Half Year 2026 Gruvaktiebolaget Viscaria Earnings Call
Speaker #1: Warmly welcome, everybody, to Viscaria's quarterly report for the second quarter 2026. Up here in Kiruna. and as usual, we welcome you to our core shed.
Speaker #1: We're actually—everything starts, as you know, and Ross will tell you more about that later. Viscaria continues to deliver according to plan, and activities are now higher than ever across all workstreams.
Speaker #1: We are continuing to build our organization, we are adding additional contractors, and we now—some approximately 200 people that are logging into the site every day 7 days a week.
Speaker #1: And more people for every month will then come in. We connected ourselves to the main was an important event, and we will inaugurate the entire rail yard—the Leviarvi rail yard—on October 14 this year.
Speaker #1: That means that we can also—after that date—start to get equipment via train and not only just trucks after that. We are continuing with the commissioning of the water treatment plant in the successful way, and Charlotte will give you much more detailed information about that.
Speaker #1: Report for the second quarter 2026, up here in Kiruna. And as usual, we welcome you to our core shed, where—actually, everything starts, as you know, and Ross will tell you more about that later.
Speaker #1: We had a very well-attended Captain Marcus Day, and the AGM, appearing here now on May 7, with some 250 guests and shareholders, which was very well received.
Speaker #1: And after the period as well, we contracted Sandvik for underground production equipment, which is an important statement that we now—just about ready to start our production.
Speaker #1: Then, of course, we concluded a very successful, oversubscribed direct share issue of some SEK 1.7 billion, where we also took the opportunity to convert all outstanding shareholders' loans of a bit less than SEK 700 million, so the total size of the issue was then SEK 2.4 billion.
Speaker #1: Ross will talk a lot about the continued successful drill results, which proves continues to increase in both tonnage and grades in a very fast pace.
Speaker #1: We had a very well-attended Captain Marcus Day and AGM appear in Kiruna on May the 7th, with some 250 guests and shareholders, which was very well received.
Speaker #1: We are extremely happy with the continued support from basically all our institutional shareholders, and also the largest private shareholders, where many of them took the opportunity to increase their shareholding.
Speaker #1: Then, of course, we concluded a very successful oversubscribe direct share issue of some 1.7 billion Swedish kronor, where we also took the opportunity to convert all outstanding shareholders' loans of over a bit less than 700 million Swedish kronor so the total size of the issue was then 2.4 billion Swedish kronor.
Speaker #1: And at the same time, we are also very pleased to welcome our new second-largest shareholder, the French infrastructure fund Infravia, supported by the French state. It is an experienced fund, investing in mining metals as well for a long time, and now has entered our cap table. We're very pleased with that.
Speaker #1: We are extremely happy with the continued support from basically all our institutional shareholders and also the largest private shareholders, where many of them took the opportunity to increase their shareholding.
Speaker #1: And lastly, we are in the final stage of concluding our debt financing of approximately SEK 5 billion, with pushing that a bit from September, as we have previously announced, a bit into October.
Speaker #1: And at the same time, we also are very pleased to welcome our new second largest shareholder, the French infrastructure fund, Infravia, supported by the French state, an experienced fund investing in mining metals that has been scrutinized as well for a long time, and now have entered our cap table, and we're very pleased with that.
Speaker #1: There's no red flags that are behind this push; it's just that it's a complex project financing, but a completely standard format. So the mandated lead arrangers, SOC 1 and ING, are now in the final stage of deciding on the bank consortium.
Speaker #1: The syndication consortium will participate, so that means that another four to six banks are then included in all these arrangements. And we are also then negotiating with two governmental bodies to receive credit guarantees for part of the amount, and that is the Finnish state via Finnvera and the German state Euler Hermes.
Speaker #1: And lastly, we are in the final stage of concluding our debt financing of approximately 5 billion Swedish kronor, with pushing that a bit from September, as we have previously announced, a bit into October.
Speaker #1: There's no red flags that is behind this push; it's just that it's a complex project financing, but a completely standard format. So the mandated leader ranges, SOC 1 and ING, are now in the final stage of deciding on the bank consortium.
Speaker #1: And the reason for the credit guarantees is, of course, that we are buying so much equipment from Finland, that the Finnish state is supporting, and we are exporting the copper concentrate—part of the copper concentrate—to Germany, which the German state is supporting.
Speaker #1: The syndication consortium that will participate. So that means that another 4 to 6 banks are then included in all these arrangements. And we also then are then negotiating with two governmental bodies to receive credit guarantees for part of the amount.
Speaker #1: So again, Charlotte, Ross, and Frieda will talk in detail about all activities that are happening both during the quarter and activities that are coming up.
Speaker #1: That is the finish date via Finvera and the German state Oil Armes. Via Oil Armes. And the reason for the credit guarantees is, of course, that we are buying so much equipment from Finland that the finish date is supporting.
Speaker #1: I will take the opportunity to share with you a few slides about why we care so much about the details and the tightness of our site.
Speaker #1: And we are exporting the copper concentrate, part of the copper concentrate, to Germany, which the German state is supporting. So again, Charlotte, Ross, and Frida will talk in detail about all activities that are happening both during the quarter and will take the opportunity to share with you a few slides just about why we care so much about details and tightness of our site.
Speaker #1: So, as you have heard before, we care about the design of our buildings, the color scheme of our buildings, and it has nothing to do with wanting to create a fancy site.
Speaker #1: This is about caring and quality. We care about details. When you care about details, your organization notices that. This helps prevent accidents and supports quality.
Speaker #1: It shows that you are not just pushing the project into production at any cost. You do it at a site that is nice to come to every day.
Speaker #1: So as you have heard before, we care about the design of our buildings, the color scheme of our buildings, and it has nothing to do that we want to do a fancy site.
Speaker #1: This is about caring and quality. We care about details. When you care about details, your organization notices that. This is to prevent accidents and support quality.
Speaker #1: Our main office, which many of you have seen when you have attended here at Captain Marcus Days before, we are now doing this nice little park, which will be a very welcoming face every morning when you come to work.
Speaker #1: It shows that you are not just pushing the project into production at any cost. You do it at the site that is nice to come to every day.
Speaker #1: And that comes with that you come to work with a bit of a smile on your face. We have also constructed the Viscaria village, so this is the overnight facilities, the accommodations for the building constructors during the two-year period that we now are left to build our site.
Speaker #1: Our main office—which many of you have seen when you have attended here at Captain Marcus Day's before—we are now doing this nice little park which will be a very welcoming face every morning when you come to work.
Speaker #1: So this is not for future production mine workers. This is only for the construction workers during the construction period. We have 132 overnight rooms here, and since we work in 7 shifts, that means that we give opportunity for overnight facilities for 264 people. That way, we then release the burden from the municipality of having to provide hotel rooms or for them to buy out apartments or houses.
Speaker #1: And that gives comes with that you come to work with a bit of a smile at your face. We are also constructing the Viscaria village so this is the overnight facilities, the accommodations for the building constructors during the two-year period that we now are left to build our site.
Speaker #1: So this is not for future production, mine workers. This is only for the construction workers during the construction period. We have 800—sorry, we have 132 overnight rooms here, and since we work in 7 shifts, that means that we give opportunity for overnight facilities for 264 people that we then release the burden of the Kiruna municipality to have them for hotel rooms or that they buy out apartments or houses.
Speaker #1: For the contractors, we had them now here on site as well. So after two years, the red buildings here will either be converted to contractor offices or will be moved away.
Speaker #1: But the feel here in between where the football field, barbecue places, outdoor sauna, outdoor gym, that will be forever for our workers, for recreation, mornings, lunch breaks, afternoons, or evenings.
