Endomines Finland Oyj: Strong growth continued in 2024 - The revenue increased 74 % in H2 and Pampalo EBITDA reached 40 %

Endomines Finland Plc - Financial Statements Release - 13/2/2025, at 10.00 EET

Strong growth continued in 2024 - The revenue increased 74 % in H2 and Pampalo EBITDA reached 40 %

H2-2024 in brief

• The group's revenue increased by 74 % and was MEUR 15.6 (MEUR 9.0)
• The group's EBITDA was MEUR 3.9 (MEUR -1.0)
• The Pampalo production segment's EBITDA was MEUR 6.3 (MEUR 0.9), or 40 % of revenue (10 %)
• The group's operating result was MEUR 2.5 (MEUR -2.2)
• The group's net result was MEUR 1.3 (MEUR -3.5)
• Gold production in July-December increased by 20.7 % and was 226.6 kg (187.8 kg), or 7,285 ounces (6,038 ounces)
• In July 2024, Endomines reported the results of the base of till sampling program implemented in the Southern Gold Line in 2023-2024. Several significant gold anomalous areas were identified in the area. Gold concentrations in base of till samples indicate gold concentrations in the bedrock and are used to guide exploration drilling. Samples were taken from completely untested areas in the immediate vicinity of known deposits, indicating that it is possible to grow known deposits much larger than their current size.
• In July 2024, Endomines reported high-grade exploration results from Korvilansuo, Southern Gold Line. All drill holes drilled in 2024 exceeded the lower cut-off concentration of 0.4 g/t gold used in reporting. The drilling campaign confirmed the expansion of Korvilansuo to the north.
• In July 2024, Endomines reached its production capacity to drive production periodically at a production level of 20,000 ounces. During 2024, the goal has been to periodically drive production at that level and thus ensure the functionality of production at a higher production level.
• In August 2024, Endomines reported high-grade exploration results from Kartitsa, Northern Gold Line. The discovery of high-grade, near-surface gold mineralized zones north of the Kartitsa mineralization supports further exploration opportunities in the area.
• In September 2024, Endomines reported on the results of exploration in Hosko, started drilling in Kartitsa and expanded the mining operations of the Hosko production area underground.
• In October 2024, Endomines received confirmation from the US authorities for its Small Miners Exemption (SMES) application in the Montana US Grant mining area. SMES enables exploration in the gold and silver mining area of the US Grant and is an important part of permitting aimed at production.
• In November 2024, Endomines lowered the production guidelines for 2024. In the new guidelines, gold production was estimated to increase by 8-15 % compared to 2023.
• In November 2024, Endomines reported excellent gold discoveries from Kartitsa, Northern Gold Line. The results confirm the exceptional gold potential of the area. The results suggest a long and continuous gold-bearing zone. In addition, mineralization is still open to the north, south and depth.
• In December 2024, Endomines received exchange notices related to convertible loans, based on which a total of 7,356,603.47 euros were exchanged for new Endomines Finland Plc shares. As a result of the exchanges, 1,034,690 new Endomines Finland Plc shares were registered and issued. On 20.12.2024 Endomines received the flagging notifications in accordance with Chapter 9 §5 and §6 of the Securities Market Act: Joensuun Kauppa ja Kone Ltd / Kyösti Kakkonen / Kakkonen-Yhtiöt Ltd / K22 Finance Ltd's share of Endomines Finland Plc's shares and votes fell below 25 % flagging limit, Mariatorp Ltd's share of Endomines Finland Plc's shares and votes exceeded the 10 % flagging limit, and Wipunen Varainhallinta Ltd's share of Endomines Finland Plc's shares and votes exceeded the 10 % flagging limit.

Fiscal year 2024 in brief

• The group's revenue increased by 46 % and was MEUR 28.7 (MEUR 19.7). 100 % of the group's revenue comes from the Pampalo production segment's revenue.
• The group's EBITDA was MEUR 5.8 (MEUR -0.7).
• The Pampalo production segment's EBITDA was MEUR 10.3 (MEUR 3.3), or 36 % of revenue (17 %).
• The group's operating result was MEUR 2.6 (MEUR -3.0).
• The group's net result was MEUR 0.3 (MEUR -5.3)
• Gold production from January to December 2024 increased by 11.8%. Production for the year 2024 was 444.9 kg (397.8 kg), or 14,304 ounces (12,790 ounces). 100 % of the group's production comes from the Pampalo production segment.

