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Endomines

Endomines engages in exploration, mining, and extraction of gold deposits. Its sites are found in Eastern Finland along the Karelian Gold line and in Idaho and Montana, USA. The company was founded in 2005 and is headquartered in Espoo, Finland. Endomines focuses its operations to assets in stable jurisdictions that can be brought to production rapidly and with limited investment.
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Overview

Endomines engages in exploration, mining, and extraction of gold deposits. Its sites are found in Eastern Finland along the Karelian Gold line and in Idaho and Montana, USA. The company was founded in 2005 and is headquartered in Espoo, Finland. Endomines focuses its operations to assets in stable jurisdictions that can be brought to production rapidly and with limited investment.
Endomines new strategy focuses on development of the company's Finnish assets, the US assets are developed through partnership models. The company has proceeded well with reinitiating production at the Pampalo site, Endomines produced 12 790 ounces of gold during 2023. The company’s focus in the near term is on Pampalo underground, East open pit and Hosko production and on gold exploration activities in Karelian gold line.

Financial overview

Equity research

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Endomines - Trending in the right direction

The company’s fundamentals are moving in the right direction while the gold market remains hot. We revise our TP to EUR 6.5 and upgrade our rating to HOLD.

Company report |
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Endomines - Promising signs from Pampalo

H2 2023 net sales and EBIT missed our estimates, yet profitability was better than expected excl. NRIs. Despite the promising signs from the Karelian Gold Line overall, the current pricing remains elevated.

Company update |
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Endomines - Production guidance lower than expected

Endomines H2 figures were negatively impacted by the production method change in Pampalo and preparatory work in Hosko. Excluding the effect, profitability was above our estimates. The production guidance for 2024 was weaker than expected.

Earnings Flash |
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Endomines - Valuation running ahead of things

Endomines will release its H2 2023 figures on February 15th. Our interest in the report lies in Pampalo's profitability, progress and plans for Karelian Gold Line exploration, and update on the US assets. Despite the story developing fairly in line with plans, the valuation has become elevated.

Preview |
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Endomines - Year ends with a resource increase

Endomines updated its mineral resource estimate for Korvilansuo. While the resource increase and current strong gold prices support the investment case, significant uncertainties persist.

Company update |
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Endomines - Uncertainties remain high

Endomines' H1 2023 revenue aligned with our estimates, yet profitability fell short of expectations. Due to estimate changes, continued uncertainty regarding the US asset portfolio and stretched balance sheet, we downgrade our rating to HOLD (BUY) and adjust TP to EUR 4.7 (5.6).

Company update |
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Endomines - Profitability improved yet below estimate

The transformation programme is beginning to deliver results as the company’s EBITDA improved to EUR 0.4m (-3.5m H1 2022) during the first half of 2023. While the development was positive, the profitability was still weaker than we had estimated.

Earnings Flash |
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Endomines - Secured financing for production increase

Endomines agreed on convertible loan financing with Finnish investors to start production at Hosko and to increase production at the Pampalo underground mine.

Company update |
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Endomines - Strong production figures for Q1

Endomines reported strong production figures for Pampalo as the production increased 215% y/y during Q1 2023. In our view, the company is making good progress in alignment with its revised strategy and the favorable development is further supported by the current strong gold market.

Company update |
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Endomines - Updated ore estimate for Pampalo

Endomines announced an update in ore reserves and mineral resources. The update brings an 60% increase to Pampalo reserve ounces when comparing to the ore reserves at the end of 2021. Due to a 13% share price decline since our previous update, the company’s steady progress in accordance with the new strategy and a strong gold market, we upgrade our rating to BUY (HOLD) while maintaining our target price at EUR 6.5 (6.5).

Company update |

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Company news

Endomines Finland Plc – Stock Exchange Release, Inside Information – 11/7/2024, at 15:30 EEST

Inside information: Endomines exploration update – positive till sampling results from Southern Gold Line

Endomines reports results from the 2023-2024 base of till sampling program performed at the Southern Gold Line area. All results have been received. Multiple significant, new gold anomalous areas have been recognized. Gold concentrations in base of till samples indicate gold concentrations in the bedrock, and positive results are used to guide exploration drilling.

