Note 1- GENERAL INFORMATION
Nordic Mining ASA (\u201cthe Company\u201d) and its subsidiaries (together \u201cthe Group\u201d) is a resource Company with integrated operations in exploration, extraction and production of high-end minerals and metals. The address to Nordic Mining\u2019s office is Munkedamsveien 45, NO-0250 Oslo, Norway.
These financial statements were approved for issue by the Board of Directors on 28 April 2026.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__7": { "value": "Nordic Mining ASA (\u201cthe Company\u201d) and its subsidiaries (together \u201cthe Group\u201d) is a resource Company with integrated operations in exploration, extraction and production of high-end minerals and metals. ", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__6": { "value": "Nordic Mining ASA ", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__8": { "value": "Nordic Mining ASA ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__9": { "value": "Nordic Mining ASA ", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__12": { "value": "Munkedamsveien 45, NO-0250 Oslo, Norway. ", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__10": { "value": "Norway", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__11": { "value": "Norway", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__13": { "value": "These financial statements were approved for issue by the Board of Directors on 28 April 2026.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "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.
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 20):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 assump-tions for the estimation of the expected future royalty payments. It requires long-term assump-tions to be made concerning a number of economic factors such as future production levels, price expectations and market conditions. At each reporting period, changes to production plans and price expectations are evaluated, and when required, a catch-up gain/loss is recognized.The royalty liability lasts for the entire operatio-nal 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 liability.The 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 Producing mine and Property, plant and equipment (note 13): The Group reviews whether its assets have 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 2025 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 2026.For impairment testing purposes, the Group has identified the Engeb\u00f8 mine as a single cash-generating unit (CGU), comprising the mine and all related assets that together generate cash inflows. Cash inflows from these assets are largely interdependent and cannot be separately identified for individual assets.
During 2025, the Engeb\u00f8 operation remained in a ramp-up phase and was affected by operational and technical challenges that resulted in production and shipment volumes being below original plans. In particular, limitations in stable operation and throughput in the processing plant delayed the ramp-up and the achievement of planned production levels, and led to a reduction of expected revenues short-term. These circumstances resulted in indicators of impair-ment being present and were considered in the Group\u2019s assessment of the value of the mine. Management has initiated corrective measures, including organizational changes, targeted equipment modifications and external technical support, to address identified issues.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. Impair-ment 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, market conditions and prices, and production expenses. Future production levels are based on our internal financial model for the first five years and the Updated Definitive Feasability Study (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 2025 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 risk-free rate and the average debt interest in the metals and mining sector globally. The WACC used is 10.2%. 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 environment 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 10):The Group has incurred substantial tax losses carried forward. At year-end 2025, 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 2025.
Pending Supreme Court Proceedings
The Group\u2019s operations at the Engeb\u00f8 project are conducted pursuant to permits and approvals issued by the Norwegian authorities, which are currently valid and form the basis for ongoing operations and the preparation of the financial statements.
Per December 31, 2025, there is an ongoing case between two Norwegian environmental organiza-tions and the Norwegian state concerning the Norwegian state\u2019s waste permit to ERG. The case was heard by the Borgarting Court of Appeal (Borgarting lagmannsrett) in June 2025. In August 2025, the Borgarting Court of Appeal ruled in favor of the NGOs. The decision has been appealed to the Supreme Court, with the hearing scheduled to take place from April 27 to May 5, 2026.
The Group is not a party in the case, but management closely monitors the proceedings and has assessed the potential implications for the Group. Based on the continued validity of the current permits, external legal advice and the range of realistic outcomes, the financial statements have been prepared on a going concern basis, assuming normal operations.
In the event of an adverse outcome, manage-ment expects that any required follow up by
the authorities would be handled over time and that appropriate legal and operational measures would be implemented to safeguard shareholders\u2019 interests and support continued operations. Based on management\u2019s assess-ment, the proceedings do not give rise to a material uncertainty that casts significant doubt on the Group\u2019s ability to continue as a going concern as of the reporting date.
Revenue recognition
Revenue from the sale of rutile and garnet is recognized when the Company\u2019s contractual performance obligation has been fulfilled and control is transferred to the customer, which will ordinarily be at the point of delivery when the title passes.
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 realize 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.
Low-grade ore that is not scheduled for immediate processing is stockpiled outside the open pit for future processing when economically viable. The
ore stockpiles are valued at the costs incurred from ore extraction operations, including 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 environment in which the entity operates (the functional currency). NOK is the functional currency of all entities in the Group. NOK is also the presentation 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 has been capitalized as Mine under construction. There was a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production started, all costs included in Mine under construction were transferred to the categories \u2018Producing mine\u2019, \u2018Property, plant and equipment\u2019 and \u2018Intangible assets\u2019. Mine under construction have not been depreciated until completion of construc-tion and when the assets was available for their intended use. Mine under construction is stated at historical cost less accumulated depreciation and any impairment.
Producing mine, Property, plant and equipment and Intangible assets
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have
been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
Producing mine, Property, plant and equipment and Intangible assets are stated at historical cost less accumulated depreciation and any impairment.
The main categories of depreciation plans are:
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Producing mine: Unit of Production
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
The carrying amount of the asset is written down to recoverable amount when the carrying amount is higher than the estimated recover-able amount.
Borrowing costs
Borrowing costs that was directly attributable to the acquisition or construction of the mine were capitalized during the period of time that was required to complete and prepare the mine for its intended use. Interest income from the Bond Escrow was deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.
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.
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, changes to production plans and price expectations are evaluated, and when required, a catch-up gain/loss is recognized. Estimated royalty payments due within 12 months are classified as current liabilities.
Amortized cost has been recognized as borrowing cost and capitalized to Mine under construction until commencement of production in Q1 2025. Catch-up gain/loss, being an adjustment of the outstanding liability to reflect changes to future estimates, has been recogni-zed directly in profit and loss both during the construction period and subsequently.
Derivative instruments
Any 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 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 29 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 2025, did not have any significant impact on the financial statements.
New standards, amendments and interpretations issued and effective as of 1 January 2026 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 2026 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. IFRS 18 will replace IAS 1 Presentation of Financial Statements but will not change how the Company recognize and measure items in the financial statements. IFRS 18 introduces three new required categories and subtotals in the profit or loss statement; operating, investing and financing. IFRS 18 and related amendments to IAS 7 Statement of Cash Flows, will result in some changes in the presentation of the profit or loss statement and the cash flow statement for the Group. The most significant changes are related to the classification of foreign exchange gains and losses and interest on bank deposits. These items will be classified in the investing category in the profit or loss statement (previously classified as financial items).
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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__17": { "value": "ASA ", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "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 20):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 assump-tions for the estimation of the expected future royalty payments. It requires long-term assump-tions to be made concerning a number of economic factors such as future production levels, price expectations and market conditions. At each reporting period, changes to production plans and price expectations are evaluated, and when required, a catch-up gain/loss is recognized.The royalty liability lasts for the entire operatio-nal 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 liability.The 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 Producing mine and Property, plant and equipment (note 13): The Group reviews whether its assets have 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 2025 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 2026.For impairment testing purposes, the Group has identified the Engeb\u00f8 mine as a single cash-generating unit (CGU), comprising the mine and all related assets that together generate cash inflows. Cash inflows from these assets are largely interdependent and cannot be separately identified for individual assets.During 2025, the Engeb\u00f8 operation remained in a ramp-up phase and was affected by operational and technical challenges that resulted in production and shipment volumes being below original plans. In particular, limitations in stable operation and throughput in the processing plant delayed the ramp-up and the achievement of planned production levels, and led to a reduction of expected revenues short-term. These circumstances resulted in indicators of impair-ment being present and were considered in the Group\u2019s assessment of the value of the mine. Management has initiated corrective measures, including organizational changes, targeted equipment modifications and external technical support, to address identified issues.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. Impair-ment 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, market conditions and prices, and production expenses. Future production levels are based on our internal financial model for the first five years and the Updated Definitive Feasability Study (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 2025 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 risk-free rate and the average debt interest in the metals and mining sector globally. The WACC used is 10.2%. 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 environment 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 10):The Group has incurred substantial tax losses carried forward. At year-end 2025, 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 2025. Pending Supreme Court ProceedingsThe Group\u2019s operations at the Engeb\u00f8 project are conducted pursuant to permits and approvals issued by the Norwegian authorities, which are currently valid and form the basis for ongoing operations and the preparation of the financial statements.Per December 31, 2025, there is an ongoing case between two Norwegian environmental organiza-tions and the Norwegian state concerning the Norwegian state\u2019s waste permit to ERG. The case was heard by the Borgarting Court of Appeal (Borgarting lagmannsrett) in June 2025. In August 2025, the Borgarting Court of Appeal ruled in favor of the NGOs. The decision has been appealed to the Supreme Court, with the hearing scheduled to take place from April 27 to May 5, 2026. The Group is not a party in the case, but management closely monitors the proceedings and has assessed the potential implications for the Group. Based on the continued validity of the current permits, external legal advice and the range of realistic outcomes, the financial statements have been prepared on a going concern basis, assuming normal operations.In the event of an adverse outcome, manage-ment expects that any required follow up by the authorities would be handled over time and that appropriate legal and operational measures would be implemented to safeguard shareholders\u2019 interests and support continued operations. Based on management\u2019s assess-ment, the proceedings do not give rise to a material uncertainty that casts significant doubt on the Group\u2019s ability to continue as a going concern as of the reporting date.", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "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 20):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 assump-tions for the estimation of the expected future royalty payments. It requires long-term assump-tions to be made concerning a number of economic factors such as future production levels, price expectations and market conditions. At each reporting period, changes to production plans and price expectations are evaluated, and when required, a catch-up gain/loss is recognized.The royalty liability lasts for the entire operatio-nal 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 liability.The 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 Producing mine and Property, plant and equipment (note 13): The Group reviews whether its assets have 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 2025 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 2026.For impairment testing purposes, the Group has identified the Engeb\u00f8 mine as a single cash-generating unit (CGU), comprising the mine and all related assets that together generate cash inflows. Cash inflows from these assets are largely interdependent and cannot be separately identified for individual assets.
During 2025, the Engeb\u00f8 operation remained in a ramp-up phase and was affected by operational and technical challenges that resulted in production and shipment volumes being below original plans. In particular, limitations in stable operation and throughput in the processing plant delayed the ramp-up and the achievement of planned production levels, and led to a reduction of expected revenues short-term. These circumstances resulted in indicators of impair-ment being present and were considered in the Group\u2019s assessment of the value of the mine. Management has initiated corrective measures, including organizational changes, targeted equipment modifications and external technical support, to address identified issues.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. Impair-ment 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, market conditions and prices, and production expenses. Future production levels are based on our internal financial model for the first five years and the Updated Definitive Feasability Study (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 2025 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 risk-free rate and the average debt interest in the metals and mining sector globally. The WACC used is 10.2%. 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 environment 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 10):The Group has incurred substantial tax losses carried forward. At year-end 2025, 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 2025.
Pending Supreme Court Proceedings
The Group\u2019s operations at the Engeb\u00f8 project are conducted pursuant to permits and approvals issued by the Norwegian authorities, which are currently valid and form the basis for ongoing operations and the preparation of the financial statements.
Per December 31, 2025, there is an ongoing case between two Norwegian environmental organiza-tions and the Norwegian state concerning the Norwegian state\u2019s waste permit to ERG. The case was heard by the Borgarting Court of Appeal (Borgarting lagmannsrett) in June 2025. In August 2025, the Borgarting Court of Appeal ruled in favor of the NGOs. The decision has been appealed to the Supreme Court, with the hearing scheduled to take place from April 27 to May 5, 2026.
The Group is not a party in the case, but management closely monitors the proceedings and has assessed the potential implications for the Group. Based on the continued validity of the current permits, external legal advice and the range of realistic outcomes, the financial statements have been prepared on a going concern basis, assuming normal operations.
In the event of an adverse outcome, manage-ment expects that any required follow up by
the authorities would be handled over time and that appropriate legal and operational measures would be implemented to safeguard shareholders\u2019 interests and support continued operations. Based on management\u2019s assess-ment, the proceedings do not give rise to a material uncertainty that casts significant doubt on the Group\u2019s ability to continue as a going concern as of the reporting date.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__20": { "value": "Revenue recognition
Revenue from the sale of rutile and garnet is recognized when the Company\u2019s contractual performance obligation has been fulfilled and control is transferred to the customer, which will ordinarily be at the point of delivery when the title passes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__21": { "value": "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 realize 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.
Low-grade ore that is not scheduled for immediate processing is stockpiled outside the open pit for future processing when economically viable. The
ore stockpiles are valued at the costs incurred from ore extraction operations, including 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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__22": { "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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__23": { "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 environment in which the entity operates (the functional currency). NOK is the functional currency of all entities in the Group. NOK is also the presentation 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__24": { "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 environment in which the entity operates (the functional currency). NOK is the functional currency of all entities in the Group. NOK is also the presentation currency of the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__25": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities has been capitalized as Mine under construction. There was a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production started, all costs included in Mine under construction were transferred to the categories \u2018Producing mine\u2019, \u2018Property, plant and equipment\u2019 and \u2018Intangible assets\u2019. Mine under construction have not been depreciated until completion of construc-tion and when the assets was 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__26": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities has been capitalized as Mine under construction. There was a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production started, all costs included in Mine under construction were transferred to the categories \u2018Producing mine\u2019, \u2018Property, plant and equipment\u2019 and \u2018Intangible assets\u2019. Mine under construction have not been depreciated until completion of construc-tion and when the assets was 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__27": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities has been capitalized as Mine under construction. There was a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production started, all costs included in Mine under construction were transferred to the categories \u2018Producing mine\u2019, \u2018Property, plant and equipment\u2019 and \u2018Intangible assets\u2019. Mine under construction have not been depreciated until completion of construc-tion and when the assets was 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__28": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities has been capitalized as Mine under construction. There was a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production started, all costs included in Mine under construction were transferred to the categories \u2018Producing mine\u2019, \u2018Property, plant and equipment\u2019 and \u2018Intangible assets\u2019. Mine under construction have not been depreciated until completion of construc-tion and when the assets was 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__29-1": { "value": "Mine under construction
All expenditure of the construction, installation or completion of infrastructure facilities has been capitalized as Mine under construction. There was a high degree of judgment applied in determining capitalization versus expensing of cost incurred. After production started, all costs included in Mine under construction were transferred to the categories \u2018Producing mine\u2019, \u2018Property, plant and equipment\u2019 and \u2018Intangible assets\u2019. Mine under construction have not been depreciated until completion of construc-tion and when the assets was available for their intended use. Mine under construction is stated at historical cost less accumulated depreciation and any impairment.
Producing mine, Property, plant and equipment and Intangible assets
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have
been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
Producing mine, Property, plant and equipment and Intangible assets are stated at historical cost less accumulated depreciation and any impairment.
The main categories of depreciation plans are:
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Producing mine: Unit of Production
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
The carrying amount of the asset is written down to recoverable amount when the carrying amount is higher than the estimated recover-able amount.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__31": { "value": "Borrowing costs
Borrowing costs that was directly attributable to the acquisition or construction of the mine were capitalized during the period of time that was required to complete and prepare the mine for its intended use. Interest income from the Bond Escrow was deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__32": { "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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "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.
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, changes to production plans and price expectations are evaluated, and when required, a catch-up gain/loss is recognized. Estimated royalty payments due within 12 months are classified as current liabilities.
