Earnings call transcript: Green Minerals’ Q1 2025 cash loss and strategic advances

Green Minerals AS (market cap: $929.63M) reported a cash loss of approximately $2 million for Q1 2025, despite successfully raising $11 million through an oversubscribed equity offering. The company has extended its operational runway to approximately five years and implemented a cost-cutting program that reduced its quarterly cash run rate by 80%. The stock, trading at $33.99, has shown resilience with a 6.48% gain year-to-date. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though it’s currently trading at high revenue and Price/Book multiples.

Key Takeaways

• Green Minerals reported a $2 million cash loss in Q1 2025.
• The company completed an $11 million equity raise, extending its runway to five years.
• A cost-cutting program reduced the quarterly cash run rate by 80%.
• Developed innovative deep-sea mining technologies with minimal environmental impact.
• Anticipates a significant production capacity and financial return from future projects.

Company Performance

Green Minerals has made significant strides in its strategic initiatives despite a challenging financial quarter. Its innovative approach to deep-sea mining, including the development of a semi-submersible production concept and a semi-closed loop mining system, positions the company as a leader in environmentally sustainable mining practices. The company has also established partnerships with global leaders for responsible production, further enhancing its competitive edge.

Financial Highlights

• Cash loss: $2 million for the quarter
• Equity raise: $11 million, extending operational runway to five years
• Cost reduction: 80% decrease in quarterly cash run rate

Outlook & Guidance

Looking ahead, Green Minerals expects to receive a license award in Q2 2026, which could enable the deployment of 3-5 production systems. The company projects a potential steady-state EBITDA of $175 million annually and a pre-tax cash return on investment of 300% per annum. However, InvestingPro analysis indicates analysts anticipate sales decline in the current year, with net income expected to drop. For detailed financial projections and comprehensive analysis, investors can access the full Pro Research Report, which provides deep-dive analysis of Green Minerals among 1,400+ top stocks. The strategic focus remains on leveraging its first-mover advantage in Norwegian deep-sea mining to capitalize on significant metal resources, including an estimated 40 million tonnes of copper in the Norwegian Sea.

Executive Commentary

Stoller Rudall, Executive Chairman of Green Minerals, emphasized the company’s strategic direction: "We have a world-class resource. You really don’t find this onshore anymore." He further highlighted the financial potential, stating, "The pre-tax cash return on investment is more than 300% per annum." Rudall also noted the company’s focus on sustainability and value creation: "We are building value while increasing the runway."

Risks and Challenges

• Regulatory hurdles: Awaiting license award in 2026, which could affect project timelines.
• Market volatility: Fluctuations in metal prices could impact financial projections.
• Environmental concerns: Deep-sea mining practices may face scrutiny from environmental groups.
• Technological challenges: Implementing new mining technologies could present operational risks.
• Geopolitical factors: Shifts in global trade policies may influence market dynamics.

Green Minerals remains focused on its strategic objectives, leveraging its technological innovations and partnerships to drive future growth and sustainability in the deep-sea mining sector. With an InvestingPro Financial Health Overall Score of 1.95 (rated as "FAIR"), investors seeking deeper insights into the company’s valuation, growth prospects, and peer comparison can explore the comprehensive analysis available on InvestingPro, which offers exclusive access to advanced metrics and expert insights.

Full transcript - Green Minerals AS (GEM) Q1 2025:

Stoller Rudall, Executive Chairman, Green Minerals: Good morning, everyone, and welcome to this First Quarter Conference Call for Green Minerals. My name is Stoller Rudall. I’m Executive Chairman in the company. And I’m here or at different locations then with Eivind Dahl Stammnes, our CEO. Financial highlights for the quarter, as you’ve become accustomed to, there is a cash loss of around 2,000,000 that has continued for the quarter.

We announced earlier in the year a significant cost cutting program following the delay to the first licensing rounds, which will lower our quarterly cash run rate by approximately 80% going forward. Highlights for the quarter. The company completed a successful and oversubscribed equity raise, raising 11,000,000. Combining this with bullet number three on this page, this means that we have secured optionality for our shareholders through a significant extension of the company’s runway. And actually, we are super happy about this.