Highlights

Eight new, potential areas were recognised in the Southern Gold Line close to known gold deposits

  • A significant gold, molybdenum and tungsten anomalous area was recognized in the base of till sampling (BOT) in the South-West of the Kuittila deposit in Southern Gold Line. This supports the potential to extend the Kuittila mineralization towards South-West.
  • Four distinct areas with elevated gold, molybdenum and tungsten content in the base of till have been identified within low chargeability zones interpreted to represent tonalite intrusions. Those areas are interpreted to be prospective for Kuittila style mineralization. Two of such anomalous zones lie South of the Korvilansuo deposit in a previously unsampled area.
  • Three zones with anomalous gold content in the base of till have been identified between the Korvilansuo and Kuittila deposit in previously unsampled area. All three anomalous zones lie within the interpreted South-East continuity of the Korvilansuo and are interpreted to be prospective for Korvilansuo style mineralisation.

“These are exciting news. Our previous work has been mainly based on old base of till data. These analyses clearly highlight the potential in the Southern Gold Line. Samples from untested areas, very close to known deposits, indicate that we have great potential to grow the known deposits into much larger than the current size. We will continue explorational drilling in the area during August-December 2024. We are also continuing permitting process in the area to ensure fast roadmap to gold production.” says Kari Vyhtinen, CEO of the company.

Base of till sampling at Southern Gold Line

The Base Of Till (BOT) program completed in 2023-2024 in the Southern Gold Line consists of a total of 1066 samples. The BOT drilling concentrated on previously unsampled/poorly sampled areas in the immediate vicinity of the Korvilansuo and Kuittila deposits. Sample spacing of 20 meters was used for this program. The spacing between sampling lines varies from 100 to approx. 400 m.

This geochemical sampling led to the identification of a series of significant base of till gold (Au) and pathfinders (Mo, W, Cu, Ag) anomalies on the western margin of the Kuittila tonalite and in the overlying supracrustal rocks.

Liite 1.png

Figure 1:

On the left side a) Situation prior to the campaign. Base Of Till samples gold content (orange dots) in relation with the induced polarisation chargeability.

On the right-side b) Situation after the new results. Winter 2023-2024 base of till samples gold content in relation with the induced polarisation chargeability. The most prominent gold and pathfinder elements anomalous areas are indicated with orange dashed lines.

Background: MML Maastokartta.

All the base of till drilling has been carried out by Moreenityö Mäcklin Oy. A track-mounted rig with percussion drill equipment has been used for the program. The sampling depth varied between 1.1 and 14.2 meters with the average sampling depth being 4.7 meters. The average sample weight was 264 grams. All the samples were examined and logged by Endomines geologists and sent to CRS laboratories Oy in Kempele for preparation (code DRI-060, PSC-999 & PSC-110) and then sent to MS Analytical laboratory in Langley, Canada, where samples were analyzed by method FAS-111 (Au) and IMS-131 (Multi-Element). In the cases of insufficient sample weight, the multi-element analysis was conducted with IMS-131H or IMS-130.

A field duplicate has been collected for every 50 samples. Certified reference materials and duplicates are inserted in the sample sequence by CRS Laboratories. Endomines geologists routinely check the quality of the sampling and assay procedure.

Karelian Gold Line

The Karelian Gold Line is 40 kilometres long, a gold prospective portion of the Ilomantsi greenstone belt located in Eastern Finland approximately 500 kilometres northeast of Helsinki. The area hosts several gold deposits, the largest known being Pampalo. The Pampalo mine has produced 190,000 ounces of gold at an average grade of 3.6 g/t. Endomines controls the exploration rights across the Karelian Gold Line.

Competent Person

This statement has been controlled by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, –standards. Jani Rautio is a full-time employee of Endomines and owns 2,000 shares in Endomines.

