Green Minerals Q1 2025 presentation: Equity raise and cost cuts extend runway amid continued losses

Introduction & Market Context

Green Minerals AS (OB:GEM) presented its Q1 2025 financial results on May 8, 2025, highlighting an oversubscribed equity raise that strengthened its balance sheet despite ongoing operational losses. The deep-sea mining company continues to position itself as a first mover in Norway’s emerging seabed mineral sector, emphasizing the strategic importance of securing critical minerals for the green energy transition.

The company operates against a backdrop of increasing global demand for copper and other critical minerals, with exploration budgets rising while discovery rates of new terrestrial deposits remain challenged.

As shown in the following chart illustrating mineral exploration trends:

Quarterly Performance Highlights

Green Minerals reported a Q1 2025 operating loss of NOK 2.13 million (approximately $200,000), slightly higher than the NOK 1.91 million loss in Q1 2024. The company’s cash position significantly improved to NOK 10.74 million at quarter-end, up from NOK 3.09 million at the end of 2024, primarily due to the successful equity raise.

The financial highlights table below shows the company’s continued pre-revenue status with minimal income of NOK 6,000 for the quarter:

The company successfully raised NOK 11 million through an oversubscribed equity offering and implemented substantial cost-cutting measures expected to reduce the quarterly cash burn rate by approximately 80%. These initiatives have extended Green Minerals’ operational runway, providing flexibility as it advances toward potential license awards in 2026.

Key developments during and after the quarter included extending a Memorandum of Understanding in the Clarion-Clipperton Zone (CCZ) to 2027 and securing additional optionality through runway extension while maintaining core competencies.

Strategic Initiatives & Partnerships

Green Minerals continues to develop its partnership ecosystem for responsible deep-sea mineral production. The company has established relationships with key industry players including OSI (which has become a shareholder), SMD (for development of a Core Sampling Unit), and other marine and subsea equipment specialists.

The partnership strategy aims to create a capital-efficient business model similar to offshore oil and gas services:

The company has developed a concept for a Seafloor Massive Sulfides (SMS) mining system specifically designed for Norwegian conditions. The system employs a semi-closed loop approach that the company claims will minimize environmental impact compared to traditional mining methods.

Regulatory Progress & Resource Potential

Norway’s preparations for its first deep-sea mining license round continue to advance, with Green Minerals noting that NOK 150 million (approximately $15 million) has been allocated for exploration in the 2025 national budget. The company reports that all its priority areas have been included in the nomination process, with license awards expected in early Q2 2026.

The licensing timeline and areas are illustrated below:

Green Minerals highlights the significant resource potential in Norwegian waters, claiming the Norwegian Petroleum Directorate (NPD) has identified substantial deposits of copper, gold, silver, and cobalt. The company emphasizes that the copper resource alone represents 1.8 times the current global annual production.

Financial Projections & Business Model

The company presented ambitious financial projections for its future operations, estimating that a single Harsh Environment Deep Sea Mining (HEDSM) system could generate steady-state annual EBITDA of $176 million. Green Minerals claims its business model offers superior economics compared to traditional mining, with lower capital expenditure requirements and significantly reduced environmental impact.

The projected cash profile for one mining system is illustrated below:

Green Minerals emphasizes the economic advantages of its approach, including:

The company’s partnership-based funding model aims to minimize direct capital expenditure while leveraging partners’ expertise and resources. This approach is designed to reduce financial risk while maintaining the company’s strategic position in the value chain.

Forward-Looking Statements

Looking ahead, Green Minerals expects to be well-positioned for Norway’s first licensing round, with applications ready by Q1 2025. The company anticipates benefiting from approximately $15 million in exploration data to be provided at no cost during 2025 through Norwegian Shelf Directorate funding.

Management summarized the company’s value proposition and runway extension strategy:

While Green Minerals presents an optimistic outlook, investors should note that the company remains pre-revenue with ongoing cash losses. The projected financial returns depend on successful license acquisition, technology development, and eventual commercial operations, all of which carry significant execution risks and regulatory uncertainties.

The company’s stock closed at NOK 2.50 on May 9, 2025, trading well below its 52-week high of NOK 8.40, reflecting the early-stage, speculative nature of its deep-sea mining venture despite the strengthened balance sheet and extended runway.

Full presentation:

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