The company now has visibility for runway further than we have actually ever had since we started up. So at the current run rate, we will be able to we will be able to run the company for five years up until we receive a license. Obviously, we hope that will happen significantly sooner, but at least this is is the runway that we now got. So, these cost cuts together with the guaranteed rights issues, is behind this. But also importantly, we are able to maintain company, competency in the company whilst at the same time reducing capacity.

And this is really key at the current juncture. We believe for not only the company, but for the entire industry as we are waiting for the licensing round to get to get going. So we are really pleased about this. We, took action really quickly after the surprise turn of events on the December 1 with the budget deal with the far left party and the government. And and we are now in a very good position then to for for license award and to have secured the optionality to take on licenses for a considerable amount of time.

Further, we announced that we have extended the Memorandum of Understanding that we have with the Group of Nations for a really large license in the Clarion, Kippurton, Saud. And this MoU has been extended until 2027. And just to remind you, the size of this license is quite something. It would be if we talk if you if we were to equalize this to North Sea oil and gas blocks, we are talking about the size equal to a 80, North Sea, oil and gas blocks or around five times Aker BP, for example. The license contains more than 200,000,000 tons of wet nodules, and there has been $40,000,000 of exploration sunk into the license.

So we are really pleased and excited about this MoU. And then we will take our time waiting for the opening process in the ISA before we take on any cash commitment here. And this is really key to understand green minerals, I think, against the rest of the industry. And that is our clear focus on holding cash spend at an absolute minimum, until we can match it with revenues. Further in Norway, the authorities are preparing towards the first licensing round unabated.

So another NOK 150,000,000 was allocated to exploration in the 2025 budget, and this is up five times versus previous years. In addition to that, there is a hearing ground on regulations ongoing as we speak. We are having additional data released from the shelf directorate, and we are working these data into our models as we proceed throughout this year. So in a way, you could say that just mathematically, the company through this PPP partnership in, in, Norway, or model in Norway, we are able to add, to our data library at zero cost. So currently, our data library is around $50,000,000 at zero cost.

By the end of the year, we expect to have around 65,000,000 of exploration data at zero cost. New discoveries are being made and Eivin will get back to that. And we expect the license award in the second quarter twenty twenty six. Further, the important turn of events here subsequent to the end of the quarter was that The US a US executive order was signed by President Trump in April. And this order kick starts US deep sea mining, both in The US and in international waters in order to combat China’s grip on critical minerals, which I will get back to.

And this, executive order underpins the global momentum that we are seeing in, deep sea mining. WWF lost their opening case against Norway. This verdict came in February. There is a seven 70 page verdict for anyone to read, but I think that is important. New Zealand is considering withdrawing the ban.

It has had on DSM for quite some time for a reason that I think is interesting to quote their energy minister. That is that, New Zealand now feels that the ban has been based on thrill environmental alarmism. And they want to take a more science based approach, which is would be the same that we have been doing in Norway. And, to top it all off, China is exploring a deal with Kiribati. And, I think that really underlines the importance and the timing of The U.

S. Executive order that came out here just a couple of weeks ago. So why is deep sea mining so important? Why can’t we just continue to take up these minerals on land? And these charts, of course, are a little bit different between different grades, but we are using copper as copper is the metal of focus for green minerals.

And it essentially shows you the one of the biggest reasons for turning to the deep sea to add more metals to the global economy. As we’re seeing here, there has been a 600% increase in CapEx in from the large miners over the last twenty years. And at the same time, we have seen that significant fines have been declining steadily. And indeed, over the last ten years or so, almost nothing, no new commercial finds, or discoveries have have been made. So obviously, pouring more, CapEx, into this exploration, doesn’t really matter.

We have, come now to a a stage, where this resource has been, has been exploited, on land and, 70% of the planet, are made up of of the deep sea. And indeed, going there, we will we have the possibility to to find significant new resources over quality that we haven’t done on land for the last hundred fifty to two hundred years as we will show you. Second slide here shows the need for the West then to be doing this. This has to do with the geopolitics of advanced energy. I’d like to draw your attention to the second column here, which is processing, where China has got a firm grip on the processing of these critical minerals.

