb to read the loan agreement.
Impairment
Management have performed an impairment test of the mine. The recoverable amount was determined to be the value in use, which was determined to be higher than the carrying amount of the mine. The Company has therefore not recognized an impairment charge. The value in use calculation is highly sensitive to the revenue assumptions as a significant reduction in estimated revenue could result in an impairment. The test used assumptions as mentioned in note 2.
In connection with the impairment test of the mine, sensitivity analyses are carried out for the cash generating unit. A reduction of revenue of 6,5% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 19% (from the base of 16,5%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 6 months, it can result in fair value being below carrying value, resulting in an impairment of the mine.
NOTE 10- PROPERTY, PLANT, EQUIPMENT AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Property, machinery and equipment | Buildings* | Right-of-use assets | Total |
Cost | ||||
1 January 2023 | 1 577 | - | 664 | 2 241 |
Additions | 2 628 | - | 1 085 | 3 713 |
Disposals | (1 051) | - | - | (1 051) |
31 December 2023 | 3 154 | - | 1 749 | 4 903 |
Additions | 14 388 | 82 085 | - | 96 473 |
Disposals | - | - | - | - |
31 December 2024 | 17 542 | 82 085 | 1 749 | 101 376 |
Depreciation | ||||
1 January 2023 | (487) | - | (558) | (1 045) |
Depreciation expense | (180) | - | (166) | (346) |
Disposals | 575 | - | - | 575 |
31 December 2023 | (92) | - | (724) | (816) |
Depreciation expense | (1 271) | (1 093) | (362) | (2 726) |
Disposals | - | - | - | - |
31 December 2024 | (1 363) | (1 093) | (1 086) | (3 542) |
Net book value: | ||||
31 December 2024 | 16 179 | 80 992 | 663 | 97 834 |
31 December 2023 | 3 062 | - | 1 025 | 4 087 |
1 January 2023 | 1 090 | - | 106 | 1 196 |
*\tAdditions to buildings in 2024 relate to the administration building and the process area workshop that has been completed in 2024. These buildings are classified within Property, plant and equipment in the balance sheet.
Machinery and equipment are depreciated on a straight-line basis over an estimated useful life of 4-10 years. Property is not depreciated. Buildings are depreciated on a straight-line basis over an estimated useful life of 39 years (life of the Mine).\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__72-1": { "value": "NOTE 11- TRADE AND OTHER RECEIVABLES
(Amounts in NOK thousands) | 2024 | 2023 |
Other financial receivables | 959 | 904 |
Prepayments | 3 023 | 1 848 |
VAT receivable | 23 722 | 27 809 |
Total | 27 704 | 30 561 |
NOTE 12- BOND LOAN AND BOND ESCROW
Nordic Mining ASA\u2019s wholly owned subsidiary Engeb\u00f8 Rutile and Garnet AS has a USD 100 million 5-year senior secured bond listed on Nordic ABM with ticker: ERUGA01 PRO. The bond is administered by Nordic Trustee, has fixed coupon of 12.5% per annum, with interest payable quarterly in arrears, maturity in November 2027, and an issue price of 90%.
The net proceeds of the bond of USD 90 million were on issue deposited into a Bond Escrow account, together with issue discount of USD 10 million, four months bond interest of USD 4.2 million, and transaction costs of USD 3.3 million, transferred by Engeb\u00f8 Rutile and Garnet AS in line with the bond terms. Following conditions of the Engeb\u00f8 Project being fully funded, which were satisfied on 8 March 2023, the bonds were reclassified to non-current liability in the statement of financial position. The proceeds from the bond were released in three tranches from the Bond Escrow account after satisfaction of certain predisbursement conditions precedent, to be used for costs and expenditures to bring the Engeb\u00f8 Project into commercial production.
In Q1 2024 the first release of USD 30 million from the bond escrow was completed, in Q2 2024 the second release of USD 30 million was completed, and in Q3 2024 the Company completed the third and final release of USD 48 million.
The bond loan was initially recognized at cost, being the fair value of the consideration received net of issue costs associated with the borrowing (inclusive the 10% discount). After initial recognition, the bond loan is subsequently measured at amortized cost using the effective interest method; any difference between proceeds (net of transaction cost including the 10% discount) and the redemption value is recognized on the income statement over the period of the loan.
2024 | |||
(Amounts in thousands) | Carrying amount Bond Loan | Carrying amount Bond Escrow | Cash transferred to Bond Escrow |
At 1 January | 902 182 | 1 075 042 | |
Amortization of fees | 23 328 | ||
Interest payment from Bond Escrow | - | ||
Interest income on bond escrow | 25 497 | ||
Foreign exchange | 118 100 | 51 888 | |
Release from Bond Escrow | (1 152 427) | 1 152 427 | |
Total at year end | 1 043 609 | 0 | 1 152 427 |
2023 | |||
(Amounts in thousands) | Carrying amount Bond Loan | Carrying amount Bond Escrow | Cash transferred to Bond Escrow |
At 1 January | 850 825 | 1 032 597 | |
Amortization of fees | 19 847 | ||
Interest payment from Bond Escrow | (41 989) | ||
Interest income on bond escrow | 53 517 | ||
Foreign exchange | 31 510 | 30 917 | |
Total at year end | 902 182 | 1 075 042 | - |
The bond loan is secured by first priority pledge over the shares of Engeb\u00f8 Rutile and Garnet AS (\u201dERG\u201d), mortgages over all real properties owned by ERG and property accession rights agree-ments (Nw. utvinningsavtaler), first priority floating charge over all machinery and plant, vehicles, inventory and trade receivables of ERG, first priority pledge over any government granted mining or extraction rights and other security usual and customary for a transaction of this type. The bond loan contains certain financial covenants including minimum liquidity of USD 15 million at all time in ERG and a minimum equity ratio of no less than 25% at Group level at each quarter date. For further details please see ticker ERUGA01 PRO at https://live.euronext.com/nb to read the loan agreement.\t
The table below provides an overview of the maturity profile and estimated interest payments for the Company\u2019s bond loan. Please note that the annual interest payment is USD 12.5 million, so the estimated interest payments in NOK are dependent on the USD/NOK exchange rate. The figures in the table below are based on the exchange rate at year end 2024.\t
(Amounts in thousands) | 1 year | 2-5 years | Estimated payments |
Repayment | (1 135 340) | (1 135 340) | |
Estimated interest | (141 918) | (283 835) | (425 753) |
Total payments on bond loan | (141 918) | (1 419 175) | (1 561 093) |
See note 26 for information about increase of the existing bond loan in March 2025 through a tap issue with USD 33 million, priced at 101.00% of par.
NOTE 13- CASH AND CASH EQUIVALENTS
(Amounts in NOK thousands) | 2024 | 2023 |
Bank deposits | 454 774 | 634 984 |
Total cash and cash equivalents | 454 774 | 634 984 |
Restriced cash in tax withholding account | 2 825 | 1 372 |
In addition to the amounts referred to above, the Group has a deposit of NOK 12.6 million (2023: NOK 8.4 million) on a restricted account at year-end presented as current assets pledged toward the Directorate of Mining. According to the standard procedure in Norway, the Group is obligated to provide financial security in favor of the Directorate of Mining. The size of the security is according to the requirement in the operational license to cover safety and clean-up measures in case of mine closure.
NOTE 17- CONVERTIBLE LOAN
In January 2022, Nordic Mining entered into a NOK 132.5 million 5% interest bearing convertible loan in favor of Fjordavegen Holding AS, a local investor group led by two of the EPC partners for the Engeb\u00f8 project. This transaction was the first step in the project financing of the Engeb\u00f8 Project.\t
The convertible loan with accrued interests, in total NOK 139.6 million, was converted into 232,703,125 new shares in Nordic Mining ASA on 4 March 2023, in relation to the private placement to fully fund the Engeb\u00f8 Project.
2023\t
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | 142 976 | |
Change in fair value | -3 354 | |
Conversion | -139 622 | |
Total | - | - |
NOTE 18- FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Management of financial risk\t
Nordic Mining is exposed to certain types of financial risk related to the Group\u2019s financial instruments, primarily market risk related to floating interest rate risk on cash and cash equivalents, liquidity risk and currency risk. Management of Nordic Mining manages the Group\u2019s financial risk primarily by identifying and evaluating potential risk areas. Management\u2019s focus is primarily on managing liquidity risk to secure continuing operations and financing of the Group\u2019s capital-intensive projects. Nordic Mining\u2019s cash holdings are placed in bank accounts in Norwegian Kroner (NOK), United States Dollars (USD), Euro (EUR) and Australian Dollars (AUD). At year-end 2024, the Group\u2019s main currency exposure is related to its bond loan and royalty liability, which are denominated in USD. The Group has at year-end 2024 interest-bearing debt in the form of a bond loan. The Group\u2019s financial instruments at year-end 2024 mainly consist of the bond loan, royalty liability, bank deposits, customary short-term receivables, trade and other payables.\t
Liquidity risk\t
Liquidity risk is the risk that the Group will not be able to settle its financial obligations as they fall due. The Group has historically used equity financing in order to meet liquidity requirements related to financial obligations, covering operational losses, exploration activities and investments. In order to secure financing of the Engeb\u00f8 project, the Group issued a bond loan and a convertible loan in addition to divesting its investment in Keliber in 2022. In 2023 the Group has issued equity and completed the draw down of the non-dilutive royalty financing, and the Engeb\u00f8 Rutile and Garnet Project is fully financed. The project financing comprises equity, debt and royalty financing. In order to strengthen the liquidity in ERG, the Group has carried out a tap issue on its existing bond loan subsequent to year end. Due to unforeseen challenges in Q1 2025, there has been a delay in the production and shipment plans affecting the estimated revenues for 2025. We remain confident in the Group\u2019s liquidity position, supported by the positive contribution from the tap issue in March 2025. For more information see note 26.
The Group estimates the remaining CAPEX in the Engeb\u00f8 project to be NOK 100 million at year end 2024. The Groups cash position at year end 2024 was NOK 467 million including NOK 13 in restricted cash.\t
The bond loan contains certain financial covenants including minimum liquidity of USD 15 million at all time in ERG and a minimum equity ratio of no less than 25% at Group level at each quarter date. The Group was in compliance with the covenants at year end.