Amortized cost has been recognized as borrowing cost and capitalized to Mine under construction until commencement of production in Q1 2025. Catch-up gain/loss, being an adjustment of the outstanding liability to reflect changes to future estimates, has been recogni-zed directly in profit and loss both during the construction period and subsequently.
Derivative instruments
Any 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 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__35": { "value": "Derivative instruments
Any 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 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__36": { "value": "Derivative instruments
Any 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 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__37": { "value": "Derivative instruments
Any 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 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__39": { "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 29 in the consolidated financial statements regarding contingent liabilities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__40-1": { "value": "New standards, amendments and interpretations adopted by the Group
New standards and amendments to standards and interpretations effective from 1 January 2025, did not have any significant impact on the financial statements.
New standards, amendments and interpretations issued and effective as of 1 January 2026 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 2026 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. IFRS 18 will replace IAS 1 Presentation of Financial Statements but will not change how the Company recognize and measure items in the financial statements. IFRS 18 introduces three new required categories and subtotals in the profit or loss statement; operating, investing and financing. IFRS 18 and related amendments to IAS 7 Statement of Cash Flows, will result in some changes in the presentation of the profit or loss statement and the cash flow statement for the Group. The most significant changes are related to the classification of foreign exchange gains and losses and interest on bank deposits. These items will be classified in the investing category in the profit or loss statement (previously classified as financial items).
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__41-1": { "value": "New standards, amendments and interpretations adopted by the Group
New standards and amendments to standards and interpretations effective from 1 January 2025, did not have any significant impact on the financial statements.
New standards, amendments and interpretations issued and effective as of 1 January 2026 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 2026 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. IFRS 18 will replace IAS 1 Presentation of Financial Statements but will not change how the Company recognize and measure items in the financial statements. IFRS 18 introduces three new required categories and subtotals in the profit or loss statement; operating, investing and financing. IFRS 18 and related amendments to IAS 7 Statement of Cash Flows, will result in some changes in the presentation of the profit or loss statement and the cash flow statement for the Group. The most significant changes are related to the classification of foreign exchange gains and losses and interest on bank deposits. These items will be classified in the investing category in the profit or loss statement (previously classified as financial items).
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__44": { "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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__45": { "value": "NOTE 4- REVENUE
(Amounts in NOK thousands) | 2025 | 2024 |
Sale of garnet | 4 774 | - |
Total | 4 774 | 0 |
The Group\u2019s revenue for the year ended 31 December 2025 relates to the sale of garnet concentrate produced at ERG. Revenue is generated under a long-term offtake agreement with Barton, under which the Group delivers garnet concentrate at prices determined in accordance with a pre-agreed pricing schedule.
The offtake agreement contains a single performance obligation, being the delivery of garnet concentrate to the customer. Revenue is recognised when the performance obligation has been fulfilled and control is transferred to the customer, which will ordinarily be at the point of delivery Free On Board.
All revenue in 2025 relates to garnet concentrate and is recognised at point of delivery.
As of 31 December 2025, the Group has remaining performance obligations under the offtake agreement related to future deliveries of garnet concentrate, which will be recognised as revenue as deliveries occur.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__46-1": { "value": "NOTE 5- SALARIES
(Amounts in NOK thousands) | 2025 | 2024 |
Wages and salaries | 83 752 | 44 579 |
Social security costs | 10 147 | 7 213 |
Pension costs defined benefit plan | 283 | 391 |
Pension costs defined contribution plan | 3 520 | 1 976 |
Board members, etc | 1 618 | 1 840 |
Share-based compensation | 8 948 | 0 |
Other personnel costs | 1 986 | 1 389 |
Capitalized payroll costs | (8 179) | (46 262) |
Payroll costs allocated to production expenses | (56 295) | - |
Total | 45 780 | 11 126 |
Average number of employees | 96 | 47 |
Reference is made to Note 27 for further information about remuneration of Senior Management and guidelines for remuneration.
NOTE 21- PENSIONS\t
Nordic Mining ASA and Engeb\u00f8 Rutile and Garnet AS has a defined contribution plan for its employees. In addition Nordic Mining ASA has a defined benefit plan for three previous employees/pensioners at year end 2025. The plans meet the Norwegian statutory requirements for pension plans for employees.
Defined Benefit Plan
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) | 2025 | 2024 |
Pension cost - employee benefit | 170 | 425 |
Pension cost - interest expense | (4) | 12 |
Total pension related costs | 166 | 437 |
Remeasurement gains/(losses) recorded to OCI | (994) | 317 |
Movement in pension obligation during the year\t
(Amounts in NOK thousands) | 2025 | 2024 |
Pension obligations January 1 | 14 116 | 14 009 |
Current value of pension benefits for the year | 166 | 437 |
Interest costs | 481 | 380 |
Payments | (374) | (372) |
Remeasurement loss/ (gain) | 1 058 | (302) |
Other | 154 | (37) |
Pension obligations as of 31 December | 15 601 | 14 116 |
Movement in pension funds during the year\t
(Amounts in NOK thousands) | 2025 | 2024 |
Pension funds 1 January | 14 228 | 13 790 |
Expected return on plan assets | 446 | 335 |
Contributions | 329 | 410 |
Payments | (374) | (372) |
Other | 72 | 49 |
Remeasurement (loss)/ gain | 64 | 16 |
Pension funds as of 31 December | 14 765 | 14 228 |
Pension liability is classified in the balance sheet as follows\t
(Amounts in NOK thousands) | 2025 | 2024 |
Pension funds | 14 765 | 14 228 |
Pension obligations | (15 601) | (14 116) |
Net pension asset / (liabilities) | (836) | 111 |
Pension asset/(liability) is shown in the balance sheet as: | ||
Other long-term asset | - | 111 |
Pension liabilities | (836) | - |
Assumptions\t
2025 | 2024 | |
Discount interest rate | 3,90 % | 3,90 % |
Annual projected increase in salary | 4,00 % | 4,00 % |
Annual projected G- regulation | 3,75 % | 3,75 % |
Annual projected regulation of pension | 2,80 % | 2,40 % |
The major categories of plan assets as a percentage of the fair value of total plan assets
2025 | 2024 | |
Equities | 15,40 % | 13,40 % |
Bonds | 3,20 % | 6,70 % |
Money market | 9,50 % | 5,50 % |
Bonds, amortised cost | 58,90 % | 59,10 % |
Loans | 1,80 % | 3,90 % |
Real estate | 10,00 % | 10,90 % |
Other | 1,20 % | 0,50 % |
NOTE 27- RELATED PARTIES AND COMPENSATION OF MANAGEMENT
Compensation to Board members and Senior Management in 2025\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Expensed Share based compensation | Total |
Finn Ivar Marum, CEO1 | 2 212 | - | 124 | 105 | 2 777 | 5 218 |
Ivar S. Fossum, former CEO2 | 3 661 | - | 172 | 166 | - | 3 999 |
Tord Meling, CFO | 2 347 | - | 13 | 126 | 1 543 | 4 029 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 017 | - | 13 | 74 | 1 234 | 3 338 |
Trond Langeng, Manager Resource and Development | 1 144 | - | 13 | 78 | - | 1 234 |
Maurice Kok, former Commercial Director3 | 506 | - | 2 | 27 | - | 535 |
Andreas Davidsen, Chief Commercial Officer4 | 1 050 | - | 6 | 61 | - | 1 117 |
Ole Klevan, Nomination Committee (Chair) | - | 65 | - | - | - | 65 |
Brita Eilersen, Nomination committee | - | 45 | - | - | - | 45 |
Torger Lien, Nomination committee | - | 45 | - | - | - | 45 |
Kjell Roland, Chairman of the Board | - | 500 | - | - | 926 | 1 426 |
Kjell Sletsj\u00f8e, Deputy Chairman of the Board | - | 300 | - | - | 617 | 917 |
Eva Kaijser, Board member | - | 300 | - | - | 617 | 917 |
Benedicte Nordang, Board member | - | 300 | - | - | 617 | 917 |
Tom Lileng, Board member | - | 300 | - | - | 617 | 917 |
Total | 12 937 | 1 855 | 342 | 637 | 8 948 | 24 719 |
1. Finn Ivar Marum joined the Company 1 March 2025. 2. Ivar S. Fossum left the Company 1 March 2025. Compensation shown in the table above is inclusive
severance pay in the period 1 March\u201331 December 2025.
3. Maurice Kok left the Company 28 February 2025.
4. Andreas Davidsen joined the Company 1 July 2025.
Compensation to Board members and Senior Management in 2024\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Expensed Share based compensation | Total |
Ivar S. Fossum, CEO | 3 279 | - | 170 | 437 | - | 3 886 |
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, Chairman of the Board | - | 500 | - | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chairman 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 | 800 | 0 | 11 389 |
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.
3. Trond Langeng joined the Company 11 March 2024.
Senior Management is subject to termination periods of 3-6 months.\t
Guidelines for management remuneration\tThe 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 2025\t
Name | No of shares | % owned |
Kjell Roland, Chairman of the Board | 29 523 | 0,03 % |
Kjell Sletsj\u00f8e, Deputy Chairman of the Board | 17 750 | 0,02 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 22 291 | 0,02 % |
Total | 69 564 | 0,06 % |
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2024\t
Name | No of shares | % owned |
Kjell Roland, Chairman 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 % |
NOTE 5- SALARIES
(Amounts in NOK thousands) | 2025 | 2024 |
Wages and salaries | 83 752 | 44 579 |
Social security costs | 10 147 | 7 213 |
Pension costs defined benefit plan | 283 | 391 |
Pension costs defined contribution plan | 3 520 | 1 976 |
Board members, etc | 1 618 | 1 840 |
Share-based compensation | 8 948 | 0 |
Other personnel costs | 1 986 | 1 389 |
Capitalized payroll costs | (8 179) | (46 262) |
Payroll costs allocated to production expenses | (56 295) | - |
Total | 45 780 | 11 126 |
Average number of employees | 96 | 47 |
Reference is made to Note 27 for further information about remuneration of Senior Management and guidelines for remuneration.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__48-1": { "value": "NOTE 5- SALARIES
(Amounts in NOK thousands) | 2025 | 2024 |
Wages and salaries | 83 752 | 44 579 |
Social security costs | 10 147 | 7 213 |
Pension costs defined benefit plan | 283 | 391 |
Pension costs defined contribution plan | 3 520 | 1 976 |
Board members, etc | 1 618 | 1 840 |
Share-based compensation | 8 948 | 0 |
Other personnel costs | 1 986 | 1 389 |
Capitalized payroll costs | (8 179) | (46 262) |
Payroll costs allocated to production expenses | (56 295) | - |
Total | 45 780 | 11 126 |
Average number of employees | 96 | 47 |
Reference is made to Note 27 for further information about remuneration of Senior Management and guidelines for remuneration.
NOTE 7- PRODUCTION EXPENSES\t
(Amounts in NOK thousands) | 2025 | 2024 |
Direct production expenses | 173 429 | - |
Change in inventory excl. spare parts | (14 735) | - |
Payroll costs allocated to production expenses | 56 295 | - |
Total | 214 989 | 0 |
See note 24 for information about fixed price electricity contract.
NOTE 8- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2025 | 2024 |
Lease expenses | 4 724 | 6 068 |
Consulting and legal fees | 37 374 | 10 684 |
Accrual for potential penalty fee | 20 158 | - |
Other costs | 28 365 | 24 001 |
Research tax credit (SkatteFUNN) | (1 035) | - |
Total | 89 586 | 40 753 |
A provision of USD 2 million has been recognized in 2025 for a potential penalty fee payable to Barton if agreed garnet offtake volumes in the first contract year are not met by mid-December 2026, due to delays in the production ramp-up.\t
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.\t
Auditor fees\t
(Amounts in NOK thousands) | 2025 | 2024 |
Statutory audit | 2 851 | 2 122 |
Other attestation services | 109 | 88 |
Total | 2 961 | 2 209 |
The amounts exclude VAT.
NOTE 13- PRODUCING MINE, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Producing mine | Property, plant & equipment | Intangible assets | Right-of-use assets | Total |
Cost | |||||
1 January 2024 | - | 3 154 | 1 085 | 4 239 | |
Additions | - | 96 473 | - | 96 473 | |
Disposals | - | - | - | - | |
31 December 2024 | - | 99 627 | - | 1 085 | 100 712 |
Reclassifications from Mine under constructi-on | 428 041 | 2 263 445 | 20 733 | - | 2 712 219 |
Additions | 66 886 | 85 387 | 2 433 | 5 590 | 160 295 |
Disposals | - | - | - | - | - |
31 December 2025 | 494 927 | 2 448 459 | 23 166 | 6 675 | 2 973 227 |
Depreciation | |||||
1 January 2024 | - | (92) | - | (60) | (152) |
Depreciation expense | - | (2 365) | - | (362) | (2 726) |
Disposals | - | - | - | - | - |
31 December 2024 | - | (2 457) | - | (422) | (2 878) |
Depreciation expense | (3 394) | (102 141) | (1 550) | (672) | (107 758) |
Disposals | - | - | - | - | - |
31 December 2025 | (3 394) | (104 597) | (1 550) | (1 094) | (110 636) |
Net book value: | |||||
31 December 2025 | 491 533 | 2 343 861 | 21 616 | 5 581 | 2 862 591 |
31 December 2024 | - | 97 171 | - | 663 | 97 834 |
1 January 2024 | - | 3 062 | - | 1 025 | 4 087 |
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
The main categories of depreciation plans are:
Producing mine: Unit of Production
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of the mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
Pledged as security
The USD 155.5 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/en to read the loan agreement.
Impairment\t
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 17,9% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 15,6% (from the base of 10,2%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 8 quarters, it can result in fair value being below carrying value, resulting in an impairment of the mine.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__49-1": { "value": "NOTE 5- SALARIES
(Amounts in NOK thousands) | 2025 | 2024 |
Wages and salaries | 83 752 | 44 579 |
Social security costs | 10 147 | 7 213 |
Pension costs defined benefit plan | 283 | 391 |
Pension costs defined contribution plan | 3 520 | 1 976 |
Board members, etc | 1 618 | 1 840 |
Share-based compensation | 8 948 | 0 |
Other personnel costs | 1 986 | 1 389 |
Capitalized payroll costs | (8 179) | (46 262) |
Payroll costs allocated to production expenses | (56 295) | - |
Total | 45 780 | 11 126 |
Average number of employees | 96 | 47 |
Reference is made to Note 27 for further information about remuneration of Senior Management and guidelines for remuneration.