Speaker #1: And the brown house there down at the end of the picture that will also be there forever because that is the change facilities and also lunchrooms and so on for the daily production workers that comes into site to work in the mine on a daily basis.
Speaker #1: And we are also next. Guest visitor center just outside the main gate. Where we can receive guests. You can have films about the site and production.
Speaker #1: This will also give a welcoming feeling when you come to our site. So we are super proud of all this work as well that we do.
Speaker #1: For the contractors, we have them now here on site as well. So after two years, the red buildings here will either be converted to contractor offices or will be moved away.
Speaker #1: But over then to details about what's happening in the site, and I start with welcoming Charlotte. Thank you.
Speaker #1: But the feel here, in between with the football field, barbecue places, outdoor sauna, and outdoor gym, that will be forever for our workers for recreation—mornings, lunch breaks, afternoons, or evenings.
Speaker #2: Thank you so much, Jürgen. So I will now give you an update. Where we are with the project and execution of the project. And overall, the project is proceeding really well.
Speaker #2: We are actually on our most critical construction project, the processing plant. We're a little bit ahead of schedule, which will give us a big advantage now when we're moving into the winter months.
Speaker #1: And the brown house there, down at the end of the picture, that will also be there forever because that is the change facilities, and also lunchrooms and so on for the daily production workers that come into site to work in the mine on a daily basis.
Speaker #2: Other than that, we have a strong focus on time planning in the project, quality of the designs that we receive every day, and also on safety, of course, which is a top priority for us all across sites.
Speaker #1: And we are also then, next year, doing a nice visitor center just outside the main gate, where we can receive guests, have security reviews, provide information, and you can see films about the site, production, and so on.
Speaker #2: We're also doing the final detail designs within the project, and adding to that the last big contracts for COPEX investments that will secure us to do a safe and successful restart of the Viscaria mine.
Speaker #2: Looking at the processing plant, as I said, the project is going as planned, and we're currently ahead of schedule. The engineering and construction activities has intensified a lot during the quarter, and it's more and more contractors coming in helping to construct this building.
Speaker #1: This will also give a very nice, welcoming feeling when you come to our site. So we're super proud of all this work as well that we do.
Speaker #1: But then to details about what's happening at the site, and I start with welcoming Charlotte to the stage. Thank you.
Speaker #2: Thank you so much, Jürgen. I will now give you an update on where we are with the project and the execution of the project.
Speaker #2: Metso is also undertaking the detail design of the process equipment that will be inside the processing plant, based on the basic engineering that they completed in December last year.
Speaker #2: And overall, the project is proceeding really well. We are actually on our most critical construction project, the processing plant. We're a little bit ahead of schedule, which will give us a big advantage now as we move into the winter months.
Speaker #2: We're also doing continued process optimization work, including further metallurgical studies just to be ready fully, fully ready when we're actually starting up this processing plant in 28.
Speaker #2: Other than that, we have a strong focus on time planning in the project, the quality of the designs that we receive every day, and also on safety, of course, which is a top priority for us across all sites.
Speaker #2: And as we go, we also building up, scaling up the operational organization. The picture you see here, that's taken from yesterday, so yeah, it's moving fast in the project.
Speaker #2: We're also doing the final detailed designs within the project, and adding to that the last big contracts for CAPEX investments, which will secure us to do a safe and successful restart of the Viscaria mine.
Speaker #2: And adding to that, this is a time-elapsed movie. Showing the progress in this construction over the last three weeks. So the building is erected quite fast because everyone knows what to do.
Speaker #2: Looking at the processing plant, as I said, the project is going as planned, and we're currently ahead of schedule. The engineering and construction activities have intensified a lot during the quarter, and there are more and more contracts coming in, helping to construct this building.
Speaker #2: It's tidy, and with a strong focus on safety. So we're not only constructing the building, we're also doing the concrete foundations for the heavy equipment, such as the mills, and also the foundations for the building.
Speaker #2: Metso is also undertaking the detailed design of the process equipment that will be inside the processing plant, based on the basic engineering that they completed in December last year.
Speaker #2: So looking into the mine, we've done 300 meters of underground rehabilitation as of now, and it's going well according to expected. Actually, a little bit faster.
Speaker #2: We're also doing continued process optimization work, including further metallurgical studies, just to be fully, fully ready when we actually start up this processing plant in '28.
Speaker #2: Than expected. So we're doing roughly 25 meters per day. And this picture is taking also yesterday from inside of the mine entrance. We have started the open pit operations.
Speaker #2: And as we go, we're also building up, scaling up the operational organization. The picture you see here was taken yesterday, so yeah, it's moving fast in the project.
Speaker #2: So now we're blasting material that we use for our tailings construction. And we also have some ore that we have started to stockpile on the rom pad.
Speaker #2: As Jürgen mentioned, we have selected Sandvik for the underground mining fleet. We're happy with that. And they're also going to help with maintenance service of the equipment, and of course automation.
Speaker #2: And adding to that, this is a time-lapse movie showing the progress in this construction over the last three weeks. So, the building is erected quite fast because everyone knows what to do.
Speaker #2: We're also doing optimizations of the mine plan, and one improvement that we've done lately is that we're going to start the development to the upper part of the D zone, before taking the lower part, just so we can start in a month by doing that.
Speaker #2: It's tidy and has a strong focus on safety. So we're not only constructing the building, we're also doing the concrete foundations for the heavy equipment, such as the mills, and also the foundations for the building itself.
Speaker #2: And also another positive from doing that is that we decouple the mine plan and progress from the dewatering rate. And not by saying that, the water treatment is going as planned, but this is an optimation that we wanted to do, and it has a lot of benefits.
Speaker #2: So looking into the mine, we've done 300 meters of underground rehabilitation as of now, and it's going well, according to expectations—actually, a little bit faster than expected.
Speaker #2: So looking on the infrastructure and logistics side, the levee area railyard, our railyard station, so to say, was connected to Malmbanan in 17th of June, which was an important milestone for us.
Speaker #2: So we're doing roughly 25 meters per day. And this picture was also taken yesterday from inside the mine entrance. We have started the open pit operations, so now we're blasting material that we use for our tailings construction.
Speaker #2: It's not easy to get those slots, and we signed up to have this slot 20th of April 2023. So that just shows how well we planned for doing this, and how we actually executed everything in order to be able to do it this exact date.
Speaker #2: And we also have some ore that we have started to stockpile on the ROM pad. As Jürgen mentioned, we have selected Sandvik for the underground mining fleet.
Speaker #2: We're happy with that. And they're also going to help with maintenance service of the equipment, and of course, automation. We're also doing optimizations of the mine plan, and one improvement that we've done lately is that we're going to start the development to the upper part of the D zone before taking can start in a month by doing that.
Speaker #2: The railway yard is well in construction, and the concentrate storage building, adding to that, inauguration will be held mid-October. And the Narvik infrastructure for the boat shipment is also well in progress.
Speaker #2: Forward to site, and site infrastructure. Looking at the tailings facility, it's in full construction as well. You see the picture here. And we're also building the clarification pond and the outlet from the clarification pond that will take water into the processing plant.
Speaker #2: And also, another positive from doing that is that we decouple the mine plan and progress from the dewatering rate. And by saying that, the water treatment is going as planned, but this is an optimization that we wanted to do, and it has a lot of benefits.
Speaker #2: And a positive here is that we are blasting our material from the open pits and we're not only using that for the support benches, we also do our fine filters, the darker filters in the picture, and the coarse filters.