Payments to the royalty holder are tied to the level of gross revenue; the outstanding royalty liability will decrease if gross revenue decreases and conversely the outstanding royalty liability will increase if gross revenue increases. Hence, reduced liquidity due to reduced revenue also reduces the financial obligations due under the royalty financing.
Of the Group\u2019s financial liabilities as at 31 December 2024 NOK 175.5 million mature within 6 months from balance sheet date (2023: NOK 159.7 million).
Market risk\t
Market risk consists of the risk that real value or future cash flow related to financial instruments will vary as a consequence of fluctuation in market prices. Market risk includes, but is not limited to, currency risk, interest rate risk and price risk from sales.\t
Fixed price electricity contract
The Group has entered into a fixed price contract for the purchase of electricity to the mining facilities in Engeb\u00f8. The fixed price contract covers a portion of the estimated use by the production facilities over the next three years (2025-2027). The contract includes the delivery of 4MW per hour at a fixed price of NOK 0.404/KWh. The contract qualifies for the own use exemption under IFRS 9 and is not defined as a financial instrument.\t
(i) Interest rate risk\t
The Group\u2019s interest bearing debt at year-end is at fixed interest rates and the Royalty liability is not exposed to changes in the market interest rate. The Group\u2019s bank deposits are exposed to changes in the market interest rate. The Group\u2019s exposure on the result at year end 2024 is approximately +/-NOK 4.7 million per percentage-point change in the variable market interest rate (2023: NOK 17.2 million).\t
(ii) Currency exchange risk
At year-end 2024, the Group\u2019s main currency exposure is related to its bond loan and royalty liability, wich are denominated in USD. A 10% increase or decrease in the USD currency rates would decrease/increase the net income and equity by approximately NOK 173.5 million at year-end.
At year-end 2023, the Group\u2019s main currency exposure is related to its bond loan, Bond Escrow and royalty liability, wich are denominated in USD. A 10% increase or decrease in the USD currency rates would decrease/increase the net income and equity by approximately NOK 46.0 million at year-end. The Group had no foreign exchange hedges or instruments as per year-end 2024. Se note 6 for information about foreign exchange derivative contracts entered into in 2024 for forward sale of
USD and purchase of NOK to hedge the USD/NOK foreign exchange rate for the release of USD amounts from bond escrow during 2024. These contracts expired in Q2 2024 and in Q3 2024.\t
Credit risk\t
Credit risk is the risk of financial losses if a customer or counterpart of a financial instrument is unable to meet contractual obligations. The Group\u2019s current business has only limited credit risk. Cash and cash equivalents and security deposits in banks represent a large portion of the Group\u2019s financial assets at 31 December 2024. There has been no recognized loss on trade receivables in 2024 or 2023.Procedures for evaluation of credit risk have been introduced and discretionary evaluations are done on a case-by-case basis.\t
Political risk\t
In addition to financial risk, the Group is exposed to political risk related to its mining projects. The political risk includes the risk of not obtaining or extending the relevant governmental permits necessary to extract and produce minerals from these mining projects.The Group operates in an industry which is subject to extensive laws and regulations relevant for mining operations, in particular in relation to environmental and operational issues, which have become more stringent over time, and this development is expected to continue. Compliance with respect to environmental regulations, closure and other matters may involve significant costs and/ or other liabilities. Failure to comply with applicable environmental laws, regulations and permitting requirements may result in enforcement actions including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed and may include obligations to take corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. There is a risk that the Group due to its engagement in mining and mineral processing activities will be required to compen-sate those suffering loss or damage by reason of such activities and may incur civil or criminal fines or penalties for violation of applicable laws or regulations. Current environmental laws, regulations and permits governing operations and activities of mining companies may be changed. Regulatory requirements surrounding site reclamation and remediation activities, or more stringent implementation thereof, could have a material adverse impact on the Group and cause increases in capital expenditures or production costs or reduction in levels of operational production, or require abandonment or delays in the development of new sites. There are no current amendments that the Group is aware of that may impact the assets of the Group.
Nordic Mining\u2019s climate-related financial risk is considered to be low. The mining operations at the Group\u2019s main asset, the Engeb\u00f8 Project, is expected to have the lowest greenhouse gas footprint of all titanium feedstock producers due to available hydroelectric power in the area and a tight infra-structure with minimal transportation. Nordic Mining has a target of zero greenhouse gas emissions at Engeb\u00f8 and has initiated the development of a Climate Strategy Plan. The Group considers that there is minimal risk for stranded assets. All goods produced by Nordic Mining is planned to be exported abroad, and our products are thus exposed to changes in international tariffs and introduction of new tariffs. According to our offtake agreements, our products are sold FoB (Free on Board) which means that it is our customers who will clear the goods through customs for the first five years of production.\t
Fair value of financial instruments\t
2024:\t
The carrying amounts on the balance sheet of cash and cash equivalents, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 101% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023, the Group has assessed that the fair value at year-end is above the nominal value of USD 50 million. This is based on reduced risk and uncertainty of both the production outlook for Engeb\u00f8, as well as the overall marked outlook per 31 December 2024 compared to at the timing of the liability draw in November 2023. The reduced uncertainty and risk has led to a reduced discount rate, resulting in an incease of fair value. The fair value of the royalty liablity is estimated to be approximately USD 65.8 million (level 3 in the fair value hierarchy according to IFRS 13).
2023:\t
The carrying amounts on the balance sheet of cash and cash equivalents, Bond Escrow, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 95% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023 it is assessed that the fair value at year-end was the same as the nominal value of USD 50 million (level 3 in the fair value hierarchy according to IFRS 13).
Categories of financial instruments
Year ended 31 December 2024\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 959 | 959 | |
Bond escrow | - | - | |
Restricted cash | 12 645 | 12 645 | |
Cash and cash equivalents | 454 774 | 454 774 | |
Total financial assets | 468 378 | - | 468 378 |
Financial liabilities by category | |||
Accounts payable | 44 394 | 44 394 | |
Bond loan | 1 043 609 | 1 043 609 | |
Convertible loan | - | - | - |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Year ended 31 December 2023 | |||
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 904 | 904 | |
Bond escrow | 1 075 042 | 1 075 042 | |
Restricted cash | 8 430 | 8 430 | |
Cash and cash equivalents | 634 984 | 634 984 | |
Total financial assets | 1 719 360 | - | 1 719 360 |
Financial liabilities by category | |||
Accounts payable | 94 312 | 94 312 | |
Bond loan | 902 182 | 902 182 | |
Convertible loan | - | - | - |
Royalty liability | 517 574 | 517 574 | |
Other current financial liabilities | 65 370 | 65 370 | |
Total financial liabilities | 1 579 438 | - | 1 579 438 |
Capital management\t
The Group has historically used equity financing to finance research, operations, purchase of licenses and other investments. In order to secure financing of the Engeb\u00f8 project, the Group issued a bond loan and a convertible loan in addition to divesting its investment in Keliber in 2022. In 2023 the Group issued equity and completed the draw down of the non-dilutive royalty financing. In March 2025 Engeb\u00f8 Rutile and Garnet AS completed a tap issue of USD 33 million under the existing USD bond. Nordic Mining\u2019s financing comprise of equity and Engeb\u00f8 Rutile and Garnet AS\u2019 financing comprises of equity, debt and royalty financing. When Engeb\u00f8 transition to normal operation and positive cash flow, the Company will consider how to manage capital and distribution of dividends. For more information on liquidity risk see Board of Directors\u2019 report, and for more information on the maturity of the bond loan debt see Note 12. The ratio of net debt (debt less cash) divided by total capital (net debt and equity) as of 31 December 2024 is 43% (2023: 31%).\t
NOTE 11- TRADE AND OTHER RECEIVABLES
(Amounts in NOK thousands) | 2024 | 2023 |
Other financial receivables | 959 | 904 |
Prepayments | 3 023 | 1 848 |
VAT receivable | 23 722 | 27 809 |
Total | 27 704 | 30 561 |
NOTE 12- BOND LOAN AND BOND ESCROW
Nordic Mining ASA\u2019s wholly owned subsidiary Engeb\u00f8 Rutile and Garnet AS has a USD 100 million 5-year senior secured bond listed on Nordic ABM with ticker: ERUGA01 PRO. The bond is administered by Nordic Trustee, has fixed coupon of 12.5% per annum, with interest payable quarterly in arrears, maturity in November 2027, and an issue price of 90%.
The net proceeds of the bond of USD 90 million were on issue deposited into a Bond Escrow account, together with issue discount of USD 10 million, four months bond interest of USD 4.2 million, and transaction costs of USD 3.3 million, transferred by Engeb\u00f8 Rutile and Garnet AS in line with the bond terms. Following conditions of the Engeb\u00f8 Project being fully funded, which were satisfied on 8 March 2023, the bonds were reclassified to non-current liability in the statement of financial position. The proceeds from the bond were released in three tranches from the Bond Escrow account after satisfaction of certain predisbursement conditions precedent, to be used for costs and expenditures to bring the Engeb\u00f8 Project into commercial production.
In Q1 2024 the first release of USD 30 million from the bond escrow was completed, in Q2 2024 the second release of USD 30 million was completed, and in Q3 2024 the Company completed the third and final release of USD 48 million.
The bond loan was initially recognized at cost, being the fair value of the consideration received net of issue costs associated with the borrowing (inclusive the 10% discount). After initial recognition, the bond loan is subsequently measured at amortized cost using the effective interest method; any difference between proceeds (net of transaction cost including the 10% discount) and the redemption value is recognized on the income statement over the period of the loan.