NOTE 8- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2025 | 2024 |
Lease expenses | 4 724 | 6 068 |
Consulting and legal fees | 37 374 | 10 684 |
Accrual for potential penalty fee | 20 158 | - |
Other costs | 28 365 | 24 001 |
Research tax credit (SkatteFUNN) | (1 035) | - |
Total | 89 586 | 40 753 |
A provision of USD 2 million has been recognized in 2025 for a potential penalty fee payable to Barton if agreed garnet offtake volumes in the first contract year are not met by mid-December 2026, due to delays in the production ramp-up.\t
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.\t
NOTE 13- PRODUCING MINE, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Producing mine | Property, plant & equipment | Intangible assets | Right-of-use assets | Total |
Cost | |||||
1 January 2024 | - | 3 154 | 1 085 | 4 239 | |
Additions | - | 96 473 | - | 96 473 | |
Disposals | - | - | - | - | |
31 December 2024 | - | 99 627 | - | 1 085 | 100 712 |
Reclassifications from Mine under constructi-on | 428 041 | 2 263 445 | 20 733 | - | 2 712 219 |
Additions | 66 886 | 85 387 | 2 433 | 5 590 | 160 295 |
Disposals | - | - | - | - | - |
31 December 2025 | 494 927 | 2 448 459 | 23 166 | 6 675 | 2 973 227 |
Depreciation | |||||
1 January 2024 | - | (92) | - | (60) | (152) |
Depreciation expense | - | (2 365) | - | (362) | (2 726) |
Disposals | - | - | - | - | - |
31 December 2024 | - | (2 457) | - | (422) | (2 878) |
Depreciation expense | (3 394) | (102 141) | (1 550) | (672) | (107 758) |
Disposals | - | - | - | - | - |
31 December 2025 | (3 394) | (104 597) | (1 550) | (1 094) | (110 636) |
Net book value: | |||||
31 December 2025 | 491 533 | 2 343 861 | 21 616 | 5 581 | 2 862 591 |
31 December 2024 | - | 97 171 | - | 663 | 97 834 |
1 January 2024 | - | 3 062 | - | 1 025 | 4 087 |
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
The main categories of depreciation plans are:
Producing mine: Unit of Production
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of the mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
Pledged as security
The USD 155.5 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/en to read the loan agreement.
Impairment\t
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 17,9% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 15,6% (from the base of 10,2%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 8 quarters, it can result in fair value being below carrying value, resulting in an impairment of the mine.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__50-1": { "value": "NOTE 6- SHARE-BASED COMPENSATION\t
On 19 June 2025, Nordic Mining ASA granted 2.9 million equity-settled options at a strike price of NOK 22.9179 per share to key employees and board members. The options have a duration of three-years and will vest as follows: 1/3 on 30 June 2025, 1/3 on 30 June 2026 and 1/3 on 30 June 2027.
2025 | 2024 | |||
Number of options | ||||
Weighted average exercise price | Number of options | |||
Weighted average exercise price | ||||
Outstanding 1 January | - | - | - | - |
Granted during the year | 2 900 000 | 22,9179 | - | - |
Cancelled during the year | - | - | - | - |
Exercised during the year | - | - | - | - |
Expired during the year | - | - | - | - |
Outstanding 31 December | 2 900 000 | 22,9179 | - | - |
Exercisable 31 December | 966 667 | 22,9179 | - | - |
The weighted average fair value of options granted in 2025 was NOK 5.53 per option at time of grant.
The Group has recognized expenses for share based compensation of NOK 8.9 million in 2025.\t
The fair value of the equity-settled options is estimated at grant date by use of the Black Scholes option model, and is recognized as an expense in the financial statements over the vesting period, with a corresponding increase in equity. The following table show the weighted-average assumptions used in the model:\t
Weighted-average assumptions | 2025 | 2024 |
Volatility* | 39,0 % | |
Expected life | 2,01 | |
Risk free interest | 3,72 % | |
Share price | 22,7500 | |
Exercise price | 22,9179 |
*\tThe expected volatility has been estimated based on historical volatility of the share price of the Company.
NOTE 27- RELATED PARTIES AND COMPENSATION OF MANAGEMENT
Compensation to Board members and Senior Management in 2025\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Expensed Share based compensation | Total |
Finn Ivar Marum, CEO1 | 2 212 | - | 124 | 105 | 2 777 | 5 218 |
Ivar S. Fossum, former CEO2 | 3 661 | - | 172 | 166 | - | 3 999 |
Tord Meling, CFO | 2 347 | - | 13 | 126 | 1 543 | 4 029 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 017 | - | 13 | 74 | 1 234 | 3 338 |
Trond Langeng, Manager Resource and Development | 1 144 | - | 13 | 78 | - | 1 234 |
Maurice Kok, former Commercial Director3 | 506 | - | 2 | 27 | - | 535 |
Andreas Davidsen, Chief Commercial Officer4 | 1 050 | - | 6 | 61 | - | 1 117 |
Ole Klevan, Nomination Committee (Chair) | - | 65 | - | - | - | 65 |
Brita Eilersen, Nomination committee | - | 45 | - | - | - | 45 |
Torger Lien, Nomination committee | - | 45 | - | - | - | 45 |
Kjell Roland, Chairman of the Board | - | 500 | - | - | 926 | 1 426 |
Kjell Sletsj\u00f8e, Deputy Chairman of the Board | - | 300 | - | - | 617 | 917 |
Eva Kaijser, Board member | - | 300 | - | - | 617 | 917 |
Benedicte Nordang, Board member | - | 300 | - | - | 617 | 917 |
Tom Lileng, Board member | - | 300 | - | - | 617 | 917 |
Total | 12 937 | 1 855 | 342 | 637 | 8 948 | 24 719 |
1. Finn Ivar Marum joined the Company 1 March 2025. 2. Ivar S. Fossum left the Company 1 March 2025. Compensation shown in the table above is inclusive
severance pay in the period 1 March\u201331 December 2025.
3. Maurice Kok left the Company 28 February 2025.
4. Andreas Davidsen joined the Company 1 July 2025.
Compensation to Board members and Senior Management in 2024\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Expensed Share based compensation | Total |
Ivar S. Fossum, CEO | 3 279 | - | 170 | 437 | - | 3 886 |
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, Chairman of the Board | - | 500 | - | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chairman 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 | 800 | 0 | 11 389 |
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.
3. Trond Langeng joined the Company 11 March 2024.
Senior Management is subject to termination periods of 3-6 months.\t
Guidelines for management remuneration\tThe 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 2025\t
Name | No of shares | % owned |
Kjell Roland, Chairman of the Board | 29 523 | 0,03 % |
Kjell Sletsj\u00f8e, Deputy Chairman of the Board | 17 750 | 0,02 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 22 291 | 0,02 % |
Total | 69 564 | 0,06 % |
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2024\t
Name | No of shares | % owned |
Kjell Roland, Chairman 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 % |
NOTE 8- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2025 | 2024 |
Lease expenses | 4 724 | 6 068 |
Consulting and legal fees | 37 374 | 10 684 |
Accrual for potential penalty fee | 20 158 | - |
Other costs | 28 365 | 24 001 |
Research tax credit (SkatteFUNN) | (1 035) | - |
Total | 89 586 | 40 753 |
A provision of USD 2 million has been recognized in 2025 for a potential penalty fee payable to Barton if agreed garnet offtake volumes in the first contract year are not met by mid-December 2026, due to delays in the production ramp-up.\t
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.\t
Auditor fees\t
(Amounts in NOK thousands) | 2025 | 2024 |
Statutory audit | 2 851 | 2 122 |
Other attestation services | 109 | 88 |
Total | 2 961 | 2 209 |
The amounts exclude VAT.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__54-1": { "value": "NOTE 8- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2025 | 2024 |
Lease expenses | 4 724 | 6 068 |
Consulting and legal fees | 37 374 | 10 684 |
Accrual for potential penalty fee | 20 158 | - |
Other costs | 28 365 | 24 001 |
Research tax credit (SkatteFUNN) | (1 035) | - |
Total | 89 586 | 40 753 |
A provision of USD 2 million has been recognized in 2025 for a potential penalty fee payable to Barton if agreed garnet offtake volumes in the first contract year are not met by mid-December 2026, due to delays in the production ramp-up.\t
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.\t
NOTE 13- PRODUCING MINE, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Producing mine | Property, plant & equipment | Intangible assets | Right-of-use assets | Total |
Cost | |||||
1 January 2024 | - | 3 154 | 1 085 | 4 239 | |
Additions | - | 96 473 | - | 96 473 | |
Disposals | - | - | - | - | |
31 December 2024 | - | 99 627 | - | 1 085 | 100 712 |
Reclassifications from Mine under constructi-on | 428 041 | 2 263 445 | 20 733 | - | 2 712 219 |
Additions | 66 886 | 85 387 | 2 433 | 5 590 | 160 295 |
Disposals | - | - | - | - | - |
31 December 2025 | 494 927 | 2 448 459 | 23 166 | 6 675 | 2 973 227 |
Depreciation | |||||
1 January 2024 | - | (92) | - | (60) | (152) |
Depreciation expense | - | (2 365) | - | (362) | (2 726) |
Disposals | - | - | - | - | - |
31 December 2024 | - | (2 457) | - | (422) | (2 878) |
Depreciation expense | (3 394) | (102 141) | (1 550) | (672) | (107 758) |
Disposals | - | - | - | - | - |
31 December 2025 | (3 394) | (104 597) | (1 550) | (1 094) | (110 636) |
Net book value: | |||||
31 December 2025 | 491 533 | 2 343 861 | 21 616 | 5 581 | 2 862 591 |
31 December 2024 | - | 97 171 | - | 663 | 97 834 |
1 January 2024 | - | 3 062 | - | 1 025 | 4 087 |
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
The main categories of depreciation plans are:
Producing mine: Unit of Production
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of the mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
Pledged as security
The USD 155.5 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/en to read the loan agreement.
Impairment\t
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 17,9% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 15,6% (from the base of 10,2%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 8 quarters, it can result in fair value being below carrying value, resulting in an impairment of the mine.
NOTE 18- LEASES
The Group\u2019s right-of-use assets recognized is related to the leasing of vehicles and office; see note 13. Short-term leases have been expensed as incurred; see note 8.
Lease liability\t
(Amounts in NOK thousands) | 2025 | 2024 |
Lease liability 1 January | 499 | 771 |
Additions lease contracts | 5 590 | - |
Accretion lease liability, included in finance cost | 166 | 33 |
Payments of lease liability | (748) | (305) |
Total lease liability 31 December | 5 505 | 499 |
Specification of lease liability in the balance sheet\t
(Amounts in NOK thousands) | 2025 | 2024 |
Current* | 1 583 | 305 |
Non-current | 3 923 | 194 |
Total lease liability 31 December | 5 506 | 499 |
*\tCurrent lease liability is included in other current liabilities; see note 23.\t
Future minimum lease payments under non-cancellable lease agreements (undiscounted)\t
(Amounts in NOK thousands) | 2025 | 2024 |
Within a year | 1 583 | 305 |
From year 2-5 | 6 201 | 255 |
Total | 7 785 | 560 |
NOTE 23- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Tax withholding and social security accrual | 6 644 | 5 192 |
Employee salary and holiday pay accrual | 16 676 | 4 354 |
Lease liability | 1 583 | 305 |
Accrued interest bond loan | 28 298 | 20 105 |
Royalty liability, current portion | 18 722 | 47 247 |
Provision for liability to the seller of mining rights Engeb\u00f8 | 40 000 | - |
Accrued expenses and other | 52 068 | 79 554 |
Total | 163 991 | 156 757 |
Accrued expenses and other primarily relates to the amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.
Provision for liability to the seller of the mining rights at Engeb\u00f8 include a provision of NOK 40 million related to a premium payable under the agreement with ConocoPhillips in connection with the Group\u2019s acquisition of the rights to the Engeb\u00f8fjellet deposit.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__56": { "value": "NOTE 8- OTHER OPERATING COSTS
(Amounts in NOK thousands) | 2025 | 2024 |
Lease expenses | 4 724 | 6 068 |
Consulting and legal fees | 37 374 | 10 684 |
Accrual for potential penalty fee | 20 158 | - |
Other costs | 28 365 | 24 001 |
Research tax credit (SkatteFUNN) | (1 035) | - |
Total | 89 586 | 40 753 |
A provision of USD 2 million has been recognized in 2025 for a potential penalty fee payable to Barton if agreed garnet offtake volumes in the first contract year are not met by mid-December 2026, due to delays in the production ramp-up.\t
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.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__57": { "value": "Auditor fees\t
(Amounts in NOK thousands) | 2025 | 2024 |
Statutory audit | 2 851 | 2 122 |
Other attestation services | 109 | 88 |
Total | 2 961 | 2 209 |
The amounts exclude VAT.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__58": { "value": "NOTE 9- 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:\t
(Amounts in NOK thousands) | 2025 | 2024 |
Foreign exchange gain/loss (-) on bond Escrow in USD | - | 51 888 |
Foreign exchange gain/loss (-) on the USD bond loan | 146 888 | (118 100) |
Foreign exchange gain/loss (-) on the the USD royalty liability | 74 934 | (66 279) |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | - | (5 854) |
Other net foreign exchange gain/loss (-) | (31 293) | 11 239 |
Net exchange rate gain/loss (-) | 190 530 | (127 106) |
Interest income on bank deposits | 16 425 | 21 945 |
Interest income, Bond Escrow** | - | 25 497 |
Interest income, Bond Escrow, capitalized** | - | (25 497) |
Change in estimate royalty liability (see note 20) | 98 980 | 47 860 |
Other finance income | 26 | - |
Finance income | 115 432 | 69 806 |
Interest cost and transaction cost bond loan** | (198 683) | (158 091) |
Interest cost and transaction cost bond loan, capitalized** | 13 863 | 158 091 |
Amortized cost royalty liability (see note 20) ** | (113 180) | (111 053) |
Amortized cost royalty liability, capitalized (see note 20) ** | 10 190 | 111 053 |
Interest cost on liability mining workshop building*** | (1 533) | - |
Other finance costs | (1 134) | (3 114) |
Finance costs | (290 478) | (3 115) |
*\tThe Group 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 19). 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, amortized cost royalty liability, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023 until commencement of production in Q1 2025.
***\tSee note 22.
NOTE 9- 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:\t
(Amounts in NOK thousands) | 2025 | 2024 |
Foreign exchange gain/loss (-) on bond Escrow in USD | - | 51 888 |
Foreign exchange gain/loss (-) on the USD bond loan | 146 888 | (118 100) |
Foreign exchange gain/loss (-) on the the USD royalty liability | 74 934 | (66 279) |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | - | (5 854) |
Other net foreign exchange gain/loss (-) | (31 293) | 11 239 |
Net exchange rate gain/loss (-) | 190 530 | (127 106) |
Interest income on bank deposits | 16 425 | 21 945 |
Interest income, Bond Escrow** | - | 25 497 |
Interest income, Bond Escrow, capitalized** | - | (25 497) |
Change in estimate royalty liability (see note 20) | 98 980 | 47 860 |
Other finance income | 26 | - |
Finance income | 115 432 | 69 806 |
Interest cost and transaction cost bond loan** | (198 683) | (158 091) |
Interest cost and transaction cost bond loan, capitalized** | 13 863 | 158 091 |
Amortized cost royalty liability (see note 20) ** | (113 180) | (111 053) |
Amortized cost royalty liability, capitalized (see note 20) ** | 10 190 | 111 053 |
Interest cost on liability mining workshop building*** | (1 533) | - |
Other finance costs | (1 134) | (3 114) |
Finance costs | (290 478) | (3 115) |
*\tThe Group 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 19). 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, amortized cost royalty liability, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023 until commencement of production in Q1 2025.