 

Endomines Finland Plc

 

Further information:

Kari Vyhtinen, CEO, kari.vyhtinen@endomines.com, +358 40 585 0050

Jani Rautio, Chief Geologist, jani.rautio@endomines.com, +358 50 593 0812

 

About Endomines

Endomines is a mining and exploration company with its primary focus on gold. Endomines is engaged in mining operations at the Pampalo mine in Ilomantsi, and in exploration activities along the Karelian Gold Line in Eastern Finland. Endomines also owns rights to several gold deposits in Idaho and Montana, US, where Endomines aims to continue the development work through partnership agreements. www.endomines.com


Attachments

Endomines Finland Plc – Stock Exchange Release – 2/7/2024, at 14:00 EEST

Endomines Finland Plc operational update JanJune 2024: The increase in production is progressing according to plans

Pampalo's gold production increased by 4 % in January–June 2024 compared to the corresponding period in 2023.

  • During the first half of the year, the production was 218.3 kg (210.0 kg) in kilograms and 7,019 oz (6,753 oz) in ounces.
  • For the full year 2023, Endomines produced 397.8 kg (equivalent to 12,790 ounces) of gold.

Published production volumes are based on preliminary data, the final figures may change slightly after final specifications have been received for all deliveries to customers. However, the change in the figures reported here is not expected to be significant.

The company's full-year 2024 production is expected to increase in line with guidance by 15–35% compared to the previous year.

Our production volumes in the first half of the year developed according to plans. We expect significant growth for July-December 2024, which will also set the basis for production in 2025. The strong gold market also supports our efforts to increase our production volumes” comments Kari Vyhtinen, the CEO of the company.

Endomines Finland Plc

 

Further information

Kari Vyhtinen, CEO, Endomines Finland Plc

kari.vyhtinen@endomines.com, +358 40 585 0050

 

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.

Endomines Finland Plc – Stock Exchange Release, Inside Information – 13/6/2024, at 16:00 EET.

 

Inside Information: Endomines’ exploration results from the deep drilling program at Kuittila

Endomines reports drill results from a deep drilling program carried out in February-March 2024 at Kuittila, in the Southern Gold Line. The program consisted of eight drill holes for a total of 5 076.8 meters. Based on the results, the known mineralized zone has been significantly extended downwards, with gold mineralization intersected with all drill holes.

 

Highlighted drill results include:

  • KT-047 intersected 38.1 meters at 1.57 g/t gold from 239.95 m
    • including 8.7 meters at 3.63 g/t gold from 241.85 m
    • including 0.95 meters at 8.98 g/t gold from 242.65 m
    • Visible gold was observed in the drill core
  • KT-045 intersected 19.4 meters at 2.09 g/t gold from 168.7 m
    • including 2.3 meters at 7.89 g/t gold from 177.0 m
    • Visible gold was observed in the drill core
  • KT-041 intersected 18.7 meters at 1.58 g/t gold from 35.1 m
    • including 4.1 meters at 4.69 g/t gold

 

"Our exploration team continues their excellent work at the Southern Gold Line; all drill holes in the campaign intersected gold mineralization. Our target was to confirm that the Kuittila gold mineralization extends to deeper levels that have never been investigated before – and this target we clearly achieved. At the lower levels, we intersected very wide mineralized areas with high-grade gold lenses. At the same time drill holes 41 and 44 intersected gold mineralization West from the known Kuittila deposit, extending the deposit to the West. We will further investigate this area later this year. One interesting point is the molybdenum and tungsten levels in the results and tungsten being a strategic mineral in the European Union. Next, we will receive the results from the Korvilansuo (Southern Gold Line) and Kartitsa (North of Pampalo) drilling campaigns. Then our exploration focus will return to Southern Gold Line where the results we have now received will help us to plan our next exploration steps. Our exploration activities are proceeding at full speed during 2024” comments Kari Vyhtinen, CEO of the company.

