Q2 2026 Endomines Finland Oyj Earnings Call

August 13, 2026

Speaker #1: Hello everyone, and welcome to Endomines Half-Year Results Webcast. My name is Anni Turpeinen, I'm the Chief Communications Officer here at Endomines, and with me here in the studio, we have our CEO, Kari Vyhtinen.

Anni Turpeinen: Hello everyone, and welcome to Endomines Half-Year Results webcast. My name is Anni Turpeinen. I am the Chief Communications Officer here at Endomines. And with me here in the studio, we have our CEO, Kari Vyhtinen, and our CFO, Minna Karttunen.

Speaker #1: And our CFO, Minna Karttunen.

Speaker #2: Good afternoon.

Minna Karttunen: Afternoon.

Speaker #1: Our agenda today is that, first, Kari will share the highlights of the second quarter and the first half of the year. Then, he will continue with an exploration update.

Anni Turpeinen: Our agenda today is that first, Kari will share the highlights of Q2 and H1. Then he will continue with an exploration update, and after that, Minna will give you a deeper look into the financials. Then Kari will come back to the stage with strategy and our future plans. As always, we are having questions and answer session at the end of the presentation. So feel free to send your questions via chat during the presentation, and please remember to type your questions in English. Before we start, I want to remind you that this event is recorded, and the recording will be available on our website later today. So now it is time to start. Let us enjoy the great results. Go ahead, Kari.

Speaker #1: And after that, Minna will give you a deeper look into the financials. Then Kari will come back to the stage with strategy and our future plans.

Speaker #1: And as always, we will have a question and answer session at the end of the presentation. So, please feel free to send your questions via chat during the presentation.

Speaker #1: And please remember to type your questions in English. Before we start, I want to remind you that this event is being recorded, and the recording will be available on our website later today.

Speaker #1: So, now it's time to start. Let's enjoy the great results. Go ahead, Kari.

Speaker #2: Thank you, Anni. Extremely pleased to be here today. We had the best six months in the company’s history, and a very, very strong second quarter.

Kari Vyhtinen: Thank you, Anni. Extremely pleased to be here today. We had the best six months in the company history and very strong Q2. If you look at the financial highlights of Q2 and H1, during Q2, we had a very high growth in the revenue, so 46% growth to EUR 6.2 million. During the six months, the growth was even greater, so the revenue grew by 61% to EUR 34.7 million. So very significant growth, very happy about it. This was also profitable growth, so the group EBITDA increased 38% during Q2 to EUR 5.5 million. If you look at the six months, then the EBITDA grew by 86%, so very significant growth again to EUR 14.3 million. Then the net result grew by almost 300% during Q2 to EUR 3.3 million.

Speaker #2: If you look at the financial highlights of Q2 and H1, during Q2 we had very high growth in revenue—so, 46% growth to €6.2 million.

Speaker #2: During the six months, the growth was even greater. The revenue grew by 61% to €34.7 million. So, very significant growth—very happy about it.

Speaker #2: This was also profitable growth. So the Group EBITDA increased 38% during the second quarter to €5.5 million. And if you look at the six months, then the EBITDA grew by 86%.

Speaker #2: So, very significant growth again—to €14.3 million. And then the net result, the net result grew by almost 300% during the second quarter, to €3.3 million.

Speaker #2: And during the six months, the net result grew by even 356% to €10.4 million, which is close to 30% of the revenue. And it's over 40% more than during the whole year '25.

Kari Vyhtinen: During the six months, the net result grew by even 356% to EUR 10.4 million, which is close to 30% of the revenue, and it is over 40% more than during the whole year 2025. So very happy about the financial result, and I want to thank the whole Endomines team for the great work done. It is really fantastic to see the progress. During H1, we also had a strong operational cash flow, EUR 11.2 million. We are a growth company, so the cash flow that we make, we invest to the future because our goals are very ambitious, and the main goals lie two years ahead. So we are investing the cash that we make to the future. Also on top of the excellent financial result, there were many strategic milestones during Q2. We also had a lot of important milestones during Q1.

Speaker #2: I'm so very, very happy about the financial results, and I want to thank the whole Endomines team for the great work done. It's really fantastic to see the progress.

Speaker #2: During H1, we also had a strong operational cash flow of €11.2 million. We are a growth company, so the cash flow that we make, we invest into the future because our goals are very ambitious.

Speaker #2: And the main goals lie a few years ahead, so we are investing the cash that we make for the future. Also, on top of the excellent financial result, there were many strategic milestones during the second quarter.

Speaker #2: We also had a lot of important milestones during the first quarter. For example, we sold the three assets in Idaho and simplified the company structure.

Kari Vyhtinen: For example, we sold the three assets in Idaho and simplified the company structure. But during the Q2, there were industry-leading, thrilling results from the Ukko deposit, which is our main exploration target, and we will discuss about it a little bit later. We also received EUR 1.5 million funding from European Union and the state to develop our tungsten project within the Southern Gold Line. We also refinanced our financing. So we had a EUR 12 million financing package before, and now we refinanced this package to EUR 21 million with much better terms, so very happy about it. Our balance sheet is extremely strong and Minna Karttunen will share the details a little bit later in the presentation. We also got the first tungsten and molybdenum results from the Southern Gold Line.

Speaker #2: But during the second quarter, there were industry-leading drilling results from the Ukko deposit, which is our main exploration target, and we will discuss it a little bit later.

Speaker #2: We also received €1.5 million in funding from the European Union and the state to develop our tungsten project within the Southern Gold Line. We also refinanced our financing.

Speaker #2: So, we had a €12 million financing package before, and now we've refinanced this package to €21 million, with much better terms. So, very happy about it.

Speaker #2: Our balance sheet is extremely strong, and Minna will share the details a little bit later in the presentation. We also got the first tungsten and molybdenum results from the southern Gold Line.

Speaker #2: A lot of the activities we will discuss today focus on the southern Gold Line, which is the place that we are permitting to take us to the next level in production volume.

Kari Vyhtinen: A lot of the activities we will discuss today, they focus on the Southern Gold Line, which is the place that we are permitting to take us to the next level in the production volume. These results that we got regarding tungsten and molybdenum, they clearly demonstrate the potential we have in the Southern Gold Line to actually produce also critical minerals in addition to gold. So the golden journey is accelerating. If you go back to the basics, what is Endomines? Endomines is a gold mining and exploration company. Our operations, they focus on the Karelian Gold Line. It is in the Eastern Finland. We are very focused to Finland, very focused to Karelian Gold Line, and it is a greenstone belt. Greenstone belts are very prospective for gold production and gold exploration.

Speaker #2: And these results that we got regarding tungsten and molybdenum, they clearly demonstrate the potential we have in the Southern Gold Line to actually produce also critical minerals in addition to gold.

Speaker #2: So, the golden journey is accelerating. If you go back to the basics, what is Endomines? Endomines is a gold mining and exploration company. Our operations focus on the Karelian Gold Line.

Speaker #2: It's in eastern Finland. We are very focused on Finland—very focused on the Karelian Gold Line. And it's a greenstone belt. Greenstone belts are very prospective for gold production and gold exploration.

Speaker #2: Like many of the largest gold production areas in the world, they are greenstone belts, similar to ours. It's a 40-kilometer-long belt. Our production facilities are located in Pampalo.

Kari Vyhtinen: Like many of the largest gold production areas in the world, they are greenstone belts similar to ours. It is a 40-kilometer-long belt. Our production facilities, they are located in Pampalo. Pampalo is also our ticker in Nasdaq, but that is the place where we have the production facilities, so we produce a gold concentrate. The feed to the concentrate, to the mill comes from underground mine, open pit mine, and then we also have a small underground mine at Hosko. So those three different feed materials come to the processing plant at Pampalo, and then we produce the concentrate. We have two main exploration areas that we focus on, the Southern Gold Line and the Northern Gold Line. The Southern Gold Line is more advanced, so we are permitting the Southern Gold Line to be in production around 2030.

Speaker #2: Pampalo is also a ticker on Nasdaq. That's the place where we have the production facilities, so we produce gold concentrate. The feed to the mill comes from the underground mine, the open pit mine, and then we also have a small underground mine at Hosko.

Speaker #2: So, those three different feed materials come to the processing plant at Pampalo, and then we produce the concentrate. We have two main exploration areas that we focus on.

Speaker #2: The southern Gold Line and the northern Gold Line. The southern Gold Line is more advanced, so we are permitting the southern Gold Line to be in production around 2030.

Speaker #2: We started the permitting in 2024, in January 2024, and that has gone according to our plan. The plan is that this will take our gold production to the 70,000 to 100,000 ounces level.

Kari Vyhtinen: We started the permitting in January 2024, and that has gone according to our plan. The plan is that will take our gold production to 70,000 to 100,000 ounces level. If we think about last year's 16,630 ounces of production, so it is approximately five times more. So big step change, and then at the same time, we will start to produce tungsten and molybdenum. In our strategy, the growth is of course connected to production. So we have the existing facilities in Pampalo. There is spare capacity at the mill, and we have been increasing the production each year. On the right side, you can actually see that from 2022 to 2025 we almost doubled our production. If you think about this year, H1, our production increased by 9.7% compared to last year and over 24% compared to previous six months. So July, December period last year.

