Nordic Mining: – Er i konstruktive diskusjoner

Nordic Mining has emerged victorious in its pursuit of rutile (titania oxide) and garnet from Engebøfjellet near Førdefjorden in Vestland county, achieving a profit of minus 223 million kroner in the second quarter, a significant improvement from minus 82 million kroner in the same quarter last year. Despite challenges with the start-up and an invalid discharge permit for discarding mine waste into Førdefjorden, the company continues its operations.

Nordic Mining has sought a temporary discharge permit and awaits a response from authorities by September.

The company has invested over 3 billion kroner in the Engebø project and is still working on increasing production. However, it has revised production expectations and stated that additional funds are required. Despite the ongoing challenges, Nordic Mining has maintained production and strengthened operating routines. CEO Finn Ivar Marum acknowledged the need to address the company's liquidity situation and is in constructive discussions with bondholders and shareholders to find a balanced, sustainable solution.

The Førdefjorden project is expected to generate significant cash flow once fully operational. In the short term, Nordic Mining aims to secure $10-15 million (94-141 million kroner) to continue operations until November. Additionally, the company is working on securing a sustainable capital structure aligned with its revised production profile.

Most of the investments have been made, and the priority now is to build on this momentum, handle remaining operational and financial challenges, and position the company as a strategic supplier of rutile and garnet to international markets, according to Marum.

Earlier this month, the company mentioned expecting a negative cash flow in the second half of 2026 and 2027. Nordic Mining requires an additional 475 million kroner, given full refinancing of debt, according to the company. The Engebø project is expected to generate an annual cash flow of 480 million kroner from around 2031, the company said earlier this month.