 

The drilling program at Kuittila was aimed at extending and verifying the gold mineralization below the recently updated inferred 49 170-ounce mineral resource (press release 15/2/2024), which was largely based on drilling completed in 2023. The current drilling program targeted below the drill holes of the 2023 program, the hole lengths varied from 344 m to 540 m, the average length being 423 m. In addition to extending the gold mineralization downwards, holes KT-41 and KT-44 intercepted near surface gold mineralized intercept immediately West of the current resource outline.

In addition to gold, elevated concentrations of molybdenum (Mo) and tungsten (W) were encountered in all the drill holes. In this report, Mo and W content are reported alongside gold with gold as the main commodity. Elevated concentrations of Mo and W have been identified outside of the gold mineralization. Such molybdenum and tungsten mineralization returned up to 1.10 % molybdenum for 0.85 m in drill hole KT-046 from 273.15 and up to 0.59 % tungsten for 1.05 m in drill hole KT-047 from 45.00m to 46.05m. The significance of the molybdenum and tungsten mineralization potential in the Kuittila area is currently under review.

The significant gold drill intersections from Kuittila are presented in Table 1 and the locations of the new drill holes are presented in the map (Figure 1). An E-W Cross section (Figure 2) along the KT-045, KT-047 drilling profile (strike: 080, dip 90) is displayed in Figure 2.

 

Kuittila

The Kuittila gold deposit is located 25 km south of Pampalo and was discovered originally by GTK in 1984 while exploring for molybdenum and tungsten in the area. The highest-grade gold intersection from Kuittila to date is in the drill hole KT-015 which has an intersection of 9.75 m at 17.4 g/t gold and was drilled by Endomines in 2023 (press release 13/9/2023). Kuittila has a JORC-compliant mineral resource of 814 700 tonnes at 1.88 g/t gold, totaling 49 170 oz in inferred category.

 

Kuva1.jpg.jpeg

Figure 1: Location map of the 2024 drilling program drill holes collars in relation to existing holes prior to the 2024 drilling campaign and gold concentration in the base of till at Kuittila, Karelian Gold Line. 

 

Kuva2.png

Figure 2: Cross section of the Kuittila deposit with drill holes KT-045 and KT-047 drilled in 2024 in relation to the current resource model and previously drilled diamond drill holes. Prior to 2024 drill-hole traces are displayed for all holes intersecting the section plane. The section plane is striking N-080 with a vertical dip.

 

Table 1: Diamond drilling results 2024 from Kuittila, Karelian Gold Line, Finland

Hole IDNorthingEastingElevationAzimuth
(°)
Dip
(°)
Length
(m)
 
KT-0406967714.6714120.3163.470.0-60.3454.7 
KT-0416967669.1714138.3164.970.1-59.8398.4 
KT-0426967769.1714184.7164.170.0-58.7350.3 
KT-0436967719.2714075.6162.870.2-60.1541.1 
KT-0446967674.8714093.6163.670.0-59.5500.9 
KT-0456967627.1714148.3167.870.0-58.8350.2 
KT-0466967763.9714143.2163.370.0-59.0400.9 
KT-0476967616.0714104.7172.970.0-58.8382.4 
        