Speaker #2: If we think about last year's 16,630 ounces of production, it's approximately five times more. So, a big step change, and then at the same time, we will start to produce tungsten and molybdenum.

Speaker #2: In our strategy, the growth is of course connected to production. So we have the existing facilities in Pampalo. There is spare capacity at the mill.

Speaker #2: And we have been increasing the production each year. On the right side, you can actually see that from 2022 to 2025, we almost doubled our production.

Speaker #2: And if you think about this year, H1, our production increased by 9.7% compared to last year, and over 24% compared to the previous six months.

Speaker #2: So, July to December period last year. Last year, during the autumn, we acquired the business activities of our underground subcontractor, and that affected the production during the second half.

Kari Vyhtinen: Last year, during the autumn, we acquired the business activities of our underground subcontractor, and that affected the production during the H2. Now we actually see the benefits. Now we see the benefits that it was the right decision to acquire the activities so that we can invest and grow our production also in the future. Very positive about the production. The comparison period now against H2 will be significantly lower, so we expect higher growth. The gold market has been very interesting lately. Historically, when Fed is lowering the interest rates, then the gold price increases. There has been now the war in Iran, and that has affected gold prices due to the fact that these interest rate expectations, they have really changed. There was the expectations that the interest rate will be lowered.

Speaker #2: But now we actually see the benefits. Now we see the benefits that it was the right decision to acquire the activities, so that we can invest and grow our production also in the future.

Speaker #2: Very, very positive about the production. And the comparison period now against H2 will be significantly lower, so we expect higher growth. The gold market has been very interesting lately.

Speaker #2: Historically, when the Fed is lowering the interest rates, then the gold price increases. And there has been now the war in Iran, and that has affected gold prices.

Speaker #2: Due to the fact that these interest rate expectations have really changed. There were expectations that the interest rate would be lowered.

Speaker #2: Now, there has been—this will actually increase during 2026. Despite this long-term and short-term volatility, our view is positive. And this is supported by many consensus forecasts.

Kari Vyhtinen: Now there has been this will be actually increased during 2026. Despite this short-term volatility, our view is positive, and this is supported by many consensus forecasts. If you look at the consensus forecast from different banks or financial institutes, the average consensus is that late in 2026 and during 2027, the gold price will be at higher level than today. We also view that that is a realistic forecast, and that is something that we have based our forecast on. We also expect that there will be an increase in the gold price. Just lately, like in July after the reporting period, the gold price went to $4,000, but since then it has recovered to almost $4,400 where it is today. Almost by 10% in a very short time. During the Q2, the gold price was $4,516 per ounce.

Speaker #2: So, if you look at the consensus forecast from different banks or financial institutions, the average consensus is that late in 2026 and during 2027, the gold price will be at a higher level than today.

Speaker #2: So we also view that as a realistic forecast, and that's something that we have based our forecast on. So we also expect that there will be an increase in the gold price.

Speaker #2: Just lately, like in July after the reporting period, the gold price went to $4,000, but since then it has recovered to almost $4,400, where it is today.

Speaker #2: So, almost by 10% in a very, very short time. During Q2, the gold price was $4,516 per ounce, so on a good level.

Kari Vyhtinen: On a good level still, but much lower than what it was on the Q1. The key fundamentals, they have not changed, and that is the reason why the forecasts predict higher gold price levels. The key fundamentals are that there is a lot of global uncertainty, geopolitical uncertainty. It is very difficult to predict the future. The central banks, they are buying a lot of gold. China is buying a lot of gold. Poland is buying a lot of gold. There is a lot of buying activities by the central banks. Also a lot of the nations, they are decreasing the dependency on the US dollar because the US dollar is the main reserve currency, and countries are reducing the dependency, and gold is an excellent tool for that.

Speaker #2: On a good level still, but much lower than what it was in Q1. The key fundamentals haven't changed, and that's the reason why the forecast predicts higher gold price levels.

Speaker #2: And the key fundamentals are that there is a lot of global uncertainty—geopolitical uncertainty. It's very difficult to predict the future. The central banks are buying a lot of gold.

Speaker #2: China is buying a lot of gold. Poland is buying a lot of gold. So there is a lot of buying activity by the central banks.

Speaker #2: And also, a lot of the nations are decreasing their dependency on the US dollar, because the US dollar is the main reserve currency.

Speaker #2: And countries are reducing their dependency, and gold is an excellent tool for that. There are also elevated levels of debt, printing money, and so on.

Kari Vyhtinen: There is also elevated levels of debt, printing money, and so on, which creates a perfect environment for a safe haven like gold. The view on the future gold prices is positive. Sustainability, very important. That is the key. That is the backbone of our business. We want to do things in the right way. We want to take care of the environment. We want to take care of the people, also the people who live close by, and then the governance. Now I am very happy to inform we have had always ambitious plans, but now it is going to action. We truly see that there is a very significant increase in the actions that we are doing. If you think about, for example, fossil-free gold, it is one of our strategic targets to achieve fossil-free gold production by 2035.

Speaker #2: Which creates a perfect environment for a safe haven like gold. So the view on future gold prices is positive. Sustainability is very important. That's the key.

Speaker #2: That's the backbone of our business. We want to do things the right way. We want to take care of the environment. We want to take care of the people.

Speaker #2: Also, the people who live close by. And then the governance. Now, I'm very happy to inform you that we have always had ambitious plans, but now it's going into action.

Speaker #2: So, we truly see that there is a very significant increase in the actions that we are taking. For example, if you think about fossil-free gold, it's one of our strategic targets to achieve fossil-free gold production by 2035.

Speaker #2: And we, our CO2 emissions, they decreased to 0.22 tons of CO2 per ounce of gold. So, the reduction was over 70%. So that's a very, very significant reduction.

Kari Vyhtinen: Our CO2 emissions, they decreased to 0.22 tons of CO2 per ounce of gold. The reduction was over 70%. That is a very significant reduction, and it is well below global averages in gold production. We also completed the climate transition plan. Water. We are in Finland. People love the water. They have summer cottages near the lakes and so on, and we also personally feel that we really want to protect the waters. They are something that is very unique in Finland, very precious. Our target is that the discharge waters, they do not weaken the surrounding waterways or their ecosystems. We used 100% recycled water, so we did not take any water from lakes or rivers or something like that. Everything is recycled. We are currently running two water treatment plants. We have one in Pampalo. We also have one in Hosko.

Speaker #2: And it's well below global averages in gold production. We also completed the climate transition plan. Water—we are in Finland; people love the water.

Speaker #2: They have summer cottages near the lakes and so on, and we also personally feel that we really want to protect the waters. They are something that is very unique in Finland.

Speaker #2: Very precious. So our target is that the discharge waters do not weaken the surrounding waterways or the ecosystems. We used 100% recycled water.

Speaker #2: So, we didn't take any water from lakes or rivers or something like that. Everything is recycled. And we are currently running two water treatment plants.

Speaker #2: So we have one in Pampelo. We also have one in Hosco. Very excited about it. The first results have been really promising. And this is something that we will also take into our expansion plans.

Kari Vyhtinen: Very excited about it. The first results, they have been really promising, and this is something that we will also take into our expansion plans. This is something that we will publish information later when we have more results. I am personally very excited about it. Then biodiversity. Our idea is that we consider nature values throughout the mine life cycle. Not just what is happening now, we think about the whole mine life cycle, even after the mine is closed. We completed the nature values roadmap. That is a very important item, and very happy that also the biodiversity is moving forward. Personnel. One key item why we have made a successful turnaround is the personnel. We have been able to recruit really the best team possible, and we want to offer a place that is safe and pleasant place to work.

Speaker #2: So this is something that we will publish information about later, when we have more results. But I'm personally very, very excited about it. Then biodiversity.

Speaker #2: Our idea is that we consider nature values throughout the mine lifecycle. So, not just what is happening now. We think about the whole mine lifecycle.

Speaker #2: Even after the mine is closed, and we have completed the nature values roadmap. So, that's a very important item, and we're very happy that also the biodiversity is moving forward.

Speaker #2: Personnel. One key reason we have made a successful turnaround is our personnel. We have been able to recruit really the best team possible.

Speaker #2: And we want to offer a place that is a safe and pleasant place to work. And we had progress in both of those areas. So our accident rate, lost time accident rate, decreased to 9.7.

Kari Vyhtinen: We had progress in both of those areas. Our lost time accident rate, it decreased to 9.7. We had one lost time accident, which is too many. Anyway, we are moving to the right direction. The people power index was double A plus, and we got a recognition, Finland's most inspiring workplaces. Our employee satisfaction is on a high level, and therefore we got also this recognition. Then local community. We want to strengthen the local trust and vitality. During the Q2, we purchased EUR 5.5 million from local suppliers. That is always something. We work with local businesses, ensure that everybody has work in the area. We keep a lot of events for stakeholders. For example, tomorrow we have an open house at the mine site. Buses will come from Ilomantsi, and people can come to the mine and see how we operate.