Speaker #2: So looking at the infrastructure and logistics side, the Leveäniemi rail yard, our rail yard station, so to say, was connected to Malmbanan on the 17th of June, which was an important milestone for us.
Speaker #2: So it's a really good COPEX profile of our tailings facility. So going to the VTP 1000, we're well in commissioning now. The picture you see here is the water that we discharge to the recipient.
Speaker #2: It's not easy to get those slots, and we signed up to have this slot on the 20th of April, 2023. So that just shows how well we planned for doing this and how we actually executed everything in order to be able to do it on this exact date.
Speaker #2: So we now treating the water of metals: uranium and sulfate. And everything's going as expected, and we meet the permit limits. So we're discharging to recipient according to plan.
Speaker #2: The railway yard is well in construction, and the concentrate storage building, adding to that, inauguration will be held mid-October. And the Narvik infrastructure for the boat shipment is also well in progress.
Speaker #2: So now the focus is to ramp up of this discharge amounts to reach 1000. We are soon there. And we are operated training ongoing so super important to learn how to run this facility in a good and efficient way.
Speaker #2: Forward to site and site infrastructure. Looking at the tailings facility, it's in full construction as well—you see the picture here. We're also building the clarification pond and the outlet from the clarification pond that will take water into the processing plant.
Speaker #2: And we have our drinking facility completed and approved by the authorities, so we can support the site with drinking water as well. So here's a picture zooming out a bit.
Speaker #2: The pipeline that's going from the VTP 1000 and the outlet to the recipient. That's zoomed in on the picture to the left. And here's also a picture from the inside, tidy and clean, and the sulfate treatment step in the middle that was the last thing we added that was completed in mid-June.
Speaker #2: A positive here is that we are blasting our material from the open pits, and we're not only using that for the support benches; we also do our fine filters—the darker filters in the picture—and the coarse filters.
Speaker #2: So it's a really good COPEX profile of our tailings facility. Going to the VTP 1000, we're well into commissioning now. The picture you see here is the water that we discharge to the recipient.
Speaker #2: And Viskaria Village as Jürgen mentioned, it's nearing commissioning. Our first guest will arrive the 24th of August, which we are very happy about, which will give our contractors a nice place to stay and rest when they're not working.
Speaker #2: So we are now treating the water for metals, uranium, and sulfate, and everything's going as expected, and we meet the permit limits. So we're discharging to the recipient according to plan.
Speaker #2: And they're officially inauguration will be in September. So it's 132 rooms and 264 residents that we can take so very close to taking that into operations.
Speaker #2: So now the focus is to ramp up this discharge amount to reach 1,000. We are soon there. And we have operator training ongoing, so it's super important to learn how to run this facility in a good and efficient way.
Speaker #2: And lastly, from my end, the project schedule. No changes. The sulfate treatment was in place in time, the exact date. And then we started could started the watering of the mine and that will continue as we go.
Speaker #2: And we have our drinking facility completed and approved by the authorities, so we can support the site with drinking water as well. So here's a picture, zooming out a bit, of the pipeline that's going from the VTP 1000 and the outlet recipient.
Speaker #2: Underground rehabilitation, we just continuing doing that as we dewater open pit operations, ongoing as planned. And underground mining, we will actually start in a month when we start with this drive and development to the upper part of the D zone.
Speaker #2: That's zoomed in on the picture to the left. And here's also a picture from the inside—tidy and clean—and the sulfate treatment step in the middle. That was the last thing we added, and it was completed in mid-June.
Speaker #2: Power installation will be completed in 27. Railyard October this year, and the tailings area and clarification pond will be completed later. This year. And looking at the processing plant, it will be weatherproof and all the foundations will be completed in November this year.
Speaker #2: And Viscaria Village, as Jürgen mentioned, is nearing commissioning. Our first guest will arrive on the 24th of August, which we are very happy about. This will give our contractors a nice place to stay and rest.
Speaker #2: And then we're moving over to installation or process equipment, which will be done during 27. And then we do commissioning as we go, ramp up, and then have our first sellable contract, the first half year of 2028.
Speaker #2: When they're not working, and their official inauguration will be in September. So it's 132 rooms and 264 residents that we can take, so very close to taking that into operations.
Speaker #2: And with that, I will hand over to Ross for the latest from expiration.
Speaker #2: And lastly, from my end, the project schedule. No changes. The sulfate treatment was in place in time; the exact date, and then we started—could have started—the watering of the mine, and that will continue as we go.
Speaker #1: Thank you very much, Charlotte. And good morning to everybody watching. It's very exciting to be back with another expiration update from the team here at Viskaria.
Speaker #2: Underground rehabilitation—we're just continuing doing that as we dewater. Open pit operations are ongoing as planned. And underground mining, we will actually start in a month when we begin with this drive and development to the upper part of the D zone.
Speaker #1: Stepping back, we're really starting to see the different parts of this geological story come together. And that's a theme that I want to carry through today's presentation.
Speaker #1: Our standout result from this quarter comes from the D zone, where drill hole 25013E, which was drilled 800 meters outside of the existing resource boundary, intersected 10 meters at 2.2% copper.
Speaker #2: Power installation will be completed in 2027. Rail yard, October this year, and the tailings area and clarification pond will be completed later this year.
Speaker #1: Which is more than twice the current average grade of the deposit. Elsewhere in the B zone, drilling is continuing to find high grade extensions to the mineralization, and also define an exceptionally thick package of mineralized rock.
Speaker #2: And looking at the processing plant, it will be weatherproof and all the foundations will be completed in November this year. Then we're moving over to installation of process equipment, which will be done during 2027. After that, we do commissioning as we go, ramp up, and then have our first sellable concentrate the first half year of 2028.
Speaker #1: And finally, a reflection seismic survey is now underway on site, which is allowing us to test the system at an entirely different scale than ever before.
Speaker #1: But first, let's focus on that standout result from the D zone. So this image we see here, I think it's one that we're all starting to become a bit familiar with.
Speaker #2: And with that, I will hand over to Ross for the latest from Exploration.
Speaker #1: What we see is the D zone resource color contoured according to grade by thickness. So where we have the hotter colors, that's where we have the thicker and higher grade parts of the deposit.
Speaker #1: Thank you very much, Charlotte. And good morning to everybody watching. It's very exciting to be back with another exploration update from the team here at Viscaria.
Speaker #1: Stepping back, we're really starting to see the different parts of this geological story come together. That's a theme I want to carry through today's presentation.
Speaker #1: Over the past year, we've been progressively stepping out in our drilling further from the resource. During the last quarter, we presented the results from hole 24036, which was our first major step out hole.
Speaker #1: Our standout result from this quarter comes from the D zone, where drill hole 25013E, which was drilled 800 meters outside of the existing resource boundary, intersected 10 meters at 2.2% copper.
Speaker #1: 400 meters from the resource, and this returned an intersection of 14.3 meters at 1% copper. And the results from this is what encourages us to go even further.
Speaker #1: This is more than twice the current average grade of the deposit. Elsewhere in the B Zone, drilling is continuing to identify high-grade extensions to the mineralization, and also to define an exceptionally thick package of mineralized rock.
Speaker #1: Last quarter, we also presented 25013E, which intersected copper iron mineralization 800 meters from the resource. At that time, we didn't have the assay results.
Speaker #1: But now we do. 10.2 meters at 2.2% copper, and 32% iron. This is just fantastic result. But what comes with this result is two important messages.
Speaker #1: And finally, a reflection seismic survey is now underway on site, which is allowing us to test the system at an entirely different scale than ever before.