2024 | |||
(Amounts in thousands) | Carrying amount Bond Loan | Carrying amount Bond Escrow | Cash transferred to Bond Escrow |
At 1 January | 902 182 | 1 075 042 | |
Amortization of fees | 23 328 | ||
Interest payment from Bond Escrow | - | ||
Interest income on bond escrow | 25 497 | ||
Foreign exchange | 118 100 | 51 888 | |
Release from Bond Escrow | (1 152 427) | 1 152 427 | |
Total at year end | 1 043 609 | 0 | 1 152 427 |
2023 | |||
(Amounts in thousands) | Carrying amount Bond Loan | Carrying amount Bond Escrow | Cash transferred to Bond Escrow |
At 1 January | 850 825 | 1 032 597 | |
Amortization of fees | 19 847 | ||
Interest payment from Bond Escrow | (41 989) | ||
Interest income on bond escrow | 53 517 | ||
Foreign exchange | 31 510 | 30 917 | |
Total at year end | 902 182 | 1 075 042 | - |
The bond loan is secured by first priority pledge over the shares of Engeb\u00f8 Rutile and Garnet AS (\u201dERG\u201d), mortgages over all real properties owned by ERG and property accession rights agree-ments (Nw. utvinningsavtaler), first priority floating charge over all machinery and plant, vehicles, inventory and trade receivables of ERG, first priority pledge over any government granted mining or extraction rights and other security usual and customary for a transaction of this type. The bond loan contains certain financial covenants including minimum liquidity of USD 15 million at all time in ERG and a minimum equity ratio of no less than 25% at Group level at each quarter date. For further details please see ticker ERUGA01 PRO at https://live.euronext.com/nb to read the loan agreement.\t
The table below provides an overview of the maturity profile and estimated interest payments for the Company\u2019s bond loan. Please note that the annual interest payment is USD 12.5 million, so the estimated interest payments in NOK are dependent on the USD/NOK exchange rate. The figures in the table below are based on the exchange rate at year end 2024.\t
(Amounts in thousands) | 1 year | 2-5 years | Estimated payments |
Repayment | (1 135 340) | (1 135 340) | |
Estimated interest | (141 918) | (283 835) | (425 753) |
Total payments on bond loan | (141 918) | (1 419 175) | (1 561 093) |
See note 26 for information about increase of the existing bond loan in March 2025 through a tap issue with USD 33 million, priced at 101.00% of par.
NOTE 16- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2024 | 2023 |
Tax withholding and social security accrual | 5 192 | 2 537 |
Employee salary and holiday pay accrual | 4 354 | 2 532 |
VAT payable | - | 241 |
Lease liability | 305 | 305 |
Accrued interest bond loan | 20 105 | 18 015 |
Accrued expenses and other | 126 801 | 62 838 |
Total | 156 757 | 86 468 |
Other current liabilities primarily relates to the short term portion of the royalty liability and amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__76-1": { "value": "NOTE 12- BOND LOAN AND BOND ESCROW
Nordic Mining ASA\u2019s wholly owned subsidiary Engeb\u00f8 Rutile and Garnet AS has a USD 100 million 5-year senior secured bond listed on Nordic ABM with ticker: ERUGA01 PRO. The bond is administered by Nordic Trustee, has fixed coupon of 12.5% per annum, with interest payable quarterly in arrears, maturity in November 2027, and an issue price of 90%.
The net proceeds of the bond of USD 90 million were on issue deposited into a Bond Escrow account, together with issue discount of USD 10 million, four months bond interest of USD 4.2 million, and transaction costs of USD 3.3 million, transferred by Engeb\u00f8 Rutile and Garnet AS in line with the bond terms. Following conditions of the Engeb\u00f8 Project being fully funded, which were satisfied on 8 March 2023, the bonds were reclassified to non-current liability in the statement of financial position. The proceeds from the bond were released in three tranches from the Bond Escrow account after satisfaction of certain predisbursement conditions precedent, to be used for costs and expenditures to bring the Engeb\u00f8 Project into commercial production.
In Q1 2024 the first release of USD 30 million from the bond escrow was completed, in Q2 2024 the second release of USD 30 million was completed, and in Q3 2024 the Company completed the third and final release of USD 48 million.
The bond loan was initially recognized at cost, being the fair value of the consideration received net of issue costs associated with the borrowing (inclusive the 10% discount). After initial recognition, the bond loan is subsequently measured at amortized cost using the effective interest method; any difference between proceeds (net of transaction cost including the 10% discount) and the redemption value is recognized on the income statement over the period of the loan.
2024 | |||
(Amounts in thousands) | Carrying amount Bond Loan | Carrying amount Bond Escrow | Cash transferred to Bond Escrow |
At 1 January | 902 182 | 1 075 042 | |
Amortization of fees | 23 328 | ||
Interest payment from Bond Escrow | - | ||
Interest income on bond escrow | 25 497 | ||
Foreign exchange | 118 100 | 51 888 | |
Release from Bond Escrow | (1 152 427) | 1 152 427 | |
Total at year end | 1 043 609 | 0 | 1 152 427 |
2023 | |||
(Amounts in thousands) | Carrying amount Bond Loan | Carrying amount Bond Escrow | Cash transferred to Bond Escrow |
At 1 January | 850 825 | 1 032 597 | |
Amortization of fees | 19 847 | ||
Interest payment from Bond Escrow | (41 989) | ||
Interest income on bond escrow | 53 517 | ||
Foreign exchange | 31 510 | 30 917 | |
Total at year end | 902 182 | 1 075 042 | - |
The bond loan is secured by first priority pledge over the shares of Engeb\u00f8 Rutile and Garnet AS (\u201dERG\u201d), mortgages over all real properties owned by ERG and property accession rights agree-ments (Nw. utvinningsavtaler), first priority floating charge over all machinery and plant, vehicles, inventory and trade receivables of ERG, first priority pledge over any government granted mining or extraction rights and other security usual and customary for a transaction of this type. The bond loan contains certain financial covenants including minimum liquidity of USD 15 million at all time in ERG and a minimum equity ratio of no less than 25% at Group level at each quarter date. For further details please see ticker ERUGA01 PRO at https://live.euronext.com/nb to read the loan agreement.\t
The table below provides an overview of the maturity profile and estimated interest payments for the Company\u2019s bond loan. Please note that the annual interest payment is USD 12.5 million, so the estimated interest payments in NOK are dependent on the USD/NOK exchange rate. The figures in the table below are based on the exchange rate at year end 2024.\t
(Amounts in thousands) | 1 year | 2-5 years | Estimated payments |
Repayment | (1 135 340) | (1 135 340) | |
Estimated interest | (141 918) | (283 835) | (425 753) |
Total payments on bond loan | (141 918) | (1 419 175) | (1 561 093) |
See note 26 for information about increase of the existing bond loan in March 2025 through a tap issue with USD 33 million, priced at 101.00% of par.
NOTE 17- CONVERTIBLE LOAN
In January 2022, Nordic Mining entered into a NOK 132.5 million 5% interest bearing convertible loan in favor of Fjordavegen Holding AS, a local investor group led by two of the EPC partners for the Engeb\u00f8 project. This transaction was the first step in the project financing of the Engeb\u00f8 Project.\t
The convertible loan with accrued interests, in total NOK 139.6 million, was converted into 232,703,125 new shares in Nordic Mining ASA on 4 March 2023, in relation to the private placement to fully fund the Engeb\u00f8 Project.
2023\t
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | 142 976 | |
Change in fair value | -3 354 | |
Conversion | -139 622 | |
Total | - | - |
NOTE 13- CASH AND CASH EQUIVALENTS
(Amounts in NOK thousands) | 2024 | 2023 |
Bank deposits | 454 774 | 634 984 |
Total cash and cash equivalents | 454 774 | 634 984 |
Restriced cash in tax withholding account | 2 825 | 1 372 |
In addition to the amounts referred to above, the Group has a deposit of NOK 12.6 million (2023: NOK 8.4 million) on a restricted account at year-end presented as current assets pledged toward the Directorate of Mining. According to the standard procedure in Norway, the Group is obligated to provide financial security in favor of the Directorate of Mining. The size of the security is according to the requirement in the operational license to cover safety and clean-up measures in case of mine closure.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__78": { "value": "NOTE 13- CASH AND CASH EQUIVALENTS
(Amounts in NOK thousands) | 2024 | 2023 |
Bank deposits | 454 774 | 634 984 |
Total cash and cash equivalents | 454 774 | 634 984 |
Restriced cash in tax withholding account | 2 825 | 1 372 |
In addition to the amounts referred to above, the Group has a deposit of NOK 12.6 million (2023: NOK 8.4 million) on a restricted account at year-end presented as current assets pledged toward the Directorate of Mining. According to the standard procedure in Norway, the Group is obligated to provide financial security in favor of the Directorate of Mining. The size of the security is according to the requirement in the operational license to cover safety and clean-up measures in case of mine closure.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__80": { "value": "NOTE 14- SHARE CAPITAL
Number of shares outstanding | Ordinary Shares |
2023 | |
Opening balance | 232 316 772 |
Share issuance | 1 935 913 883 |
31 December 2023 | 2 168 230 655 |
2024 | |
Opening balance | 2 168 230 655 |
Reverse split 20:1 | (2 059 819 122) |
Number of shares after reverse split 20:1 | 108 411 533 |
Share issuance | - |
31 December 2024 | 108 411 533 |
All shares carry equal rights and had a par value of NOK 12 per share as of 31 December 2024.
2024\t
In March 2024, Nordic Mining completed a reverse split of 20:1 reducing the number of shares to 108,411,533 shares and increasing the par value to NOK 12 per share.
2023
In March 2023, Nordig Mining completed a private placement of 1,566,666,667 new shares at a subscription price per new share of NOK 0.60 with gross proceeds of NOK 940 million. The convertible loan was converted as a consequence of the private placement. The convertible loan with accrued interest, in total NOK 139,621,875, was converted at the same subscription price as in the private placement, i.e. NOK 0.60 per share. Fjordavegen Holding received 232,703,125 new shares in the company at a subscription price per share of NOK 0.60.
In April 2023, Nordic Mining completed a subsequent offering with 136,544,091 new shares at a subscription price per new share of NOK 0.60 with gross proceeds of NOK 81.9 million.
Following registration of the new shares from the private placement in March 2023, the conversion of the convertible loan in March 2023, and the new shares from the subsequent offering in April 2023, Nordic Mining\u2019s share capital has increased by NOK 1,161,548,330 to NOK 1,300,938,393.40 divided into 2,168,230,655 shares, each with a par value of NOK 0.60.