Speaker #2: We had one lost time accident, which is one too many. But anyway, we are moving in the right direction. And the People Power Index was double-A-plus.

Speaker #2: And we got a recognition: Finland's Most Inspiring Workplaces. So our employee satisfaction is at a high level, and therefore we also received this recognition.

Speaker #2: Then local community. We want to strengthen the local trust and vitality. During the second quarter, we purchased €5.5 million from local suppliers. That's always something—we work with local businesses.

Speaker #2: Ensure that everybody has work in the area. We keep a lot of events for stakeholders. For example, tomorrow we have an open house at the mine site.

Speaker #2: So, buses will come from Ilomantsi, and people can come to the mine site and see how we operate. And we also launched Endomines News.

Kari Vyhtinen: We also launched Endomines News. It is something that is very unique. With the local newspaper, we deliver Endomines News twice a year, so that people know what we are doing. Because then when the information is shared, then the people are happy also around the mine site. Then the good governance is basis for the company being a listed company, so responsible and transparent operations. We have updated policies and operating principles supporting responsibility, and we have an active whistleblowing process where anybody can report something if they want to report that something is not done in the right way. Very happy about the sustainability side, that it is moving to actions from the ambitious plan that we had previously. Exploration. The company growth is based on exploration. The idea is that we have a production which is growing.

Speaker #2: It's something that is very unique. We have a cooperation with the local newspaper. We deliver Endomines News twice a year, so that people know what we are doing.

Speaker #2: And because then, when the information is shared, then the people are happy also around the mine site. And then, good governance is the basis for the company.

Speaker #2: Being a listed company. So responsible and transparent operations. We have updated policies and operating principles. Supporting responsibility. And we have an active whistleblowing process where anybody can report something if they want to report that something is not done in the right way.

Speaker #2: I'm very happy about the sustainability side, that it's moving to actions from the ambitious plan that we had previously. Exploration and growth—the company growth is based on exploration.

Speaker #2: So, the idea is that we have a production which is growing. We invest the money in exploration, so that we have a higher amount of gold resource.

Kari Vyhtinen: We invest the money in exploration so that we have a higher amount of gold resource. The amount of gold that we know is in the ground and can be later mined, and that will enable us to increase the production levels and grow the company significantly. We started the exploration activities in 2023, and it has been hugely successful. We have more than tripled our gold resource. It was in 2022 below 200,000 ounces. We are currently almost at 620,000 ounces of gold. It has been very successful. It is worth noting that during the last three years we have drilled 52,500 meters in total, and this year we are doing a record campaign. We are the biggest exploration company in Finland, and we are drilling 50,000 meters in one year. That is something that is really a huge amount.

Speaker #2: So, the amount of gold that we know is in the ground and can be later mined—that will enable us to increase the production levels and grow the company significantly.

Speaker #2: And we started the exploration activities in 2023, and it has been hugely successful. We have more than tripled our gold resource. So, in 2022, it was below 200,000 ounces.

Speaker #2: We are currently almost at 620,000 ounces of gold, so it has been very, very, very successful. It's worth noting that, during the last three years, we have drilled 52,500 meters in total.

Speaker #2: And this year, we are running a record campaign. We are the biggest exploration company in Finland, and we are drilling 50,000 meters in one year.

Speaker #2: So, that's something that is a really huge amount. And if we think about it, that we had this success during the last three years in building the gold resource.

Kari Vyhtinen: If we think about it, that we had this success during the last three years in building the gold resource, and now we are doing the amount of work in one year that we did in three years. We are well on track. We have drilled approximately half of the planned 50,000 during H1. The results, of course, because they go to laboratories, they come a little bit delayed. I think the results that we have published is probably somewhere like one third. There will be a busy autumn and busy winter ahead. Then the next resource update will be published during Q1 2027. There is a slight chance that the Ukko resource would be published late this year, but most probably next year. Key exploration targets. There are two targets, like the southern gold line and northern gold line.

Speaker #2: And now, we are doing the amount of work in one year that we did in three years. We are well on track. So we have drilled approximately half of the planned 50,000 during H1.

Speaker #2: And the results, of course, because they go to laboratories, they come a little bit delayed. So I think the results that we have published is probably somewhere like one-third.

Speaker #2: So, there will be a busy autumn and a busy winter ahead, and then the next resource update will be published during Q1 2027. There is a slight chance that the Ukko resource could be published late this year.

Speaker #2: But most probably next year. Key exploration targets: there are two targets, the Southern Gold Line and the Northern Gold Line. During Q1, we did some drilling in Kartitsa.

Kari Vyhtinen: During Q1, we did some drilling in Kartitsa. During Q2, everything was focused in the southern gold line, especially that is coming to production. We need to increase the resource. We need more information to ensure that our plans are accurate. There, the Ukko is the biggest item. It was discovered last year. I will come back to that, but that is something that, for example, currently we have two drill rigs at Ukko, and we have one near Kuittila looking at the tungsten and molybdenum areas. So big focus on the Ukko. If you think about the Ukko deposit, it is really almost unbelievable that we only discovered this in April last year, considering where we are now. In a short time, we have advanced the exploration activities in the area very much. Ukko is located 15 kilometers south from Pampalo. It is a very big area.

Speaker #2: During Q2, everything was focused on the Southern Gold Line as that is coming into production. So we need to increase the resource. We need more information.

Speaker #2: To ensure that our plans are accurate. And there, the Ukko is the biggest item. It was discovered last year. I will come back to that.

Speaker #2: But that's something that, for example, currently we have two drill rigs at Ukko, and we have one near Kuittila looking at the tungsten and molybdenum.

Speaker #2: Areas. So, big focus on the Ukko. And if you think about the Ukko deposit, it is really almost unbelievable that we only discovered this in April last year.

Speaker #2: Considering where we are now, in a short time we have advanced the exploration activities in the area very, very much. Ukko is located 15 kilometers south of Pampelo.

Speaker #2: It's a very big area. Like we have done—we have done electromagnetic measurements, and those show, like in this map, you can see these purple areas.

Kari Vyhtinen: We have done electromagnetic measurements, and those show, like in this map you can see these purple areas, and those are anomalies which indicate that there is iron formation. When we did the first drilling, then we noticed that with iron, there is also gold. That is very common in the world. This is the first one in Finland, but it is a very common banded iron formation type of deposit. If you think about big gold deposits in Australia or Canada, for example, it is very common that the deposit type is this kind of banded iron formation, where the gold is associated with the iron. What we did late last year, because it was discovered in the northern part, so we had a look if there is gold on the other section.

Speaker #2: And those are anomalies, which indicate that there is iron formation. And when we did this—when we did the first drilling—then we noticed that with iron, there is also gold.

Speaker #2: And that's very, very common in the world. This is the first one in Finland, but it's a very common banded iron formation type of deposit.

Speaker #2: If you think about big gold deposits in Australia or Canada, for example, it's very common that the deposit type is this kind of banded iron formation.

Speaker #2: Where the gold is associated with the iron. What we did late last year, we also had a look because it was discovered in the northern part.

Speaker #2: So we had a look to see if there is gold in the other section. So we did some drilling in the other sections, and we identified four more areas where there was gold in these anomalies.

Kari Vyhtinen: So we did some drilling on the other sections, and we identified four more areas where there was gold in these anomalies. Now currently, Ukko is approximately 650 meters long. Our plan is to connect those two locations where we have drilling results with gold. So now we target that we connect those two areas. That is the plan for the H2, that we drill the areas between the two sections and try to connect these together, which would almost double the size of Ukko, so make it really significant. If you think about million ounces, for example, million ounces is a deposit which is one kilometer long, 300 meters deep, 20 meters wide, and has a grade of two grams per ton.

Speaker #2: And now, currently, Ukko is approximately 650 meters long. Our plan is to connect those two locations where we have drilling results with gold.

Speaker #2: So now we target that we connect those two areas. That's the plan for H2, that we drill the areas between the two sections.

Speaker #2: And try to connect these together, which would almost double the size of Ukko. So make it really significant, if you think about a million ounces, for example.

Speaker #2: A million ounces is a deposit which is one kilometer long, 300 meters deep, 20 meters wide, and has a grade of 2 grams per ton.

Speaker #2: So that's what is needed. And if you think about this area, with the iron anomalies, for example, that's seven kilometers long. And there are two different sections.

Kari Vyhtinen: So that is what is needed, and if you think about this area with the iron anomalies, for example, that is seven kilometers long and there is two different sections. We have only discovered now gold on this section, which is on the west side. So on the east side, there has not been indications on the gold, but this is a very significant seven-kilometer-long section on the west. If you look what is below the surface, if you look at the previous slide, and there is these anomalies, and between the anomalies it does not show that it would continue. But currently, our view is that below the surface it is a sort of wave type of folded structure, where it comes to the surface, and then it goes to the deeper levels, comes to the surface, goes to the deeper levels, but it continues. That is the current theory.

Speaker #2: Like, we have only discovered now gold on this section, which is on the west side. So on the east side, there hasn't been indications of gold.

Speaker #2: But this is a very significant seven-kilometer-long section on the west. And if you look at what is below the surface, like if you look at the previous slide.

Speaker #2: And there are these anomalies. And between the anomalies, it doesn’t show that it would continue, but currently our view is that below the surface it’s a sort of wave-type of folded structure, where it comes to the surface and then it goes to the deeper levels, comes to the surface, goes to the deeper levels, but it continues.

Speaker #2: That's the current theory. The theories have changed many times, even during the last 12 months. But that's the current theory. So we believe that these sections are connected.

Kari Vyhtinen: The theories have changed many times during even the last 12 months, but that is the current theory. So we believe that these sections are connected, however, they just go between the sections where there is no electromagnetic anomalies. It just dips into deeper levels, and then it comes back to the surface. So you cannot see it when you do the surface measurements. You cannot see it between when it goes to the deeper levels. So there is currently approximately 600-meter gap between the section where the Ukko was found and then the next one down south. Now we are drilling the area between, and that is something that is done to extend the structure or almost double the structure. Then we hope to get those results already in the first resource update, which will be done either late this year or early next year.

Speaker #2: However, they just go between the sections where there are no electromagnetic anomalies. It just dips into deeper levels and then comes back to the surface.

Speaker #2: So you can't see it when you do the surface measurements. You can't see it when it goes to the deeper levels, either.

Speaker #2: So there is currently approximately a 600-meter gap between the section where the Ukko was found and the next one, down south. So now we are drilling the area in between, and that's something that is done to extend the structure or almost double the structure.

Speaker #2: And then we hope to get those results already in the first resource update, which will be done either late this year, but most likely early next year.

Speaker #2: Most likely early next year. It's a highly favorable place for gold mineralization. It's extensive, it's continuous, and it's shallow, so we are very excited about it.

Kari Vyhtinen: Most likely early next year. It is a very highly favorable place for gold mineralization. It is extensive, it is continuous, it is shallow, so we are very excited about it. This is something that has not been found before in the Karelian Gold Line. Then tungsten and molybdenum, still in the same area, the Southern Gold Line that we are permitting to be in production. There is Ukko, there is also the areas where we have tungsten and molybdenum. The tungsten and molybdenum, they are located near a deposit called Kuittila in the Southern Gold Line. So we published the results, and we are very pleased to see that there is tungsten and molybdenum also on a wider area. We did sorting tests, and we were very happy that the sorting test increased the grade by 3.1 times.

Speaker #2: This is something that hasn't been found before in the Karelian Gold Line. Then tungsten and molybdenum, still in the same area. The Southern Gold Line that we are permitting to be in production.

Speaker #2: There is Ukko. There are also areas where we have tungsten and molybdenum. The tungsten and molybdenum are located near a deposit called Kuittila in the Southern Gold Line.

Speaker #2: So, we published the results and we are very pleased to see that there is tungsten and molybdenum also over a wider area. And we did sorting tests.

Speaker #2: We were very happy that the sorting tests increased the grade by 3.1 times. So our idea is to mine fairly low-grade deposits.

Kari Vyhtinen: Our idea is to mine fairly low-grade deposit, then increase it by sorting before we feed it to the factory, where we actually make the finished product that is sellable. We received EUR 1.5 million funding from the European Union and states to take this project forward. We are very happy about it, and that also I think it gives the signal that this is important for Finland, this is important for the European Union. It is used in the defense industry, 80% is controlled by China. There is a really need to have tungsten production within the European Union. We signed a non-binding letter of intent with Wolfram Bergbau und Hütten, which is Austrian company.

Speaker #2: Then increase it by sorting before we feed it to the factory when we actually make the finished product that is sellable. And we received €1.5 million in funding from the European Union and states to take this project forward.

Speaker #2: We are very happy about it, and I also think it gives the signal that this is important for Finland. This is important for the European Union.

Speaker #2: It's used in the defense industry. Eighty percent is controlled by China. So there is a real need to have tungsten production within the European Union.

Speaker #2: We signed a non-binding letter of intent with Wolfram Bergbau und Hütten, which is an Austrian company. It's part of the Sandvik Group. That was done so that we can ensure the end product we make is sellable.

Kari Vyhtinen: It is part of the Sandvik Group, and that was done so that we can ensure that this end product that we make is sellable because they can help us with the technical support so that we can achieve a sellable product, and that is one of the key items. If you look at the tungsten price, it has really increased since 2024, and that is of course due to the fact that there is so much actions on the military side. Tungsten is used in the defense industry. It is very hard. It is one of the hardest metals in the world. So it is used there and this demand is driving the price to new levels. During the summer there was some decrease in the pricing, but if you look at the long-term view, it is really on a high level.

Speaker #2: Because they can help us with the technical support so that we can achieve a sellable product, and that's one of the key items. If you look at the tungsten price—

Speaker #2: It has really increased since '24, and that's, of course, due to the fact that there is so much action on the military side.

Speaker #2: Tungsten is used in the defense industry. It's very hard—one of the hardest metals in the world—so it's used there. This demand is driving the price to new levels.

Speaker #2: During the summer, there was some decrease in the pricing. But if you look at the long-term view, it's really on a high level.

Speaker #2: And this is a map showing a little bit on the Kuittila, where we had the gold deposit. And we went to the northern side of the gold deposit.

Kari Vyhtinen: This is a map showing a little bit on the Kuittila where we had the gold deposit, and we went to the northern side of the gold deposit. The gold deposit is here described with this black line. Then we tested that does the tungsten and molybdenum veins, do they continue to the northern side? They do continue. We are drilling approximately 12,000 meters here in this area. We have completed more than half, and now we will do the rest during this autumn just to see that how much tungsten and molybdenum there actually is. When we think about the mining, when this goes to production, like when we mine the gold ore from the pit, then as the pit shape is always like that. A lot of the material which is directly outside of the pit, you have to mine it anyway.

Speaker #2: The gold deposit is here described with this black line. And then we tested whether the tungsten and molybdenum veins continue to the northern side.

Speaker #2: And they do continue. We are planning to—we are drilling the area. We have completed more than half, and now we will do the rest during this autumn, just to see how much tungsten and molybdenum there actually is.

Speaker #2: And when we think about the mining, when this goes to production—like when we mine the gold ore from the pit—then, as the pit shape is always like that.

Speaker #2: So, a lot of the material which is directly outside of the pit—you have to mine it anyway. And we see that portion of this tungsten and molybdenum should be mined anyway.

Kari Vyhtinen: We see that portion of this tungsten and molybdenum should be mined anyway, so the operational cost during the production is very low. That is one of the benefits that we have, that we have a gold deposit next to the tungsten and molybdenum deposit. Exciting times ahead. The targets for this drilling program in Kuittila is to increase the size of the gold resource. There will be some drilling done also to the gold resource. Then to actually increase the resource of tungsten and molybdenum, that is the most important. Then to increase the knowledge, because we are currently doing the environmental impact assessment report, so it is really crucial that we get a lot of information so that we can design the processing facilities for the permitting purposes. Now I give the floor to Minna.

Speaker #2: So the operational cost during the production is very low. And that's one of the benefits that we have, that we have a gold deposit next to the tungsten and molybdenum deposits.

Speaker #2: So, exciting times ahead. The targets for this drilling program in Kuittila are to increase the size of the gold resource. So there will be some drilling done also to the gold resource.

Speaker #2: But then, to actually increase the resource of tungsten and molybdenum, that's the most important thing. And then to increase the knowledge, because we are currently doing the environmental impact assessment report.

Speaker #2: So it's really crucial that we get a lot of information so that we can design the processing facilities for permitting purposes. And now I give the floor to Minna.

Speaker #2: Thank you. All right, good afternoon, everybody. I will go through the Q2 numbers a little bit more in detail, and explain how the slides are structured.

Minna Karttunen: Thank you. All right. Good afternoon, everybody. I will go through the Q2 numbers a little bit more in detail. How the slides are structured here is that I have the H1 highlight on the heading, and then in the graphs you can see both the quarterly numbers as well as the comparison between H1s of the years to year before. Mostly I will concentrate on the Q2 on my commentary. As Kari Vyhtinen mentioned already, H1 revenue was EUR 34.7 million. That was a growth of 61% year-on-year and from our production, 9.7% production growth year-on-year. Q2 revenue EUR 16.2 million, 46.1% growth year-on-year. On these bullet points below, you can see how that is divided between production and gold price. So 9.7% growth year-on-year on gold production and 37.6% year-on-year growth on average gold price for the quarter.

Speaker #2: Slides are structured here so that I have the first six months highlighted in the heading, and then in the graphs, you can see both the quarterly numbers as well as the comparison between the first halves of the years and the year before.

Speaker #2: And mostly I will concentrate on the second quarter in my commentary. So as Kari mentioned already, half-year revenue was €34.7 million. That was a growth of 61% year-on-year.

Speaker #2: And from our production 9.7% production growth year on year. Q2 revenue 16.2 million euros. 46.1% growth year on year. And on these bullet points below you can see how that is divided between production and gold price.

Speaker #2: So, 9.7% growth year-on-year on gold production, and 37.6% year-on-year growth on average gold price for the quarter. I also wanted to highlight this here because I anticipate it will produce some questions.

Minna Karttunen: I also wanted to highlight here, because I anticipated it will produce some questions, this decline from the previous quarter. Our revenue actually did fall about 12.6% quarter-on-quarter from Q1, and that can be divided into a 4.4% decline in gold production and a 7.4% decline in gold price in USD on average. In euro terms, that was closer to 7%. The production decline was due to this replacement of a jaw crusher at our crushing plant in May, which made us to use a lot more open pit ore with a lower gold grade. If we look at the EBITDA and profitability. EBITDA for the H1, 14.3 million, 86% growth and 41.2% margin. Q2 EBITDA 5.5 million and margin of 34. In Pampalo, we made 7.8 million of EBITDA and margin of 48.5.

Speaker #2: This is a decline from the previous quarter, so our revenue actually did fall about 12.6% quarter on quarter, so from Q1. And that can be divided into a 4.4% decline.

Speaker #2: In gold production, there was a 7.4% decline in the gold price in USD on average. In euro terms, that was closer to 7.7%. The production decline was due to the replacement of a jaw crusher.

Speaker #2: A downtime at the crushing plant in May made us use a lot more open pit ore with a lower gold grade. And then, if we look at the EBITDA and profitability...

Speaker #2: So EBITDA for the first half 14.3 million. 86% growth and 41.2% margin. Q2 EBITDA 5.5 million. And margin of 34. And in Bambala we made 7.8 million of EBITDA and margin of 48.5.

Speaker #2: And on the operating expenses side, we have now started to accumulate inventory—our inventory in Pampalo. So that is something that will have an effect on our results.

Minna Karttunen: On the operating expenses side, now we have started to accumulate inventory or inventory in Pampalo. That is something that will have an effect on our results. For the Q2, it was a negative impact of about EUR 700,000. I wanted to highlight here in comparison for Q1, the inventory actually improved our EBITDA in Q1 by 1.4 million. So the difference in profitability or EBITDA in euro terms is a lot affected by these changes on inventory levels. 5.4 million was spent on materials, goods, and services, and our employee expenses increased mainly due to the increase in number of employees, and the cost was 2.6 million. We have on average in Q2 37 more people than we did have a year ago in the Q2, and the total number of employees at the year at end of June was 108.

Speaker #2: For the second quarter, it was a negative impact of about €700,000. And I wanted to highlight here, in comparison, for Q1 the inventory actually improved our EBITDA in Q1 by €1.4 million.

Speaker #2: So, the difference in profitability or EBITDA in euro terms is largely affected by these changes in inventory levels. €5.4 million was spent on materials, goods, and services.

Speaker #2: And our employee expenses increased mainly due to the increase in the number of employees, and the cost was €2.6 million. We have, on average in Q2, 37 more people than we did a year ago.

Speaker #2: In the second quarter, the total number of employees at the end of June was 108. Other operating expenses were €2.1 million.

Minna Karttunen: Other operating expenses were EUR 2.1 million. Here also want to highlight the Mined Minerals Tax increase, for this year. We booked a tax of EUR 0.5 million for the Q2 alone compared to 100,000 last year. So that's the biggest impact there. We have also, for example, invested somewhat on new machinery and equipment at the mine, and the leasing cost of those are already also included on these other operating expenses. Cash cost in Pampalo, EUR 1,588 per ounce for the H1. Q2 was unfortunately even slightly higher. It was 1,642. That's an increase of 23% year-on-year and about 14% for the full year average compared to 2025 full year on average. This was particularly affected by the higher use of open-pit ore, especially during May.

Speaker #2: And here, I also want to highlight that the mining mineral tax increased for this year. So, we booked a tax of €0.5 million for the second quarter alone, compared to €100,000 last year.

Speaker #2: So that's the biggest impact there. But we have also, for example, invested somewhat in new machinery and equipment at the mine. The leasing costs of those are already also included in these other operating expenses.

Speaker #2: Cash cost in Bambala: €1,588 per ounce for the first half. Q2 was, unfortunately, even slightly higher at €1,642. That's an increase of 23% year-on-year.

Speaker #2: And about 14% for the full-year average compared to the 2005 full-year average. This was particularly affected by the higher use of open-pit ore.

Speaker #2: Especially during May. I also want to bring up the electricity price, which has increased 35.6% in the quarter versus the previous year. So, this also has a relatively big effect on the cash cost.

Minna Karttunen: Also want to bring up the electricity price, which has increased 35.6% on the quarter versus previous year. This is also relatively big effect on the cash cost. Net result wise, net results we have done, well, not fairly well, very well this year. We have nearly 30% net margin. We exceeded in the H1 the net result we produced for the full year last year. I think it was EUR 7.3 million for the full year last year, and now we made EUR 10.4 million just for the half year. Q2 net result was nearly four times that of previous year at EUR 3.3 million, margin was 20.3%. Net financial expenses are around EUR 600,000 per quarter. Interest rates EUR 0.4 million.

Speaker #2: Net result-wise, we have done well—not just fairly well, but very well—this year. We have nearly a 30% net margin. We exceeded, in the first half, the net result we produced for the full year last year.

Speaker #2: I think it was €7.3 million for the full year last year, and now we made €10.4 million just for the half year. Second quarter net result was nearly four times that of the previous year.

Speaker #2: At €3.3 million. Margin was 20.3%. Net financial expenses are around €600,000 per quarter. Interest rates, €0.4 million. And then we had a non-recurring financial item for this quarter.

Minna Karttunen: Then we had a non-recurring financial item for this quarter, which was related to rearranging and paying back early the previous financing facility we had in place. The extra cost there was about EUR 200,000. The expenses were used by FX gains of about EUR 100,000 for the quarter. The group EPS basic increased to EUR 0.10 per share for Q2. For the H1, it is EUR 0.30 per share. These numbers are now adjusted with the share split that took place this spring. Balance sheet. Cash flow improved on all indicators from year-end. Our total of the balance sheet at the moment is EUR 102.4 million. Cash and equivalents of EUR 4.8 million at the end of June. The decline from end of March, is because we had quite a few, I would say, exceptional cash payments made.

Speaker #2: Which was related to rearranging and paying back early the previous financing facility we had in place. So, the extra cost there was about €200,000.

Speaker #2: And the expenses were reduced by FX gains of about 100,000 for the quarter. The group EPS basic increased to 0.10 per share for Q2, and for the first half it's 0.30.

Speaker #2: Per share. And these numbers are now adjusted for the share split that took place this spring. Balance sheet and cash flow improved on all indicators from year-end.

Speaker #2: The total of the balance sheet at the moment is €102.4 million. Cash and equivalents were €4.8 million at the end of June. The decline from the end of March is because we had quite a few, I would say, exceptional cash payments made.

Speaker #2: For example, we did pay the Power Mining—the remaining payments related to the business acquisition of Power Mining. We paid those in advance, so that was about €1.9 million.

Minna Karttunen: For example, we did pay the remaining payments related to business acquisition of Power Mining. We paid those in advance, so that was about EUR 1.9 million, and also we made a EUR 1.5 million cash security deposit against bank guarantee facility. I will come back to that on the next slide. Interest-bearing debt is EUR 12 million at the moment. Long-term is EUR 5.6 million and short-term EUR 6.4 million. All of our convertible notes are now rolled into short-term, so they all fall due within the next 12 months. Net interest-bearing debt is EUR 7.1 million. Our gearing increased slightly from March 10 to 10.1%. That is because of the lower cash number. The equity ratio was 69.2%, which is really on a healthy level. Net cash from operations, EUR 2.5 million for the quarter and EUR 11.2 million for the H1.

Speaker #2: And also, we made a €1.5 million cash security deposit against the bank guarantee facility. I will come back to that on the next slide.

Speaker #2: Interest-bearing debt is €12 million at the moment. Long-term is €5.6 million, and short-term is €6.4 million. All of our convertible notes are now rolled into short-term.

Speaker #2: So they all fall due within the next 12 months, and net interest-bearing debt is €7.1 million. So our gearing increased slightly from March, from 10% to 10.1%.

Speaker #2: That's because of the lower cash number. And then the equity ratio was 69.2, which is really on a healthy level. Net cash from operations was €2.5 million.

Speaker #2: For the quarter, and €11.2 million for the first half. Investing cash flow was €7 million for the quarter, and that included this final payment for the Power Mining.

Minna Karttunen: Investing cash flow was -EUR 7 million for the quarter, and that included this final payment for the Power Mining, this EUR 1.9 million, but also then the positive about EUR 0.5 million of grant we received as an advance payment for the tungsten project. Then some details on the funding we signed. At the bottom here is a mention about this EUR 1.5 million grant we received, or decision. We received a decision on EUR 1.5 million. We received funding of EUR 0.5 million so far, and the rest is payable against reported expenses, and they should come in. We haven't agreed on the reporting schedule yet, but they should come in latest by 28 September, and those are most likely in several installments. About the bank loan.

Speaker #2: This $1.9 million, but also then the positive about half a million of grant we received as an advance payment for the tungsten, tungsten project.

Speaker #2: And then some details on the funding. We signed—so at the bottom here, there's a mention about this €1.5 million grant we received, or decision we received—a decision on €1.5 million.

Speaker #2: We received funding of half a million so far, and the rest is payable against reported expenses. And they should come in. We haven't agreed on the reporting schedule yet, but they should come in latest by September 28th.

Speaker #2: And those are most likely in several installments. And about the bank loan—so, as Kari mentioned, we increased the facility size from €12 million to €21 million.

Minna Karttunen: As Kari mentioned, we increased the facility size from 12 to 21 million EUR, and we actually more than halved the margin from the previous facility. It structures as Euribor 12 months plus margin. All the other terms and conditions on the funding basically remained unchanged. On the table, you can see, we got the 21 million is divided between we have two secured senior loans, two of 5 million each. The one 5 million tranche we used to repay the earlier facility, and that is with a three-year maturity, and that is a bullet payment. The other loan is currently unused. When and if we will use it, there will be quarterly installments made for that. We have a bank guarantee facility, for example, the environmental guarantees. We used this to, I think 2.7, 2.8 million is used.

Speaker #2: And we actually more than halved the margin from the previous facility. So it's structured as Euribor 12-month plus margin. And all the other terms and conditions on the funding basically remain unchanged.

Speaker #2: And on the table you can see, so we got the €21 million is divided between—we have two secured senior loans, two of €5 million each.

Speaker #2: The €1.5 million tranche we used to repay the earlier facility, and that's with a three-year maturity. And that is a bullet payment.

Speaker #2: And the other loan is currently unused. When and if we use it, there will be quarterly installments made for that. We have a bank guarantee facility, for example, for the environmental guarantees.

Speaker #2: And we used this too; I think €2.7 to €2.8 million was used. And against that, we had to make a cash deposit of €1.5 million.

Minna Karttunen: Against that, we had to make a cash deposit of 1.5 million EUR. That will then also cover any further use of the facility, so no further guarantee is needed. The overdraft facility for our bank accounts we increased from 3 million to 4 million, which is currently unused. There is still another 2 million that we need to decide where it is at best use, and I would think we will probably use it for leasing and new machinery purchases as the case may be. All right. Thank you.

Speaker #2: But that will then also cover any further use of the facility, so no further guarantee is needed. And then the overdraft facility for our bank accounts, we increased from €3 million to €4 million, which is currently unused.

Speaker #2: And then there is still another $2 million that we need to decide where it is at best use. And I would think we will probably use it for leasing.

Speaker #2: And new machinery purchases, as the case may be. All right, thank you.

Speaker #1: Thank you, Minna. Then, heading back to our strategy: we are a growth company, so we have a focus on growth and on achieving the long-term targets.

Kari Vyhtinen: Thank you, Minna. Then heading back to our strategy. We are a growth company, so we have a focus on growth and on achieving the long-term targets. Naturally, on a short-term, it sometimes requires that we need to recruit people and maybe some of the expenses will go higher, but we always have to look at the long-term view. That is the most important item. We have a strategy period from 2025 to 2029, and there we have five key points, is the Pampalo production. That is the place where we increase the production each year, and then the cash flow is used to invest in exploration. That will increase the gold resource and enables us to really take the major step in the size of the production. Then critical minerals, they are part of the strategy.

Speaker #1: And naturally, in the short term, it sometimes requires that we need to recruit people, and maybe some of the expenses will go higher.

Speaker #1: But we always have to look at the long-term view. That's the most important item. We have a strategy period from 2025 to 2029.

Speaker #1: And there we have five key points. It's the Pampalo production; that's the place where we increase the production each year. And then the cash flow is used to invest in exploration.

Speaker #1: And then, that will increase the gold resource and enable us to really take the major step in the size of the production. Then, critical minerals.

Speaker #1: They are part of the strategy, and this is in the southern Gold Line where we are permitting. So there are also critical minerals. We also want to produce tungsten and then molybdenum, which is used in the steel industry.

Kari Vyhtinen: This is in the southern gold line where we are permitting, so there is also critical minerals. We also want to produce tungsten and then molybdenum, which is used in the steel industry. The financial stability, as Minna described, that is something, it is part of our strategy. It is very important that we have financial flexibility. We do not want to continuously raise money to do the exploration activities. We want to have a solid financial foundation where we can invest and make the company bigger fast. Then sustainability, that is really backbone of our operations. That is the most important item. With the sustainability actions, we ensure that everything else can be done. If you look at the long-term targets, there are no changes. So we have a target at 1.5 to 2 million ounces of gold resource by end of 2030, currently at approximately 620.

Speaker #1: The financial stability. As Minna described, that's something that's part of our strategy. It's very important that we have financial flexibility. We don't want to continuously raise money to do the exploration activities.

Speaker #1: We want to have a solid financial foundation where we can invest and make the company bigger, fast. Then sustainability—that's really the backbone of our operations.

Speaker #1: That's the most important item. With the sustainability actions, we ensure that everything else can be done. If you look at the long-term targets, there are no changes.

Speaker #1: So we have a target of 1.5 to 2 million ounces of gold resource by the end of 2030. Currently, we are at approximately 620,000. So we want to increase it significantly.

Kari Vyhtinen: We want to increase it significantly, almost so that it is three times bigger. Then the annual gold production to 70,000 to 100,000 ounces around 2030, and taking tungsten and molybdenum into production at the same time. This means that if we compare the last year's production, it is approximately five times more gold, and then tungsten and molybdenum additional. Then, of course, our free gold production by 2035. This is the whole basis, again, coming back to this same slide, so that we increase the resources every year as we have done successfully from 2023 to 2025. Next update will be early 2027. From the history, from the last three years, we have identified that when we do the drilling, which increases the gold resource, when we drill 10,000 meters, it results into a resource growth of approximately 100,000 ounces.

Speaker #1: Almost. So that is three times bigger than the annual gold production, to 70,200,000 ounces, around 2030, and taking tungsten and molybdenum into production at the same time.

Speaker #1: And this means that, if we compare last year's production, it's approximately five times more gold. And then tungsten and molybdenum in addition. And then fossil-free gold production by 2035.

Speaker #1: And this is the whole basis, again coming back to this same slide, so that we increase the resources every year, as we have done.

Speaker #1: Successfully, from 2023 to 2025, and the next update will be in early 2027. And from the history, from the last three years, we have identified that when we do the drilling, we increase the gold resource.

Speaker #1: When we drill 10,000 meters, it results in a resource growth of approximately 100,000 ounces. And our plan is to see how we get from 620,000 to 1.5 to 2 million.

Kari Vyhtinen: Our plan is to, how do we get from 620 to 1.5 to 2 million, is that we drill 120,000 ounces more. This year we will do the largest campaign in the company history, so 50,000 meters in a year. Ounces are very valuable when they are on the ground. If we think about, for example, there was a major acquisition in Lapland this year when Agnico Eagle bought three gold mining companies or their assets in Lapland. Then, for example, with Rupert Resources, one ounce of gold was valued at approximately $500 per ounce. So they are valuable when they are on the ground already, when they are not yet in production.

Speaker #1: That means we drilled 120,000 ounces more, and this year we will do the largest campaign in the company's history—so 50,000 meters in a year.

Speaker #1: Ounces are very valuable when they are on the ground. Like, if we think about, for example, there was a major acquisition in Lapland this year when Agnico Eagle bought three gold mining companies.

Speaker #1: All their assets in Lapland. Then, for example, with Rupert Resources, the one ounce of gold was valued at approximately $500 per ounce. So they are valuable when they are in the ground already.

Speaker #1: Like when they are not yet in production. And we see that this is the way that we increase the value of the company, so that we continuously increase the resource base.

Kari Vyhtinen: We see that this is the way that we increase the value of the company, so that we continuously increase the resource base, so take it to 1.5 to 2 million ounces as quickly as possible. That will enable us to increase the production. Currently we have excess capacity at the Pampalo mill. So there is capacity to produce approximately 25,000 ounces. The bottleneck has been the mine, and that is why we bought, for example, this business activities of the subcontractor so that we can increase the mining in a more flexible way. Our guidance this year is the production is increasing by 10% to 20%, and then we increase it steadily to 29,000. Then there will be the Southern gold line that will take us to 70,000 to 100,000 level.

Speaker #1: So, take it to 1.5 to 2 million ounces as quickly as possible, and that will enable us to increase the production. Currently, we have excess capacity at the Pampalo mill.

Speaker #1: So, there is capacity to produce approximately 25,000 ounces. So the bottleneck has been the mine, and that's why we bought, for example, the business activities of the subcontractor.

Speaker #1: So that we can increase the mining more in a more flexible way. So the aim is that our guidance this year is the production is increasing by 10 to 20 percent.

Speaker #1: And then we increase it steadily to 29,000. Then there will be the Southern Gold Line—that will take us to the 70,200,000 level. Then after that, the Northern Gold Line, where we have this Kartica deposit.

Kari Vyhtinen: After that, the Northern gold line, where we have this Kartitsa deposit and also the Kartitsa resource already. That will come approximately three years later. We will start production in the Northern gold mine next year. We will start permitting activities also in the Northern gold mine. What we are designing in the Southern gold line is actually a world-class, next-generation gold production facility. New technologies, really visual, automated, AI, clean waters, really state-of-the-art facility. We are designing and permitting a facility that comes into production within two phases. So the phase 1 is approximately 60 to 65,000 ounces. We will still continue to produce gold at Pampalo. Then this new facility will be 60 to 65,000 additional, and that will take us to 85, 90,000.

Speaker #1: And also the Kartica resource already, so that will come approximately three years later. We will start production in the Northern Gold Line next year.

Speaker #1: We will start permitting activities also in the Northern Gold Line. And what we are designing in the Southern Gold Line is actually a world-class, next-generation gold production facility.

Speaker #1: New technologies, really visual, automated, AI, clean waters—a truly state-of-the-art facility. And we are designing and permitting a facility that comes into production within two phases.

Speaker #1: So the phase one is approximately 60,000 to 65,000 ounces. So we will still continue to produce gold at Pampalo, and then this new facility will be 60,000 to 65,000 additional.

Speaker #1: And that will take us to 85,000 to 90,000. We have stated publicly that it's 70,000 to 100,000, so there is a little bit of flexibility depending on the grade.

Kari Vyhtinen: We have stated publicly that it's 70,000 to 100,000, so there is a little bit flexibility depending on the grade, but the design criteria is 85,000 to 90,000. The phase 2, which is permitted at the same time and it's also designed at the same time, would take the production to 145,000 to 155,000 ounces. So still Pampalo would remain, but the new facility would be double the size. This has been going according to the plan. We started the permitting already in early 2024. Early next year, we will launch the environmental impact assessment report, and that will be followed very quickly with the environmental permit. We expect to get the permit late 2028 and go to the investment decision as quickly as possible.

Speaker #1: But the design criteria is 85,000 to 90,000. And then the phase two, which is permitted at the same time, and is also designed at the same time.

Speaker #1: So then it's just the investment decision at a later phase. That would take production to 145,000 to 155,000 ounces. So still, the Pumpalo would remain, but then the new facility would be double the size.

Speaker #1: And this has been going according to plan. We started the permitting already in 2024—early 2024. Early next year, we will launch the environmental impact assessment report.

Speaker #1: And then that will be followed very quickly by the environmental permit. We expect to get the permit in late 2028, and then move to the investment decision as quickly as possible.

Speaker #1: The estimated CAPEX has been approximately $200 million, excluding tungsten and molybdenum. Our goal is that we will get a partner who pays for the tungsten and molybdenum facilities.

Kari Vyhtinen: The estimated CapEx has been approximately EUR 200 million, excluding tungsten and molybdenum. Our goal is that we will get a partner who pays for the tungsten and molybdenum facilities, so it will not be paid by Endomines. Outlook for 2026. The growth is on track. Very pleased to present the results. It's a record result as mentioned. But the main thing is that our long-term plan is on track so that we can achieve our ambitious long-term targets. We haven't changed the guidance. We expect to increase the production by 10% to 20% this year. We are performing the largest exploration campaign in the company history. We are well on track on that. So that will be completed according to the plan that we drill 50,000 meters. The Southern gold line is moving to the next phase. So we will early next year launch the EIA report.

Speaker #1: So, it will not be paid by Endomines, so I'll look for 2026. The growth is on track. Very pleased to present the results. It's a record result, as mentioned.

Speaker #1: But the main thing is that our long-term plan is on track, so that we can achieve our ambitious long-term targets. We still haven't changed the guidance.

Speaker #1: We expect to increase production by 10 to 20 percent this year. We are performing the largest exploration campaign in the company's history. We are well on track with that.

Speaker #1: So, that will be completed according to the plan that we drill 50,000 meters. Then the Southern Gold Line is moving to the next phase.

Speaker #1: So we will, early next year, launch the EIA report. And then after that, we go to the PFS phase and the environmental permit phase.

Kari Vyhtinen: After that we go to also the PFS phase and environmental permit phase. We have a new streamlined structure that was also done this year. So we sold three of the assets. We still have two in Idaho, two in Montana, and we are evaluating what to do. We still see that the Montana assets, for example, there is great potential, and this is something that we are studying that do we just sell the assets or do we form some kind of partnership? It's something that we will keep working on. But the main thing is that we sold three assets where we had high operational costs. So the cost structure from the USA operations is very minimum at the moment. The global trends, they support the gold market. There are a lot of uncertainty. The central banks are buying. Countries are printing money.

Speaker #1: We have a new, streamlined structure that was also implemented this year. So, we sold three of the assets. We still have two in Idaho and two in Montana.

Speaker #1: And we are evaluating what to do. We still see that the Montana assets, for example, have great potential, and this is something that we are starting to consider—do we just sell the assets, or do we form some kind of partnership?

Speaker #1: It's something that we will keep working on. But the main thing is that we sold three assets where we had high operational costs.

Speaker #1: So the cost structure from the USA operations is very minimal at the moment. Then, the global trends, they support the gold market. There is a lot of uncertainty.

Speaker #1: The central banks are buying. Countries are printing money. There are a lot of financial difficulties with several countries, and those are market conditions where gold is a very solid safe haven.

Kari Vyhtinen: There are a lot of financial difficulties with several countries, and those are market conditions where gold is a very solid safe haven. I think that's also reflected in the central bank buying. The organization, as Minna also mentioned, we have recruited a lot of people. We will continue to recruit a lot of people. So we need the skilled people so that we can grow. Because the targets are a few years ahead. Thank you. Happy to answer any questions then.

Speaker #1: And I think that's also reflected in the central bank buying. And then the organization, as Mina also mentioned, we have recruited a lot of people.

Speaker #1: We will continue to recruit a lot of people, so we need skilled people so that we can grow. That's because the targets are.

Speaker #1: A few years ahead. Thank you. Happy to answer any questions.

Speaker #2: Yes, thank you, Kari and Minna. So, now it's time to move on to the question and answer session. The audience has been quite active here.

Anni Turpeinen: Yes. Thank you, Kari Vyhtinen and Minna Karttunen. Now it is time to move on to the questions and answer session. The audience has been quite active here, and we have received quite a bunch of questions, and we have only 10 minutes left. Let us start right away, and let us see how many we can go through. The first question concerns the development of the Southern Gold Line and the investments required. How challenging do you see the development timeline being, and what investments are needed to get the new processing plant up and running? How do you see the gold price affecting the investment plans?

Speaker #2: And we have received quite a bunch of questions, and we have only 10 minutes left. So, let's start right away and see how many we can go through.

Speaker #2: The first question concerns the development of the Southern Gold Line and the investments required. How challenging do you see the development timeline being, and what investments are needed to get the new processing plant up and running?

Speaker #2: How do you see the gold price affecting the investment plans?

Speaker #1: Yes, very wide, very large question. I think the gold price, if we start from there, I think from our point of view, the critical phase is absolutely now and next year.

Kari Vyhtinen: Yes. Very large question. I think the gold price, if I start from there, I think from our point of view, the critical phase is absolutely now and next year, so that we are still fairly small in size, and now it is really crucial that the gold price is higher and we have the solid cash flow that we can get everything done according to the timeframe. Then when we go to the big investment, we are very confident that the financing can be done. We do not see a major problem there. All the forecasts on a long term, they still support the fact that within the gold price, the price level will stay on higher levels compared to what it was, for example, three, four years ago. That it would not return to even close to those levels.

Speaker #1: So, we are still fairly small in size. Now it's really crucial that the gold price is higher, and that we have solid cash flow so we can get everything done according to the timeframe.

Speaker #1: And then, when we go to the big investment, we are very confident that the money—the financing—can be done. And we don't see a major problem there.

Speaker #1: Like, all the forecasts—like on a long term—still support the fact that within the gold price, the price level will stay at higher levels compared to, like, what it was, for example, three or four years ago; that it would not return to even close to those levels.

Speaker #1: If you think about the time schedule, it is very ambitious. And we have been delivering, as promised, I would say. And so, it requires that we do several things simultaneously.

Kari Vyhtinen: If you think about the time schedule, it is very ambitious, and we have been delivering as promised, I would say. It requires that we do several things simultaneously. We are doing a lot of drilling. That is one reason or the biggest reason why we decided to drill now 50,000 meters this year, which is the biggest campaign in company history, is the fact that we need the data for permitting and to keep the schedule. It is very challenging, ambitious, but we believe that it can be done. We have permitted four mines in the Karelian Gold Line. We have permitted the underground mine at the open pit. We have permitted Hämeenkangas. We have permitted also Hosko underground mine. We have done it four times. We are very confident that we know how long it takes and what is required.

Speaker #1: So we are doing a lot of drilling. That is part of the reason, or the biggest reason, why we decided to drill 50,000 meters this year, which is the biggest campaign in company history.