Speaker #1: But first, let's focus on that standout result from the D Zone. So, this image we see here—I think it's one that we're all starting to become a bit familiar with.
Speaker #1: Firstly, the scale. So with this drill hole, we've opened up a significant corridor between the intersection and the current resource. And that's a corridor that has great potential for further resource growth through continued drilling.
Speaker #1: What we see is the D Zone resource color contoured according to grade by thickness. So where we have the hotter colors, that's where we have the thicker and higher-grade parts of the deposit.
Speaker #1: And in fact, we're already starting to test this space with two active drill rigs in the field, and so we're hoping to have results to share very shortly from there.
Speaker #1: Over the past year, we've been progressively stepping out in our drilling, further from the resource. During the last quarter, we presented the results from hole 24036, which was our first major step-out hole.
Speaker #1: And on top of the scale, another important message here is, of course, the grade. So as we're moving further away from the resource, from the known mineralization, it's very important that we're seeing that the mineralization is not weakening.
Speaker #1: 400 meters from the resource, and this returned an intersection of 14.3 meters at 1% copper. The results from this are what encourage us to go even further.
Speaker #1: We're not finding lower grade. In fact, quite the opposite. More than double the grade of the current resource. On top of these two important messages, we also see a very interesting mineralogical observation as well.
Speaker #1: Last quarter, we also presented 25-013E, which intersected copper-iron mineralization 800 meters from the resource. At that time, we didn't have the assay results.
Speaker #1: In this area, we're seeing an increased proportion of barnite coupled with hematite alteration. Now, it's quite early doors, but in similar copper systems, this type of observation, barnite with hematite, it can indicate that you're vectoring towards a higher grade part of the system.
Speaker #1: But now we do: 10.2 meters at 2.2% copper and 32% iron. These are just fantastic results. But what comes with this result are two important messages.
Speaker #1: So of course, this is a very interesting thing that we're going to follow along and try to find in the next drill holes as well.
Speaker #1: Firstly, the scale. So, with this drill hole, we've completed a significant quarter between the intersection and the current resource. And that's a quarter that has great potential for further resource growth through continued drilling.
Speaker #1: But let's have a look at the drill core to try and connect this headline intersection to the geology. So what we see here is photos of the drill core overlained by the individual assay results.
Speaker #1: And in fact, we're already starting to test this space with two active drill rigs in the field, so we're hoping to have results to share very shortly from there.
Speaker #1: What I really like about this result is the consistency of the grade. So as you can see, there's not just one narrow, but super high grade vein that's carrying the intersection.
Speaker #1: And on top of the scale, another important message here is, of course, the grade. So as we're moving further away from the resource, from the known mineralization, it's very important that we're seeing that the mineralization is not weakening.
Speaker #1: Rather, what we see is several consecutive samples 2% copper, and several actually around the 3% mark as well. So this is genuinely high grade mineralization in an area that we believe has great potential for resource growth.
Speaker #1: We're not finding lower grades. In fact, quite the opposite—more than resource. On top of these two important messages, we also see a very interesting mineralogical observation as well.
Speaker #1: And at a later stage, future mining expansion as well. But importantly, this expiration campaign is continuing to deliver great results, not only from one zone, we can also take a look at the B zone as well.
Speaker #1: In this area, we're seeing an increased proportion of bornite, coupled with hematite alteration. Now, it's quite early doors, but in similar copper systems, this type of observation—bornite with hematite—can indicate that you're vectoring towards a higher-grade part of the system.
Speaker #1: So again, a familiar image. This is the B zone resource again, color contoured by grade thickness. And we can see in the southwest portion of the deposit, on the left hand side of this image, there's a gap in the resource.
Speaker #1: So, of course, this is a very interesting thing that we're going to follow along and try to find in the next drill holes as well.
Speaker #1: And that was previously untested until basically the last year, where we started to fill that gap. First, the first result we had was drill hole 25013B.
Speaker #1: But let's have a look at the drill core to try and connect this headline intersection to the geology. So what we see here are photos of the drill core overlaid by the individual assay results.
Speaker #1: Which returned a whopping 76 meters at around 1% copper. Then in the last quarter, we presented hole 13D, which again, this confirmed a really thick package of mineralized rock with several stacked high grade intervals above 1% copper as well.
Speaker #1: What I really like about this result is the consistency of the grade. So as you can see, there's not just one narrow, but super high-grade vein that's carrying the intersection.
Speaker #1: Rather, what we see is several consecutive samples at 2% copper, and several actually around the 3% mark as well. So, this is genuinely high-grade mineralization in an area that we believe has great potential for resource growth and, at a later stage, future mining expansion as well.
Speaker #1: And that brings us to today, where we have two new drilling results to share with you. We just looked at drill hole 25013E in the D zone, but this same hole had great success drilling in the B zone as well.
Speaker #1: Returning an intersection of 20.6 meters at 1.13% copper. And providing an extremely important link between that shallow part of the resource and the deeper drilling that we've completed.
Speaker #1: But importantly, this expiration campaign is continuing to deliver great results, not only from one zone; we can also take a look at the B zone as well.
Speaker #1: And then finally, we have drill hole 13F as well, which is also confirmed this really broad mineralized package. A total intersection of 270 meters at half a percent of copper, with several higher grade sections within that.
Speaker #1: So, resource, again, colored contoured by grade thickness. And we can see, in the southwest portion of the deposit, on the left-hand side of this image, there's a gap in the resource.
Speaker #1: And that was previously untested until basically last year, when we started to fill that gap. The first result we had was drill hole 25013B.
Speaker #1: Including 14.3 meters at above 1% copper. But importantly, the key message from the B zone drilling here is not about any one individual result.
Speaker #1: Which returned a whopping 76 meters at around 1% copper. Then, in the last quarter, we presented hole 13D, which again confirmed a really thick package of mineralized rock, with several stacked high-grade intervals above 1% copper as well.
Speaker #1: It's the repetition, the continuity. Here, we're seeing geological and grade continuity beyond the resource. And from the project perspective, this is really important. It's real near mine exploration.
Speaker #1: So these are results adjacent to existing resources, and adjacent to the planned mining infrastructure as well. Now, this is quite a technical slide, but I think it's really important to show how the different pieces of the puzzle are starting to come together.
Speaker #1: And that brings us to today, where we have two new drilling results to share with you. We just looked at drill hole 25013E in the D zone, but this same hole had great success drilling in the B zone as well.
Speaker #1: Returning an intersection of 20.6 meters at 1.13% copper, and providing an extremely important link between that shallow part of the resource and the deeper drilling that we've completed.
Speaker #1: On this image, we're seeing a plan view, so a map of the Viscaria deposit looking down. And in the backdrop to that is magnetosiluric geophysical data.
Speaker #1: What we see in the data is this red trend, this strong conductivity. And this comes from the graphitic rocks in the A zone and the C zone.
Speaker #1: And then finally, we have drill hole 13F as well, which is also confirmed this really broad mineralized package. A total intersection of 270 meters at half a percent of copper, with several higher grade sections within that.
Speaker #1: And if we follow this strong conductivity signal towards the southwest part of the deposit, you can see that there's this major break cutting across the formations.
Speaker #1: Including 14.3 meters at above 1% copper. But, importantly, the key message from the B Zone drilling here is it's not about any one individual result.
Speaker #1: And the geology that we observe in that break tells us exactly why this is the case. In this area, the original black carbon rich rocks have been completely bleached and altered by the hydrothermal fluids, losing that formational conductivity.
Speaker #1: It's the repetition, continuity. Here, we're seeing geological and grade continuity beyond the resource. And from the project's perspective, this is really important. It's real near-mine exploration.