Hole IDFrom
(m)
To
(m)
Downhole
length (m)
Au g/tMo %W %Note
KT-04041.542.40.90.460.00- 
 93.6110.516.90.620.03- 
including96.997.91.04.64-- 
 123.2124.10.90.680.01- 
 131.8134.93.00.50-- 
 164.5165.51.01.360.03- 
 219.8221.41.61.160.03- 
 258.1259.21.10.56-0.01 
 289.9291.81.90.720.01- 
 313.0314.21.12.06-0.01 
 358.6360.62.00.510.04- 
 367.6373.86.10.850.01- 
 397.6410.412.80.530.01- 
KT-0415.78.93.31.29-- 
 17.329.912.70.52-- 
 35.153.818.71.580.01- 
including48.752.74.14.690.01- 
 58.659.61.00.460.01- 
 89.395.05.70.570.01- 
 100.5136.435.90.590.03- 
including106.2107.41.22.27-- 
and123.8125.01.22.120.04- 
and135.2136.41.22.150.06- 
 143.7144.71.00.500.04- 
 216.4217.51.10.710.010.01 
 240.4241.41.00.47-0.01 
 268.2269.21.00.420.01- 
 280.3281.51.10.620.02- 
 289.3290.41.10.51-- 
 369.2378.89.60.440.02- 
KT-04241.042.01.00.490.01- 
 79.680.71.11.110.070.02 
 111.2112.31.11.580.020.01 
 156.0157.21.20.450.010.03 
 233.4235.72.30.460.220.04 
KT-04361.063.02.03.27-- 
 78.579.51.00.47-- 
 99.1100.21.10.43-- 
 103.4104.31.00.83-- 
 108.2109.31.11.07-- 
 133.3134.31.10.41-- 
 148.2149.21.00.880.05- 
 161.2162.31.17.12-- 
 178.4179.20.82.210.04- 
 205.8207.01.10.58-0.02 
 215.6229.013.41.050.05- 
including215.6216.50.93.370.190.01 
and228.0229.01.04.670.01- 
 240.8241.91.10.590.34- 
 318.2324.46.31.700.01- 
including321.1323.22.13.97-- 
KT-04412.913.91.14.61-- 
 21.532.711.30.39-- 
 53.355.32.00.57-- 
 62.367.45.10.61-- 
 71.472.41.00.48-- 
 77.478.41.00.42-- 
 88.899.610.80.45-- 
 105.6119.013.40.770.01- 
including111.6115.64.11.650.01- 
 124.9190.265.30.820.01- 
including137.3138.20.92.810.01- 
including168.1169.11.02.93-- 
including171.2172.21.02.89-- 
 249.9251.11.21.460.11- 
 257.2258.41.20.800.02- 
 262.9265.72.80.640.01- 
 275.1276.11.10.790.02- 
 282.4284.31.91.380.040.02 
 289.6290.61.10.41-- 
 323.8325.01.10.960.01- 
 331.1332.31.11.030.01- 
 349.0364.615.70.580.01- 
including363.5364.61.14.190.00- 
 398.9399.91.00.490.08- 
 424.0425.01.01.940.03- 
 473.9474.91.00.76-- 
 489.2490.21.00.47-- 
KT-04530.131.31.20.740.01- 
 50.351.20.90.44-- 
 95.297.01.86.730.01- 
 142.8146.63.83.370.01- 
 148.5149.51.00.430.01- 
 158.4166.48.00.850.02- 
 168.7188.119.42.090.01- 
including177.0179.32.37.890.01-VG
 192.8196.13.30.530.02- 
 224.2248.624.41.190.01- 
including246.0246.91.03.720.01- 
 250.4251.51.10.650.03- 
 287.5289.72.20.75-0.01 
 306.2307.21.00.60-- 
 313.3316.43.10.740.02- 
KT-04630.030.80.91.42-0.03 
 48.849.91.15.460.010.01 
 76.277.00.80.670.12- 
 125.1126.31.20.42-- 
 181.1183.12.00.630.18- 
 199.4200.51.20.75-0.01 
 329.1330.91.81.030.180.01 
KT-047143.3144.41.20.57-- 
 199.1200.21.10.450.020.01 
 223.4227.33.90.600.01- 
 239.9277.938.11.570.01-VG
including241.9250.68.73.630.01- 
including242.7243.60.98.980.01- 

Note: A lower cut-off of 0.4 g/t Au and a maximum 5 m consecutive internal dilution was used for reporting. No upper cut-off grade was applied, and all figures rounded up. True widths are not yet determined. VG=Visible Gold.

 

Karelian Gold Line

The Karelian Gold Line is a 40-kilometer-long gold prospective part of the Ilomantsi greenstone belt located in Eastern Finland, approximately 500 kilometers northeast of Helsinki. The area hosts several gold deposits, the largest known being Pampalo. The Pampalo mine has produced 190,000 ounces of gold at an average grade of 3.6 g/t. Endomines controls 100% of the exploration rights covering over 100 km2 across the Karelian Gold Line.

 

Drilling technical

All surface drilling has been carried out by Northdrill Oy, using WL-76 tubes, resulting in a core of 57.5 mm in diameter. Drill hole locations have been surveyed by using mine survey equipment. Downhole survey of bearing and dip deviations have been completed with the DeviGyro survey tool. All core have been oriented with DeviCore equipment.

 

Assay and QA/QC procedures

The drill cores have been logged by Endomines own personnel. The drill cores have been cut in half by Palsatech Oy in Kemi prior to shipping to CRS’ laboratory in Kempele. Samples were sent to CRS' laboratory in Kempele for preparation (code PRP-926) and then sent to MS Analytical laboratory in Langley, Canada, where samples were analyzed by methods FAS-111 (Gold), and IMS-230 (multi-element). Gold over 10 g/t was re-analyzed with FAS-415. Molybdenum over 10,000 ppm was reassayed with the method ICF-6Mo.

 

Normal QA/QC (Quality Assurance/Quality Control) procedures have been adhered to on all the samples, with standards, blanks, and duplicates routinely submitted as part of the sampling program. The quality of sample preparation, security integrity, and chemical assays was equal to, or exceeded, current industrial standards and the requirements of the JORC code.

 

Competent Person

This ore reserve and mineral resource update has been reviewed and approved by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, –standards. Jani Rautio is a full-time employee of Endomines and owns 2,000 shares Endomines shares.

 

 

Endomines Finland Plc

 

 

Further information: 

Kari Vyhtinen, CEO, kari.vyhtinen@endomines.com, +358 40 585 0050

Jani Rautio, Head Geologist, jani.rautio@endomines.com, +358 50 593 0812

 

 

Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our mining operations in Pampalo, Ilomantsi region, focus on gold mining and processing, as well as 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 transforming natural resources into wealth, an investment that withstands the volatility of global politics. We are a growing mining company that embraces new ways of thinking; we want to leave a positive footprint where we operate, which is why our goal is to grow the Karelian gold line into a significant, sustainable gold-producing region. Endomines is listed on the main list of OMX Helsinki (PAMPALO). www.endomines.com.

Endomines Finland Plc – Stock Exchange Release – 7/5/2024 at 17.30 EET.

 

 

Resolutions of Endomines Finland Plc's Annual General Meeting and the Board of Directors

The Annual General Meeting of Endomines Finland Plc was held on May 7th, 2024, in Helsinki.

 

Annual accounts for the financial period 2023

The General Meeting adopted the annual accounts for the financial period 2023 and resolved that the net loss of the financial period EUR -9,888,712.32 be transferred to retained earnings/loss account and no dividend be paid.

 

Resolution on the discharge from liability of the members of the Board of Directors and the CEO 

The General Meeting resolved to grant discharge from liability for the members of the Board of Directors and the CEO for the period 1 January 2023 – 31 December 2023 as well as for the preparation of the annual accounts.

 

Handling of the remuneration report of the governing bodies

The General Meeting resolved to adopt the remuneration report of the governing bodies.

 

Resolution on remuneration of the members of the Board of Directors 

The General Meeting resolved that the elected members of the Board of Directors be paid the following annual remuneration, in accordance with the previous year's Board remuneration:

- The Chair of the Board of Directors EUR 35,000; and

- The member of the Board of Directors EUR 20,000.

The annual remuneration of the Board members be paid in company shares and in cash, so that approximately 30% of the annual remuneration amount is used to acquire company shares for the Board members and the rest is paid in cash. The company is responsible for the costs and transfer tax arising from the acquisition of the shares. The company's shares will be acquired within two (2) weeks after the company's interim report for the period 1 January - 30 June 2024 has been published.

