Release Date: August 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nordic Mining ASA (FRA:7NM0, Financial) reported no lost time injuries for the second consecutive quarter, highlighting a strong safety culture.
- The company finalized a comprehensive environmental monitoring task force, ensuring a clear reference for the state of nature before production starts.
- Production ramp-up is on schedule to commence during the fourth quarter of this year.
- A five-year agreement was signed with a local mining operator, Sunnfjord Industripartner, ensuring local collaboration and expertise.
- The company successfully reduced foreign currency exposure through hedging and exchange, enhancing financial stability.
Negative Points
- The housing market in the Western world remains subdued, potentially impacting demand in the pigment sector.
- Geopolitical factors, such as EU's antidumping duties on Chinese imports, add uncertainty to the market.
- The company faces a long ramp-up period to achieve full production capacity, expected to extend through 2025.
- There is no significant update on the AlSiCal project, leaving its commercial viability uncertain.
- The process of transferring the stock listing to the main board at Oslo Stock Exchange is still in its early stages, with no clear timeline for completion.
Q & A Highlights
Highlights from Nordic Mining ASA (FRA:7NM0) Q2 2024 Earnings Call
Q: What is the strategic outlook for leveraging the titanium feedstock from the Engebø project in titanium metal production to Nordic Titanium AS, following the expiration of the five-year offtake agreement?
A: We are conducting preliminary scoping to understand the long-term potential of entering the titanium value chain. It is still in the early phases, but there are promising factors pointing in that direction. - Ivar Fossum, CEO
Q: Is the current rutile price in line with what Nordic Mining has forecasted?
A: Yes, we are slightly above our forecasted prices. We anticipate a further significant drop in global rutile supply, which may lead to price increases. - Ivar Fossum, CEO
Q: Is there any update on the AlSiCal project?
A: No specific updates. The research base from AlSiCal may lead to more detailed scoping studies for industrial applications, but it remains to be seen if there are commercial benefits. - Ivar Fossum, CEO
Q: Do you have any comments on the statements from ESA and the European Commission regarding their case against the state?
A: We have no specific view on that. We are confident in our permits for Engebø, and the city court verdict was comprehensive and clear. - Ivar Fossum, CEO
Q: How do you envision the process of finding a new CEO moving forward? Will it be an internal or external hire?
A: We have no specific comments on that. The process is ongoing. - Ivar Fossum, CEO
Q: Could you consider reinstating monthly progress updates for the later stages of the project?
A: We believe quarterly updates are sufficient at this stage due to the rapid weekly changes. We will focus on showing stages from mechanical completion to commissioning and start-up. - Kenneth Angedal, Operations Director - Engebo
Q: Has the ISPS certification been granted for the port facilities at Engebø?
A: Yes, ISPS approval is fully in place, and we have had boats coming in to offload equipment. - Kenneth Angedal, Operations Director - Engebo
Q: Can you provide more details regarding the process of going to full production capacity? When in 2025 is this expected to be achieved?
A: We will provide more details later as part of revenue and ramp-up projections. It is too early to specify now. - Ivar Fossum, CEO
Q: How long will the application period be for listing on Oslo Børs, and will Nordic Mining be on the main list by year-end?
A: We are working on the application and will provide updates this fall. The timeline is still being mapped out. - Ivar Fossum, CEO
Q: Will shareholders be invited to a tour at Engebø at the mine start-up?
A: We will seek to welcome as many visitors as possible, but given the hectic phase, it may be challenging to invite all 15,000 shareholders. There will be plenty of time to visit in the future. - Ivar Fossum, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
