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Introduction & Market Context
Gruvaktiebolaget Viscaria (VISC) presented its Q1 2025 results and feasibility study on May 8, 2025, highlighting significant progress in its copper mining project in northern Sweden. The company’s stock closed at 23.15 SEK on May 7, up 2.43% ahead of the presentation, reflecting market optimism about the project’s development.
Viscaria positions itself as one of the largest copper projects in Europe, with an environmental permit that gained full legal force on April 16, 2025. The company emphasized its low carbon footprint and strong local community support as key competitive advantages in the growing market for responsibly sourced copper.
Quarterly Performance Highlights
The Q1 2025 financial results showed continued investment in exploration and evaluation activities. Capitalized expenses related to exploration increased to 84 million SEK in Q1 2025, compared to 58 million SEK in Q1 2024, reflecting the company’s ongoing commitment to resource development.
As shown in the following financial performance summary, while operating profit remained stable at -11 million SEK year-over-year, net profit decreased slightly to -18 million SEK from -12 million SEK in Q1 2024. However, cash flow for the period improved significantly to 151 million SEK, compared to -70 million SEK in the same period last year:
The company’s cash position strengthened considerably, with cash and cash equivalents reaching 382 million SEK at the end of Q1 2025, up from 196 million SEK a year earlier. This improved liquidity provides Viscaria with greater financial flexibility as it advances toward production.
The following chart illustrates the company’s capitalized expenditures related to exploration and evaluation assets, showing a consistent investment trend over the past several years:
Mineral Resource Update
A major highlight of the presentation was the updated mineral resource estimate, which showed significant growth in both tonnage and contained metal. The company reported a total mineral resource of 107.9 million tonnes at an average grade of 0.90% copper, containing 967.2 kilotonnes of copper.
The key metrics from the resource update demonstrate the scale of the project:
The detailed mineral resource statement provides a comprehensive breakdown by zone and resource category:
Viscaria reported impressive exploration results, with 28.3 million tonnes of additional inferred resources defined in just one year of drilling. These new resources have an average copper grade of 0.89%, containing over 250 kilotonnes of copper.
As shown in the following visualization of the successful exploration campaign results, the company has achieved significant resource growth across multiple zones:
Feasibility Study Results
The feasibility study presented by Viscaria outlined robust project economics with a life of mine of 17 years. The investment highlights show a post-tax internal rate of return (IRR) of 17.3% and a net present value (NPV) of 4.4 billion SEK, with a payback period of 4.3 years:
The company’s production profile has been optimized to focus on higher-grade zones early in the mine life. Total (EPA:TTEF) production is projected at 49.3 million tonnes, with 19.7 million tonnes from the high-grade D-Zone (1.19% Cu Eq), 19.0 million tonnes from B-Zone (0.70% Cu), and 10.6 million tonnes from A-Zone (1.18% Cu).
The underground mine design, which accounts for approximately 95.5% of the total ore produced, is illustrated below:
Viscaria’s competitive position in the copper market is demonstrated by its projected cash cost of $3,746 per tonne, which places it favorably on the global copper cost curve:
The project’s free cash flow profile shows strong economics, with cumulative cash flows amounting to approximately 11.8 billion SEK over the life of mine. The highest cash flows are projected to occur between 2029 and 2036, with a payback period of 4.3 years from first revenues in November 2027:
The life of mine financial economics summary provides a comprehensive overview of the project’s financial potential:
Strategic Initiatives
Viscaria outlined its funding strategy, indicating a total funding requirement of approximately 5.4 billion SEK on an unlevered basis. The company is exploring various debt financing options, aiming for a gearing level of 50-60%.
The initial capital expenditure (CAPEX) is estimated at 4.5 billion SEK, with process buildings and construction, process equipment, and infrastructure investments accounting for 71% of the total. A contingency of 553 million SEK has been included to address potential uncertainties.
The company benefits from its brownfield site status, with 65 kilometers of existing underground infrastructure that allows for a quicker start to production while avoiding high capital costs and long lead times typically associated with greenfield projects.
Forward-Looking Statements
Looking ahead, Viscaria highlighted significant potential for further resource growth. The company has identified exploration targets with tonnage potential of 27-54 million tonnes at grades of 0.9-1.3% copper, potentially containing an additional 350-460 kilotonnes of copper.
The company emphasized that the main mine site accounts for just 2% of its total permitted exploration area of approximately 120 square kilometers, suggesting substantial untapped potential within its land package.
Management noted that the environmental permit, which gained full legal force in April 2025, represents a significant milestone that clears the path for project development. With a strong cash position and a robust feasibility study in hand, Viscaria appears well-positioned to advance its copper project toward production in an environment of growing demand for responsibly sourced metals.
Full presentation:
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