***\tSee note 22.
NOTE 9- 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:\t
(Amounts in NOK thousands) | 2025 | 2024 |
Foreign exchange gain/loss (-) on bond Escrow in USD | - | 51 888 |
Foreign exchange gain/loss (-) on the USD bond loan | 146 888 | (118 100) |
Foreign exchange gain/loss (-) on the the USD royalty liability | 74 934 | (66 279) |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | - | (5 854) |
Other net foreign exchange gain/loss (-) | (31 293) | 11 239 |
Net exchange rate gain/loss (-) | 190 530 | (127 106) |
Interest income on bank deposits | 16 425 | 21 945 |
Interest income, Bond Escrow** | - | 25 497 |
Interest income, Bond Escrow, capitalized** | - | (25 497) |
Change in estimate royalty liability (see note 20) | 98 980 | 47 860 |
Other finance income | 26 | - |
Finance income | 115 432 | 69 806 |
Interest cost and transaction cost bond loan** | (198 683) | (158 091) |
Interest cost and transaction cost bond loan, capitalized** | 13 863 | 158 091 |
Amortized cost royalty liability (see note 20) ** | (113 180) | (111 053) |
Amortized cost royalty liability, capitalized (see note 20) ** | 10 190 | 111 053 |
Interest cost on liability mining workshop building*** | (1 533) | - |
Other finance costs | (1 134) | (3 114) |
Finance costs | (290 478) | (3 115) |
*\tThe Group 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 19). 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, amortized cost royalty liability, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023 until commencement of production in Q1 2025.
***\tSee note 22.
NOTE 9- 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:\t
(Amounts in NOK thousands) | 2025 | 2024 |
Foreign exchange gain/loss (-) on bond Escrow in USD | - | 51 888 |
Foreign exchange gain/loss (-) on the USD bond loan | 146 888 | (118 100) |
Foreign exchange gain/loss (-) on the the USD royalty liability | 74 934 | (66 279) |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | - | (5 854) |
Other net foreign exchange gain/loss (-) | (31 293) | 11 239 |
Net exchange rate gain/loss (-) | 190 530 | (127 106) |
Interest income on bank deposits | 16 425 | 21 945 |
Interest income, Bond Escrow** | - | 25 497 |
Interest income, Bond Escrow, capitalized** | - | (25 497) |
Change in estimate royalty liability (see note 20) | 98 980 | 47 860 |
Other finance income | 26 | - |
Finance income | 115 432 | 69 806 |
Interest cost and transaction cost bond loan** | (198 683) | (158 091) |
Interest cost and transaction cost bond loan, capitalized** | 13 863 | 158 091 |
Amortized cost royalty liability (see note 20) ** | (113 180) | (111 053) |
Amortized cost royalty liability, capitalized (see note 20) ** | 10 190 | 111 053 |
Interest cost on liability mining workshop building*** | (1 533) | - |
Other finance costs | (1 134) | (3 114) |
Finance costs | (290 478) | (3 115) |
*\tThe Group 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 19). 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, amortized cost royalty liability, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023 until commencement of production in Q1 2025.
***\tSee note 22.
NOTE 9- 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:\t
(Amounts in NOK thousands) | 2025 | 2024 |
Foreign exchange gain/loss (-) on bond Escrow in USD | - | 51 888 |
Foreign exchange gain/loss (-) on the USD bond loan | 146 888 | (118 100) |
Foreign exchange gain/loss (-) on the the USD royalty liability | 74 934 | (66 279) |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | - | (5 854) |
Other net foreign exchange gain/loss (-) | (31 293) | 11 239 |
Net exchange rate gain/loss (-) | 190 530 | (127 106) |
Interest income on bank deposits | 16 425 | 21 945 |
Interest income, Bond Escrow** | - | 25 497 |
Interest income, Bond Escrow, capitalized** | - | (25 497) |
Change in estimate royalty liability (see note 20) | 98 980 | 47 860 |
Other finance income | 26 | - |
Finance income | 115 432 | 69 806 |
Interest cost and transaction cost bond loan** | (198 683) | (158 091) |
Interest cost and transaction cost bond loan, capitalized** | 13 863 | 158 091 |
Amortized cost royalty liability (see note 20) ** | (113 180) | (111 053) |
Amortized cost royalty liability, capitalized (see note 20) ** | 10 190 | 111 053 |
Interest cost on liability mining workshop building*** | (1 533) | - |
Other finance costs | (1 134) | (3 114) |
Finance costs | (290 478) | (3 115) |
*\tThe Group 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 19). 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, amortized cost royalty liability, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023 until commencement of production in Q1 2025.
***\tSee note 22.
NOTE 9- 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:\t
(Amounts in NOK thousands) | 2025 | 2024 |
Foreign exchange gain/loss (-) on bond Escrow in USD | - | 51 888 |
Foreign exchange gain/loss (-) on the USD bond loan | 146 888 | (118 100) |
Foreign exchange gain/loss (-) on the the USD royalty liability | 74 934 | (66 279) |
Foreign exchange gain/loss (-) on foreign exchange derivatives* | - | (5 854) |
Other net foreign exchange gain/loss (-) | (31 293) | 11 239 |
Net exchange rate gain/loss (-) | 190 530 | (127 106) |
Interest income on bank deposits | 16 425 | 21 945 |
Interest income, Bond Escrow** | - | 25 497 |
Interest income, Bond Escrow, capitalized** | - | (25 497) |
Change in estimate royalty liability (see note 20) | 98 980 | 47 860 |
Other finance income | 26 | - |
Finance income | 115 432 | 69 806 |
Interest cost and transaction cost bond loan** | (198 683) | (158 091) |
Interest cost and transaction cost bond loan, capitalized** | 13 863 | 158 091 |
Amortized cost royalty liability (see note 20) ** | (113 180) | (111 053) |
Amortized cost royalty liability, capitalized (see note 20) ** | 10 190 | 111 053 |
Interest cost on liability mining workshop building*** | (1 533) | - |
Other finance costs | (1 134) | (3 114) |
Finance costs | (290 478) | (3 115) |
*\tThe Group 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 19). 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, amortized cost royalty liability, net of interest income on bond escrow, has been capitalized to Mine under construction from March 2023 until commencement of production in Q1 2025.
***\tSee note 22.
NOTE 10- 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 2025, 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 2025. Tax losses can be carried forward indefinitely in Norway.\t
(Amounts in NOK thousands) | 2025 | 2024 |
Taxes payable | - | - |
Deferred tax | - | - |
Income tax expense/(income) | - | - |
Tax effects of temporary differences and tax loss carryforwards at 31 December:\t
(Amounts in thousands) | 2025 | 2024 |
Mine under construction/Producing mine/PP&E/Intangible assets | (188 074) | (115 040) |
Pensions | 184 | (25) |
Bond loan | (1 870) | (7 291) |
Royalty liability | 128 901 | 142 350 |
Other non-current liabilities | 11 091 | - |
Tax loss carryforwards | 346 138 | 181 620 |
Total net deferred tax assets | 296 370 | 201 614 |
Nominal tax rate (used for measurement) | 22 % | 22 % |
Recognized in the statement of financial position: | ||
Deferred tax asset | - | - |
Deferred tax liability | - | - |
The following table shows the reconciliation of expected tax using the nominal tax rate to the actual tax expense/(income):\t
(Amounts in thousands) | 2025 | 2024 |
Income/loss (-) before tax | (437 854) | (115 020) |
Nominal tax rate | 22 % | 22 % |
Expected income tax | (96 328) | (25 304) |
Non-deductible costs | 2 023 | 46 |
Non-taxable income | (232) | - |
Non-recognized tax assets on current year result | 94 537 | 25 258 |
Tax expense/(income) | (0) | - |
NOTE 10- 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 2025, 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 2025. Tax losses can be carried forward indefinitely in Norway.\t
(Amounts in NOK thousands) | 2025 | 2024 |
Taxes payable | - | - |
Deferred tax | - | - |
Income tax expense/(income) | - | - |
Tax effects of temporary differences and tax loss carryforwards at 31 December:\t
(Amounts in thousands) | 2025 | 2024 |
Mine under construction/Producing mine/PP&E/Intangible assets | (188 074) | (115 040) |
Pensions | 184 | (25) |
Bond loan | (1 870) | (7 291) |
Royalty liability | 128 901 | 142 350 |
Other non-current liabilities | 11 091 | - |
Tax loss carryforwards | 346 138 | 181 620 |
Total net deferred tax assets | 296 370 | 201 614 |
Nominal tax rate (used for measurement) | 22 % | 22 % |
Recognized in the statement of financial position: | ||
Deferred tax asset | - | - |
Deferred tax liability | - | - |
The following table shows the reconciliation of expected tax using the nominal tax rate to the actual tax expense/(income):\t
(Amounts in thousands) | 2025 | 2024 |
Income/loss (-) before tax | (437 854) | (115 020) |
Nominal tax rate | 22 % | 22 % |
Expected income tax | (96 328) | (25 304) |
Non-deductible costs | 2 023 | 46 |
Non-taxable income | (232) | - |
Non-recognized tax assets on current year result | 94 537 | 25 258 |
Tax expense/(income) | (0) | - |
NOTE 11- EARNINGS PER SHARE
(Amounts in NOK thousands and number of shares in thousands) | 2025 | 2024 |
Earnings | ||
Attributable to ordinary shareholders | (437 854) | (115 020) |
Number of shares | ||
Weighted average number of ordinary shares outstanding - basic | 108 412 | 108 412 |
Weighted average number of ordinary shares outstanding - diluted | 109 961 | 108 412 |
(Amounts in NOK) | ||
Earnings per share attributable to ordinary shareholders | ||
Basic earnings per share | (4,04) | (1,06) |
Diluted earnings per share | (4,04) | (1,06) |
The effect of potentially dilutive shares arising from equity-settled options in connection with share-based compensation (ref. Note 6) is not included in the calculation of diluted earnings per share for 2025 as these would be anti-dilutive.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__67-1": { "value": "NOTE 12- MINE UNDER CONSTRUCTION
(Amounts in NOK thousands) | Mine under construction |
Cost at 1 January 2024 | 1 377 083 |
Additions | 1 277 335 |
Cost at 31 December 2024 | 2 654 418 |
Additions | 57 801 |
Reclassifications to Producing mine, Property, plant and equipment and Intangible assets | (2 712 219) |
Cost at 31 December 2025 | (0) |
Provision for impairment at 1 January 2024 | - |
Impairment | - |
Provision for impairment 31 December 2024 | - |
Impairment | - |
Provision for impairment 31 December 2025 | - |
Net book value 31 December 2025 | (0) |
Net book value 31 December 2024 | 2 654 418 |
Net book value 1 January 2024 | 1 377 083 |
2025
The construction phase of the Engeb\u00f8 project has been completed and all significant parts of the mine and processing plant have been installed and commissioned at site. The mine was in production in Q1 2025, and the carrying amount in the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Borrowing costs of NOK 24.1 million has been capitalized to Mine under construction in 2025 (until commencement of production in Q1 2025), see note 9.
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. Borrowing costs of NOK 243.6 million was capitalized to Mine under construction in 2024, see note 9.
NOTE 13- PRODUCING MINE, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Producing mine | Property, plant & equipment | Intangible assets | Right-of-use assets | Total |
Cost | |||||
1 January 2024 | - | 3 154 | 1 085 | 4 239 | |
Additions | - | 96 473 | - | 96 473 | |
Disposals | - | - | - | - | |
31 December 2024 | - | 99 627 | - | 1 085 | 100 712 |
Reclassifications from Mine under constructi-on | 428 041 | 2 263 445 | 20 733 | - | 2 712 219 |
Additions | 66 886 | 85 387 | 2 433 | 5 590 | 160 295 |
Disposals | - | - | - | - | - |
31 December 2025 | 494 927 | 2 448 459 | 23 166 | 6 675 | 2 973 227 |
Depreciation | |||||
1 January 2024 | - | (92) | - | (60) | (152) |
Depreciation expense | - | (2 365) | - | (362) | (2 726) |
Disposals | - | - | - | - | - |
31 December 2024 | - | (2 457) | - | (422) | (2 878) |
Depreciation expense | (3 394) | (102 141) | (1 550) | (672) | (107 758) |
Disposals | - | - | - | - | - |
31 December 2025 | (3 394) | (104 597) | (1 550) | (1 094) | (110 636) |
Net book value: | |||||
31 December 2025 | 491 533 | 2 343 861 | 21 616 | 5 581 | 2 862 591 |
31 December 2024 | - | 97 171 | - | 663 | 97 834 |
1 January 2024 | - | 3 062 | - | 1 025 | 4 087 |
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
The main categories of depreciation plans are:
Producing mine: Unit of Production
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of the mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
Pledged as security
The USD 155.5 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/en to read the loan agreement.
Impairment\t
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 17,9% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 15,6% (from the base of 10,2%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 8 quarters, it can result in fair value being below carrying value, resulting in an impairment of the mine.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__68": { "value": "NOTE 12- MINE UNDER CONSTRUCTION
(Amounts in NOK thousands) | Mine under construction |
Cost at 1 January 2024 | 1 377 083 |
Additions | 1 277 335 |
Cost at 31 December 2024 | 2 654 418 |
Additions | 57 801 |
Reclassifications to Producing mine, Property, plant and equipment and Intangible assets | (2 712 219) |
Cost at 31 December 2025 | (0) |
Provision for impairment at 1 January 2024 | - |
Impairment | - |
Provision for impairment 31 December 2024 | - |
Impairment | - |
Provision for impairment 31 December 2025 | - |
Net book value 31 December 2025 | (0) |
Net book value 31 December 2024 | 2 654 418 |
Net book value 1 January 2024 | 1 377 083 |
2025
The construction phase of the Engeb\u00f8 project has been completed and all significant parts of the mine and processing plant have been installed and commissioned at site. The mine was in production in Q1 2025, and the carrying amount in the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Borrowing costs of NOK 24.1 million has been capitalized to Mine under construction in 2025 (until commencement of production in Q1 2025), see note 9.
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. Borrowing costs of NOK 243.6 million was capitalized to Mine under construction in 2024, see note 9.
NOTE 12- MINE UNDER CONSTRUCTION
(Amounts in NOK thousands) | Mine under construction |
Cost at 1 January 2024 | 1 377 083 |
Additions | 1 277 335 |
Cost at 31 December 2024 | 2 654 418 |
Additions | 57 801 |
Reclassifications to Producing mine, Property, plant and equipment and Intangible assets | (2 712 219) |
Cost at 31 December 2025 | (0) |
Provision for impairment at 1 January 2024 | - |
Impairment | - |
Provision for impairment 31 December 2024 | - |
Impairment | - |
Provision for impairment 31 December 2025 | - |
Net book value 31 December 2025 | (0) |
Net book value 31 December 2024 | 2 654 418 |
Net book value 1 January 2024 | 1 377 083 |
2025
The construction phase of the Engeb\u00f8 project has been completed and all significant parts of the mine and processing plant have been installed and commissioned at site. The mine was in production in Q1 2025, and the carrying amount in the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Borrowing costs of NOK 24.1 million has been capitalized to Mine under construction in 2025 (until commencement of production in Q1 2025), see note 9.
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. Borrowing costs of NOK 243.6 million was capitalized to Mine under construction in 2024, see note 9.