Components of other comprehensive income\t
The following table shows a reconciliation of the components of other comprehensive income (\u201dOCI\u201d):\t
(Amounts in NOK thousands) | Actuarial gain/loss | Total OCI |
Balance on 1 January 2023 | (4 232) | (4 232) |
Actuarial gain/(loss) | 536 | 536 |
Balance on 31 December 2023 | (3 696) | (3 696) |
Actuarial gain/(loss) | 317 | 317 |
Balance on 31 December 2024 | (3 379) | (3 379) |
NOTE 14- SHARE CAPITAL
Number of shares outstanding | Ordinary Shares |
2023 | |
Opening balance | 232 316 772 |
Share issuance | 1 935 913 883 |
31 December 2023 | 2 168 230 655 |
2024 | |
Opening balance | 2 168 230 655 |
Reverse split 20:1 | (2 059 819 122) |
Number of shares after reverse split 20:1 | 108 411 533 |
Share issuance | - |
31 December 2024 | 108 411 533 |
All shares carry equal rights and had a par value of NOK 12 per share as of 31 December 2024.
2024\t
In March 2024, Nordic Mining completed a reverse split of 20:1 reducing the number of shares to 108,411,533 shares and increasing the par value to NOK 12 per share.
2023
In March 2023, Nordig Mining completed a private placement of 1,566,666,667 new shares at a subscription price per new share of NOK 0.60 with gross proceeds of NOK 940 million. The convertible loan was converted as a consequence of the private placement. The convertible loan with accrued interest, in total NOK 139,621,875, was converted at the same subscription price as in the private placement, i.e. NOK 0.60 per share. Fjordavegen Holding received 232,703,125 new shares in the company at a subscription price per share of NOK 0.60.
In April 2023, Nordic Mining completed a subsequent offering with 136,544,091 new shares at a subscription price per new share of NOK 0.60 with gross proceeds of NOK 81.9 million.
Following registration of the new shares from the private placement in March 2023, the conversion of the convertible loan in March 2023, and the new shares from the subsequent offering in April 2023, Nordic Mining\u2019s share capital has increased by NOK 1,161,548,330 to NOK 1,300,938,393.40 divided into 2,168,230,655 shares, each with a par value of NOK 0.60.
NOTE 20- SHAREHOLDERS
The table below shows the Company\u2019s 20 largest shareholders as at 31 December 2024:\t
Shareholder | Number of shares | % ownership |
Fjordavegen Holding AS | 16 218 489 | 14.96 % |
Iwatani Corporation | 15 979 133 | 14.74 % |
Morgan Stanley & Co. Int. Plc. | 11 419 311 | 10.53 % |
Nordnet Bank AB | 2 788 128 | 2.57 % |
Skandinaviska Enskilda Banken AB | 2 267 503 | 2.09 % |
Nordnet Livsforsikring AS | 2 011 394 | 1.86 % |
Clearstream Banking S.A. | 1 900 562 | 1.75 % |
The Bank of New York Mellon SA/NV | 1 007 560 | 0.93 % |
Pro AS | 937 204 | 0.86 % |
UBS AG | 925 980 | 0.85 % |
Stavanger Forvaltning AS | 840 000 | 0.77 % |
J.P. Morgan Securities LLC | 674 330 | 0.62 % |
Goldman Sachs International | 674 323 | 0.62 % |
Nordea Bank Abp | 648 712 | 0.60 % |
Citibank, N.A. | 600 000 | 0.55 % |
Danske Bank A/S | 499 816 | 0.46 % |
Joma Invest AS | 400 000 | 0.37 % |
Melum M\u00f8lle AS | 350 000 | 0.32 % |
O Drage AS | 335 899 | 0.31 % |
Fredrik Rosenberg | 325 785 | 0.30 % |
Total 20 largest shareholders | 60 804 129 | 56.09 % |
Other shareholders | 47 607 404 | 43.91 % |
Total | 108 411 533 | 100.00 % |
NOTE 15- ROYALTY LIABILITY
In November 2023 Nordic Mining ASA\u2019s wholly owned subsidiary Engeb\u00f8 Rutile and Garnet AS completed drawdown of the USD 50 million non-dilutive royalty instrument from OMRF (Zr) LLC which is managed by the Orion Resource Partners Group (\u201dOrion\u201d). The future royalty payments under the royalty agreement equal to 11% of gross revenue from the Engeb\u00f8 Project.
The royalty liability lasts for the entire operational life of the mine, with an upper limit of 90 years. The Group have the option to reduce the royalty rate from 11% to 5.5% on certain conditions in 2028 or 2029. The buyback fee for such a reduction event is based on a calculation securing the royalty holder a certain return on the reduced portion of the royalty instrument for the duration it was held.
The royalty liability was initially recognized at the USD 50 million drawdown received net of directly attributable transaction costs at drawdown. After initial recognition the royalty liability under the Royalty Agreement is subsequently amortized at the effective interest rate, and the difference between the drawdown received net of transaction costs and the royalty payments is recognized as financial cost in the income statement, over the period for the expected royalty payments. The option to reduce the Royalty rate described above has not been included in these calculations. At each reporting period, modifications to production plans and price expectations are evaluated, and when required, a modification gain/loss is recognized. Estimated royalty payments due within 12 months are classified within other current liabilities.\t
Until construction of the Engeb\u00f8 project is completed, amortized cost is recognized as borrowing cost and capitalized under Mine under construction, in total NOK 111.1 million in 2024 (2023: NOK 12.3 million).
In December 2024 the Company has, based on updated Rutile price forecasts from TZMI, revised its estimates of future cash flows related to the royalty agreement. The net effect of the change in estimate, NOK 47.9 million, has been recognized as financial income.
Next year\u2019s estimated royalty payments have been reclassified to other current liabilities at 31 December 2024.
An annual royalty fee is also calculated and paid to land owners for the extraction of minerals. The royalty fee is equal to 0.5% of the annual income from rutile products sold and 1.25% of the annual income of garnet and other sub products sold. For other minerals not being sub products of rutile, the royalty fee is set to 2% of the corresponding annual income. The royalty fee to land owners will be recognized as an expense when incurred.
2024
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | 517 574 | |
Foreign exchange | 66 279 | |
Amortization, change in estimate and other | 15 946 | |
Total non-current portion of royalty liability | 599 798 | - |
2023
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | - | |
Draw down | 540 394 | 540 394 |
Fees paid at inception | -3 574 | (3 574) |
Foreign exchange | -31 551 | |
Amortization | 12 305 | |
Total non-current portion of royalty liability | 517 574 | 536 820 |
NOTE 16- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2024 | 2023 |
Tax withholding and social security accrual | 5 192 | 2 537 |
Employee salary and holiday pay accrual | 4 354 | 2 532 |
VAT payable | - | 241 |
Lease liability | 305 | 305 |
Accrued interest bond loan | 20 105 | 18 015 |
Accrued expenses and other | 126 801 | 62 838 |
Total | 156 757 | 86 468 |
Other current liabilities primarily relates to the short term portion of the royalty liability and amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__85": { "value": "NOTE 16- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2024 | 2023 |
Tax withholding and social security accrual | 5 192 | 2 537 |
Employee salary and holiday pay accrual | 4 354 | 2 532 |
VAT payable | - | 241 |
Lease liability | 305 | 305 |
Accrued interest bond loan | 20 105 | 18 015 |
Accrued expenses and other | 126 801 | 62 838 |
Total | 156 757 | 86 468 |
Other current liabilities primarily relates to the short term portion of the royalty liability and amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__87-1": { "value": "NOTE 17- CONVERTIBLE LOAN
In January 2022, Nordic Mining entered into a NOK 132.5 million 5% interest bearing convertible loan in favor of Fjordavegen Holding AS, a local investor group led by two of the EPC partners for the Engeb\u00f8 project. This transaction was the first step in the project financing of the Engeb\u00f8 Project.\t
The convertible loan with accrued interests, in total NOK 139.6 million, was converted into 232,703,125 new shares in Nordic Mining ASA on 4 March 2023, in relation to the private placement to fully fund the Engeb\u00f8 Project.
2023\t
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | 142 976 | |
Change in fair value | -3 354 | |
Conversion | -139 622 | |
Total | - | - |
Political risk\t
In addition to financial risk, the Group is exposed to political risk related to its mining projects. The political risk includes the risk of not obtaining or extending the relevant governmental permits necessary to extract and produce minerals from these mining projects.The Group operates in an industry which is subject to extensive laws and regulations relevant for mining operations, in particular in relation to environmental and operational issues, which have become more stringent over time, and this development is expected to continue. Compliance with respect to environmental regulations, closure and other matters may involve significant costs and/ or other liabilities. Failure to comply with applicable environmental laws, regulations and permitting requirements may result in enforcement actions including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed and may include obligations to take corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. There is a risk that the Group due to its engagement in mining and mineral processing activities will be required to compen-sate those suffering loss or damage by reason of such activities and may incur civil or criminal fines or penalties for violation of applicable laws or regulations. Current environmental laws, regulations and permits governing operations and activities of mining companies may be changed. Regulatory requirements surrounding site reclamation and remediation activities, or more stringent implementation thereof, could have a material adverse impact on the Group and cause increases in capital expenditures or production costs or reduction in levels of operational production, or require abandonment or delays in the development of new sites. There are no current amendments that the Group is aware of that may impact the assets of the Group.
Nordic Mining\u2019s climate-related financial risk is considered to be low. The mining operations at the Group\u2019s main asset, the Engeb\u00f8 Project, is expected to have the lowest greenhouse gas footprint of all titanium feedstock producers due to available hydroelectric power in the area and a tight infra-structure with minimal transportation. Nordic Mining has a target of zero greenhouse gas emissions at Engeb\u00f8 and has initiated the development of a Climate Strategy Plan. The Group considers that there is minimal risk for stranded assets. All goods produced by Nordic Mining is planned to be exported abroad, and our products are thus exposed to changes in international tariffs and introduction of new tariffs. According to our offtake agreements, our products are sold FoB (Free on Board) which means that it is our customers who will clear the goods through customs for the first five years of production.\t
Fair value of financial instruments\t
2024:\t
The carrying amounts on the balance sheet of cash and cash equivalents, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 101% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023, the Group has assessed that the fair value at year-end is above the nominal value of USD 50 million. This is based on reduced risk and uncertainty of both the production outlook for Engeb\u00f8, as well as the overall marked outlook per 31 December 2024 compared to at the timing of the liability draw in November 2023. The reduced uncertainty and risk has led to a reduced discount rate, resulting in an incease of fair value. The fair value of the royalty liablity is estimated to be approximately USD 65.8 million (level 3 in the fair value hierarchy according to IFRS 13).
