Nordic Mining Q3 2025 slides: Operational challenges delay production ramp-up

Introduction & Market Context

Nordic Mining ASA (OB:NOM) presented its third-quarter 2025 results on October 31, revealing significant operational challenges at its Engebø Rutile and Garnet project. The company’s stock price declined 1.85% to 14.04 NOK following the presentation, approaching its 52-week low of 13.56 NOK, as investors reacted to production delays and financial losses.

Despite these challenges, Nordic Mining highlighted that market conditions remain favorable for its products, with titanium sponge demand remaining strong and garnet markets tight in Europe and North America. The company noted that titanium dioxide prices weakened during the quarter, though its fixed-price contracts for the first five years of production provide some revenue stability once full production is achieved.

As shown in the market update slide, the company maintains a positive long-term outlook based on limited new supply and continued demand:

Quarterly Performance Highlights

Nordic Mining reported mining 550,000 tonnes of rock in the third quarter, bringing the year-to-date total to 1.65 million tonnes. While mining operations appear to be progressing well with ore grade in line with feasibility studies, the company faces significant challenges in its processing plant.

The presentation highlighted that while the crushing circuit achieved 95% of design load and the primary mill reached 100%, the dry separation plant operated at only 50% of design capacity. These bottlenecks, combined with equipment wear issues and material handling problems, have significantly impacted production volumes and operational efficiency.

The company detailed specific operational issues being addressed, including pump circuit problems and screw feeder limitations in the dry plant:

In response to these challenges, Nordic Mining has implemented a prioritized approach to increase throughput and operational time, with specific focus areas for each quarter:

Detailed Financial Analysis

The financial impact of these operational challenges was severe in Q3 2025. Nordic Mining reported revenue of just 1.0 million NOK, with an operating loss of 129.1 million NOK and a loss before tax of 144.8 million NOK.

The company’s cash position declined significantly during the quarter, with the closing balance at 292 million NOK, down from 439 million NOK at the beginning of the period. Operating activities consumed 94 million NOK, while investing and financing activities used an additional 52 million NOK.

The balance sheet shows total assets of 3,224 million NOK, with an equity ratio of 38%. The combined carried amount of the producing mine, property, plant and equipment, and intangible assets stood at 2.84 billion NOK as of Q3 2025.

Strategic Initiatives

In response to the operational challenges, Nordic Mining has implemented several strategic initiatives. The company has brought in expertise from customers Iwatani and Barton, as well as technical support from Orion Resource Partners, to conduct an operational and technical review focused on improving plant performance.

Nordic Mining has also amended its ramp-up plan, acknowledging that the original timeline was too ambitious. The new goal is to reach design capacity in late Q2 2026, rather than the earlier target. The company has committed to publishing quarterly production data to provide greater transparency on progress.

To ensure sufficient funding through this extended ramp-up period, Nordic Mining completed a USD 22.5 million tap issue of its existing bond in October 2025. This additional capital is intended to extend the company’s financial runway until it achieves positive cash flow.

On a positive note, the company was awarded the 11th Fennoscandia Mining Award for the Engebø Project, recognizing it as the first new mine in Norway in more than three decades:

Forward-Looking Statements

Nordic Mining’s revised timeline targets design capacity by late Q2 2026, with a focus on increasing operational time and stability in its processing plant. The company has prioritized replacing worn parts, reducing equipment failures, and optimizing the mining fleet for 2026.

The presentation acknowledged that environmental organizations have sued Nordic Mining for a temporary injunction, though details on the potential impact were limited. This legal challenge adds another layer of uncertainty to the company’s already challenging operational situation.

Despite the setbacks, management remains committed to the project’s long-term viability, emphasizing that the market fundamentals for both rutile and garnet remain strong. With fixed prices for the first five years of production, the company has some revenue predictability once it overcomes the current operational hurdles.

However, investors should note that the significant cash burn and extended timeline to reach design capacity increase financial risk. The company’s ability to successfully implement technical solutions and achieve operational stability will be critical to its path toward profitability in the coming quarters.

Full presentation:

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