NOTE 13- PRODUCING MINE, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Producing mine | Property, plant & equipment | Intangible assets | Right-of-use assets | Total |
Cost | |||||
1 January 2024 | - | 3 154 | 1 085 | 4 239 | |
Additions | - | 96 473 | - | 96 473 | |
Disposals | - | - | - | - | |
31 December 2024 | - | 99 627 | - | 1 085 | 100 712 |
Reclassifications from Mine under constructi-on | 428 041 | 2 263 445 | 20 733 | - | 2 712 219 |
Additions | 66 886 | 85 387 | 2 433 | 5 590 | 160 295 |
Disposals | - | - | - | - | - |
31 December 2025 | 494 927 | 2 448 459 | 23 166 | 6 675 | 2 973 227 |
Depreciation | |||||
1 January 2024 | - | (92) | - | (60) | (152) |
Depreciation expense | - | (2 365) | - | (362) | (2 726) |
Disposals | - | - | - | - | - |
31 December 2024 | - | (2 457) | - | (422) | (2 878) |
Depreciation expense | (3 394) | (102 141) | (1 550) | (672) | (107 758) |
Disposals | - | - | - | - | - |
31 December 2025 | (3 394) | (104 597) | (1 550) | (1 094) | (110 636) |
Net book value: | |||||
31 December 2025 | 491 533 | 2 343 861 | 21 616 | 5 581 | 2 862 591 |
31 December 2024 | - | 97 171 | - | 663 | 97 834 |
1 January 2024 | - | 3 062 | - | 1 025 | 4 087 |
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
The main categories of depreciation plans are:
Producing mine: Unit of Production
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of the mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
Pledged as security
The USD 155.5 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/en to read the loan agreement.
Impairment\t
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 17,9% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 15,6% (from the base of 10,2%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 8 quarters, it can result in fair value being below carrying value, resulting in an impairment of the mine.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__75": { "value": "NOTE 13- PRODUCING MINE, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Producing mine | Property, plant & equipment | Intangible assets | Right-of-use assets | Total |
Cost | |||||
1 January 2024 | - | 3 154 | 1 085 | 4 239 | |
Additions | - | 96 473 | - | 96 473 | |
Disposals | - | - | - | - | |
31 December 2024 | - | 99 627 | - | 1 085 | 100 712 |
Reclassifications from Mine under constructi-on | 428 041 | 2 263 445 | 20 733 | - | 2 712 219 |
Additions | 66 886 | 85 387 | 2 433 | 5 590 | 160 295 |
Disposals | - | - | - | - | - |
31 December 2025 | 494 927 | 2 448 459 | 23 166 | 6 675 | 2 973 227 |
Depreciation | |||||
1 January 2024 | - | (92) | - | (60) | (152) |
Depreciation expense | - | (2 365) | - | (362) | (2 726) |
Disposals | - | - | - | - | - |
31 December 2024 | - | (2 457) | - | (422) | (2 878) |
Depreciation expense | (3 394) | (102 141) | (1 550) | (672) | (107 758) |
Disposals | - | - | - | - | - |
31 December 2025 | (3 394) | (104 597) | (1 550) | (1 094) | (110 636) |
Net book value: | |||||
31 December 2025 | 491 533 | 2 343 861 | 21 616 | 5 581 | 2 862 591 |
31 December 2024 | - | 97 171 | - | 663 | 97 834 |
1 January 2024 | - | 3 062 | - | 1 025 | 4 087 |
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
The main categories of depreciation plans are:
Producing mine: Unit of Production
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of the mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
Pledged as security
The USD 155.5 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/en to read the loan agreement.
Impairment\t
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 17,9% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 15,6% (from the base of 10,2%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 8 quarters, it can result in fair value being below carrying value, resulting in an impairment of the mine.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__76": { "value": "NOTE 13- PRODUCING MINE, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
(Amounts in NOK thousands) | Producing mine | Property, plant & equipment | Intangible assets | Right-of-use assets | Total |
Cost | |||||
1 January 2024 | - | 3 154 | 1 085 | 4 239 | |
Additions | - | 96 473 | - | 96 473 | |
Disposals | - | - | - | - | |
31 December 2024 | - | 99 627 | - | 1 085 | 100 712 |
Reclassifications from Mine under constructi-on | 428 041 | 2 263 445 | 20 733 | - | 2 712 219 |
Additions | 66 886 | 85 387 | 2 433 | 5 590 | 160 295 |
Disposals | - | - | - | - | - |
31 December 2025 | 494 927 | 2 448 459 | 23 166 | 6 675 | 2 973 227 |
Depreciation | |||||
1 January 2024 | - | (92) | - | (60) | (152) |
Depreciation expense | - | (2 365) | - | (362) | (2 726) |
Disposals | - | - | - | - | - |
31 December 2024 | - | (2 457) | - | (422) | (2 878) |
Depreciation expense | (3 394) | (102 141) | (1 550) | (672) | (107 758) |
Disposals | - | - | - | - | - |
31 December 2025 | (3 394) | (104 597) | (1 550) | (1 094) | (110 636) |
Net book value: | |||||
31 December 2025 | 491 533 | 2 343 861 | 21 616 | 5 581 | 2 862 591 |
31 December 2024 | - | 97 171 | - | 663 | 97 834 |
1 January 2024 | - | 3 062 | - | 1 025 | 4 087 |
The mine was in production in Q1 2025, and the carrying amount on the balance sheet of Mine under construction was reclassified to Producing mine, Property, plant and equipment and Intangible assets in Q1 2025. Depreciation of these assets commenced in Q1 2025. For accounting purposes, depreciation commences when the facility is in use and production has started as intended. The facility has been in a testing phase since production of the first mineral concentrate in December 2024. In February 2025, the facility was deemed to have been brought to the location and condition necessary for it to operate as intended and was therefore considered completed from an accounting perspective.
The main categories of depreciation plans are:
Producing mine: Unit of Production
Buildings and facilities: straight-line basis over an estimated useful life, which corresponds to the expected life of the mine of 39 years
Machinery, equipment and systems: straight-line basis over an estimated useful life of 5\u201320 years
Intangible assets: consisting of IT systems and depreciated on a straight-line basis over an estimated useful life of 5\u201310 years.
Pledged as security
The USD 155.5 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/en to read the loan agreement.
Impairment\t
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 17,9% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 15,6% (from the base of 10,2%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 8 quarters, it can result in fair value being below carrying value, resulting in an impairment of the mine.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__77": { "value": "Impairment\t
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 17,9% overall can result in fair value being below carrying value, resulting in an impairment of the mine. An increase in WACC to 15,6% (from the base of 10,2%) can result in fair value being below carrying value, resulting in impairment. If the ramp up is further delayed by another 8 quarters, it can result in fair value being below carrying value, resulting in an impairment of the mine.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__78-1": { "value": "NOTE 14- TRADE AND OTHER RECEIVABLES
(Amounts in NOK thousands) | 2025 | 2024 |
Trade receivables | 2 673 | - |
Other financial receivables | 907 | 959 |
Prepayments | 16 651 | 3 023 |
VAT receivable | 12 048 | 23 722 |
Total | 32 279 | 27 704 |
Prepayments include payment of NOK 10 million in 2025 to Vestland County Municipality related to contribution to improvement work on the County Road at Engeb\u00f8. Total contrubution to be paid is NOK 40 million, and the payment schedule is dependent on if and when certain amounts have incurred by the County Municipality for road improvements.
NOTE 16- CASH AND CASH EQUIVALENTS
(Amounts in NOK thousands) | 2025 | 2024 |
Bank deposits, unrestricted | 325 441 | 451 949 |
Restriced cash in tax withholding account | 3 988 | 2 825 |
Total cash and cash equivalents | 329 429 | 454 774 |
In addition to the amounts referred to above, the Group has a deposit of NOK 19.6 million (2024: NOK 12.6 million) on a restricted account at year-end presented as current assets pledged toward the Directorate of Mining and the Norwegian Environment Agency. This includes NOK 17.5 million pledged toward the Directorate of Mining (\u201cDirMin\u201d) for financial security in accordance with the operating license and NOK 2.1 million in a pledged towards the Norwegian Environment Agency. According to the standard procedure in Norway, the Group is obligated to provide financial security in favor of the Directorate of Mining. The total balance includes accrued interest of NOK 0.7 million attributable to ERG. 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 19- BOND LOAN AND BOND ESCROW\t
Nordic Mining ASA\u2019s wholly owned subsidiary Engeb\u00f8 Rutile and Garnet AS has a USD 155.5 million senior secured bond listed on Nordic ABM with ticker: ERUGA01 PRO. The bonds are administered by Nordic Trustee, has fixed coupon of 12.5% per annum, with interest payable quarterly in arrears and maturity in November 2027.
In March 2025 the Company completed a USD 33 million tap issue to its senior secured bonds 2022/2027 priced at 101% of par. In October 2025 the Company completed a USD 22.5 million tap issue to its senior secured bonds 2022/2027 priced at 98% of par. The total outstanding amount under the bonds following these tap issues is USD 155.5 million. The USD 100 million bond issue in 2022 had an issue price of 90% of par.
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. As part of the NOK 200 million equity raise in January 2026 (see note 30), more than 2/3 of the bondhol-ders have pre-agreed to reduce the minimum liquidity covenant from USD 15 million to USD 10 million. The Group was in compliance with all covenant requirements per year end 2025. For further details please see ticker ERUGA01 PRO at https://live.euronext.com/en to read the loan agreement.
2025 | |
(Amounts in NOK thousands) | Carrying amount Bond Loan |
At 1 January | 1 043 609 |
Net proceeds from borrowings, tap issues | 566 146 |
Amortization of fees | 29 157 |
Foreign exchange | (146 888) |
Total at year end | 1 492 024 |
2024 | |||
(Amounts in NOK thousands) | Carrying amount Bond Loan | Carrying amount Bond Escrow | Cash transferred from Bond Escrow |
At 1 January | 902 182 | 1 075 042 | |
Amortization of fees | 23 328 | ||
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 |
Bond Escrow\t
The net proceeds of the bond issue in 2022 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. 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 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 19.4 million, so the estimated interest payments in NOK are dependent on the USDNOK exchange rate. The figures in the table below are based on the exchange rate at year end 2025.\t
(Amounts in NOK thousands) | 2026 | 2027 | Total estimated payments |
Repayment | (1 567 300) | (1 567 300) | |
Estimated interest | (195 913) | (195 913) | (391 825) |
Total payments on bond loan | (195 913) | (1 763 213) | (1 959 125) |
NOTE 20- 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 expenses and installments in the financial statements, 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
Amortized cost in 2025 is NOK 113.2 million, of which NOK 10.2 million has been capitalized to Mine under construction (capitalized until commencement of production in Q1 2025) (2024: NOK 111.1 million).
In the first, second, third and fourth quarters of 2025 the Company revised its estimates of future cash flows related to the royalty agreement. The net effect of the change in estimate in 2025 of NOK 99.0 million (2024: NOK 47.9 million), has been recognized as financial income.\t
Next year\u2019s estimated royalty installments of NOK 18.7 million have been reclassified to other current liabilities at 31 December 2025.
The Company is subject to production milestones under its royalty agreement. Pursuant to this agreement, the Company was required to demonstrate sustained operation at specified capacity levels by 31 March 2026 (the \u201dCommercial Longstop Date\u201d). Due to ramp-up challenges, the Company did not meet this milestone and have in January 2026 agreed an extension of the Commercial Long Stop Date to 31 March 2027 with Orion, subject to final ocumentation. The consequence of not meeting this extended Commercial Long Stop Date would be that the Company would be in default of the Royalty agreement.\t
2025 | ||
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | 599 798 | |
Foreign exchange | -74 934 | - |
Amortization | 113 180 | - |
Change in estimate | -98 980 | - |
Royalty payments | -396 | -396 |
Reclassified from other current liabilities | 28 525 | - |
Total | 567 192 | -396 |
2024 | ||
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | 517 574 | |
Foreign exchange | 66 279 | - |
Amortization | 111 053 | - |
Change in estimate | -47 860 | - |
Royalty payments | - | - |
Reclassified to other current liabilities | -47 247 | - |
Total | 599 798 | - |
The table below provides an overview of the estimated maturity profile for the Company\u2019s royalty liability. 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. Please note that estimated royalty payments are in USD and the NOK figuers in the table below are dependent on the USDNOK exchange rate. The figures in the table below are based on the exchange rate at year end 2025.\t
(Amounts in NOK thousands) | <1 year | 2-5 years | >5 years | Total estimated payments |
Royalty payment | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Total payments on royalty liability | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Other Royalty\t
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 is recognized as an expense when incurred.\t
NOTE 22- OTHER NON-CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Liability mining workshop building | 37 000 | - |
Provision for potential penalty fee | 20 158 | - |
Provision for dismantling, rehabilitation and environmental monitoring | 13 414 | - |
Total | 70 572 | 0 |
Liability mining workshop building\t
Liability of NOK 37 million is related to a mining workshop building constructed for the Group in 2025. The Group leases the building in a five-year period 2025-2030, and the Group is further obligated to purchase the building at the end of the lease period in 2030 for NOK 37 million. The agreement is accounted for as a loan-financed aquisition of the building in 2025, and the building has been capitalized within property, plant and equipment (see note 13). The annual lease in the lease period is classified under financial costs as interest expense. Incurred interest expense in 2025 is NOK 1.5 million.\t
Provision for potential penalty fee\t
A provision of USD 2 million has been recognized in 2025 for a potential penalty fee payable to Barton if agreed garnet offtake volumes in the first contract year are not met by mid-December 2026, due to delays in the production ramp-up.\t
Provision for dismantling, rehabilitation and environmental monitoring\t
Provision for dismantling and rehabilitation after end of life of mine is NOK 8.7 million at year end 2025, measured at present value. This includes closure, rehabilitation and securing measures of the mine area, planned for 2064.
Provision for environmental monitoring in F\u00f8rdefjorden after end of life of mine is NOK 4.7 million at year end 2025, measured at present value. This includes work to be performed in the period 2063\u20132078 as monitoring is required for a minimum period of 15 years after closure, with the goal of ensuring closure and monitoring of the fjord deposit in F\u00f8rdefjorden.
NOTE 23- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Tax withholding and social security accrual | 6 644 | 5 192 |
Employee salary and holiday pay accrual | 16 676 | 4 354 |
Lease liability | 1 583 | 305 |
Accrued interest bond loan | 28 298 | 20 105 |
Royalty liability, current portion | 18 722 | 47 247 |
Provision for liability to the seller of mining rights Engeb\u00f8 | 40 000 | - |
Accrued expenses and other | 52 068 | 79 554 |
Total | 163 991 | 156 757 |
Accrued expenses and other primarily relates to the amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.
Provision for liability to the seller of the mining rights at Engeb\u00f8 include a provision of NOK 40 million related to a premium payable under the agreement with ConocoPhillips in connection with the Group\u2019s acquisition of the rights to the Engeb\u00f8fjellet deposit.\t
NOTE 24- 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 2025, 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 2025 interest-bearing debt in the form of a bond loan. The Group\u2019s financial instruments at year-end 2025 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 (converted in 2023), 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, and the Engeb\u00f8 Rutile and Garnet Project was fully financed. The project financing comprises equity, debt and royalty financing. In order to strengthen the liquidity in ERG, the Group has carried out tap issues on its existing bond loan in 2025. In January 2026 the Company issued equity raising gross proceeds of NOK 200 million. Due to unforeseen challenges, there has been a delay in the production and shipment plans affecting the revenues. We remain confident in the Group\u2019s liquidity position, supported by the positive contribution from the tap issues in 2025 and the equity financing in January 2026.
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. As part of the NOK 200 million equity raise in January 2026 (see note 30), more than 2/3 of the bondholders have pre-agreed to reduce the minimum liquidity covenant from USD 15 million to USD 10 million. The Group was in compliance with all covenant requirements per year end 2025.
