So by postponement, I mean that they will appeal to the Supreme Court and at the same time, probably start modifying the application just in case.
I believe they will eventually get a legally valid permit, but it might require a lot of coffee and cigarettes.
This is quite a saga, one wouldnât have believed 13 years ago when investing for the first time. Now itâs hard to say what path weâre on moving forward, but the mine will probably continue its operations relatively normally. It would be nice to know how much extra cost would come from land disposal and what the profitability calculations would look like with that. That would be a worst-case scenario. Other factors in the future now are likely the Supreme Court case, a new permit application, environmental organizationsâ demands for permit revocations, revenue/income development or the need for an offering (probably no need for an offering if there isnât a complete halt to operations), and possible reactions from partners (Barton, Iwatani).
Todayâs stock market reaction is interesting but it doesnât affect my own actions. A lot of money is invested, and Iâm still just waiting for the times when the mine operates normally without disruptions and uncertainties. The path to that situation doesnât matter to me, as long as we avoid future offerings.
The company will publish its Q2 results next Tuesday. Hopefully, they will present possible scenarios and their impacts. Logically, they must have made such calculations.
Thatâs a pretty good summary
Nordic Miningâs view on the verdict.
Q2 ulkona
Summary of important events in the second quarter of 2025:
The Company recorded one Lost Time Injury (LTI) related to production at the Engebø Plant in the second quarter.
The initial commercial shipment of garnet was dispatched in May, and a total 3,900 tonnes of garnet were produced in the second quarter.
The production ramp-up continued in the second quarter until the planned maintenance and modification downtime in July. The shutdown was executed according to plan and allowed for essential upgrade and repairs, ensuring reliability and throughput in the process plant.
Ramp-up of rutile production has commenced with the target of producing rutile ready for shipment to customers by the end of the third quarter.
The company reported first revenues from Engebø in the quarter of NOK 2.7 million from the sale of two first shipments of garnet. Reported operating loss for the second quarter was NOK â103.4 million.
In August, the court of appeals ruled in favor of the NGOs in their case against the Norwegian state in which the NGOs challenged the key permits for the Engebø rutile and garnet project. Nordic Mining is not a party in the court case. The permits for the Engebø rutile and garnet project remain valid for the company and the production ramp up proceeds according to plan.
The Company ended the quarter with NOK 438.5 million in cash, providing a financial foundation and sufficient liquidity to support operations until positive cash flow is achieved.
Dumb question, but if 2 shipments are worth 2.7m NOK, which is less than 250k euros, then one shipment is only worth just over 100k - someone dumber might imagine that this price doesnât even cover shipping costs. How does this actually work?
Garnet is not really very valuable at all (like a couple of hundred euros per tonne), so huge quantities of it must be supplied for the operation to work. If they planned to supply 35 kt/a of rutile and 180 kt/a of garnet, then a 50% / 50% revenue mix is achieved with that, but almost all the profit comes from rutile. The mine is next to the port and ships can drive to pick up cargo like from a McDonaldâs drive-thru, so freight can be transported surprisingly cheaply compared to a mine located inland.
[quote=âPohjolan_Eka, post:292, topic:22259â]
If they planned to deliver 35 kt/a of rutile and 180 kt/a of garnet, that would achieve a 50% / 50%
Out of laziness, I just took those numbers directly from the definitive feasibility study, which should, however, be of the right order of magnitude:
Of course, we donât know how much they actually get for the garnet, as the contract price is not public. Presumably, there is some kind of discount included.
Interesting, I was under the impression that TiO2 is more valuable than that, but maybe prices vary.
Yes, those prices were significantly higher for a while and we are still above that DFS estimate, as there were challenges with the mines in Sierra Leone. Of course,
This 2025 EU report on titanium doesnât seem to have been linked here yet.
https://publications.jrc.ec.europa.eu/repository/handle/JRC137082
Quite an interesting report on the strategic importance of titanium for Europe and the geopolitical situation. And for example, the growing importance of titanium in the defense industry, e.g., the demand for titanium in drones and fighter jets.
A few screenshots from the 115-page report.
Bad news from the mineâs production. Rutile production volumes will continue to be low due to problems well into next year. So more money is needed.
The only good points in the news are that they will receive expert assistance from Iwatani and Barton Group, and with this new financing, the financial situation is secured for a while.
The stock price will probably be down tomorrow. I am now taking a wait-and-see approach and will wait until the ramp-up is complete before making further purchases. The last time, after the court case, I reduced my position to a minimum.
This companyâs communication and the managementâs understanding seem to have turned into a complete joke. In the Q2 release, it was still stated that everything was proceeding according to plan and that funds would be sufficient well into next year. A month later, everything is delayed by half a year, and more money is needed to pay off debts. Throughout the year, a completely different picture has been painted than where we are now. Itâs infuriating, but this is that Nordic Mining quality. And now I can only blame myself for believing everything.
In the Q3 presentation, we heard explanation after explanation. Iwatani, Orion, and Barton have been hired to solve the problems, and an attempt is being made to get the first routine shipment transported by the end of March. Costs have increased, and even less goods have been sold compared to the previous quarter. Things are going badly.
Something will come of this eventually, but the leaders seem to be completely lost, likeâŚ
The district court has as expected today ruled in favor of ERG concluding that the conditions for an injunction is not met.
The operations at the mine continues as planned.
"We made the case that the environmental impact of the sea deposit is low. This conclusion is based on numerous independent reports and surveys. We are pleased that the court followed the science and not the NGOsâ principled rejection of sea deposits.â
Ouch, production challenges and a private placement at 12 NOK, closing price 16.68 NOK