Speaker #1: And in the same area, we've seen abundance of these cross cutting feeder style veins as well. So we think it's no coincidence that along that same trend, that's exactly where we've made a lot of our recent discoveries.
Speaker #1: So, these are results adjacent to existing resources, and adjacent to the planned mining infrastructure as well. Now, this is quite a technical slide, but I think it's really important to show how the different pieces of the puzzle are starting to come together.
Speaker #1: First, the Aber zone, then B zone deep, the first high grades in the C zone, and now today, this 800 meter strike extension in the D zone.
Speaker #1: 10 meters at 2.2%. All of this is to say that the geological and geophysical evidence is all pointing towards a major feeder corridor in this part of the deposit.
Speaker #1: In this image, we're seeing a plan view—a map—of the Viscaria deposit, looking down. In the background, you can see magnetotelluric geophysical data.
Speaker #1: What we see in the data is this red trend, this strong conductivity. And this comes from the graphitic rocks in the A Zone and the C Zone.
Speaker #1: So today, of course, we've been focused a bit on the near mine drilling results. But with the reflection seismic survey underway on site, we can now start to look beyond, far beyond the drill bit.
Speaker #1: And if we follow this strong conductivity signal towards the southwest part of the deposit, you can see that there's this major break cutting across the formations.
Speaker #1: You know, as we learn more about the Viscaria deposit, we start to ask ourselves bigger questions. About the architecture and the depth extent of the deposit.
Speaker #1: And the geology that we observe in that break tells us exactly why this is the case. In this area, the original black, carbon-rich rocks have been completely bleached and altered by the hydrothermal fluids, losing that formational conductivity.
Speaker #1: And with seismics, we can start to answer a lot of those questions. This is part of a project, a collaboration with Uppsala University. And a bit sim now.
Speaker #1: And you can see on this map, it's quite an ambitious scope to the work that's planned. Not only do we plan to cover the entire mine site, with seismic profiles, but we also plan to do some profiles in the city as well.
Speaker #1: And in the same area, we've seen an abundance of these cross-cutting, feeder-style veins as well. So we think it's no coincidence that along that same trend, that's exactly where we've made a lot of our recent discoveries.
Speaker #1: And that's in order to chase the down dip reflections southeastward from the deposit. But the work is now underway, so let's take a quick look to see how this actually works in practice.
Speaker #1: First, the ABA zone, then the B zone deep, the first high grades in the C zone, and now today this 800-meter strike extension in the D zone.
Speaker #1: 10 meters at 2.2%. All of this is to say that the geological and geophysical evidence is all pointing towards a major feeder corridor in this part of the deposit.
Speaker #1: So we have here the seismic source, this vibrator truck, and it's systematically works along each of these profiles. Lowering this base plate and generating seismic waves.
Speaker #1: Which reflect back from different geological features in the subsurface. And the recorded by thousands of receivers that we have, over the area. But of course, the really interesting part is when we get the results back.
Speaker #1: So today, of course, we've focused a bit on the near-mine drilling results. But with the reflection seismic survey underway on site, we can now start to look beyond.
Speaker #1: And we can start to see how this fits in with the overall picture. So finally, to try and tie this together and look ahead to the future, what we see on this chart is the growth of Viscaria's mineral resources through time.
Speaker #1: Far beyond the drill bit. You know, as we learn more about the Viscaria deposit, we start to ask ourselves bigger questions about the architecture and the depth extent of the deposit.
Speaker #1: And with seismics, we can start to answer a lot of those questions. This is part of a project, a collaboration with Uppsala University and Bitsim Now.
Speaker #1: From 3 million tonnes when the mine closed in the late 90s, up to 108 million tonnes which were defined in 2025. As you see today, all of the near mine drilling results are pointing towards continued resource growth.
Speaker #1: And you can see on this map, it's quite an ambitious scope to the work that's planned. Not only do we plan to cover the entire mine site with seismic profiles, but we also plan to do some profiles in the city as well.
Speaker #1: But what's really important is that as we move closer to production, we need to acknowledge the explorations about much more than just adding tonnage.
Speaker #1: And that's in order to chase the down-dip reflections southeastward from the deposit. But the work is now underway, so let's take a quick look to see how this actually works in practice.
Speaker #1: Our near mine exploration campaign is really targeting areas that have the great potential to add scale, flexibility in the scheduling, and optionality to the future mining operation.
Speaker #1: So, we have here the seismic source—this vibrator truck. It systematically works along each of these profiles, lowering its base plate and generating seismic waves.
Speaker #1: In other words, we're drilling in areas that can make a big difference. We have four active drill rigs working in the area, and our planned resource update is for Q1 2027.
Speaker #1: These reflect back from different geological features in the subsurface, and are recorded by thousands of receivers that we have over the area. But, of course, the really interesting part is when we get the results back.
Speaker #1: So until then, we will continue to keep compiling all the data and to confirm geological continuity in all these exploration spaces. The key message today though, is that we're not just accumulating single drill results.
Speaker #1: We can start to see how this fits in with the overall picture. So finally, to try and tie this together and look ahead to the future, what we see on this chart is—.
Speaker #1: This is all becoming part of a comprehensive understanding of the Viscaria mineral system, and where the greatest value might sit. Drill hole after drill hole, quarter after quarter, we're really starting to put together this geological story.
Speaker #1: Growth of Viscaria's mineral resources through time: from 3 million tons, when the mine closed in the late '90s, up to 108 million tons, which were defined in 2025.
Speaker #1: So thank you very much for listening, and on that note, I will hand the word to Frieda.
Speaker #1: As you see today, all of the near-mine drilling results are pointing toward continued resource growth. What's really important is that as we move closer to production, we need to acknowledge that exploration is about much more than just adding tonnage.
Speaker #2: Thank you for that, Ralph. Then I will go through the financial performance in summary for Q2 2026. If we start with the income statement, we have a big portion of a capitalized expenses.
Speaker #1: Our near-mine exploration campaign is really targeting areas that have great potential to add scale, flexibility in scheduling, and optionality to the future mining operation.
Speaker #2: Related to exploration assets, it's 127 million. We have an operating profit of minus 24 million, and we have the net profit of minus 41 million.
Speaker #1: In other words, we're drilling in areas that can make a big difference. We have four active drill rigs working in the area, and our planned resource update is for Q1 2027.
Speaker #2: It's a little bit higher negative result than previous year, mainly due to the interest expenses referring to the shareholder loans. We have a positive cash flow for the period, 346 million, and that's included the first out of two tranches, from the directly the share issue.
Speaker #1: So until then, we will continue to keep compiling all the data and to confirm geological continuity in all these exploration spaces. The key message today, though, is that we're not just accumulating single drill results.
Speaker #1: This is all becoming part of a comprehensive understanding of the Viscaria mineral system, and where the greatest value might sit. Drill hole after drill hole, quarter after quarter, we're really starting to put together this geological story.
Speaker #2: If we then look at the balance sheet, we have an increasing in the post of exploration and evaluation assets. It's almost 2.1 billion. Of course, we have a large increasing in the ongoing development.
Speaker #1: So, thank you very much for listening, and on that note, I will hand the word to Frieda.
Speaker #2: It's almost 1.6 billion, mainly due to the ramp up of the construction activities ongoing. We have a cash and cash equivalent of 1.3 billion, and our equity is now 3.8 billion.
Speaker #2: Thank you for that, Rolf. Then I will go through the financial performance in summary for Q2 2026. If we start with the income statement, we have a big portion of capitalized expenses.