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 2025 NOK 151.6 million mature within 6 months from balance sheet date (2024: NOK 175.5 million). Please see note 19 and 20 for maturity profile of the bond loan and the royalty liability.
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.
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 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 2025 is approximately +/-NOK 3.5 million per percentage-point change in the variable market interest rate (2024: NOK 4.7 million).\t
(ii) Currency exchange risk\t
At year-end 2025, 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 by approximately NOK 215.3 million at year-end (2024: NOK 173.5 million).
The Group had no foreign exchange hedges or instruments as per year-end 2025. Se note 9 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.
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 2025. There has been no recognized loss on trade receivables in 2025 or 2024.
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 compensate 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 infrastructure 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.
Although the Group\u2019s offtake agreements provide that 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, changes in tariffs or trade restrictions may indirectly affect demand, pricing and contractual terms.
The global market for minerals is influenced by a range of economic, geopolitical, and regulatory factors, and during 2025 increased uncertainty related to trade policies and tariffs has been observed. The Group closely monitors developments in international trade regulations and maintains an ongoing dialogue with customers and relevant counterparties to assess potential impacts on sales and logistics.
Fair value of financial instruments\t
2025:\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.
For the bond loan it is assessed that the fair value at year-end was around 98% of the nominal value of USD 155.5 million, based on latest quoted market price represented by the tap issue in October 2025 (level 2 in the fair value hierarchy according to IFRS 13).\t
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 market outlook per 31 December 2025 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 67.8 million (level 3 in the fair value hierarchy according to IFRS 13).
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).\t
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 market 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).\t
Categories of financial instruments
Year ended 31 December 2025\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category: | |||
Trade and financial receivables | 3 580 | 3 580 | |
Restricted cash | 19 552 | 19 552 | |
Cash and cash equivalents | 329 429 | 329 429 | |
Total financial assets | 352 561 | - | 352 561 |
Financial liabilities by category: | |||
Accounts payable | 24 138 | 24 138 | |
Bond loan | 1 492 024 | 1 492 024 | |
Royalty liability | 567 192 | 567 192 | |
Other non-current financial liabilities | 37 000 | 37 000 | |
Other current financial liabilities | 127 466 | 127 466 | |
Total financial liabilities | 2 247 821 | - | 2 247 821 |
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 | |
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 | |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Maturity profile for financial liabilities
The table below provides an overview of the estimated maturity profile and estimated interest payments for the Company\u2019s financial liabilities.
(Amounts in NOK thousands) | <1 year | 2-5 years | >5 years | Total estimated payments |
Bond loan, incl. interest (see note 19) | (195 913) | (1 763 213) | - | (1 959 125) |
Royalty payments (see note 20) | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Other non-current financial liabilities, incl. interest | (4 600) | (55 400) | - | (60 000) |
Accounts payable and other current financial liabilities | (151 604) | - | - | (151 604) |
Total payments on financial liabilities | (370 839) | (2 234 192) | (6 620 062) | (9 225 092) |
In addition the Group has future minimum lease payments under non-cancellable lease agreements as disclosed in note 18.\t
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 2025 Engeb\u00f8 Rutile and Garnet AS completed tap issues under the existing USD bond. In January 2026 the Company issued equity raising gross proceeds of NOK 200 million. 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__79": { "value": "NOTE 14- TRADE AND OTHER RECEIVABLES
(Amounts in NOK thousands) | 2025 | 2024 |
Trade receivables | 2 673 | - |
Other financial receivables | 907 | 959 |
Prepayments | 16 651 | 3 023 |
VAT receivable | 12 048 | 23 722 |
Total | 32 279 | 27 704 |
Prepayments include payment of NOK 10 million in 2025 to Vestland County Municipality related to contribution to improvement work on the County Road at Engeb\u00f8. Total contrubution to be paid is NOK 40 million, and the payment schedule is dependent on if and when certain amounts have incurred by the County Municipality for road improvements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__80": { "value": "NOTE 14- TRADE AND OTHER RECEIVABLES
(Amounts in NOK thousands) | 2025 | 2024 |
Trade receivables | 2 673 | - |
Other financial receivables | 907 | 959 |
Prepayments | 16 651 | 3 023 |
VAT receivable | 12 048 | 23 722 |
Total | 32 279 | 27 704 |
Prepayments include payment of NOK 10 million in 2025 to Vestland County Municipality related to contribution to improvement work on the County Road at Engeb\u00f8. Total contrubution to be paid is NOK 40 million, and the payment schedule is dependent on if and when certain amounts have incurred by the County Municipality for road improvements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__81": { "value": "NOTE 15- SPARE PARTS AND INVENTORY
(Amounts in NOK thousands) | 2025 | 2024 |
Spare parts | 46 935 | 10 011 |
Long-term stockpile | 3 340 | - |
Inventory value of finished goods and goods under production | 11 395 | - |
Total | 61 670 | 10 011 |
NOTE 16- CASH AND CASH EQUIVALENTS
(Amounts in NOK thousands) | 2025 | 2024 |
Bank deposits, unrestricted | 325 441 | 451 949 |
Restriced cash in tax withholding account | 3 988 | 2 825 |
Total cash and cash equivalents | 329 429 | 454 774 |
In addition to the amounts referred to above, the Group has a deposit of NOK 19.6 million (2024: NOK 12.6 million) on a restricted account at year-end presented as current assets pledged toward the Directorate of Mining and the Norwegian Environment Agency. This includes NOK 17.5 million pledged toward the Directorate of Mining (\u201cDirMin\u201d) for financial security in accordance with the operating license and NOK 2.1 million in a pledged towards the Norwegian Environment Agency. According to the standard procedure in Norway, the Group is obligated to provide financial security in favor of the Directorate of Mining. The total balance includes accrued interest of NOK 0.7 million attributable to ERG. 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__83": { "value": "NOTE 16- CASH AND CASH EQUIVALENTS
(Amounts in NOK thousands) | 2025 | 2024 |
Bank deposits, unrestricted | 325 441 | 451 949 |
Restriced cash in tax withholding account | 3 988 | 2 825 |
Total cash and cash equivalents | 329 429 | 454 774 |
In addition to the amounts referred to above, the Group has a deposit of NOK 19.6 million (2024: NOK 12.6 million) on a restricted account at year-end presented as current assets pledged toward the Directorate of Mining and the Norwegian Environment Agency. This includes NOK 17.5 million pledged toward the Directorate of Mining (\u201cDirMin\u201d) for financial security in accordance with the operating license and NOK 2.1 million in a pledged towards the Norwegian Environment Agency. According to the standard procedure in Norway, the Group is obligated to provide financial security in favor of the Directorate of Mining. The total balance includes accrued interest of NOK 0.7 million attributable to ERG. 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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__85-1": { "value": "NOTE 17- SHARE CAPITAL
Number of shares outstanding | Ordinary Shares |
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 |
2025 | |
Opening balance | 108 411 533 |
Share issuance | - |
31 December 2025 | 108 411 533 |
All shares carry equal rights and had a par value of NOK 12 per share as of 31 December 2025.\t
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.\t
Components of other comprehensive income\t
The following table shows a reconciliation of the components of other comprehensive income (\u201cOCI\u201d):
Amounts in NOK thousands | Actuarial gain/ loss | Total OCI |
Balance on 1 January 2024 | (3 696) | (3 696) |
Actuarial gain/(loss) | 317 | 317 |
Balance on 31 December 2024 | (3 379) | (3 379) |
Actuarial gain/(loss) | (994) | (994) |
Balance on 31 December 2025 | (4 372) | (4 372) |
NOTE 26- SHAREHOLDERS
The table below shows the Company\u2019s 20 largest shareholders as at 31 December 2025:\t
Shareholder | Number of shares | % ownership |
Iwatani Corporation | 15 979 133 | 14,74 % |
Morgan Stanley & Co. Int. Plc. | 14 417 147 | 13,30 % |
Fjordavegen Holding AS | 11 318 489 | 10,44 % |
UBS AG | 3 119 996 | 2,88 % |
Nordnet Bank AB | 2 269 165 | 2,09 % |
Skandinaviska Enskilda Banken AB | 2 255 354 | 2,08 % |
SEB CMU/SECFIN Pooled Account | 2 184 844 | 2,02 % |
The Bank of New York Mellon SA/NV | 2 143 617 | 1,98 % |
J.P. Morgan SE | 2 005 391 | 1,85 % |
Clearstream Banking S.A. | 1 974 549 | 1,82 % |
J.P. Morgan Securities LLC | 1 709 069 | 1,58 % |
Nordnet Livsforsikring AS | 1 552 593 | 1,43 % |
PRO AS | 1 163 032 | 1,07 % |
Stavanger Forvaltning AS | 840 000 | 0,77 % |
The Bank of New York Mellon SA/NV | 539 095 | 0,50 % |
Goldman Sachs International | 509 837 | 0,47 % |
Nordea Bank Abp | 433 820 | 0,40 % |
Danske Bank A/S | 421 355 | 0,39 % |
O Drage AS | 335 899 | 0,31 % |
Infoinvest AS | 309 500 | 0,29 % |
Total 20 largest shareholders | 65 481 885 | 60,40 % |
Other shareholders | 42 929 648 | 39,60 % |
Total | 108 411 533 | 100,00 % |
NOTE 17- SHARE CAPITAL
Number of shares outstanding | Ordinary Shares |
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 |
2025 | |
Opening balance | 108 411 533 |
Share issuance | - |
31 December 2025 | 108 411 533 |
All shares carry equal rights and had a par value of NOK 12 per share as of 31 December 2025.\t
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.\t
NOTE 26- SHAREHOLDERS
The table below shows the Company\u2019s 20 largest shareholders as at 31 December 2025:\t
Shareholder | Number of shares | % ownership |
Iwatani Corporation | 15 979 133 | 14,74 % |
Morgan Stanley & Co. Int. Plc. | 14 417 147 | 13,30 % |
Fjordavegen Holding AS | 11 318 489 | 10,44 % |
UBS AG | 3 119 996 | 2,88 % |
Nordnet Bank AB | 2 269 165 | 2,09 % |
Skandinaviska Enskilda Banken AB | 2 255 354 | 2,08 % |
SEB CMU/SECFIN Pooled Account | 2 184 844 | 2,02 % |
The Bank of New York Mellon SA/NV | 2 143 617 | 1,98 % |
J.P. Morgan SE | 2 005 391 | 1,85 % |
Clearstream Banking S.A. | 1 974 549 | 1,82 % |
J.P. Morgan Securities LLC | 1 709 069 | 1,58 % |
Nordnet Livsforsikring AS | 1 552 593 | 1,43 % |
PRO AS | 1 163 032 | 1,07 % |
Stavanger Forvaltning AS | 840 000 | 0,77 % |
The Bank of New York Mellon SA/NV | 539 095 | 0,50 % |
Goldman Sachs International | 509 837 | 0,47 % |
Nordea Bank Abp | 433 820 | 0,40 % |
Danske Bank A/S | 421 355 | 0,39 % |
O Drage AS | 335 899 | 0,31 % |
Infoinvest AS | 309 500 | 0,29 % |
Total 20 largest shareholders | 65 481 885 | 60,40 % |
Other shareholders | 42 929 648 | 39,60 % |
Total | 108 411 533 | 100,00 % |
NOTE 19- BOND LOAN AND BOND ESCROW\t
Nordic Mining ASA\u2019s wholly owned subsidiary Engeb\u00f8 Rutile and Garnet AS has a USD 155.5 million senior secured bond listed on Nordic ABM with ticker: ERUGA01 PRO. The bonds are administered by Nordic Trustee, has fixed coupon of 12.5% per annum, with interest payable quarterly in arrears and maturity in November 2027.
In March 2025 the Company completed a USD 33 million tap issue to its senior secured bonds 2022/2027 priced at 101% of par. In October 2025 the Company completed a USD 22.5 million tap issue to its senior secured bonds 2022/2027 priced at 98% of par. The total outstanding amount under the bonds following these tap issues is USD 155.5 million. The USD 100 million bond issue in 2022 had an issue price of 90% of par.
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. As part of the NOK 200 million equity raise in January 2026 (see note 30), more than 2/3 of the bondhol-ders have pre-agreed to reduce the minimum liquidity covenant from USD 15 million to USD 10 million. The Group was in compliance with all covenant requirements per year end 2025. For further details please see ticker ERUGA01 PRO at https://live.euronext.com/en to read the loan agreement.
2025 | |
(Amounts in NOK thousands) | Carrying amount Bond Loan |
At 1 January | 1 043 609 |
Net proceeds from borrowings, tap issues | 566 146 |
Amortization of fees | 29 157 |
Foreign exchange | (146 888) |
Total at year end | 1 492 024 |
2024 | |||
(Amounts in NOK thousands) | Carrying amount Bond Loan | Carrying amount Bond Escrow | Cash transferred from Bond Escrow |
At 1 January | 902 182 | 1 075 042 | |
Amortization of fees | 23 328 | ||
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 |
Bond Escrow\t
The net proceeds of the bond issue in 2022 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. 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 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 19.4 million, so the estimated interest payments in NOK are dependent on the USDNOK exchange rate. The figures in the table below are based on the exchange rate at year end 2025.\t
(Amounts in NOK thousands) | 2026 | 2027 | Total estimated payments |
Repayment | (1 567 300) | (1 567 300) | |
Estimated interest | (195 913) | (195 913) | (391 825) |
Total payments on bond loan | (195 913) | (1 763 213) | (1 959 125) |
NOTE 20- 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 expenses and installments in the financial statements, 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
Amortized cost in 2025 is NOK 113.2 million, of which NOK 10.2 million has been capitalized to Mine under construction (capitalized until commencement of production in Q1 2025) (2024: NOK 111.1 million).
In the first, second, third and fourth quarters of 2025 the Company revised its estimates of future cash flows related to the royalty agreement. The net effect of the change in estimate in 2025 of NOK 99.0 million (2024: NOK 47.9 million), has been recognized as financial income.\t
Next year\u2019s estimated royalty installments of NOK 18.7 million have been reclassified to other current liabilities at 31 December 2025.