And we have seen over the last few years that China has started to put export controls in place on some of this, which has really put the West in an untenable situation. Some of these minerals go into the West high-tech and indeed defense industries. And with the geopolitical situation being as it is on the planet currently, this is simply untenable for the West and untenable for NATO. Green Minerals is to the far left in the mining column here, of course, and you only see the China flag in rare earths. But if we were to redefine this column into which country controls these reserves, you will see China all over the place, also on cobalt, for example, the DRC, lithium and so on.

So from mining through to processing, at least it is of utmost importance for the West and for the NATO to start rebuilding the supply chain into something that will give a more stable supply of these minerals going forward. And indeed, this is what lies behind The U. S. Executive order. And indeed, this is one of the strongest reasons for why Norway, after having done thorough research for more than twenty years, have decided to open up for deep sea mining.

So with that, I leave it to you, Eivind.

Eivind Dahl Stammnes, CEO, Green Minerals: Thank you, Stola. Moving to the Norwegian continental shelf. In 2023, the shelf directorate presented their resource mineral resource estimate for the Norwegian Sea, both for the seafloor massive sulfides and also for crusts. The table show their resource estimate for the seafloor massive sulfides. And this estimate is significantly up from previous estimates that were presented by others earlier.

And it truly demonstrates that the Norwegian Sea holds a world class metal resource. The estimate of copper, the most valuable metal and also our focus area in green minerals, is close to 40,000,000 tonnes, and that amounts to about 2x the annual global production of copper. And in addition, there is substantial zinc, cobalt, gold, silver resources and also other metals. And I think it’s important to note that this resource estimate is strongly supported by several very copper rich discoveries that has been made on scientific cruises by the shelf directorate and universities, as I will show on the next page. Next, Stoller.

This figure is a three d perspective of the more than a thousand kilometer long ridge between Jan Mine and Spitsbergen called the Mons And Kniepovich Spreading Ridges. In blue colors are the deep areas, often down to 3,000 meters plus of water depth. In more warmer colors are the flank areas, where the water depth is 1,000 to 2,000 meters. And along the ridge, you can see the names of several of the discoveries that has been made already. All the way in the lower left corner, Deep Insight was discovered in 2023.

It’s in about 1,100 meters water depth. It has an estimate of 10,000,000 to 15,000,000 tonnes of ore with very high copper content. And next to Deep Insight, there are very strong indications of another deposit only two kilometers away, strongly supporting the theory, the cluster theory that says where you will where you find one deposit, you are likely to find other mineral deposits. All the way to the north in the upper left corner, you can see a name Jotul. Next to Jotul, there was a new discovery made in December 23 and confirmed in March now this year.

In early April, this was announced by the shelf directorate. It’s the the name of the discovery is Yigra. And early measurements, made on board on the ship indicate copper content between 230%, three-zero percent. It’s also very rich in the mineral Atakamit, which is normally a very, very copper rich metal. And again, in the close vicinity to Jotel, this again demonstrates that the cluster theory, holds.

And I think also what’s important to keep in mind is that these discoveries, they are all on the seafloor. They are not buried. And compared to the, for example, oil and gas industry and also conventional mining industry on land, these are relatively easy to detect at a very much lower exploration cost. Next, please. As regards to the first license round, Stola has touched upon this already.

We are now expecting the round to be announced around year end this year with awards in the second quarter twenty twenty six. The map, shows you in with the bold black lines, the area that is tooting with an eighty twenty majority in January, last year opened up for mineral activity. And in yellow are the three eighty six, blocks or partial blocks that were included in or that was suggested for the announcement in the first license round. It’s, worth to notice that all our priority areas in Green Minerals were included in the yellow areas. And as Stola also mentioned, the ministry, and the authorities have stepped up the mapping activity significantly.

The budget this year is about five times the budget for previous years. And all these data will be made available, to Green Minerals and the industry. And in Green Minerals, we will be ready with an application then hopefully now within a year’s time or so. Yes, Stola, I’ll leave it again to you.