Outlook for the financial year 2025

• We estimate gold production to be between 16,000 and 22,000 oz (497.7 kg - 684.3 kg). In 2024, Endomines produced 14,304 ounces (444.9 kg) of gold.
• Production growth is estimated to be greater during H2-2025.

Group's result

Key figures	Unit	1.7.-31.12.2024	1.7.-31.12.2023	1.1.-31.12.2024	1.1.-31.12.2023
Revenue	MEUR	15.6	9.0	28.7	19.7
Pampalo production revenue	MEUR	15.6	9.0	28.7	19.7
% of revenue	%	100 %	100 %	100 %	100 %
Operating expenses	MEUR	-11.7	-10.0	-22.9	-20.3
EBITDA	MEUR	3.9	-1.0	5.8	-0.7
Pampalo production EBITDA	MEUR	6.3	0.9	10.3	3.3
% of revenue	%	40 %	10 %	36 %	17 %
Depreciation and impairment losses	MEUR	-1.4	-1.2	-3.2	-2.3
Operating result	MEUR	2.5	-2.2	2.6	-3.0
Net result	MEUR	1.3	-3.5	0.3	-5.3
Net gearing ratio	%	32 %	46 %	32 %	46 %
Equity ratio	%	54 %	55 %	54 %	55 %
Earnings per share	EUR	0.1	-0.4	0.0	-0.6
Cash Cost in Pampalo, excl. investments	EUR/oz	1,252	1,399	1,281	1,278

The group's revenue for the financial year increased by 46 % and was MEUR 28.7 (MEUR 19.7). 100 % of the group's revenue consists of the revenue of Pampalo production's segment. The increase in revenue is a result of the increase in production volumes, the high market price of gold and the strong US dollar. The group's EBITDA was MEUR 5.8 (MEUR -0.7) and the EBITDA of the Pampalo production segment was MEUR 10.3 (MEUR 3.3), or 36 % of the revenue (17 %).

CEO's review

The year 2024 was a time of significant change for us. The effects of the strategic changes and favorable gold market were reflected in our strong July-December result. In July-December, our revenue grew by an impressive 74 %, and the EBITDA of the Pampalo's production segment rose to 40 % (10 %) of revenue. The group's operating profit climbed to 16 % (-24 %), and the group's net profit exceeded 8 % (-39 %) of revenue. Additionally, we strengthened the company's balance sheet, and our net interest-bearing debt decreased by 26 % in July-December compared to the January-June reporting period of 2024. Our production volumes increased by 20.7 % in July-December compared to the comparison period. Our goal is to increase our production volumes every year. I am extremely pleased with our strong results and the changes achieved in all areas of our business.

The entire year 2024 reflects significant changes on all strategic fronts. Our financial performance turned positive, and our revenue grew for the second consecutive year by 46 %, reaching MEUR 28.7 (MEUR 19.7). The group's EBITDA was MEUR 5.8 (MEUR -0.7), which corresponds to 20 % of revenue, and our net profit was positive. The EBITDA of the Pampalo production segment was MEUR 10.3 (MEUR 3.3), or 36 % (17 %) of revenue. The unit cost per ounce excluding investments was 1,281 EUR/ounce (1,278 EUR/ounce). The change has been immense, and the journey to this point has been eventful. Two years ago, the Endomines Group's EBITDA was MEUR -6.4, and our net profit was MEUR -17.5 in the red. It is great to see the impact of our strategic actions on the company's results.

From 2022 to 2024, we focused on laying the foundation for our business. Now, we are entering a new phase where our focus is on bringing new areas into production and growing the company to a significantly larger scale. Our long-term goal is to increase our production level from the current annual output of over 14,300 ounces to 70,000-100,000 ounces, estimated in the year 2030. In this new phase, we will focus on the technical and economic planning of a new production facility and the actions required by the permitting processes. At the same time, we will continue to develop our current production and conduct extensive exploration to increase our gold resources.