The Company is subject to production milestones under its royalty agreement. Pursuant to this agreement, the Company was required to demonstrate sustained operation at specified capacity levels by 31 March 2026 (the \u201dCommercial Longstop Date\u201d). Due to ramp-up challenges, the Company did not meet this milestone and have in January 2026 agreed an extension of the Commercial Long Stop Date to 31 March 2027 with Orion, subject to final ocumentation. The consequence of not meeting this extended Commercial Long Stop Date would be that the Company would be in default of the Royalty agreement.\t
2025 | ||
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | 599 798 | |
Foreign exchange | -74 934 | - |
Amortization | 113 180 | - |
Change in estimate | -98 980 | - |
Royalty payments | -396 | -396 |
Reclassified from other current liabilities | 28 525 | - |
Total | 567 192 | -396 |
2024 | ||
(Amounts in NOK thousands) | Carrying amount | Cash flow |
At 1 January | 517 574 | |
Foreign exchange | 66 279 | - |
Amortization | 111 053 | - |
Change in estimate | -47 860 | - |
Royalty payments | - | - |
Reclassified to other current liabilities | -47 247 | - |
Total | 599 798 | - |
The table below provides an overview of the estimated maturity profile for the Company\u2019s royalty liability. 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. Please note that estimated royalty payments are in USD and the NOK figuers in the table below are dependent on the USDNOK exchange rate. The figures in the table below are based on the exchange rate at year end 2025.\t
(Amounts in NOK thousands) | <1 year | 2-5 years | >5 years | Total estimated payments |
Royalty payment | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Total payments on royalty liability | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Other Royalty\t
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 is recognized as an expense when incurred.\t
NOTE 22- OTHER NON-CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Liability mining workshop building | 37 000 | - |
Provision for potential penalty fee | 20 158 | - |
Provision for dismantling, rehabilitation and environmental monitoring | 13 414 | - |
Total | 70 572 | 0 |
Liability mining workshop building\t
Liability of NOK 37 million is related to a mining workshop building constructed for the Group in 2025. The Group leases the building in a five-year period 2025-2030, and the Group is further obligated to purchase the building at the end of the lease period in 2030 for NOK 37 million. The agreement is accounted for as a loan-financed aquisition of the building in 2025, and the building has been capitalized within property, plant and equipment (see note 13). The annual lease in the lease period is classified under financial costs as interest expense. Incurred interest expense in 2025 is NOK 1.5 million.\t
Provision for potential penalty fee\t
A provision of USD 2 million has been recognized in 2025 for a potential penalty fee payable to Barton if agreed garnet offtake volumes in the first contract year are not met by mid-December 2026, due to delays in the production ramp-up.\t
Provision for dismantling, rehabilitation and environmental monitoring\t
Provision for dismantling and rehabilitation after end of life of mine is NOK 8.7 million at year end 2025, measured at present value. This includes closure, rehabilitation and securing measures of the mine area, planned for 2064.
Provision for environmental monitoring in F\u00f8rdefjorden after end of life of mine is NOK 4.7 million at year end 2025, measured at present value. This includes work to be performed in the period 2063\u20132078 as monitoring is required for a minimum period of 15 years after closure, with the goal of ensuring closure and monitoring of the fjord deposit in F\u00f8rdefjorden.
NOTE 23- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Tax withholding and social security accrual | 6 644 | 5 192 |
Employee salary and holiday pay accrual | 16 676 | 4 354 |
Lease liability | 1 583 | 305 |
Accrued interest bond loan | 28 298 | 20 105 |
Royalty liability, current portion | 18 722 | 47 247 |
Provision for liability to the seller of mining rights Engeb\u00f8 | 40 000 | - |
Accrued expenses and other | 52 068 | 79 554 |
Total | 163 991 | 156 757 |
Accrued expenses and other primarily relates to the amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.
Provision for liability to the seller of the mining rights at Engeb\u00f8 include a provision of NOK 40 million related to a premium payable under the agreement with ConocoPhillips in connection with the Group\u2019s acquisition of the rights to the Engeb\u00f8fjellet deposit.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__93": { "value": "NOTE 22- OTHER NON-CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Liability mining workshop building | 37 000 | - |
Provision for potential penalty fee | 20 158 | - |
Provision for dismantling, rehabilitation and environmental monitoring | 13 414 | - |
Total | 70 572 | 0 |
Liability mining workshop building\t
Liability of NOK 37 million is related to a mining workshop building constructed for the Group in 2025. The Group leases the building in a five-year period 2025-2030, and the Group is further obligated to purchase the building at the end of the lease period in 2030 for NOK 37 million. The agreement is accounted for as a loan-financed aquisition of the building in 2025, and the building has been capitalized within property, plant and equipment (see note 13). The annual lease in the lease period is classified under financial costs as interest expense. Incurred interest expense in 2025 is NOK 1.5 million.\t
Provision for potential penalty fee\t
A provision of USD 2 million has been recognized in 2025 for a potential penalty fee payable to Barton if agreed garnet offtake volumes in the first contract year are not met by mid-December 2026, due to delays in the production ramp-up.\t
Provision for dismantling, rehabilitation and environmental monitoring\t
Provision for dismantling and rehabilitation after end of life of mine is NOK 8.7 million at year end 2025, measured at present value. This includes closure, rehabilitation and securing measures of the mine area, planned for 2064.
Provision for environmental monitoring in F\u00f8rdefjorden after end of life of mine is NOK 4.7 million at year end 2025, measured at present value. This includes work to be performed in the period 2063\u20132078 as monitoring is required for a minimum period of 15 years after closure, with the goal of ensuring closure and monitoring of the fjord deposit in F\u00f8rdefjorden.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__96": { "value": "NOTE 23- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Tax withholding and social security accrual | 6 644 | 5 192 |
Employee salary and holiday pay accrual | 16 676 | 4 354 |
Lease liability | 1 583 | 305 |
Accrued interest bond loan | 28 298 | 20 105 |
Royalty liability, current portion | 18 722 | 47 247 |
Provision for liability to the seller of mining rights Engeb\u00f8 | 40 000 | - |
Accrued expenses and other | 52 068 | 79 554 |
Total | 163 991 | 156 757 |
Accrued expenses and other primarily relates to the amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.
Provision for liability to the seller of the mining rights at Engeb\u00f8 include a provision of NOK 40 million related to a premium payable under the agreement with ConocoPhillips in connection with the Group\u2019s acquisition of the rights to the Engeb\u00f8fjellet deposit.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__98": { "value": "NOTE 23- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Tax withholding and social security accrual | 6 644 | 5 192 |
Employee salary and holiday pay accrual | 16 676 | 4 354 |
Lease liability | 1 583 | 305 |
Accrued interest bond loan | 28 298 | 20 105 |
Royalty liability, current portion | 18 722 | 47 247 |
Provision for liability to the seller of mining rights Engeb\u00f8 | 40 000 | - |
Accrued expenses and other | 52 068 | 79 554 |
Total | 163 991 | 156 757 |
Accrued expenses and other primarily relates to the amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.
Provision for liability to the seller of the mining rights at Engeb\u00f8 include a provision of NOK 40 million related to a premium payable under the agreement with ConocoPhillips in connection with the Group\u2019s acquisition of the rights to the Engeb\u00f8fjellet deposit.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__101": { "value": "NOTE 23- OTHER CURRENT LIABILITIES
(Amounts in NOK thousands) | 2025 | 2024 |
Tax withholding and social security accrual | 6 644 | 5 192 |
Employee salary and holiday pay accrual | 16 676 | 4 354 |
Lease liability | 1 583 | 305 |
Accrued interest bond loan | 28 298 | 20 105 |
Royalty liability, current portion | 18 722 | 47 247 |
Provision for liability to the seller of mining rights Engeb\u00f8 | 40 000 | - |
Accrued expenses and other | 52 068 | 79 554 |
Total | 163 991 | 156 757 |
Accrued expenses and other primarily relates to the amounts held back from EPC\u2019s pending the completion of the construction project in accordance with contract.
Provision for liability to the seller of the mining rights at Engeb\u00f8 include a provision of NOK 40 million related to a premium payable under the agreement with ConocoPhillips in connection with the Group\u2019s acquisition of the rights to the Engeb\u00f8fjellet deposit.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__102": { "value": "NOTE 24- 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 2025, 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 2025 interest-bearing debt in the form of a bond loan. The Group\u2019s financial instruments at year-end 2025 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 (converted in 2023), 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, and the Engeb\u00f8 Rutile and Garnet Project was fully financed. The project financing comprises equity, debt and royalty financing. In order to strengthen the liquidity in ERG, the Group has carried out tap issues on its existing bond loan in 2025. In January 2026 the Company issued equity raising gross proceeds of NOK 200 million. Due to unforeseen challenges, there has been a delay in the production and shipment plans affecting the revenues. We remain confident in the Group\u2019s liquidity position, supported by the positive contribution from the tap issues in 2025 and the equity financing in January 2026.
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. As part of the NOK 200 million equity raise in January 2026 (see note 30), more than 2/3 of the bondholders have pre-agreed to reduce the minimum liquidity covenant from USD 15 million to USD 10 million. The Group was in compliance with all covenant requirements per year end 2025.
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 2025 NOK 151.6 million mature within 6 months from balance sheet date (2024: NOK 175.5 million). Please see note 19 and 20 for maturity profile of the bond loan and the royalty liability.
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.
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 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 2025 is approximately +/-NOK 3.5 million per percentage-point change in the variable market interest rate (2024: NOK 4.7 million).\t
(ii) Currency exchange risk\t
At year-end 2025, 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 by approximately NOK 215.3 million at year-end (2024: NOK 173.5 million).
The Group had no foreign exchange hedges or instruments as per year-end 2025. Se note 9 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.
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 2025. There has been no recognized loss on trade receivables in 2025 or 2024.
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 compensate 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 infrastructure 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.
Although the Group\u2019s offtake agreements provide that 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, changes in tariffs or trade restrictions may indirectly affect demand, pricing and contractual terms.
The global market for minerals is influenced by a range of economic, geopolitical, and regulatory factors, and during 2025 increased uncertainty related to trade policies and tariffs has been observed. The Group closely monitors developments in international trade regulations and maintains an ongoing dialogue with customers and relevant counterparties to assess potential impacts on sales and logistics.
Fair value of financial instruments\t
2025:\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.
For the bond loan it is assessed that the fair value at year-end was around 98% of the nominal value of USD 155.5 million, based on latest quoted market price represented by the tap issue in October 2025 (level 2 in the fair value hierarchy according to IFRS 13).\t
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 market outlook per 31 December 2025 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 67.8 million (level 3 in the fair value hierarchy according to IFRS 13).
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).\t
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 market 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).\t
Categories of financial instruments
Year ended 31 December 2025\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category: | |||
Trade and financial receivables | 3 580 | 3 580 | |
Restricted cash | 19 552 | 19 552 | |
Cash and cash equivalents | 329 429 | 329 429 | |
Total financial assets | 352 561 | - | 352 561 |
Financial liabilities by category: | |||
Accounts payable | 24 138 | 24 138 | |
Bond loan | 1 492 024 | 1 492 024 | |
Royalty liability | 567 192 | 567 192 | |
Other non-current financial liabilities | 37 000 | 37 000 | |
Other current financial liabilities | 127 466 | 127 466 | |
Total financial liabilities | 2 247 821 | - | 2 247 821 |
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 | |
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 | |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Maturity profile for financial liabilities
The table below provides an overview of the estimated maturity profile and estimated interest payments for the Company\u2019s financial liabilities.
(Amounts in NOK thousands) | <1 year | 2-5 years | >5 years | Total estimated payments |
Bond loan, incl. interest (see note 19) | (195 913) | (1 763 213) | - | (1 959 125) |
Royalty payments (see note 20) | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Other non-current financial liabilities, incl. interest | (4 600) | (55 400) | - | (60 000) |
Accounts payable and other current financial liabilities | (151 604) | - | - | (151 604) |
Total payments on financial liabilities | (370 839) | (2 234 192) | (6 620 062) | (9 225 092) |
In addition the Group has future minimum lease payments under non-cancellable lease agreements as disclosed in note 18.\t
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 2025 Engeb\u00f8 Rutile and Garnet AS completed tap issues under the existing USD bond. In January 2026 the Company issued equity raising gross proceeds of NOK 200 million. 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__104": { "value": "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 (converted in 2023), 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, and the Engeb\u00f8 Rutile and Garnet Project was fully financed. The project financing comprises equity, debt and royalty financing. In order to strengthen the liquidity in ERG, the Group has carried out tap issues on its existing bond loan in 2025. In January 2026 the Company issued equity raising gross proceeds of NOK 200 million. Due to unforeseen challenges, there has been a delay in the production and shipment plans affecting the revenues. We remain confident in the Group\u2019s liquidity position, supported by the positive contribution from the tap issues in 2025 and the equity financing in January 2026.
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. As part of the NOK 200 million equity raise in January 2026 (see note 30), more than 2/3 of the bondholders have pre-agreed to reduce the minimum liquidity covenant from USD 15 million to USD 10 million. The Group was in compliance with all covenant requirements per year end 2025.
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 2025 NOK 151.6 million mature within 6 months from balance sheet date (2024: NOK 175.5 million). Please see note 19 and 20 for maturity profile of the bond loan and the royalty liability.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__105-1": { "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.
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 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 2025 is approximately +/-NOK 3.5 million per percentage-point change in the variable market interest rate (2024: NOK 4.7 million).\t
(ii) Currency exchange risk\t
At year-end 2025, 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 by approximately NOK 215.3 million at year-end (2024: NOK 173.5 million).
The Group had no foreign exchange hedges or instruments as per year-end 2025. Se note 9 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__107-1": { "value": "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 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 2025 is approximately +/-NOK 3.5 million per percentage-point change in the variable market interest rate (2024: NOK 4.7 million).\t
(ii) Currency exchange risk\t
At year-end 2025, 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 by approximately NOK 215.3 million at year-end (2024: NOK 173.5 million).
The Group had no foreign exchange hedges or instruments as per year-end 2025. Se note 9 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.
NOTE 29- COMMITMENTS AND CONTINGENCIES
The Group has a contingent liability of NOK 30 million to Vestland County Municipality related to contribution to improvement work on the County Road at Engeb\u00f8. Total contrubution to be paid is NOK 40 million, of which NOK 10 million has been paid in 2025. The payment schedule is dependent on if and when certain amounts have incurred by the County Municipality for road improvements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__108": { "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 2025. There has been no recognized loss on trade receivables in 2025 or 2024.
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": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__109-1": { "value": "
Fair value of financial instruments\t
2025:\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.
For the bond loan it is assessed that the fair value at year-end was around 98% of the nominal value of USD 155.5 million, based on latest quoted market price represented by the tap issue in October 2025 (level 2 in the fair value hierarchy according to IFRS 13).\t
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 market outlook per 31 December 2025 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 67.8 million (level 3 in the fair value hierarchy according to IFRS 13).
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).\t
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 market 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).\t
Categories of financial instruments
Year ended 31 December 2025\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category: | |||
Trade and financial receivables | 3 580 | 3 580 | |
Restricted cash | 19 552 | 19 552 | |
Cash and cash equivalents | 329 429 | 329 429 | |
Total financial assets | 352 561 | - | 352 561 |
Financial liabilities by category: | |||
Accounts payable | 24 138 | 24 138 | |
Bond loan | 1 492 024 | 1 492 024 | |
Royalty liability | 567 192 | 567 192 | |
Other non-current financial liabilities | 37 000 | 37 000 | |
Other current financial liabilities | 127 466 | 127 466 | |
Total financial liabilities | 2 247 821 | - | 2 247 821 |
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 | |
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 | |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Fair value of financial instruments\t
2025:\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.
For the bond loan it is assessed that the fair value at year-end was around 98% of the nominal value of USD 155.5 million, based on latest quoted market price represented by the tap issue in October 2025 (level 2 in the fair value hierarchy according to IFRS 13).\t
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 market outlook per 31 December 2025 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 67.8 million (level 3 in the fair value hierarchy according to IFRS 13).
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).\t
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 market 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).\t
Categories of financial instruments
Year ended 31 December 2025\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category: | |||
Trade and financial receivables | 3 580 | 3 580 | |
Restricted cash | 19 552 | 19 552 | |
Cash and cash equivalents | 329 429 | 329 429 | |
Total financial assets | 352 561 | - | 352 561 |
Financial liabilities by category: | |||
Accounts payable | 24 138 | 24 138 | |
Bond loan | 1 492 024 | 1 492 024 | |
Royalty liability | 567 192 | 567 192 | |
Other non-current financial liabilities | 37 000 | 37 000 | |
Other current financial liabilities | 127 466 | 127 466 | |
Total financial liabilities | 2 247 821 | - | 2 247 821 |
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 | |
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 | |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Maturity profile for financial liabilities
The table below provides an overview of the estimated maturity profile and estimated interest payments for the Company\u2019s financial liabilities.