Speaker #2: Related to exploration assets, it's 127 million. We have an operating profit of minus 24 million, and we have a net profit of minus 41 million.
Speaker #2: At the end of Q2 2026. We have definitely further strengthened our financial position during this oversubscribed new share issue. Which adding 1.7 billion in cash to our company.
Speaker #2: It's a little bit higher negative result than previous year, mainly due to the interest expenses referring to the shareholder loans. We have a positive cash flow for the period, 346 million, and that includes the first out of two tranches from the share issue directly.
Speaker #2: We also got in Infravia as a new second largest shareholder. And the tranche two of the share issue was completed after quarter end, and adding in that all of our shareholder loan of 681 million was fully converted into shares.
Speaker #2: If we then look at the balance sheet, we have an increase in the post of exploration and evaluation assets. It's almost $2.1 billion. Of course, we have a large increase in the ongoing development.
Speaker #2: Which means that we actually are now debt free except for a really small portion from Norrlands Fonden. So this means that the total equity raise was 2.4 billion.
Speaker #2: It's almost $1.6 billion, mainly due to the ramp-up in construction activities ongoing. We have cash and cash equivalents of $1.3 billion, and our equity is now $3.8 billion.
Speaker #2: And when we now have executed the equity raise, we are working towards the debt financing of approximately 5 billion Swedish krona. We are well underway there, and aiming for a financial close in October this year.
Speaker #2: At the end of Q2 2026, we have definitely further strengthened our financial position during this oversubscribed new share issue, which added SEK 1.7 billion in cash to our company.
Speaker #2: This is fully aligned with our plans and according to the financial requirements. And including in the financial financing requirements, we of course have different kinds of margins in our calculation.
Speaker #2: In all of our capex, we have a continuous post of a range between 10 to 15%. And on top of that, we have this cost overrun facility which is approximately 800 million Swedish krona, which is also included.
Speaker #2: We also got InfraVia as a new second largest shareholder. The tranche two of the share issue was completed after quarter end, and, adding in that, all of our shareholder loan of SEK 681 million was fully converted into shares.
Speaker #2: If we then turning to the market upside, we see here some sensitivity analysis of our earnings. In the first row, you can see our business case.
Speaker #2: Which means that we actually are now debt free, except for a really small portion from Norrlandsfonden. So this means that the total equity raise was 2.4 billion.
Speaker #2: It's based on an average copper price during the whole life of mine of 11,700. That will give us an EBIT of 1.6 billion during our steady state years, which is 2029 until 2036.
Speaker #2: Now that we have executed the equity raise, we are working towards the debt financing of approximately SEK 5 billion. We are well underway there and aiming for a financial close in October this year.
Speaker #2: If you then will use the spot price of today, approximately 14,250 USD per tonne, you see that we have a significant increase of EBIT, over 40% it will raise up to 2.2 billion instead.
Speaker #2: This is fully aligned with our plans and according to the financial requirements. And included in the financial financing requirements, we of course have different kinds of margins in our calculation.
Speaker #2: And if you use the bullish forecast of 20,000 USD per tonne, you can see that the EBIT goes up more than 100% actually up to 3.6 billion.
Speaker #2: In all of our capex, we have a continuous post of a range between 10% to 15%. And on top of that, we have this cost overrun facility, which is approximately $800 million.
Speaker #2: During this year's if all the other parameters stay the same. The key message here is really to see that all of these different kind of copper price scenarios is fully reasonable, due to the market conditions, the availability of the supply, and also the long lead time for the possibility to increase capacity on the mining side.
Speaker #2: Swedish krona, which is also included. If we then turn to the market upside, we see here some sensitivity analysis of our earnings. In the first row, you can see our business case.
Speaker #2: It's based on an average copper price during the whole life of mine of $11,700. That will give us an EBIT of $1.6 billion during our steady-state years, which is 2029 until 2036.
Speaker #2: And this slide also show our business case, but from the cash flow perspective. You see the first year, 2026 to 2028, we are in this capex and investment phase.
Speaker #2: If you then use the spot price of today, approximately 14,250, and an EBIT margin of 40%, it will rise up to $2.2 billion instead.
Speaker #2: But already 2029, we turn cash flow positive. And if you follow the line in the diagram, you see that we become a cash flow positive in the accumulated already 2032.
Speaker #2: And if you use the bullish forecast of $20,000 per ton, you can see that EBIT goes up more than 100%, actually up to $3.6 billion.
Speaker #2: And we have an overall payback in approximately four years. So if I then try to summarize really shortly from the financing perspective, we have strengthened the equity base materially.
Speaker #2: During these years, if all the other parameters stay the same, the key message here is really to see that all of these different kinds of copper price scenarios are fully reasonable due to the market conditions and availability, as well as the high and also long time required for equity to increase capital on the mining side.
Speaker #2: We have removed all of our shareholder loans. We maintain a really strong cash position during this last directly issue. And we are now heading towards financing close on the debt side in October this year.
Speaker #2: And this slide also shows our business case, but from the cash flow perspective. You see that in the first years, 2026 to 2028, we are in this capex and investment phase.
Speaker #2: So by that, I leave the word back to Jürgen again.
Speaker #1: Thank you. Charlotte, Ross, and Frida for your presentations. We score it uniquely positioned for successful mine opening and first delivery of copper in 2028.
Speaker #2: But already in 2029, we turn cash flow positive. From the slope of the line in the diagram, you see that we become cash flow positive on an accumulated basis already in 2032.
Speaker #1: We are blessed with a fantastic deposit and site. And as you can hear with significant growth quarter by quarter. I think it's important when I say this to underline that our exploration drilling is not the kind of an exploration companies exploration drilling.
Speaker #2: And we have an overall payback in approximately four years. So, to summarize very briefly from the financing perspective, we have materially strengthened the equity base.
Speaker #2: We have removed all of our shareholder loans. We have maintained a really strong cash position during these last quarters, directly addressing the issue. And we are now heading towards financing close on the debt side in October this year.
Speaker #1: Our exploration drilling is carefully planned together with our mine planning team. So we know that these resources that we aim to increase can easily be converted to reserves and successful economical mining.
Speaker #2: With that, I hand the word back to Jürgen.
Speaker #1: We are not an exploration company that are pitching for sell side. This is a mine company where we focus on economical mining and increase of the economical mining parts deposit.
Speaker #1: Thank you, Charlotte, Ross, and Frieda, for your presentations. Viscaria is uniquely positioned for a successful mine opening and first delivery of copper in 2028.
Speaker #1: We have an extremely supportive cap table as well. Which supports the successes of this product. And then not at least, we have a great management team and board.
Speaker #1: We are blessed with a fantastic deposit and site, and as you can hear, with significant growth quarter by quarter. I think it's important, when I say this, to underline that our exploration drilling is not the kind you would find at an exploration company's exploration drilling.
Speaker #1: And this fantastic picture is our entire board and most part of our management team Tuesday this week when we held the board meeting for the second quarter.
Speaker #1: Our exploration drilling is carefully planned together with our mine planning team, so we know that these resources that we aim to increase can easily be converted to reserves and successful, economical mining.
Speaker #1: It's a great atmosphere. I can guarantee you that. And you can see that in the picture. So with this picture, still, on the screen, I would like to welcome Charlotte Fangen, to support me in the Q&A session today.
Speaker #1: Thank you.
Speaker #1: We are not an exploration company that is pitching for the sell side. This is a mining company where we focus on economical mining and increasing the economical mining part of the deposit.
Speaker #3: Thank you, Jürgen. So fantastic to hear about all the progress on site. You have many parallel processes. Which one would you say is the most crucial right now?
Speaker #1: I mean, it's definitely the construction of the processing plant. As you know, this is our single largest capital expenditure almost 3 billion Swedish krona.
Speaker #1: We have an extremely supportive cap table as well, which supports the successes of this project. And then, not least, we have a great management team and board.
Speaker #1: A lot of people, contractors, firms involved in this. Logistics, to get all the material in the right day and the right time, to get everything to click.
Speaker #1: And this fantastic picture is our entire board and most of our management team on Tuesday this week, when we held the board meeting for the second quarter.
Speaker #1: But as I said before, we have a fantastic well-structured organization. We're super pleased with our different contractors, Nordic and Metso, that is heavily involved, but also other subcontractors in the construction of that.
Speaker #1: It's a great atmosphere—I can guarantee you that. And you can see that in the picture. So, with this picture still on the screen, I would like to welcome Charlotte Fangen to support me in the Q&A session.
Speaker #1: But that is the largest challenge just now.
Speaker #1: Thank you.
Speaker #3: Thank you, Jürgen. It's fantastic to hear about all the progress on site. You have many parallel processes— which one would you say is the most crucial right now?
Speaker #3: And you also seem to be a bit ahead of plan on that. But if I'm reading you rightly, you're also a bit behind schedule on the watering, are you?
Speaker #1: I mean, it's definitely the construction of the processing plant. As you know, this is our single largest capital expenditure, almost SEK 3 billion.
Speaker #3: And does that affect your plans?
Speaker #1: No, it does not affect the time plan. Commissioning has taken longer time than we thought in the beginning. And you know that the main reason without that we found sulfates deeper down in the old mine water.
Speaker #1: A lot of people, contractors, and firms are involved in this. Logistics—to get all the material on the right day and at the right time to get everything to click.
Speaker #1: And we had to add an additional water treatment cleaning process. But as you heard from Charlotte, technique is working. We're holding all the levels for the permits.
Speaker #1: But as I said before, we have a fantastic, well-structured organization. We're super pleased with our different contractors, Nordic and Metso, that are heavily involved—but also other subcontractors in the construction of that.
Speaker #1: And it's going very well now. But Charlotte also pointed out that we have optimized the mine planning. So we will now start to mine in the shallow part of the D zone earlier than before.
Speaker #1: But that is the largest challenge right now.
Speaker #3: And you also seem to be a bit ahead of that. But if I'm reading you rightly, you're also a bit behind schedule on the watering, are you?
Speaker #1: Which will support the ore coming up earlier from that part instead. So the watering was and still is mainly to go down in the A zone.
Speaker #3: And does that affect your plan?
Speaker #1: No, it does not affect the time plan. Commissioning has taken longer than we thought in the beginning. And you know, the main reason for that is we found sulfates deeper down.
Speaker #1: But now when we go directly into the D zone, then the dewatering is kind of a decoupled from the time plan and the mine planning.
Speaker #1: And the old mine water. And we had to add an additional water treatment cleaning process. But as you heard from Charlotte, the technique is working.
Speaker #3: So you're not dependent on that anymore, that sounds good. So and also there is a lot going on outside of this area. You have been talking to Nordic Ham.
Speaker #3: How is that going?
Speaker #1: It's going very well. And you know that for some years back, we assigned memor of understandings with the Nordic's harbor. And we're now in full construction with subcontractors also for the offloading facility and the ship loader at the quay in Nordic's harbor.
Speaker #1: We're holding all the levels for the permits, and it's going very well now. But Charlotte also pointed out that we have optimized the mine planning.
Speaker #1: So, we will now start to mine in the shallow part of the D zone earlier than before, which will support the ore coming up earlier from that part instead.
Speaker #1: So that is also according to plan. And we'll be ready then in the beginning of 2028, well in time of our first delivery down to Nordic in April 2028 with the copper concentrate.
Speaker #1: So, the dewatering was, and still is, mainly to go down in the A zone. But now, when we go directly into the D zone, then the dewatering is kind of decoupled from the time plan and the mine planning.
Speaker #3: So going over to the finances, and the debt financing, you have a bit of news here because you have raised from 4.8 to about 5 billion.
Speaker #3: And you're also pushing it into October. Can you tell us the background?
Speaker #1: Yeah. So the 5 billion amount is that we are borrowing the mountain US dollar. And that has been the case since beginning. And of course, we have a bit fluctuation in the US dollar CX rate.
Speaker #3: So you're not dependent on that anymore. That sounds good. Also, there is a lot going on outside of this area. You have been talking to Nordic Ham.
Speaker #3: How is that going?
Speaker #1: It's going very well. And you know that for some years back, we assigned memory of our understandings with the Nordic's harbor. And we're now in full construction, with subcontractors also for the offloading facility and the ship loader at the quay in Nordic's harbor.
Speaker #1: So the loan amount will be approximately 475 million US dollar. But then on top of that, we also which we had talked about before, you are adding a what it's called cost overrun facility, a COF facility.
Speaker #1: And that is a cushion for the lending banks to say that, okay, we will add the loan amount with a certain amount in order to really be safeguarding that to capture potential extra costs.
Speaker #1: So that is also according to plan and will be ready then in the beginning of 2028, well in time for our first delivery down to Nordic in April 2028 with the copper concentrate.
Speaker #1: The cost overrun facility is not the only continuous amount. We have continuous amounts reserved for the remaining COPEX. We have continuous amounts reserved in the sustaining COPEX.
Speaker #3: So, going over to the finances and the debt financing. You have a bit of news, because you have raised from 4.8 to about 5 billion.
Speaker #1: But then also we have this COF. And the COF, the debt finance COF facility will be approximately plus minus 45 million US dollar. But that is an amount that will be cited very, very close to signing.
Speaker #3: And you're also pushing it into October. Can you tell us the background?
Speaker #1: Yeah. So the 5 billion amount is that we are borrowing the amount in US dollar. And that has been the case since beginning. And of course, fluctuation in US dollar late.
Speaker #1: So we are at approximately 475 million US dollar plus 45 million in COF and then in US dollar. Hence, we are saying that approximately 5 billion Swedish.
Speaker #1: So the loan amount will be approximately $475 million US dollars. But then on top of that, we also—which we had talked about before—you are adding what is called a cost overrun facility, a COF facility.
Speaker #3: And when you get that money, the 5 billion, you have in total just above 10 billion. Is the project fully financed?
Speaker #1: And that's a cushion for the lending banks to say that, okay, we will add the loan amount with a certain amount in order to really be safeguarding that, to capture potential extra costs.
Speaker #1: Yes. And according also what I said in the first quarter now, we also close to realization. We are close such a huge part of our supplier contracts.
Speaker #1: The cost overrun facility is not the only continuous amount. We have continuous amounts reserved for the remaining CAPEX. We have continuous amounts reserved in the sustaining CAPEX.
Speaker #1: So we really feel that. That we have our arms around this project, both in terms of timing and funding.
Speaker #1: But then also we have this COF. And the COF, the debt finance COF facility, will be approximately plus or minus $45 million. But that is an amount that will be cited very, very close to signing.
Speaker #3: And in this process, I know that they are scrutinizing you every corner. What has been the biggest good feedback for you? What have you changed because of this scrutinization?
Speaker #1: Well, if I first back one step. So everybody knows that I'm not a miner. I'm a banker. But so I have really chosen to have a bank project financing instead of a bond financing.
Speaker #1: So we are at approximately $475 million US dollars, plus $45 million in COF, and then in US dollars. Hence, we are saying that is approximately 5 billion Swedish.
Speaker #1: It's extremely much more tricky to get the bank project financing. But a much more stable financing for the future. You are definitely scrutinized into your underwear by the banks.
Speaker #3: And when you get that money—the 5 billion—you have in total just above 10 billion. Is the project fully financed?
Speaker #1: Yes. And also as I said in the first quarter, now we are also close to realization. We are close to securing a huge part of our supplier contracts.
Speaker #1: And that really helps you. Because they have found things that we have been able to then to optimize. Scrutinization is always good. To take in second opinions and third opinions are always good.
Speaker #1: So we really feel that comfortable, that we have our arms around this project, both in terms of timing and funding.
Speaker #1: And that really makes the project so much more stable. It's a painful process, a cumbersome process. It takes time, as you all know, we started this debt financing process in October last year.
Speaker #3: And in this process, I know that they are scrutinizing you in every corner. But what has been the biggest good feedback for you? What have you changed because of this scrutiny?
Speaker #1: But it's very well it's very good for the project and for the stability of the project. So we. We are happy with that process.
Speaker #1: Well, if I first step back one step. So, everybody knows that I'm not a miner. I'm a banker. So I have really chosen to have a bank project financing instead of a bond financing.
Speaker #1: And it has gone fine.
Speaker #3: Are you worried you'll have to push it beyond October?
Speaker #1: No, we don't believe so. So now we are really pinpointing credit committee days for the different banks and also for the credit guarantee institutes.
Speaker #1: It's extremely much more tricky to get the bank project financing, but it's a much more stable financing for the future. You are definitely scrutinized down to your underwear.
Speaker #1: So everybody in this consortium are dedicated to deliver on this time plan. And it's in everybody's interest that we keep the time plan as well.
Speaker #1: By the banks. And that really helps you, because they have found things that we have been able to then optimize. Scrutinization is always good.
Speaker #3: Sounds good. So last quarter, you talked very much about the copper price. Now it has risen even more during this last quarter. If we would see a setback in the copper price, how worried are you about your project?
Speaker #1: To take in second opinions and third opinions is always good, and that really makes the project so much more stable. It's a painful process.
Speaker #1: I'm not worried at all. Because you can see in Frida's slide here that even at the way more lower price than today, 11,700, we will earn we have a very good profitability.
Speaker #1: It's a cumbersome process. It takes time, as you all know. We started this debt financing process in October last year, but it's very good for the project.
Speaker #1: And in the debt financing case, we are calculating with the copper price of 8,600 US dollar. And even at those levels, we will support our debt two times.
Speaker #1: Stability of the project—so we are happy with that process, and it has gone fine.
Speaker #3: Are you worried you'll have to push it beyond October?
Speaker #1: No, we don't believe so. So now we are really pinpointing credit committee days for the different banks, and also for the credit guarantee institutes.
Speaker #1: I interest and amortizations. So this is a very stable project. One reason for that is, of course, that we are so extremely well equity funded.
Speaker #1: So, everybody in this consortium is dedicated to delivering on this time plan. And it's in everybody's interest that we keep the time plan as well.
Speaker #1: Upfront with now 5.4 billion Swedish krona. So we are not worried for the copper price. But it is important to say, as you also saw in our Q1 report and the Captain Mark's presentations, we have continued constraint in supply of copper in the world.
Speaker #3: Sounds good. So, last quarter you talked very much about the copper price. Now, it has risen even more during this last quarter. If we were to see a setback in the copper price, how worried are you about your project?
Speaker #1: I'm not worried at all. Because you can see in Frieda's slide here that even at the much lower price than today—11,700—we will earn, we have a very good profitability.
Speaker #1: And a continued demand. So it is a very prosperous commodity. To work with. And we are bullish about the copper price going forward.
Speaker #3: Let's end with some words on the thrilling exploration. So how certain are you that your mineralized system is bigger than the current boundaries?
Speaker #1: And in the debt financing case, we are calculating with the copper price of $8,600 US dollars. And even at those levels, we will support our debt two times.
Speaker #1: Well, as I said, in my final statement there, first of all, it's extremely important to underline that exploration programs are in Viscaia are extremely carefully planned together with our mine planning team.
Speaker #1: Interest and amortizations. So this is a very stable project. One reason for that is, of course, that we are so extremely well equity funded.
Speaker #1: Upfront with now SEK 5.4 billion. So we are not worried about the copper price. But it is important to say, as you also saw in our Q1 report and the Capital Markets presentations, we have continued constraints in the supply of copper in the world and continued demand.
Speaker #1: We're not out there to show the overall potential for the whole Grand Viscaia. We are focusing on near mine exploration. That means that when we add new resources, they should be resources that easily can be converted to reserves.
Speaker #1: So, it is a very prosperous commodity to work with, and we are bullish about the copper price going forward.
Speaker #1: And in connection with that as well, show that the production planning for economical mining will be realistic in the near term. So but on top of that, as we have told before, we have done your physics, scout holes out there.
Speaker #3: Let's end with some words on the thrilling exploration. So, how certain are you that your mineral system is bigger than the current boundaries?
Speaker #1: Well, as I said in my final statement there, first of all, it's extremely important to underline that exploration programs in Viscaria are extremely carefully planned together with our mine planning team.
Speaker #1: So we know that this is an extremely prosperous deposit. Where we only have drilled at the top of the iceberg, if you can say so, the exploitation concessions are still only just 2% of the entire exploration area.
Speaker #1: We are not out there to show the overall potential for the whole Grand Viscaria. We are focusing on near-mine exploration. That means that when we add new resources, they should be resources that can easily be converted to reserves.
Speaker #1: So this will continue to be one of Europe's most thrilling growing copper deposits.
Speaker #3: And we're now looking forward in six months, you're going to do a mineral resource update. And you have you're talking about the midterm. You have a midterm target of 140 to 160.
Speaker #1: And in connection with that as well, show that the production planning for economical mining will be realistic in the near term. But on top of that, as we have told before, we have done geophysics and scout holes out there.
Speaker #3: Are you aiming for any specific figure in six months?
Speaker #1: We're aiming for to take significant steps towards our midterm goal already on February the 12th next year.
Speaker #3: Very good luck with that. Thank you. And concluding remarks.
Speaker #1: So, we know that this is an extremely prosperous deposit, where we have only drilled at the top of the iceberg, if you can say so. The exploitation concessions still cover only about 2% of the entire exploration area.
Speaker #1: And no questions from the chat?
Speaker #3: No. We've included them.
Speaker #1: Okay. Thank you. No. So thank you, everybody, for listening in today. And I look forward to see you again at the Q3. And of course, we have a lot of events happening now in the autumn with the inauguration of the Viscaia Village, the inauguration of the rail yard, and the continued construction and which you will see on social media as well.
Speaker #1: Exploration concession area. So, this will continue to be one of Europe's most thrilling, growing copper deposits.
Speaker #3: And we’re now looking forward— in six months, you’re going to do a mineral resource update. And you’re talking about the midterm; you have a midterm target of 140 to 160.
Speaker #3: Are you aiming for any specific figure in six months?
Speaker #1: We're aiming to take significant steps towards our midterm goal already on February 12th next year.
Speaker #3: Very good, luck with that. Thank you. And now, concluding remarks.
Speaker #1: And no questions from the chat?
Speaker #3: No. We've included them.
Speaker #1: Okay, thank you. No, so thank you everybody for listening in today. I look forward to seeing you again at the Q3, and of course, we have a lot of events happening now in the autumn with the inauguration of the Viscaria Village, the inauguration of the Rail Yard, and the continued construction, which you will see on social media as well.