2023:\t
The carrying amounts on the balance sheet of cash and cash equivalents, Bond Escrow, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 95% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023 it is assessed that the fair value at year-end was the same as the nominal value of USD 50 million (level 3 in the fair value hierarchy according to IFRS 13).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__90": { "value": "NOTE 18- FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Management of financial risk\t
Nordic Mining is exposed to certain types of financial risk related to the Group\u2019s financial instruments, primarily market risk related to floating interest rate risk on cash and cash equivalents, liquidity risk and currency risk. Management of Nordic Mining manages the Group\u2019s financial risk primarily by identifying and evaluating potential risk areas. Management\u2019s focus is primarily on managing liquidity risk to secure continuing operations and financing of the Group\u2019s capital-intensive projects. Nordic Mining\u2019s cash holdings are placed in bank accounts in Norwegian Kroner (NOK), United States Dollars (USD), Euro (EUR) and Australian Dollars (AUD). At year-end 2024, the Group\u2019s main currency exposure is related to its bond loan and royalty liability, which are denominated in USD. The Group has at year-end 2024 interest-bearing debt in the form of a bond loan. The Group\u2019s financial instruments at year-end 2024 mainly consist of the bond loan, royalty liability, bank deposits, customary short-term receivables, trade and other payables.\t
Liquidity risk\t
Liquidity risk is the risk that the Group will not be able to settle its financial obligations as they fall due. The Group has historically used equity financing in order to meet liquidity requirements related to financial obligations, covering operational losses, exploration activities and investments. In order to secure financing of the Engeb\u00f8 project, the Group issued a bond loan and a convertible loan in addition to divesting its investment in Keliber in 2022. In 2023 the Group has issued equity and completed the draw down of the non-dilutive royalty financing, and the Engeb\u00f8 Rutile and Garnet Project is fully financed. The project financing comprises equity, debt and royalty financing. In order to strengthen the liquidity in ERG, the Group has carried out a tap issue on its existing bond loan subsequent to year end. Due to unforeseen challenges in Q1 2025, there has been a delay in the production and shipment plans affecting the estimated revenues for 2025. We remain confident in the Group\u2019s liquidity position, supported by the positive contribution from the tap issue in March 2025. For more information see note 26.
The Group estimates the remaining CAPEX in the Engeb\u00f8 project to be NOK 100 million at year end 2024. The Groups cash position at year end 2024 was NOK 467 million including NOK 13 in restricted cash.\t
The bond loan contains certain financial covenants including minimum liquidity of USD 15 million at all time in ERG and a minimum equity ratio of no less than 25% at Group level at each quarter date. The Group was in compliance with the covenants at year end.
Payments to the royalty holder are tied to the level of gross revenue; the outstanding royalty liability will decrease if gross revenue decreases and conversely the outstanding royalty liability will increase if gross revenue increases. Hence, reduced liquidity due to reduced revenue also reduces the financial obligations due under the royalty financing.
Of the Group\u2019s financial liabilities as at 31 December 2024 NOK 175.5 million mature within 6 months from balance sheet date (2023: NOK 159.7 million).
Market risk\t
Market risk consists of the risk that real value or future cash flow related to financial instruments will vary as a consequence of fluctuation in market prices. Market risk includes, but is not limited to, currency risk, interest rate risk and price risk from sales.\t
Fixed price electricity contract
The Group has entered into a fixed price contract for the purchase of electricity to the mining facilities in Engeb\u00f8. The fixed price contract covers a portion of the estimated use by the production facilities over the next three years (2025-2027). The contract includes the delivery of 4MW per hour at a fixed price of NOK 0.404/KWh. The contract qualifies for the own use exemption under IFRS 9 and is not defined as a financial instrument.\t
(i) Interest rate risk\t
The Group\u2019s interest bearing debt at year-end is at fixed interest rates and the Royalty liability is not exposed to changes in the market interest rate. The Group\u2019s bank deposits are exposed to changes in the market interest rate. The Group\u2019s exposure on the result at year end 2024 is approximately +/-NOK 4.7 million per percentage-point change in the variable market interest rate (2023: NOK 17.2 million).\t
(ii) Currency exchange risk
At year-end 2024, the Group\u2019s main currency exposure is related to its bond loan and royalty liability, wich are denominated in USD. A 10% increase or decrease in the USD currency rates would decrease/increase the net income and equity by approximately NOK 173.5 million at year-end.
At year-end 2023, the Group\u2019s main currency exposure is related to its bond loan, Bond Escrow and royalty liability, wich are denominated in USD. A 10% increase or decrease in the USD currency rates would decrease/increase the net income and equity by approximately NOK 46.0 million at year-end. The Group had no foreign exchange hedges or instruments as per year-end 2024. Se note 6 for information about foreign exchange derivative contracts entered into in 2024 for forward sale of
USD and purchase of NOK to hedge the USD/NOK foreign exchange rate for the release of USD amounts from bond escrow during 2024. These contracts expired in Q2 2024 and in Q3 2024.\t
Credit risk\t
Credit risk is the risk of financial losses if a customer or counterpart of a financial instrument is unable to meet contractual obligations. The Group\u2019s current business has only limited credit risk. Cash and cash equivalents and security deposits in banks represent a large portion of the Group\u2019s financial assets at 31 December 2024. There has been no recognized loss on trade receivables in 2024 or 2023.Procedures for evaluation of credit risk have been introduced and discretionary evaluations are done on a case-by-case basis.\t
Political risk\t
In addition to financial risk, the Group is exposed to political risk related to its mining projects. The political risk includes the risk of not obtaining or extending the relevant governmental permits necessary to extract and produce minerals from these mining projects.The Group operates in an industry which is subject to extensive laws and regulations relevant for mining operations, in particular in relation to environmental and operational issues, which have become more stringent over time, and this development is expected to continue. Compliance with respect to environmental regulations, closure and other matters may involve significant costs and/ or other liabilities. Failure to comply with applicable environmental laws, regulations and permitting requirements may result in enforcement actions including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed and may include obligations to take corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. There is a risk that the Group due to its engagement in mining and mineral processing activities will be required to compen-sate those suffering loss or damage by reason of such activities and may incur civil or criminal fines or penalties for violation of applicable laws or regulations. Current environmental laws, regulations and permits governing operations and activities of mining companies may be changed. Regulatory requirements surrounding site reclamation and remediation activities, or more stringent implementation thereof, could have a material adverse impact on the Group and cause increases in capital expenditures or production costs or reduction in levels of operational production, or require abandonment or delays in the development of new sites. There are no current amendments that the Group is aware of that may impact the assets of the Group.
Nordic Mining\u2019s climate-related financial risk is considered to be low. The mining operations at the Group\u2019s main asset, the Engeb\u00f8 Project, is expected to have the lowest greenhouse gas footprint of all titanium feedstock producers due to available hydroelectric power in the area and a tight infra-structure with minimal transportation. Nordic Mining has a target of zero greenhouse gas emissions at Engeb\u00f8 and has initiated the development of a Climate Strategy Plan. The Group considers that there is minimal risk for stranded assets. All goods produced by Nordic Mining is planned to be exported abroad, and our products are thus exposed to changes in international tariffs and introduction of new tariffs. According to our offtake agreements, our products are sold FoB (Free on Board) which means that it is our customers who will clear the goods through customs for the first five years of production.\t
Fair value of financial instruments\t
2024:\t
The carrying amounts on the balance sheet of cash and cash equivalents, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 101% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023, the Group has assessed that the fair value at year-end is above the nominal value of USD 50 million. This is based on reduced risk and uncertainty of both the production outlook for Engeb\u00f8, as well as the overall marked outlook per 31 December 2024 compared to at the timing of the liability draw in November 2023. The reduced uncertainty and risk has led to a reduced discount rate, resulting in an incease of fair value. The fair value of the royalty liablity is estimated to be approximately USD 65.8 million (level 3 in the fair value hierarchy according to IFRS 13).
2023:\t
The carrying amounts on the balance sheet of cash and cash equivalents, Bond Escrow, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 95% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023 it is assessed that the fair value at year-end was the same as the nominal value of USD 50 million (level 3 in the fair value hierarchy according to IFRS 13).
Categories of financial instruments
Year ended 31 December 2024\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 959 | 959 | |
Bond escrow | - | - | |
Restricted cash | 12 645 | 12 645 | |
Cash and cash equivalents | 454 774 | 454 774 | |
Total financial assets | 468 378 | - | 468 378 |
Financial liabilities by category | |||
Accounts payable | 44 394 | 44 394 | |
Bond loan | 1 043 609 | 1 043 609 | |
Convertible loan | - | - | - |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Year ended 31 December 2023 | |||
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 904 | 904 | |
Bond escrow | 1 075 042 | 1 075 042 | |
Restricted cash | 8 430 | 8 430 | |
Cash and cash equivalents | 634 984 | 634 984 | |
Total financial assets | 1 719 360 | - | 1 719 360 |
Financial liabilities by category | |||
Accounts payable | 94 312 | 94 312 | |
Bond loan | 902 182 | 902 182 | |
Convertible loan | - | - | - |
Royalty liability | 517 574 | 517 574 | |
Other current financial liabilities | 65 370 | 65 370 | |
Total financial liabilities | 1 579 438 | - | 1 579 438 |
Capital management\t
The Group has historically used equity financing to finance research, operations, purchase of licenses and other investments. In order to secure financing of the Engeb\u00f8 project, the Group issued a bond loan and a convertible loan in addition to divesting its investment in Keliber in 2022. In 2023 the Group issued equity and completed the draw down of the non-dilutive royalty financing. In March 2025 Engeb\u00f8 Rutile and Garnet AS completed a tap issue of USD 33 million under the existing USD bond. Nordic Mining\u2019s financing comprise of equity and Engeb\u00f8 Rutile and Garnet AS\u2019 financing comprises of equity, debt and royalty financing. When Engeb\u00f8 transition to normal operation and positive cash flow, the Company will consider how to manage capital and distribution of dividends. For more information on liquidity risk see Board of Directors\u2019 report, and for more information on the maturity of the bond loan debt see Note 12. The ratio of net debt (debt less cash) divided by total capital (net debt and equity) as of 31 December 2024 is 43% (2023: 31%).\t
Liquidity risk\t
Liquidity risk is the risk that the Group will not be able to settle its financial obligations as they fall due. The Group has historically used equity financing in order to meet liquidity requirements related to financial obligations, covering operational losses, exploration activities and investments. In order to secure financing of the Engeb\u00f8 project, the Group issued a bond loan and a convertible loan in addition to divesting its investment in Keliber in 2022. In 2023 the Group has issued equity and completed the draw down of the non-dilutive royalty financing, and the Engeb\u00f8 Rutile and Garnet Project is fully financed. The project financing comprises equity, debt and royalty financing. In order to strengthen the liquidity in ERG, the Group has carried out a tap issue on its existing bond loan subsequent to year end. Due to unforeseen challenges in Q1 2025, there has been a delay in the production and shipment plans affecting the estimated revenues for 2025. We remain confident in the Group\u2019s liquidity position, supported by the positive contribution from the tap issue in March 2025. For more information see note 26.
The Group estimates the remaining CAPEX in the Engeb\u00f8 project to be NOK 100 million at year end 2024. The Groups cash position at year end 2024 was NOK 467 million including NOK 13 in restricted cash.\t
The bond loan contains certain financial covenants including minimum liquidity of USD 15 million at all time in ERG and a minimum equity ratio of no less than 25% at Group level at each quarter date. The Group was in compliance with the covenants at year end.
Payments to the royalty holder are tied to the level of gross revenue; the outstanding royalty liability will decrease if gross revenue decreases and conversely the outstanding royalty liability will increase if gross revenue increases. Hence, reduced liquidity due to reduced revenue also reduces the financial obligations due under the royalty financing.
Of the Group\u2019s financial liabilities as at 31 December 2024 NOK 175.5 million mature within 6 months from balance sheet date (2023: NOK 159.7 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__93": { "value": "
Market risk\t
Market risk consists of the risk that real value or future cash flow related to financial instruments will vary as a consequence of fluctuation in market prices. Market risk includes, but is not limited to, currency risk, interest rate risk and price risk from sales.\t
Fixed price electricity contract
The Group has entered into a fixed price contract for the purchase of electricity to the mining facilities in Engeb\u00f8. The fixed price contract covers a portion of the estimated use by the production facilities over the next three years (2025-2027). The contract includes the delivery of 4MW per hour at a fixed price of NOK 0.404/KWh. The contract qualifies for the own use exemption under IFRS 9 and is not defined as a financial instrument.\t
(i) Interest rate risk\t
The Group\u2019s interest bearing debt at year-end is at fixed interest rates and the Royalty liability is not exposed to changes in the market interest rate. The Group\u2019s bank deposits are exposed to changes in the market interest rate. The Group\u2019s exposure on the result at year end 2024 is approximately +/-NOK 4.7 million per percentage-point change in the variable market interest rate (2023: NOK 17.2 million).\t
(ii) Currency exchange risk
At year-end 2024, the Group\u2019s main currency exposure is related to its bond loan and royalty liability, wich are denominated in USD. A 10% increase or decrease in the USD currency rates would decrease/increase the net income and equity by approximately NOK 173.5 million at year-end.
At year-end 2023, the Group\u2019s main currency exposure is related to its bond loan, Bond Escrow and royalty liability, wich are denominated in USD. A 10% increase or decrease in the USD currency rates would decrease/increase the net income and equity by approximately NOK 46.0 million at year-end. The Group had no foreign exchange hedges or instruments as per year-end 2024. Se note 6 for information about foreign exchange derivative contracts entered into in 2024 for forward sale of
USD and purchase of NOK to hedge the USD/NOK foreign exchange rate for the release of USD amounts from bond escrow during 2024. These contracts expired in Q2 2024 and in Q3 2024.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__94": { "value": "Credit risk\t
Credit risk is the risk of financial losses if a customer or counterpart of a financial instrument is unable to meet contractual obligations. The Group\u2019s current business has only limited credit risk. Cash and cash equivalents and security deposits in banks represent a large portion of the Group\u2019s financial assets at 31 December 2024. There has been no recognized loss on trade receivables in 2024 or 2023.Procedures for evaluation of credit risk have been introduced and discretionary evaluations are done on a case-by-case basis.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__97-1": { "value": "
Fair value of financial instruments\t
2024:\t
The carrying amounts on the balance sheet of cash and cash equivalents, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 101% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023, the Group has assessed that the fair value at year-end is above the nominal value of USD 50 million. This is based on reduced risk and uncertainty of both the production outlook for Engeb\u00f8, as well as the overall marked outlook per 31 December 2024 compared to at the timing of the liability draw in November 2023. The reduced uncertainty and risk has led to a reduced discount rate, resulting in an incease of fair value. The fair value of the royalty liablity is estimated to be approximately USD 65.8 million (level 3 in the fair value hierarchy according to IFRS 13).
2023:\t
The carrying amounts on the balance sheet of cash and cash equivalents, Bond Escrow, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 95% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023 it is assessed that the fair value at year-end was the same as the nominal value of USD 50 million (level 3 in the fair value hierarchy according to IFRS 13).
Categories of financial instruments
Year ended 31 December 2024\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 959 | 959 | |
Bond escrow | - | - | |
Restricted cash | 12 645 | 12 645 | |
Cash and cash equivalents | 454 774 | 454 774 | |
Total financial assets | 468 378 | - | 468 378 |
Financial liabilities by category | |||
Accounts payable | 44 394 | 44 394 | |
Bond loan | 1 043 609 | 1 043 609 | |
Convertible loan | - | - | - |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Year ended 31 December 2023 | |||
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 904 | 904 | |
Bond escrow | 1 075 042 | 1 075 042 | |
Restricted cash | 8 430 | 8 430 | |
Cash and cash equivalents | 634 984 | 634 984 | |
Total financial assets | 1 719 360 | - | 1 719 360 |
Financial liabilities by category | |||
Accounts payable | 94 312 | 94 312 | |
Bond loan | 902 182 | 902 182 | |
Convertible loan | - | - | - |
Royalty liability | 517 574 | 517 574 | |
Other current financial liabilities | 65 370 | 65 370 | |
Total financial liabilities | 1 579 438 | - | 1 579 438 |
Fair value of financial instruments\t
2024:\t
The carrying amounts on the balance sheet of cash and cash equivalents, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 101% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023, the Group has assessed that the fair value at year-end is above the nominal value of USD 50 million. This is based on reduced risk and uncertainty of both the production outlook for Engeb\u00f8, as well as the overall marked outlook per 31 December 2024 compared to at the timing of the liability draw in November 2023. The reduced uncertainty and risk has led to a reduced discount rate, resulting in an incease of fair value. The fair value of the royalty liablity is estimated to be approximately USD 65.8 million (level 3 in the fair value hierarchy according to IFRS 13).
2023:\t
The carrying amounts on the balance sheet of cash and cash equivalents, Bond Escrow, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 95% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023 it is assessed that the fair value at year-end was the same as the nominal value of USD 50 million (level 3 in the fair value hierarchy according to IFRS 13).
Categories of financial instruments
Year ended 31 December 2024\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 959 | 959 | |
Bond escrow | - | - | |
Restricted cash | 12 645 | 12 645 | |
Cash and cash equivalents | 454 774 | 454 774 | |
Total financial assets | 468 378 | - | 468 378 |
Financial liabilities by category | |||
Accounts payable | 44 394 | 44 394 | |
Bond loan | 1 043 609 | 1 043 609 | |
Convertible loan | - | - | - |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Year ended 31 December 2023 | |||
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 904 | 904 | |
Bond escrow | 1 075 042 | 1 075 042 | |
Restricted cash | 8 430 | 8 430 | |
Cash and cash equivalents | 634 984 | 634 984 | |
Total financial assets | 1 719 360 | - | 1 719 360 |
Financial liabilities by category | |||
Accounts payable | 94 312 | 94 312 | |
Bond loan | 902 182 | 902 182 | |
Convertible loan | - | - | - |
Royalty liability | 517 574 | 517 574 | |
Other current financial liabilities | 65 370 | 65 370 | |
Total financial liabilities | 1 579 438 | - | 1 579 438 |
Fair value of financial instruments\t
2024:\t
The carrying amounts on the balance sheet of cash and cash equivalents, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 101% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023, the Group has assessed that the fair value at year-end is above the nominal value of USD 50 million. This is based on reduced risk and uncertainty of both the production outlook for Engeb\u00f8, as well as the overall marked outlook per 31 December 2024 compared to at the timing of the liability draw in November 2023. The reduced uncertainty and risk has led to a reduced discount rate, resulting in an incease of fair value. The fair value of the royalty liablity is estimated to be approximately USD 65.8 million (level 3 in the fair value hierarchy according to IFRS 13).
2023:\t
The carrying amounts on the balance sheet of cash and cash equivalents, Bond Escrow, receivables, payables to suppliers, and other short-term financial items are close to fair value due to the short time period until maturity.\t
For the bond loan issued in November 2022 it is assessed that the fair value at year-end was around 95% of the nominal value of USD 100 million, based on latest quoted market price (level 2 in the fair value hierarchy according to IFRS 13).
For the royalty liability drawn in November 2023 it is assessed that the fair value at year-end was the same as the nominal value of USD 50 million (level 3 in the fair value hierarchy according to IFRS 13).