(Amounts in NOK thousands) | <1 year | 2-5 years | >5 years | Total estimated payments |
Bond loan, incl. interest (see note 19) | (195 913) | (1 763 213) | - | (1 959 125) |
Royalty payments (see note 20) | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Other non-current financial liabilities, incl. interest | (4 600) | (55 400) | - | (60 000) |
Accounts payable and other current financial liabilities | (151 604) | - | - | (151 604) |
Total payments on financial liabilities | (370 839) | (2 234 192) | (6 620 062) | (9 225 092) |
In addition the Group has future minimum lease payments under non-cancellable lease agreements as disclosed in note 18.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__111-1": { "value": "Fair value of financial instruments\t
2025:\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.
For the bond loan it is assessed that the fair value at year-end was around 98% of the nominal value of USD 155.5 million, based on latest quoted market price represented by the tap issue in October 2025 (level 2 in the fair value hierarchy according to IFRS 13).\t
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 market outlook per 31 December 2025 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 67.8 million (level 3 in the fair value hierarchy according to IFRS 13).
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).\t
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 market 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).\t
Categories of financial instruments
Year ended 31 December 2025\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category: | |||
Trade and financial receivables | 3 580 | 3 580 | |
Restricted cash | 19 552 | 19 552 | |
Cash and cash equivalents | 329 429 | 329 429 | |
Total financial assets | 352 561 | - | 352 561 |
Financial liabilities by category: | |||
Accounts payable | 24 138 | 24 138 | |
Bond loan | 1 492 024 | 1 492 024 | |
Royalty liability | 567 192 | 567 192 | |
Other non-current financial liabilities | 37 000 | 37 000 | |
Other current financial liabilities | 127 466 | 127 466 | |
Total financial liabilities | 2 247 821 | - | 2 247 821 |
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 | |
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 | |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Maturity profile for financial liabilities
The table below provides an overview of the estimated maturity profile and estimated interest payments for the Company\u2019s financial liabilities.
(Amounts in NOK thousands) | <1 year | 2-5 years | >5 years | Total estimated payments |
Bond loan, incl. interest (see note 19) | (195 913) | (1 763 213) | - | (1 959 125) |
Royalty payments (see note 20) | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Other non-current financial liabilities, incl. interest | (4 600) | (55 400) | - | (60 000) |
Accounts payable and other current financial liabilities | (151 604) | - | - | (151 604) |
Total payments on financial liabilities | (370 839) | (2 234 192) | (6 620 062) | (9 225 092) |
In addition the Group has future minimum lease payments under non-cancellable lease agreements as disclosed in note 18.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__112-1": { "value": "Fair value of financial instruments\t
2025:\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.
For the bond loan it is assessed that the fair value at year-end was around 98% of the nominal value of USD 155.5 million, based on latest quoted market price represented by the tap issue in October 2025 (level 2 in the fair value hierarchy according to IFRS 13).\t
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 market outlook per 31 December 2025 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 67.8 million (level 3 in the fair value hierarchy according to IFRS 13).
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).\t
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 market 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).\t
Categories of financial instruments
Year ended 31 December 2025\t
(Amounts in NOK thousands) | Amortized cost | Fair value through profit or loss | Carrying amount |
Financial assets by category: | |||
Trade and financial receivables | 3 580 | 3 580 | |
Restricted cash | 19 552 | 19 552 | |
Cash and cash equivalents | 329 429 | 329 429 | |
Total financial assets | 352 561 | - | 352 561 |
Financial liabilities by category: | |||
Accounts payable | 24 138 | 24 138 | |
Bond loan | 1 492 024 | 1 492 024 | |
Royalty liability | 567 192 | 567 192 | |
Other non-current financial liabilities | 37 000 | 37 000 | |
Other current financial liabilities | 127 466 | 127 466 | |
Total financial liabilities | 2 247 821 | - | 2 247 821 |
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 | |
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 | |
Royalty liability | 599 798 | 599 798 | |
Other current financial liabilities | 131 155 | 131 155 | |
Total financial liabilities | 1 818 956 | - | 1 818 956 |
Maturity profile for financial liabilities
The table below provides an overview of the estimated maturity profile and estimated interest payments for the Company\u2019s financial liabilities.
(Amounts in NOK thousands) | <1 year | 2-5 years | >5 years | Total estimated payments |
Bond loan, incl. interest (see note 19) | (195 913) | (1 763 213) | - | (1 959 125) |
Royalty payments (see note 20) | (18 722) | (415 580) | (6 620 062) | (7 054 363) |
Other non-current financial liabilities, incl. interest | (4 600) | (55 400) | - | (60 000) |
Accounts payable and other current financial liabilities | (151 604) | - | - | (151 604) |
Total payments on financial liabilities | (370 839) | (2 234 192) | (6 620 062) | (9 225 092) |
In addition the Group has future minimum lease payments under non-cancellable lease agreements as disclosed in note 18.\t
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__117": { "value": "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 2025 Engeb\u00f8 Rutile and Garnet AS completed tap issues under the existing USD bond. In January 2026 the Company issued equity raising gross proceeds of NOK 200 million. 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__118": { "value": "NOTE 25- INVESTMENTS IN SUBSIDIARIES
The table below provides an overview of Nordic Mining ASA\u2019s subsidiaries as at 31 December 2025:\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 25- INVESTMENTS IN SUBSIDIARIES
The table below provides an overview of Nordic Mining ASA\u2019s subsidiaries as at 31 December 2025:\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 27- RELATED PARTIES AND COMPENSATION OF MANAGEMENT
Compensation to Board members and Senior Management in 2025\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Expensed Share based compensation | Total |
Finn Ivar Marum, CEO1 | 2 212 | - | 124 | 105 | 2 777 | 5 218 |
Ivar S. Fossum, former CEO2 | 3 661 | - | 172 | 166 | - | 3 999 |
Tord Meling, CFO | 2 347 | - | 13 | 126 | 1 543 | 4 029 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 017 | - | 13 | 74 | 1 234 | 3 338 |
Trond Langeng, Manager Resource and Development | 1 144 | - | 13 | 78 | - | 1 234 |
Maurice Kok, former Commercial Director3 | 506 | - | 2 | 27 | - | 535 |
Andreas Davidsen, Chief Commercial Officer4 | 1 050 | - | 6 | 61 | - | 1 117 |
Ole Klevan, Nomination Committee (Chair) | - | 65 | - | - | - | 65 |
Brita Eilersen, Nomination committee | - | 45 | - | - | - | 45 |
Torger Lien, Nomination committee | - | 45 | - | - | - | 45 |
Kjell Roland, Chairman of the Board | - | 500 | - | - | 926 | 1 426 |
Kjell Sletsj\u00f8e, Deputy Chairman of the Board | - | 300 | - | - | 617 | 917 |
Eva Kaijser, Board member | - | 300 | - | - | 617 | 917 |
Benedicte Nordang, Board member | - | 300 | - | - | 617 | 917 |
Tom Lileng, Board member | - | 300 | - | - | 617 | 917 |
Total | 12 937 | 1 855 | 342 | 637 | 8 948 | 24 719 |
1. Finn Ivar Marum joined the Company 1 March 2025. 2. Ivar S. Fossum left the Company 1 March 2025. Compensation shown in the table above is inclusive
severance pay in the period 1 March\u201331 December 2025.
3. Maurice Kok left the Company 28 February 2025.
4. Andreas Davidsen joined the Company 1 July 2025.
Compensation to Board members and Senior Management in 2024\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Expensed Share based compensation | Total |
Ivar S. Fossum, CEO | 3 279 | - | 170 | 437 | - | 3 886 |
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, Chairman of the Board | - | 500 | - | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chairman 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 | 800 | 0 | 11 389 |
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.
3. Trond Langeng joined the Company 11 March 2024.
Senior Management is subject to termination periods of 3-6 months.\t
Guidelines for management remuneration\tThe 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 2025\t
Name | No of shares | % owned |
Kjell Roland, Chairman of the Board | 29 523 | 0,03 % |
Kjell Sletsj\u00f8e, Deputy Chairman of the Board | 17 750 | 0,02 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 22 291 | 0,02 % |
Total | 69 564 | 0,06 % |
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2024\t
Name | No of shares | % owned |
Kjell Roland, Chairman 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 % |
NOTE 27- RELATED PARTIES AND COMPENSATION OF MANAGEMENT
Compensation to Board members and Senior Management in 2025\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Expensed Share based compensation | Total |
Finn Ivar Marum, CEO1 | 2 212 | - | 124 | 105 | 2 777 | 5 218 |
Ivar S. Fossum, former CEO2 | 3 661 | - | 172 | 166 | - | 3 999 |
Tord Meling, CFO | 2 347 | - | 13 | 126 | 1 543 | 4 029 |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 2 017 | - | 13 | 74 | 1 234 | 3 338 |
Trond Langeng, Manager Resource and Development | 1 144 | - | 13 | 78 | - | 1 234 |
Maurice Kok, former Commercial Director3 | 506 | - | 2 | 27 | - | 535 |
Andreas Davidsen, Chief Commercial Officer4 | 1 050 | - | 6 | 61 | - | 1 117 |
Ole Klevan, Nomination Committee (Chair) | - | 65 | - | - | - | 65 |
Brita Eilersen, Nomination committee | - | 45 | - | - | - | 45 |
Torger Lien, Nomination committee | - | 45 | - | - | - | 45 |
Kjell Roland, Chairman of the Board | - | 500 | - | - | 926 | 1 426 |
Kjell Sletsj\u00f8e, Deputy Chairman of the Board | - | 300 | - | - | 617 | 917 |
Eva Kaijser, Board member | - | 300 | - | - | 617 | 917 |
Benedicte Nordang, Board member | - | 300 | - | - | 617 | 917 |
Tom Lileng, Board member | - | 300 | - | - | 617 | 917 |
Total | 12 937 | 1 855 | 342 | 637 | 8 948 | 24 719 |
1. Finn Ivar Marum joined the Company 1 March 2025. 2. Ivar S. Fossum left the Company 1 March 2025. Compensation shown in the table above is inclusive
severance pay in the period 1 March\u201331 December 2025.
3. Maurice Kok left the Company 28 February 2025.
4. Andreas Davidsen joined the Company 1 July 2025.
Compensation to Board members and Senior Management in 2024\t
(Amounts in NOK thousands) | Salary incl. bonus | Board member fees | Other compensation | Pension costs | Expensed Share based compensation | Total |
Ivar S. Fossum, CEO | 3 279 | - | 170 | 437 | - | 3 886 |
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, Chairman of the Board | - | 500 | - | - | - | 500 |
Kjell Sletsj\u00f8e, Deputy Chairman 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 | 800 | 0 | 11 389 |
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.
3. Trond Langeng joined the Company 11 March 2024.
Senior Management is subject to termination periods of 3-6 months.\t
Guidelines for management remuneration\tThe 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 2025\t
Name | No of shares | % owned |
Kjell Roland, Chairman of the Board | 29 523 | 0,03 % |
Kjell Sletsj\u00f8e, Deputy Chairman of the Board | 17 750 | 0,02 % |
Kenneth N. Angedal, Managing Director Engeb\u00f8 Rutile and Garnet | 22 291 | 0,02 % |
Total | 69 564 | 0,06 % |
Shares owned/controlled by members of the Board and senior management and those related to them as of 31 December 2024\t
Name | No of shares | % owned |
Kjell Roland, Chairman 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 % |
NOTE 28- PAYMENTS TO AND FROM GOVERNMENTAL INSTITUTIONS
In accordance with the Accounting Act, section 2-10, 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, Research tax credit (SkatteFUNN) etc. Estimated total payment from the Group to various Norwegian governmental institutions was NOK 0.5 million in 2025 (2024: NOK 0.5 million). Estimated total payment to the Group from Norwegian governmental institutions was NOK 1.0 million in 2025, consisting of Research tax credit (SkatteFunn) (2024: NOK 0 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__127": { "value": "NOTE 29- COMMITMENTS AND CONTINGENCIES
The Group has a contingent liability of NOK 30 million to Vestland County Municipality related to contribution to improvement work on the County Road at Engeb\u00f8. Total contrubution to be paid is NOK 40 million, of which NOK 10 million has been paid in 2025. The payment schedule is dependent on if and when certain amounts have incurred by the County Municipality for road improvements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__129": { "value": "NOTE 29- COMMITMENTS AND CONTINGENCIES
The Group has a contingent liability of NOK 30 million to Vestland County Municipality related to contribution to improvement work on the County Road at Engeb\u00f8. Total contrubution to be paid is NOK 40 million, of which NOK 10 million has been paid in 2025. The payment schedule is dependent on if and when certain amounts have incurred by the County Municipality for road improvements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__130": { "value": "NOTE 30- EVENTS AFTER BALANCE SHEET DATE
In January 2026 the Company completed a private placement of 16,666,666 new shares, each at a fixed price of NOK 12 per share, raising gross proceeds of NOK 200 million. As part of the equity raise, more than 2/3 of the bondholders in the Engeb\u00f8 Rutile and Garnet AS 12.5% Senior Secured USD 155.5 million Bonds have pre-agreed to reduce the minimum liquidity covenant from USD 15 million to USD 10 million. The Company\u2019s new share capital is NOK 1,500,938,388 divided into 125,078,199 shares, each with a par value of NOK 12. In January 2026 the general meeting further resolved to reduce the Company\u2019s share capital by NOK 1,350,844,549.20 by reducing the nominal value of each share from NOK 12 to NOK 1.20.
Nordic Mining ASA\u2019s wholly owned subsidiary Engeb\u00f8 Rutile and Garnet AS is subject to production milestones under its royalty agreement with OMRF (Zr) LLC, managed by Orion Resource Partners. Pursuant to this agreement, the Company was required to demonstrate sustained operation at specified capacity levels by 31 March 2026 (the \u201dCommercial Longstop Date\u201d). Due to the ramp-up challenges that have occured, the Company does not expect to meet this milestone. Discussions regarding an extension of the Commercial Longstop Date were initiated during the second half of 2025, and there was a shared understanding that the orginal date would be adjusted to reflect the revised ramp-up plan. In January 2026 the Company and Orion formally agreed to extend the Commercial Long Stop Date to 31 March 2027, with formal agreement in place in March 2026.
Andrew Templeman was appointed new Managing Director of ERG, effective from 19 January 2026.
In April 2026, the Company made an initial investment decision of USD 2 million regarding a joint venture structure with the Barton Group related to sales and distribution of garnet in Europe. The investment will also give a USD 2 million reduction in any potential liability for lacking volumes under the offtake agreement. The Company will have the right to sell back the shares in the European entity at the same price as the initial investment if a final joint venture is concluded within 6 months.
On 15 April 2026, the Gulating Court of Appeal ruled in favor of ERG in the injunction case filed by the NGOs Friends of the Earth Norway and Nature and Youth against Nordic Mining\u2019s subsidiary ERG. The Gulating Court of Appeal concluded that the conditions for an injunction are not met. The operation at the mine continues as planned.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXFVKO54", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } } } }