Endomines - Production at Pampalo picking up
Ramp-up of Pampalo progressed quite in line with our expectations. Friday operations remain halted and appear to be on hold for the unforeseeable future. The updated strategy revolves more heavily around Finland and the future of the US operations remain a big question mark.
- Revenue in H1 amounted to SEK 59.1m, in line with our estimate of SEK 60.4m. Gold production amounted to 3,478 oz vs our estimate of 3,622 oz.
- EBITDA in H1 was at SEK -38.0, in line with our estimate of SEK -36.6m.
- EBIT in H1 amounted to SEK -107.1m (Evli SEK -73.6m), including an impairment charge of SEK 54.9m for the Friday tangible assets.
- During H1, at Pampalo, gold production increased by 78% in Q2 to 2,227 oz compared with Q1. H2 production at Pampalo is estimated to be 30-70% higher than production during H1/2022, i.e. ~4,500-5,900 oz (Evli 5,671 oz).
- Production at Friday remains halted and no gold production will be realized during H2/2022. Current focus is on investigating partnership options for both the mine and the Orogrande processing plant operations.
- At US Grant, Endomines is planning to undertake initial permitting activities and continue studies to define necessary development steps during H2/2022.
- Endomines updated its strategy, which appears to lean on Pampalo and other deposits and exploration at the Karelian Gold Line, while focus in the U.S. is shifting towards partnership models.