Stoller Rudall, Executive Chairman, Green Minerals: Thank you, Eivind. So in the following, there will be a few slides, a section with a few slides that repeats a message that we have delivered a couple of times before. This is to the benefit of new listeners on the call and indeed some new shareholders that came into the company here in the beginning of the year. So briefly, Green Minerals has established a partnership for responsible production. We have done so with globally leading companies in their field, indeed Oil States leading the consortium together with ourselves and the RiserTech technology owned by Oil States and also Soil Machine Dynamics on the subsea equipment.

In addition to that, there are other partners in this consortium, names who will remain undisclosed until we get closer to production. The mandate for this partnership has been to to create or design a production concept, with the least possible impact on the seabed as well as the surrounding waters when producing for these minerals. And in the following, I will show you a video that clearly demonstrates the this production concept. So what you’re seeing here is a semi submersible. The company needs only a large platform deck with some stability.

This one is modeled after the Henry Goodrich, which is a nineteen eighties type of platform owned by the by Transocean. You saw the production team there. It’s a two individuals with remote controls controlling the production of the platform. The pressure exchange chamber or the pump is being lowered in the current section. And here you see the riser from OSI.

It has two fluid lines going down and one line with the slurry going up. And here, yeah, you can see the entire production system with the seabed units in front. And then you see the pump, the riser, the platform and the bulk carrier on top. And here, seabed unit is being connected. And the bulk air is being more through a disconnectable turret, which is a green minerals invention.

Technology has been taken from oil and gas. So all the technology you’re seeing here is essentially subsea oil and gas that has been adjusted to to this use. So it’s tier nine across the the production system. And here, you can see the unit starting to cut or basically to gather ore, which is being crushed, mixed with seawater and is being pumped through the riser through the platform and directly onto the bulk carrier. And in the bulk carrier, this ore then is being filtered.

The seawater yeah. The seawater is then being filtered and is being pumped back down to where it came from, which is the seabed. So what you’re seeing here is a semi closed loop system, And I’m sure anyone understands that there is essentially no emittance of anything from the system. It’s filtered sea water being pumped back down. And otherwise, there is no emitters of anything from the production system into the water.

Here, we’re seeing the disconnectable turret in operation, one bulk carrier moving out, taking the ore to shore and the next one moving in. And the port we’ve chosen here is Narvik, where there is an existing infrastructure to transport this ore further. So here, see the entire production system. And I think it’s important other than what I said about emittance. Also in terms of sound, there are no pumps along the riser system.

And the sound has been the sound on the entire production system has been tested against the natural sound in the surrounding seawater. And at no point along the production system is the sound in the system higher than what you have in surrounding water. So we believe this shows that we will be able to extract these minerals from the seabed in a sustainable and environmentally friendly manner. And in particular, if you compare to the way this is being done onshore, we think this is indeed environmentally friendly. And for those who want to dive into this in further detail, I can recommend a report by two professors in The U.

S, Polica S. Et al, that in 2020 came up with a report indicating a reduction in environmental footprint of more than 90% from deep sea mining compared to terrestrial mining. Yes. Just one comment. You see the chopper over the bulk carrier.

This is because of the distance to shore, so there will be no personnel transport direct with helicopter from shore to the production system. This will happen together with the bulk carrier and then transported by chopper from the bulk carrier to the platform. So just to look at the economics here. And I think, indeed, just wanna sort of, make a comment there because, I think over the past few years, we have done a lot of work and most of the questions we’ve had has been around the social acceptance or the social license then, to produce, from the deep sea, in particular on factors connected to the environment and and biological factors. Lately, we have a strong sense, that the all the data that has been produced, by academia and, indeed, the the Norwegian government amongst others, has given very good answers to these concerns and, and questions which naturally, occur, when when, going after a new resource, like this.

Lately, the questioning to us then has turned more on economics, of a project like this more than, I would say, the social license. So we have, we have, of course, together with our partners, done a lot of work analyzing the cost structure of of a production system like this and what the profitability would would be. Obviously, we did this even we had the sketch for this even before we started as an asset test to the project. It has been developed further with our partners. So I think there are some factors that are really important to take on board to understand deep sea mining.