Speaker #1: It's the fact that we need the data for permitting and to keep the schedule. So it's very challenging and ambitious, but we believe that it can be done.

Speaker #1: We have permitted four mines. In the Karelian gold line, we have permitted both the underground mine and the open pit. We have permitted Remepro. We have also permitted Hosko.

Speaker #1: Underground mine. So, we have done it four times, so we are very confident that we know how long it takes and what is required.

Speaker #2: Okay. What about the pre-feasibility study? When do you think you can start that in the Southern Gold Line? And how much do you have to have reported in indicated resources in the pre-feasibility phase so that you can proceed to the next phase with your plans?

Anni Turpeinen: Okay, what about the pre-feasibility study? When do you think you are going to start that in the Southern Gold Line? How much you have to have reported indicated resources in pre-feasibility phase so that you can proceed to the next phase with your plans?

Speaker #1: That is a key question, actually. Somebody hit the point. I think here, exactly, that we need to have indicated resources to have a pre-feasibility study.

Kari Vyhtinen: That is a key question, actually. Somebody hit the point. I think here exactly that we need to have indicated resources to have a PFS. Currently in the Southern Gold Line, we do not have those yet. That is why we are drilling the 50,000 meters. Even with this 50,000, still the biggest target for us is to increase the resource. Then the next phase is to actually drill between the existing drill holes and lift the category to indicated so that it is suitable for PFS according to the JORC standards. That is something that early next year, that is where the focus will be, and we are just planning that how much we need to do next year to actually complete everything within the timeframe.

Speaker #1: And currently, in the Southern Gold Line, we don't have those yet. So that's why we are drilling the 50,000 meters. But even with this 50,000, still the biggest target for us is to increase the resource.

Speaker #1: And then the next phase is to actually drill between the existing drill holes and lift the category to indicate it so that it's suitable for pre-feasibility studies.

Speaker #1: According to the Chork standard, that's something that next year—early next year—that's where the focus will be. And we are just planning how much we need to do next year to actually complete everything within the timeframe.

Speaker #1: We haven't, because we haven't published this UKO resource yet. I personally see that most of this will come from that area, or it will be the biggest part of the expansion plan.

Kari Vyhtinen: Because we have not published yet this Ukko resource, I personally see that most of this will come from that area for this. It will be the biggest part of the expansion plan. We have not published the resource yet, so cannot really comment that how much we think that we can make indicated resources. But the focus will be from really at Ukko that we first make the resource, and then we make it indicated. That is the plan. This year it will be to grow the resource and publish it, and then next year grow it further, and then make at least significant parts of that into indicated category.

Speaker #1: So, we haven't published the resource yet, so I cannot really comment on how much we think we can make indicated resources. But the focus will be really at UKO, that we first make the resource and then we make it indicated.

Speaker #1: That's the plan. This year, the goal will be to grow the resource and publish it. Next year, we will grow it further and then make at least significant parts of that into the indicated category.

Speaker #2: Okay, then we have a question about cash cost. How does the cash cost look going into H2 2026? Do you want to answer, or should I?

Anni Turpeinen: Okay. Then we have a question about cash cost. How does the cash cost look like going into H2 2026?

Minna Karttunen: Do you want to, or should I?

Speaker #1: No, you can.

Kari Vyhtinen: I give it to you.

Speaker #2: Yeah, I think—or I hope—that the Q2 cash cost was exceptionally high. So, at least in the forecasts we have made, it should come down from this Q2 level.

Minna Karttunen: Yeah. I think that, and I hope that the Q2 cash cost was exceptionally high. At least in the forecasts we have made, it should come down from this Q2 level and be on a slightly lower level for the rest of the year.

Speaker #2: And be on a slightly lower level for the rest of the year. What about dividends? Is it possible that Endomines could start paying dividends at the end of the year based on this year's results?

Anni Turpeinen: What about dividends? Is it possible that Endomines could start paying dividends based on this year's results?

Speaker #1: Well, everything is always possible, but it hasn't been high on our priority list, even because we just have ambitious plans and we are investing a lot.

Kari Vyhtinen: Well, everything is always possible, but it hasn't been high on our priority list. We just have ambitious plans, and we are investing a lot. Of course, we have a very strong net result, but we are investing a lot, and that's where the focus is.

Speaker #1: And we are, of course, we have a very strong net result. But we are investing a lot, and that's where the focus is. That's where the focus is.

Anni Turpeinen: The next question is about tungsten plans. What are your plans for starting tungsten production in Ilomantsi? When do you expect mining to begin, and what investments will be required? What role do you see the Wolfram Bergbau und Hütten having in the project?

Speaker #2: The next question is about tungsten plans. What are your plans for starting tungsten production in Ilomantsi? When do you expect mining to begin? And what investments will be required?

Speaker #2: And what role do you see the Wolfram Werkbauer und Hutten having in the project?

Speaker #1: Well, we have started. Like, if I start with this: what role does our partner have? It's, we have signed a non-binding letter of intent.

Kari Vyhtinen: If I start with this, what role does our partner have? We have signed a non-binding letter of intent, and the purpose is to get technical support so that we have a sellable product. Of course, both parties will evaluate that. Will that lead into off-take agreement later? Our plan is that we start the production around 2030 at the same time with the gold production. It is included in all the plans and in the permitting what we do. Our target is that we get a partner who pays for the production facility. It is quite common with these kind of side products that there is arrangement where the partner will also participate in the investments. There are a lot of interest on tungsten and not just around the globe.

Speaker #1: And the purpose is to get technical support so that we have a sellable product. And, of course, both parties will evaluate whether that will lead to an off-take agreement later.

Speaker #1: Our plan is that we start the production around 2030, at the same time as the gold production. So it's included in all the plans and in the permitting that we do.

Speaker #1: And our target is that we get a partner who pays for the production facility. It's quite common with these kinds of side products that there is an arrangement where the partner will also participate in the investments.

Speaker #1: There is a lot of interest in tungsten, and not just around the globe. Basically, it's a critical mineral and is used in the defense industry.

Kari Vyhtinen: Basically, it is a critical mineral, and because it is used in the defense industry and over 80% controlled by China, so there is a lot of interest. So it is something that we have to evaluate when we come back a little bit closer to the time when it comes to production.

Speaker #1: And over 80% is controlled by China. So there is a lot of interest. It's something that we have to evaluate when we come back to it a little bit closer to the time when it comes to production.

Speaker #2: Okay, I think we have time for one question here, so I will choose a question about the USA. Endomines’ primary focus is on Ilomantsi.

Anni Turpeinen: Okay, I think we have time for one question here. So I will choose a question about USA. Endomines' primary focus is on Ilomantsi, but what are your plans regarding US assets? How do you view the gold and silver potential in Montana?

Speaker #2: But what are your plans regarding US assets? How do you view the gold and silver potential in Montana?

Speaker #1: The assets, they are actually very interesting, especially in Montana. Like with Idaho, our idea is to divest the remaining two. It's a very straightforward plan.

Kari Vyhtinen: The assets, they are actually very interesting, especially in Montana. With Idaho, our idea is to divest the remaining two. It is a very straightforward plan. In Montana, the idea is that we have applied for the exploration permit, which would allow us to do drilling at Kearsarge. Most likely we will get the permit late this year, so it gives us flexibility next year if we want to do any drilling. We will share items when that is something that has been confirmed. We keep all the options open with Montana, so it is possible that we would divest. It is possible that we just keep it and do not do anything for some time, or that we form some kind of joint venture where we have a partner who does the investment and development, and we stay as a minority, most likely minority shareholder. Still keeping the options open.

Speaker #1: But in Montana, the idea is that we have applied for the exploration permit, which would allow us to do drilling at Kersaars. Most likely, we will get the permit late this year.

Speaker #1: So it gives us flexibility next year if we want to do any drilling. We will share items when that's something that has been confirmed.

Speaker #1: So we keep all the options open with Montana. So it's possible that we would divest. It's possible that we just keep it and don't do anything for some time.

Speaker #1: Or that we form some kind of joint venture where we have a partner who does the investment and development, and we would likely remain as a minority shareholder.

Speaker #1: So, still keeping the options open. Those are interesting deposits.

Kari Vyhtinen: Those are interesting deposits.

Speaker #2: Thank you, Kari. And that concludes today's Q&A session. Thank you for the excellent questions, and thank you all for joining us today. As I mentioned at the start, the recording of this webcast and the presentation material will be available on our website later today.

Anni Turpeinen: Thank you, Kari. That concludes today's Q&A session. Thank you for the excellent questions, and thank you for all joining us today. As I mentioned in the start, the recording of this webcast and the presentation material will be available on our website later today. On behalf of Endomines, thank you again for participation, and we wish you a great rest of the day. Thank you. Bye bye.

Speaker #2: On behalf of Endomines, thank you again for your participation, and we wish you a great rest of the day. Thank you. Bye bye.

Kari Vyhtinen: Bye bye.

Browse all earnings call transcripts

Q2 2026 Endomines Finland Oyj Earnings Call

Request TrialDemo

Endomines

Earnings