In addition, a meeting remuneration of EUR 300 be paid for each physical Board meeting per member who attended the meeting.

Remuneration for committee members (ESG Committee, the Audit Committee, the Technology and Safety Committee) is EUR 2,500 per Board member per committee in which the Board member serves. The annual remuneration of the chair of the committees is EUR 5,000.

Annual remunerations for committees and meeting remunerations for Board meetings are paid in cash.

 

Election of members of the Board of Directors

The General Meeting re-elected Jukka-Pekka Joensuu, Jeremy Read, Eeva Ruohonen, Markus Ekberg and Jukka Jokela as members of the Board of Directors.

 

Auditor 

The General Meeting resolved that the auditor’s fees will be paid according to the auditor’s reasonable invoice approved by the Audit Committee. Auditing firm KPMG Oy Ab was elected as the company's auditor. KPMG Oy Ab has informed that the principal auditor will be Antti Kääriäinen, Authorised Public Accountant.

 

Authorizing the Board of Directors to decide on the acquisition of the company's own shares

The General Meeting resolved to authorize the Board of Directors to decide on the acquisition of a maximum of 100,000 own shares in one or more installments. The amount corresponds to approximately 1.0% of all the company's shares. Own shares are acquired with funds belonging to the company's unrestricted equity, in which case the acquisitions reduce the funds available for the company's profit distribution. Own shares can be acquired on the day of acquisition at the price established for the shares in public trading or otherwise at the price established in the market. Own shares can be acquired other than in proportion to the shares owned by the shareholders (directed acquisition). Own shares acquired for the company can be kept by the company, cancelled, or transferred further. The authorization includes the Board's right to decide how own shares are acquired and all other matters related to the acquisition of own shares. The authorization is proposed to be valid until 30 June 2025.

 

Organizing meeting of the Board of Directors

The Board of Directors elected in the Annual General Meeting held its’ organizing meeting after the Annual General Meeting and elected amongst its members Jukka-Pekka Joensuu as the Chair of the Board. Eeva Ruokonen was elected as the Chair and Jukka-Pekka Joensuu as member of the ESG committee, Jeremy Read was elected as the Chair and Jukka-Pekka Joensuu as member of the Audit committee and Markus Ekberg was elected as the Chair and Jukka Jokela of the Technical and safety committee.

 

 

ENDOMINES FINLAND PLC

 

 

Further information

CEO Kari Vyhtinen, CEO of Endomines Finland Plc, phone +358 40 5850050, kari.vyhtinen@endomines.com

 

 

 

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.

Endomines Finland Plc – Investor News – 9/4/2024, at 14.00 EET

 

 

Endomines Finland Plc's Sustainability Report 2023 has been published

Endomines’ sustainability report for 2023 is now published, and it is available as an attachment to this release, and on the company's website at https://endomines.com/en/for-investors/reports-and-presentations/

 

 

Endomines Finland Plc

 

 

Further information

Riikka Niemi, corporate, sustainability, and IR communications

riikka.niemi@endomines.com, tel. 040-5056474

 

 

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.

Endomines Finland Plc – Stock Exchange Release – 5.4.2024, at 11.00 EET

 

 

Notice to the Annual General Meeting of Endomines Finland Plc

The shareholders of Endomines Finland Plc are invited to the Annual General Meeting to be held on Tuesday, May 7th, 2024, at 14.00 (EET) at Helsinki Music Centre, Glazed Foyer, at the address Mannerheimintie 13a, Helsinki, Finland. The reception of shareholders who have registered for the meeting and distribution of ballot papers will start at 13.15. (EET) at the meeting venue.

The meeting is held as a hybrid meeting in accordance with Chapter 5, Section 16 (2) of the Finnish Limited Liability Companies Act. As an alternative to attending the General Meeting at the meeting venue, shareholders can also exercise their rights fully during the meeting remotely. Instructions for remote participation are set out in Part C of this notice to the General Meeting.