And I would also say to understand, green minerals and where we may, differentiate, from from the industry. First of all, there are no infrastructure investments needed in deep sea mining. This is really important. It is important for the timeline, and it’s also important for the CapEx needed. As you know, terrestrially, these new projects are far and few between, and you need to go to real faraway places, to start producing.

So the infrastructure investments can be really large and into the billions of dollars, before we even get started. We don’t have that in deep sea mining. We simply take the equipment on the boat and go out and start producing. The CapEx per ton of mineral produced is more than 30% lower than what you see on onshore. So this is just directly on the production equipment, not taking into account the infrastructure.

When it comes to production efficiency, I think it’s worthwhile remembering that we don’t have any sunk cost in in a mine like this, like you have onshore. So whenever we feel that the the ore grade is getting suboptimal, we will simply pick up the equipment and leave for the next site. A case in point here can be if you look at the Boliden’s Aitik mine in Sweden, where they are producing now more than 40,000,000 tons of ore, but only 60,000 tons of copper coming out of that. So they are down to 0.16% ore grade, which is something, of course, that we would never do would never have to do in in the deep sea. Where we will leave it, we will see.

But the starting point is around five to 6% ore grade or about 30 times higher than what Poliden is producing from Aitik. And, of course, this bodes well if the processing facility that Aitik’s ore go to, where to add our high quality 6% ore grade ore. It would bode well for the processing efficiency of of that facility if something like that were to happen. We have done the test, as you all know. It’s a world first test between SMS and BMS.

And, so we know that we can, we can indeed co process our ore with this low quality ore and raise the value and the life of mine for for something like, ITEC or or others in the same position. In addition to that, we will introduce an offshore oil and gas services business model. This is we are we come from oil and gas, and this is a business model that we are used to. We are confident that we will be able to introduce it to this industry, which bodes really well for the capital efficiency in this project, which I will get back to. But returns are set to be significantly higher than what you see in terrestrial mining.

On the environmental side, I touched upon it, but more than 90% reduction in environmental footprint expected. We will have a semi closed loop harsh environment deep sea mining system then. We already talked about how this will work technically. Important to add also, there is no mid water plume as far as we can see and no pumps creating noise along the riser system. And finally, just the quality of the ore, it’s sharply reduced overburden with less waste and less tailings.

The cash flow profile for the company will look as follows. This is on the basis of only one production system. And as far as we know, we are the only company that has gone through the entire value chain that has a production concept in place. So we see no reason why Green Minerals will be limited to one production system, frankly. We believe our system should be adopted on several projects on the Norwegian continental shelf, and we indeed expect that to happen, which is really interesting, I think, from a cash flow point of of view, given the oil service type of rental model that we’re looking at.

In any case, the max drawdown, that we can see for the company, and this has then been adjusted for the one year delay following the budget deal with the far left socialists that government did in December. So the maximum drawdown that we can see for the company is around $35,000,000. Now this assumes that Green Minerals will be out exploring at our own cost and at our own balance sheet for three years. That will not necessarily be the case. I can just say that right away as you have seen from us previously, and I will get back to a table showing you the projects we’ve been involved in and our cash spend.

But as you’ve seen previously, we’ve had quite some success with limiting the cash spend on the Green Minerals account. And we really expect that to continue. And if that were the case, you can take out, well, $30,000,000 from that max cash drawdown actually. So the company, we think, will be in an enviable position to get to production with, I think, historically low cash burn partly because of our strategy and the way we have been doing it through our partnerships and partly through the PPP model in Norway. And this is one of the reasons that we really, really favor Norway as the region to start up in, although we do have a very exciting license also in the CCC.

So when cash flow starts to flow from this production system, it will be solid cash generation. So based on current copper prices, and we have only assumed copper then to be processed here, A steady state EBITDA would be in the area of $175,000,000 annually. I can add that there’s no guarantee that this can be done, but we have ambitions to see if we can be able to do a second round of processing also for cobalt. And if we were successful, you can add $250,000,000 to $300,000,000 per year to that annual cash flow. So that is actually quite something.