Our exploration efforts in 2024 focused on the Southern and Northern Gold Lines. We achieved excellent results both in the Kuittila-Korvilansuo axis in the south and in Kartitsa in the north. High concentrations of tungsten and molybdenum were also found in the Kuittila area. Tungsten is one of the 14 critical raw materials of the European Union, and Endomines plans to apply for the status of a critical minerals producer in 2025. This status could open opportunities for new financing channels and an accelerated permitting process. In 2024, we also conducted environmental studies and an environmental impact assessment program in the Southern Gold Line area. We plan to submit the program for review in the spring of 2025. According to our estimate, the environmental permit decision could be realized by 2028.

The Kartitsa area is a relatively new exploration target for us. We conducted the first large-scale exploration drilling in Kartitsa in the summer and autumn of 2024. We identified a high-grade gold deposit in the area, which appears to be extensive and significant in scale. In 2025, our strategic exploration efforts will focus specifically on Kartitsa and the Southern Gold Line in Kuittila and Korvilansuo. Additionally, we will conduct the first exploratory drillings in the Ukkolanvaara area. We collected bedrock samples in the area in 2024 which indicate high gold potential in this yet unexplored area.

We still hold rights to seven gold deposits in the United States. The operations in the United States are not part of our strategic focus areas, and a simpler company structure would bring us significant cost savings. We actively continue to negotiate partnerships in the United States and aim to find a solution as quickly as possible. The direct operational impact of the United States on Endomines' EBITDA was approximately MEUR -0.7 (MEUR -1.0) in 2024.

Sustainability is a core part of Endomines' strategy and firmly at the heart of our operations. We strive to be a partner that acts responsibly, respects biodiversity, keeps its promises, and treats people well. We aim to be a clear leader in setting and achieving sustainability goals. In 2024, we published our first sustainability report. Additionally, we conducted a Double Materiality Assessment, which served as the basis for updating our sustainability program. The focus of our new sustainability program includes carbon-free gold, clean water, biodiversity conservation, employee safety and well-being, community trust, and promoting ethical practices in governance. Our goal is to reflect on our actions with pride for years to come.

We enter 2025 with a positive outlook. We believe in the benefits of growing production and in the strong gold market. The price of gold is particularly influenced by global geopolitical uncertainty. Unfortunately, we live in a world where the rivalry between superpowers leads to ongoing uncertainty. The future price outlook for gold is very positive, and its price is currently clearly above the average price of 2,402 USD/oz in 2024. Finnish gold production is also supported by a strong dollar: in euros, the price of gold has been reaching new records in early 2025.

I want to thank our employees for their excellent work. I also want to thank our shareholders, partners, and all our stakeholders for the incredible journey that enabled the company's positive turnaround in 2024. We have achieved a lot, but the journey is not over - we will continue with the same speed towards 2026.

Kari Vyhtinen,
CEO

Dividend

The board of directors proposes that no dividend shall be paid for the financial year 2024.

Financial statements release 2024

This stock exchange release is a summary of Endomines Finland Plc's financial statements release for 2024 and contains its essential information. The complete financial statements release is attached to this release as a pdf file and is available on the company's website https://endomines.com/en/for-investors/reports-and-presentations/

Reporting in 2024

Endomines Finland Plc's Annual Report including report by the Board of Directors and Financials Statements, Corporate Governance Report, Remuneration Report will be published on 26 March 2025.

Financial releases in 2025

The Interim Report for January-June will be published on 14 August 2025.

Webcast for analysts, investors and media 13.2.2025 at 14.00 EET

The webcast for media and analysts will be held in English, as a live webcast today 13 February 2025 at 14.00 EET. The event can be followed via this link. The recording will be available after the event at: https://endomines.com/en/for-investors/reports-and-presentations/.

Further information:

Kari Vyhtinen
CEO
Endomines Finland Plc
[e-mail]
[phone]

Minni Lempinen
CFO
Endomines Finland Plc
[e-mail]
[phone]

Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our operations are focused on gold production and exploration in the Karelian Gold Line in Eastern Finland. We also own the rights to seven gold deposits in the US. We produce gold for the jewellery and electronics industries and create value by turning natural resources into wealth, and we also create value by transforming natural resources into wealth, an investment that can withstand the volatility of global politics. Our vision is to develop the Karelian gold line into one of the most important and sustainable gold-producing regions in the world. Endomines is listed on the OMX Helsinki main list (PAMPALO). www.endomines.com