Categories of financial instruments
Year ended 31 December 2024\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 959 | 959 | |
Bond escrow | - | - | |
Restricted cash | 12 645 | 12 645 | |
Cash and cash equivalents | 454 774 | 454 774 | |
Total financial assets | 468 378 | - | 468 378 |
Financial liabilities by category | |||
Accounts payable | 44 394 | 44 394 | |
Bond loan | 1 043 609 | 1 043 609 | |
Convertible loan | - | - | - |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Year ended 31 December 2023 | |||
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category | |||
Trade and financial receivables | 904 | 904 | |
Bond escrow | 1 075 042 | 1 075 042 | |
Restricted cash | 8 430 | 8 430 | |
Cash and cash equivalents | 634 984 | 634 984 | |
Total financial assets | 1 719 360 | - | 1 719 360 |
Financial liabilities by category | |||
Accounts payable | 94 312 | 94 312 | |
Bond loan | 902 182 | 902 182 | |
Convertible loan | - | - | - |
Royalty liability | 517 574 | 517 574 | |
Other current financial liabilities | 65 370 | 65 370 | |
Total financial liabilities | 1 579 438 | - | 1 579 438 |
Capital management\t
The Group has historically used equity financing to finance research, operations, purchase of licenses and other investments. In order to secure financing of the Engeb\u00f8 project, the Group issued a bond loan and a convertible loan in addition to divesting its investment in Keliber in 2022. In 2023 the Group issued equity and completed the draw down of the non-dilutive royalty financing. In March 2025 Engeb\u00f8 Rutile and Garnet AS completed a tap issue of USD 33 million under the existing USD bond. Nordic Mining\u2019s financing comprise of equity and Engeb\u00f8 Rutile and Garnet AS\u2019 financing comprises of equity, debt and royalty financing. When Engeb\u00f8 transition to normal operation and positive cash flow, the Company will consider how to manage capital and distribution of dividends. For more information on liquidity risk see Board of Directors\u2019 report, and for more information on the maturity of the bond loan debt see Note 12. The ratio of net debt (debt less cash) divided by total capital (net debt and equity) as of 31 December 2024 is 43% (2023: 31%).\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__104": { "value": "NOTE 19- INVESTMENTS IN SUBSIDIARIES
The table below provides an overview of Nordic Mining ASA\u2019s subsidiaries as at 31 December 2024:\t
(Amounts in NOK thousands) | Location | Year incorp. | Ownership |
Engeb\u00f8 Rutile and Garnet AS | Oslo, Norway | 2006 | 100 % |
Nordic Titanium AS | Oslo, Norway | 2011 | 100 % |
Nordic Quartz AS | Oslo, Norway | 2011 | 100 % |
NOTE 19- INVESTMENTS IN SUBSIDIARIES
The table below provides an overview of Nordic Mining ASA\u2019s subsidiaries as at 31 December 2024:\t
(Amounts in NOK thousands) | Location | Year incorp. | Ownership |
Engeb\u00f8 Rutile and Garnet AS | Oslo, Norway | 2006 | 100 % |
Nordic Titanium AS | Oslo, Norway | 2011 | 100 % |
Nordic Quartz AS | Oslo, Norway | 2011 | 100 % |
NOTE 21- RELATED PARTIES AND COMPENSATION OF MANAGEMENT
Compensation to Board members and Senior Management in 2024\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Total |
Ivar S. Fossum, CEO | 3 279 | - | 170 | 307 | 3 756 |
Jens Gisle Schnelle, former Interim CFO1 | 232 | - | 1 | 51 | 284 |
Tord Meling, CFO2 | 839 | - | 4 | 48 | 891 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 009 | - | 9 | 97 | 2 115 |
Trond Langeng, Manager Resource and Development3 | 823 | - | 9 | 61 | 893 |
Maurice Kok, Commercial Director | 1 362 | - | 11 | 106 | 1 479 |
Ole Klevan, Nomination Committee (Chair) | - | 60 | - | - | 60 |
Brita Eilersen, Nomination committee | - | 40 | - | - | 40 |
Torger Lien, Nomination committee | - | 40 | - | - | 40 |
Kjell Roland, Chair of the Board | - | 500 | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | - | 300 | - | - | 300 |
Eva Kaijser, Board member | - | 300 | - | - | 300 |
Benedicte Nordang, Board member | - | 300 | - | - | 300 |
Tom Lileng, Board member | - | 300 | - | - | 300 |
Total | 8 544 | 1 840 | 205 | 669 | 11 259 |
1. Jens Gisle Schnelle left the Company on 31 January 2024, and compensation shown in the table above is for the period up to this date. Consultancy fee for the period after 31 January 2024 paid to Exman AS, a company owned by Jens Gisle Schnelle, is NOK 2.4 million.
2. Tord Meling joined the Company 12 August 2024.\t
3. Trond Langeng joined the Company 11 March 2024.
Compensation to Board members and Senior Management in 2023\t
(Amounts in NOK thousands) | Salary | Board member fees | Other compensation | Pension costs | Total |
Ivar S. Fossum, CEO | 4 151 | - | 210 | 530 | 4 891 |
Jens Gisle Schnelle, Interim CFO1 | 414 | - | 3 | - | 417 |
Christian Gjerde, former CFO2 | 2 064 | - | 9 | 83 | 2 156 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 168 | - | 16 | 91 | 2 275 |
Mona Schanche, former VP Resource and Sustainability3 | 1 397 | - | 7 | 178 | 1 583 |
Maurice Kok, Commercial Director | 1 225 | - | 13 | 99 | 1 337 |
Terje Gundersen, former Project Director4 | 690 | - | 7 | 43 | 740 |
Ole Klevan, Nomination Committee (Chair) | - | 60 | - | - | 60 |
Brita Eilersen, Nomination committee | - | 40 | - | - | 40 |
Torger Lien, Nomination committee | - | 40 | - | - | 40 |
Kjell Roland, Chair of the Board | - | 500 | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | - | 300 | - | - | 300 |
Eva Kaijser, Board member | - | 300 | - | - | 300 |
Benedicte Nordang, Board member | - | 300 | - | - | 300 |
Antony Beckmand, former Board member | - | 300 | - | - | 300 |
Total | 12 109 | 1 840 | 266 | 1 025 | 15 239 |
1. Jens Gisle Schnelle joined the Company 15 October 2023.\t
2. Christian Gjerde left the Company 30 September 2023.\t
3. Mona Schanche left the Company on 30 June 2023.\t
4. Terje Gundersen left the management group on 2 June 2023, and compensation shown in the table above is for the period up to this date.\t
Senior Management is subject to termination periods of 3-6 months.
Guidelines for management remuneration\t
The main components of the guidelines for Senior Management salaries are as follows:
The compensation package should reflect the responsibility and the tasks of the individual persons in Senior Management, and what the employee contributes towards the long-term creation of value in Nordic Mining.
The Company will offer competitive conditions to attract relevant expertise for the development of the Company.
The compensation package consists of fixed salary plus participation in an option program that has been approved by the annual meeting.
Senior Management participates in pension and insurance plans.
These guidelines have been used to recruit Senior Management in Nordic Mining ASA and to establish salary levels.\t
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2024
Name | No of shares | % owned |
Kjell Roland, Chair of the Board | 29 523 | 0.03 % |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | 17 750 | 0.02 % |
Ivar S. Fossum, CEO | 122 961 | 0.11 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 22 291 | 0.02 % |
Total | 192 525 | 0.18 % |
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2023
Name | No of shares | % owned |
Kjell Roland, Chair of the Board | 590 475 | 0.03 % |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | 355 009 | 0.02 % |
Ivar S. Fossum, CEO | 2 459 230 | 0.11 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 445 822 | 0.02 % |
Total | 3 850 536 | 0.18 % |
NOTE 21- RELATED PARTIES AND COMPENSATION OF MANAGEMENT
Compensation to Board members and Senior Management in 2024\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Total |
Ivar S. Fossum, CEO | 3 279 | - | 170 | 307 | 3 756 |
Jens Gisle Schnelle, former Interim CFO1 | 232 | - | 1 | 51 | 284 |
Tord Meling, CFO2 | 839 | - | 4 | 48 | 891 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 009 | - | 9 | 97 | 2 115 |
Trond Langeng, Manager Resource and Development3 | 823 | - | 9 | 61 | 893 |
Maurice Kok, Commercial Director | 1 362 | - | 11 | 106 | 1 479 |
Ole Klevan, Nomination Committee (Chair) | - | 60 | - | - | 60 |
Brita Eilersen, Nomination committee | - | 40 | - | - | 40 |
Torger Lien, Nomination committee | - | 40 | - | - | 40 |
Kjell Roland, Chair of the Board | - | 500 | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | - | 300 | - | - | 300 |
Eva Kaijser, Board member | - | 300 | - | - | 300 |
Benedicte Nordang, Board member | - | 300 | - | - | 300 |
Tom Lileng, Board member | - | 300 | - | - | 300 |
Total | 8 544 | 1 840 | 205 | 669 | 11 259 |
1. Jens Gisle Schnelle left the Company on 31 January 2024, and compensation shown in the table above is for the period up to this date. Consultancy fee for the period after 31 January 2024 paid to Exman AS, a company owned by Jens Gisle Schnelle, is NOK 2.4 million.
2. Tord Meling joined the Company 12 August 2024.\t
3. Trond Langeng joined the Company 11 March 2024.
Compensation to Board members and Senior Management in 2023\t
(Amounts in NOK thousands) | Salary | Board member fees | Other compensation | Pension costs | Total |
Ivar S. Fossum, CEO | 4 151 | - | 210 | 530 | 4 891 |
Jens Gisle Schnelle, Interim CFO1 | 414 | - | 3 | - | 417 |
Christian Gjerde, former CFO2 | 2 064 | - | 9 | 83 | 2 156 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 168 | - | 16 | 91 | 2 275 |
Mona Schanche, former VP Resource and Sustainability3 | 1 397 | - | 7 | 178 | 1 583 |
Maurice Kok, Commercial Director | 1 225 | - | 13 | 99 | 1 337 |
Terje Gundersen, former Project Director4 | 690 | - | 7 | 43 | 740 |
Ole Klevan, Nomination Committee (Chair) | - | 60 | - | - | 60 |
Brita Eilersen, Nomination committee | - | 40 | - | - | 40 |
Torger Lien, Nomination committee | - | 40 | - | - | 40 |
Kjell Roland, Chair of the Board | - | 500 | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | - | 300 | - | - | 300 |
Eva Kaijser, Board member | - | 300 | - | - | 300 |
Benedicte Nordang, Board member | - | 300 | - | - | 300 |
Antony Beckmand, former Board member | - | 300 | - | - | 300 |
Total | 12 109 | 1 840 | 266 | 1 025 | 15 239 |
1. Jens Gisle Schnelle joined the Company 15 October 2023.\t
2. Christian Gjerde left the Company 30 September 2023.\t
3. Mona Schanche left the Company on 30 June 2023.\t
4. Terje Gundersen left the management group on 2 June 2023, and compensation shown in the table above is for the period up to this date.\t
Senior Management is subject to termination periods of 3-6 months.
Guidelines for management remuneration\t
The main components of the guidelines for Senior Management salaries are as follows:
The compensation package should reflect the responsibility and the tasks of the individual persons in Senior Management, and what the employee contributes towards the long-term creation of value in Nordic Mining.
The Company will offer competitive conditions to attract relevant expertise for the development of the Company.