Now the numbers I’m showing you here is on a green minerals basis. That means that we have paid off the contractor. We paid off the consortium to run the system for us with no CapEx on our balance sheet. So paying down the the contractor for this. On a project basis, a project like this, meaning around 1,500,000 tons of ore lifted per year with around 70,000, 70 five thousand tons of copper produced will be running at more than $500,000,000 in EBITDA.

So we’re paying quite a lot to have this CapEx off our balance sheet. As you understand, project profitability here is quite something. Now this is just one project, and there are thousands of deposit out there on the Moons Ridge or nearby the Moons Ridge. There is no reason why should we should limit ourselves to only one of these production systems. So indeed, with the right partner in place, we hope to be able to put out more than one.

A number of, say, three to five, I think would be natural to gone for. But first things first, first license and the first production system and learning from that and then more systems after that. But truly exciting. It’s a it’s a world class resource. That’s the most important thing.

It you really don’t find this onshore anymore. And we have a world class regulator together with us. We are really super happy to be doing this in Norway. And and lastly, our consortium and the work that we’ve been there is also something that we are really pleased with, and we look forward to continue to working with this world class consortium going forward to make this happen in Norway. I touched upon this history of CapEx and funding that Green Minerals has been doing.

And to the right here, you see status of the project where half of them has been finished already. And you see the resultant take on Green Minerals cash from these projects. And the bottom line here, what we’re trying to show in this table is that Green Minerals has been participating in a number of high profile projects, some of them with a quite large CapEx attached to them, but with close to zero funding need from green mineral side. Our input has been in kind. Our input has been the competency and the position that we have as a front runner for a license in Norway.

So the table that you see here is, in our opinion, quite something. It has added a lot of value to the company. I mentioned that we have more than $50,000,000 in exploration data in our computers already. But the competency that we have added through this other projects and the value of that is it’s hard to pin down on an exact number other than that it is large. It is really large.

So we have developed a production concept at zero cost or zero cash cost for Green Minerals. We have participated in two research cruises at an almost insignificant cost. I think this is important. There are other ways of doing it. And indeed, there are peers forking out in the tens of millions of dollars to go out on cruises.

And we are just super pleased with the way we’ve been able to do this. The baseline exploration data, this is from the government. This goes for not only us, but for the industry. This has is being made available to us at zero cost. We have done the blendability project, which is a world first project.

We admittedly, it’s a low CapEx to do the project. This has all been onshore. We have been able to supply the material. So thereby, our efforts in cruises and, call it, research type exploration has been important. And our funding cost has been negligible.

And then we are involved in other projects as well that are in progress with the zero funding cost for green minerals. These are important projects on their own. And then on the last two lines, you find the next really significant to large CapEx items. And that is our exploration CapEx. This is pending and the production system the same.

So we don’t have there is no guarantee what our what the cash spend for green minerals will end up being on exploration and production system. But indeed, our ambition and with the track record that we have and the learnings that we have had so far, our ambition is clearly to be able to do both the exploration CapEx and the production system without taking that CapEx on to Green Minerals balance sheet. So this is all, of course, to protect the return for the shareholders and not least, to make sure that the current shareholders, the existing shareholders end up being, the shareholders that will benefit from the significant cash flow that will that will take place in a few years’ time. I think just what I I think what you’re seeing here, this table is something that set Green Minerals apart from the industry, really. This slide, optionality secured.

We show this, in our last quarterly report as well, so I’m not going to take, too much time on it. Only conclude that the founders in the company has made a significant commitment. And together with the cash raise of CHF eleven million, dollars we have then been able to extend the runway to what we see as around five years. So with this funders commitment, we’re able to cut cost with 80%. This is based on what used to be the run rate of $10,000,000 per year.

We are increasing business development activity. The ecosystem of potential partners is expanding as we speak. And the cost for the shareholders is limited to an option program to a team of a handful of people that will be earned, that will be vested and executed over a five year period. So we’re really happy with this solution and the way it protects shareholder interest and optionality for shareholders for a considerable amount of time. And we’re also super happy to be able to show to the authorities the ability for this company to raise money even in the most difficult of times, which it, of course, was in the first few weeks after the very surprising one year delay to the first license round.

So competency being maintained, this is done through consultancy contracts board directorships. Our consortium is ready and ready to act as soon as license is on board. And as Olivier mentioned, the first round license application has been we’ve come far on that ball. It has a high readiness level, and we should be in a position to pretty quickly deliver it after having received the license papers, which we expect to be in the fourth quarter of this year. Yeah.

And then we have mentioned that the license work is continuing for the authorities. The hearing around on regulations going on. There is a quintupling of investment into the sector this year by the government. And this is indeed something that the company is benefiting from as we go along throughout the year. So in summary, we are building value while increasing, the runway.

I think this is the main take, for, Green Minerals, for the current year. So importantly, Norway opened up as first country in the world for deep sea mining on the 01/09/2024. This was with an 80% majority and all of green minerals nominated areas was taken on board in this, first license round. So we see Green Minerals, as being in pole position for a license win really. The crude production concept has been developed as you’ve seen, today.

And this is done together with globally leading partners, and, we’re ready to execute, as soon as the authorities push the button. The world first blending study, super important from an industrial point of view, and the mining structure in The Nordics is well developed. We expect off take agreements to be made closer to first off. The deep sea mining economic metrics are superior to traditional terrestrial mining as we’ve gone through. This has to do with several things.

It has to do with the resource, it has to do with the business model. And in sum, this gives some quite unusual return numbers for a mining company. As you will see, the pretax cash return on investment is more than 300% per annum. This is based on only one production system and based on CapEx being taken outside of Green Minerals balance sheet then. And the pretax cash payback time for the entire project is less than four months on the current copper prices.

And mind you, this is assuming that exploration CapEx will be taken by the company, which I think there is how should we say, there is a certain probability that that will actually not happen. And then the cash payback time is considerably less than four months. Anyway, these are certainly interesting interesting figures from an investment perspective. So in some, long term optionality secured through the founders in kind commitment and the guaranteed rights issue that we did. And we are just super pleased and want to thank our existing and new shareholders for the support that you have given the company, in particular, these first few weeks then after after the surprise delay by the Norwegian government.

That is something that we are very humble and grateful for. And as a reminder, Green Minerals is primarily a copper play. This is the metal that we have done the most research on that we feel the most confident on, has to do with both substitution risk, supply side risks and other things. And this license that we have in the CCC provides upside to the company on other key battery metals when we choose when the transfer of rights have been made and the company chooses to to invest into further into into that license. So that would be all from us.

I think that was a quite thorough run through, of of, the status for the company. And, let’s see if there are some questions. You can ask that in the in the q and a, section. And let’s just give it let’s give it a few seconds to see if any questions come up. So okay, can start with one.

So the question is what size are the licenses that we are talking about here? Eivind, do you want to answer on that?

Eivind Dahl Stammnes, CEO, Green Minerals: We don’t we don’t know exactly for sure how big each license will be, but we anticipate that one license will consist of several blocks. And these blocks are of the same size as you find, in the North Sea when it comes to oil and gas blocks. And each block is about 12 by, 28 kilometers, in size, and we can anticipate that one license will consist of several of those of such blocks.

Stoller Rudall, Executive Chairman, Green Minerals: Yeah. Okay. So how much do you expect to produce per annum when fully up and running? So, yeah, that’s what I I alluded to when I said one and a half million tons from per deposit. And then the question is, this is one and a half million tons of ore.

So with the ore quality, we’re seeing, say, around 70,000 tons 70,000 tons of copper. And then the question is how many how many deposits we will be producing for eventually. So the question is what you mean by up fully up and running, but fully up and running one production system, 70,000 tons of copper. And with our target of say three to five systems, you can times that by three or five, meaning that the company would become a significant copper producer on a global scale. And by the way, just wanna add to what said about the the copper resource estimated on Norwegian continental shelf.

It is of about the same size as the one that is estimated for all of China, just to put it in perspective. Where will you source the funding from? I think that’s something that we will need to come back to. That is, definitely too too early, but, I can say as much as that, of course, with, deep sea mining moving up the agenda, for several players in the industry. The, the interest for this is, is definitely there out there.

So we’ll just have to wait and see what happens. So, yeah, I I think we will leave it with that. So thank everyone for for listening to this call, and we would see you again in three months. Thank you.

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