The compensation package consists of fixed salary plus participation in an option program that has been approved by the annual meeting.
Senior Management participates in pension and insurance plans.
These guidelines have been used to recruit Senior Management in Nordic Mining ASA and to establish salary levels.\t
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2024
Name | No of shares | % owned |
Kjell Roland, Chair of the Board | 29 523 | 0.03 % |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | 17 750 | 0.02 % |
Ivar S. Fossum, CEO | 122 961 | 0.11 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 22 291 | 0.02 % |
Total | 192 525 | 0.18 % |
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2023
Name | No of shares | % owned |
Kjell Roland, Chair of the Board | 590 475 | 0.03 % |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | 355 009 | 0.02 % |
Ivar S. Fossum, CEO | 2 459 230 | 0.11 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 445 822 | 0.02 % |
Total | 3 850 536 | 0.18 % |
NOTE 21- RELATED PARTIES AND COMPENSATION OF MANAGEMENT
Compensation to Board members and Senior Management in 2024\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Total |
Ivar S. Fossum, CEO | 3 279 | - | 170 | 307 | 3 756 |
Jens Gisle Schnelle, former Interim CFO1 | 232 | - | 1 | 51 | 284 |
Tord Meling, CFO2 | 839 | - | 4 | 48 | 891 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 009 | - | 9 | 97 | 2 115 |
Trond Langeng, Manager Resource and Development3 | 823 | - | 9 | 61 | 893 |
Maurice Kok, Commercial Director | 1 362 | - | 11 | 106 | 1 479 |
Ole Klevan, Nomination Committee (Chair) | - | 60 | - | - | 60 |
Brita Eilersen, Nomination committee | - | 40 | - | - | 40 |
Torger Lien, Nomination committee | - | 40 | - | - | 40 |
Kjell Roland, Chair of the Board | - | 500 | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | - | 300 | - | - | 300 |
Eva Kaijser, Board member | - | 300 | - | - | 300 |
Benedicte Nordang, Board member | - | 300 | - | - | 300 |
Tom Lileng, Board member | - | 300 | - | - | 300 |
Total | 8 544 | 1 840 | 205 | 669 | 11 259 |
1. Jens Gisle Schnelle left the Company on 31 January 2024, and compensation shown in the table above is for the period up to this date. Consultancy fee for the period after 31 January 2024 paid to Exman AS, a company owned by Jens Gisle Schnelle, is NOK 2.4 million.
2. Tord Meling joined the Company 12 August 2024.\t
3. Trond Langeng joined the Company 11 March 2024.
Compensation to Board members and Senior Management in 2023\t
(Amounts in NOK thousands) | Salary | Board member fees | Other compensation | Pension costs | Total |
Ivar S. Fossum, CEO | 4 151 | - | 210 | 530 | 4 891 |
Jens Gisle Schnelle, Interim CFO1 | 414 | - | 3 | - | 417 |
Christian Gjerde, former CFO2 | 2 064 | - | 9 | 83 | 2 156 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 168 | - | 16 | 91 | 2 275 |
Mona Schanche, former VP Resource and Sustainability3 | 1 397 | - | 7 | 178 | 1 583 |
Maurice Kok, Commercial Director | 1 225 | - | 13 | 99 | 1 337 |
Terje Gundersen, former Project Director4 | 690 | - | 7 | 43 | 740 |
Ole Klevan, Nomination Committee (Chair) | - | 60 | - | - | 60 |
Brita Eilersen, Nomination committee | - | 40 | - | - | 40 |
Torger Lien, Nomination committee | - | 40 | - | - | 40 |
Kjell Roland, Chair of the Board | - | 500 | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | - | 300 | - | - | 300 |
Eva Kaijser, Board member | - | 300 | - | - | 300 |
Benedicte Nordang, Board member | - | 300 | - | - | 300 |
Antony Beckmand, former Board member | - | 300 | - | - | 300 |
Total | 12 109 | 1 840 | 266 | 1 025 | 15 239 |
1. Jens Gisle Schnelle joined the Company 15 October 2023.\t
2. Christian Gjerde left the Company 30 September 2023.\t
3. Mona Schanche left the Company on 30 June 2023.\t
4. Terje Gundersen left the management group on 2 June 2023, and compensation shown in the table above is for the period up to this date.\t
Senior Management is subject to termination periods of 3-6 months.
Guidelines for management remuneration\t
The main components of the guidelines for Senior Management salaries are as follows:
The compensation package should reflect the responsibility and the tasks of the individual persons in Senior Management, and what the employee contributes towards the long-term creation of value in Nordic Mining.
The Company will offer competitive conditions to attract relevant expertise for the development of the Company.
The compensation package consists of fixed salary plus participation in an option program that has been approved by the annual meeting.
Senior Management participates in pension and insurance plans.
These guidelines have been used to recruit Senior Management in Nordic Mining ASA and to establish salary levels.\t
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2024
Name | No of shares | % owned |
Kjell Roland, Chair of the Board | 29 523 | 0.03 % |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | 17 750 | 0.02 % |
Ivar S. Fossum, CEO | 122 961 | 0.11 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 22 291 | 0.02 % |
Total | 192 525 | 0.18 % |
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2023
Name | No of shares | % owned |
Kjell Roland, Chair of the Board | 590 475 | 0.03 % |
Kjell Sletsj\u00f8e, Deputy Chair of the Board | 355 009 | 0.02 % |
Ivar S. Fossum, CEO | 2 459 230 | 0.11 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 445 822 | 0.02 % |
Total | 3 850 536 | 0.18 % |
NOTE 24- PAYMENTS TO AND FROM GOVERNMENTAL INSTITUTIONS
In accordance with the Accounting Act, section 3-3d, the Group has assessed its relations with and payments to and from governmental institutions. The Group\u2018s governmental relations are only with institutions in Norway. All relations and payments are in the ordinary course of business and related to i.a. license payments, payment of prospectus/financial authority fees, R&D projects grants, etc. Estimated total payment from the Group to various Norwegian governmental institutions was NOK 0.5 million in 2024 (2023: NOK 0.6 million). Estimated total payment to the Group from various Norwegian governmental institutions was NOK 0 million in 2024 (2023: NOK 0 million).\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__114": { "value": "NOTE 25- COMMITMENTS AND CONTINGENCIES
Conditional liability Engeb\u00f8\t
The Group has a conditional liability to the seller of the mining rights in the Engeb\u00f8 area of NOK 40 million that will be paid if and when commercial operation commences at Engeb\u00f8. No liability has been recognized as per 31 December 2024.
The Group has a contingent liability of NOK 40 million to Vestland County Municipality related to contribution to the County Road at Engeb\u00f8 that will be paid if and when the improvement work on the County Road commences. The payment schedule is further dependent on if and when certain amounts have incurred by the County Municipality for road improvements.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__115": { "value": "NOTE 25- COMMITMENTS AND CONTINGENCIES
Conditional liability Engeb\u00f8\t
The Group has a conditional liability to the seller of the mining rights in the Engeb\u00f8 area of NOK 40 million that will be paid if and when commercial operation commences at Engeb\u00f8. No liability has been recognized as per 31 December 2024.
The Group has a contingent liability of NOK 40 million to Vestland County Municipality related to contribution to the County Road at Engeb\u00f8 that will be paid if and when the improvement work on the County Road commences. The payment schedule is further dependent on if and when certain amounts have incurred by the County Municipality for road improvements.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__116": { "value": "NOTE 25- COMMITMENTS AND CONTINGENCIES
Conditional liability Engeb\u00f8\t
The Group has a conditional liability to the seller of the mining rights in the Engeb\u00f8 area of NOK 40 million that will be paid if and when commercial operation commences at Engeb\u00f8. No liability has been recognized as per 31 December 2024.
The Group has a contingent liability of NOK 40 million to Vestland County Municipality related to contribution to the County Road at Engeb\u00f8 that will be paid if and when the improvement work on the County Road commences. The payment schedule is further dependent on if and when certain amounts have incurred by the County Municipality for road improvements.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__117": { "value": "NOTE 26- EVENTS AFTER BALANCE SHEET DATE
In January there was a minor fire discovered in one of the drying machines at the Engeb\u00f8 facility. No one was injured due to the incident, and the incident was handled according to procedures. The fire has not caused any significant delays in the production ramp-up phase and has not resulted in any impairment of the drying machine in 2025.
Ivar S. Fossum retired from his position as CEO of the company 1 March 2025. New CEO, Finn Ivar Marum, assumed the position 1 March 2025. This has previously been announced 28 June 2024 and 5 December 2024, respectively.
In March 2025, the existing bond loan was increased with USD 33 million, priced at 101.00% of par. ERG received an inquiry from investors to potentially tap the existing bond with USD 20-25 million. The company and the manager evaluated and considered the opportunity to strengthen the liquidity in ERG in order to carry out the production ramp-up in an optimal way and at the same time obtain a liquidity buffer in case of any unforeseen events. Following discussions the tap was upsized to USD 33 million due to interest from existing international holders of the existing bond.\t
In March 2025, EFTA made an advisory opinion in the case between the Norwegian environmental organizations and the Norwegian state concerning the notion of \u201coverriding public interest\u201d of the waste permit given to Engeb\u00f8 Rutile and Garnet AS. EFTA\u2019s advisory opinion states that purely economic grounds does not constitute an overriding public interest, but that securing supply of critical raw materials in the EEA area may in certain circumstances constitute an overriding public interest. The ruling is an advisory opinion and is not legally binding for the Group. The Group is not a party in the case, and we are confident that the permit we have gotten from the Norwegian state is valid. The appeal between the Norwegian environmental organizations and the Norwegian state will be heard by the Borgarting Court of Appeal (Borgarting lagmannsrett) in June 2025.
In April, the Group has appointed Andreas Davidsen as new Chief Commercial Officer (CCO), effective from 1 July 2025.
In Q1 2025, there has been unforeseen challenges with design issues in the pump circuits, as announced 30 March 2024 in a notice to the stock exchange market. The solutions put in place did not work as expected and our contractors are currenctly working on new, permanent solutions. This has resulted in a delay in the production and shipment plans affecting the estimated revenues for 2025. No adjustments to the financial statement for 2024 have been made. The estimated effect on the financial statements is approximately a NOK 20 million increase in financial income due to a reduction of the royalty liability.