A. Matters to be discussed at the General Meeting

The General Meeting will discuss the following matters:

1. Opening the meeting

2. Matters of order for the meeting

3. Election of the persons to scrutinize the minutes and to supervise the counting of votes

4. Recording the legal convening of the meeting and quorum

5. Establishment of the persons present and confirmation of the voting list

6. Presentation of the financial statements, including consolidated financial statements and annual report as well as auditor's report for the financial year 1.1.–31.12.2023

- Presentation of the CEO's review.

The financial statements, which include the consolidated financial statements, the annual report, and the auditor's report, are available on the company's website at https://endomines.com/en/for-investors/governance/annual-general-meeting-2024/.

7. Adoption of the financial statements

8. Resolution on the use of the profit shown on the balance sheet and the distribution of dividend

The Board of Directors proposes that the net loss of EUR -9 888 712,32 be transferred to the retained earnings/loss account and that no dividend be paid.

9. Resolution on the discharge of the members of the Board of Directors and CEO from liability

10. Handling of the remuneration report for governing bodies

The Board of Directors proposes that the General Meeting adopts the remuneration report for the governing bodies for the year 2023. According to the Limited Liability Companies Act, the decision is advisory.

The remuneration report for the governing bodies is available on the company's website at https://endomines.com/en/for-investors/governance/annual-general-meeting-2024/

11. Resolution on the remuneration of the members of the Board of Directors

The Shareholders' Nomination Board proposes that the annual remuneration of the Board members be as follows, in accordance with the previous year's Board remuneration:

- The chairman of the Board of Directors EUR 35,000

- The member of the Board of Directors EUR 20,000

The Nomination Board proposes that the annual remuneration of the Board members be paid in company shares and in cash, so that approximately 30% of the annual remuneration amount is used to acquire company shares for the Board members and the rest is paid in cash. The company is responsible for the costs and transfer tax arising from the acquisition of the shares. The company's shares will be acquired within two (2) weeks after the company's interim report for the period 1 January - 30 June 2024 has been published.

In addition, a meeting remuneration of EUR 300 is proposed for each physical Board meeting per member who attended the meeting.

Remuneration for committee members (ESG Committee, the Audit Committee, the Technology and Safety Committee) is EUR 2,500 per Board member per committee in which the Board member serves. The annual remuneration of the chair of the committees is proposed as EUR 5,000. Annual remunerations for committees and meeting remunerations for Board meetings are paid in cash.

12. Resolution on the number of members of the Board of Directors

The Shareholders' Nomination Board proposes that five (5) members be elected to the Board of Directors.

13. Election of members of the Board of Directors

The Shareholders' Nomination Board proposes that for the term that ends at the end of the 2025 Annual General Meeting, the current members of the Board of Directors Jukka-Pekka Joensuu, Eeva Ruokonen, Jeremy Read, Jukka Jokela and Markus Ekberg be re-elected.

In accordance with Endomines Finland Plc's governance policy, the Board of Directors elects a chairman from among its members. The Shareholders' Nomination Board proposes that Jukka-Pekka Joensuu be elected chair of the Board of Directors.

All proposed Board members have given their consent to the task. The Shareholders' Nomination Board has assessed that all candidates are independent of the company and its significant shareholders.

Curriculum vitae, photos, and an assessment of the independence of the current members of the Board of Directors are presented on the company's website at https://endomines.com/en/for-investors/governance/board-of-directors/.

When making the proposal, the Shareholders' Nomination Board has taken into account the diversity policy of the company's Board of Directors and the fact that the persons to be selected have sufficient competence and experience in matters related to the company's industry and business.

14. Resolution on the remuneration of the auditor

The Board of Directors proposes, on the recommendation of the Audit Committee, that the auditor’s fees be paid according to the auditor’s reasonable invoice approved by the company.

15. Election of the auditor

The Board of Directors proposes, on the recommendation of the Audit Committee, that auditing firm KPMG Oy Ab, be re-elected as the company's auditor. KPMG Oy Ab has informed that the principal auditor will be Antti Kääriäinen, Authorised Public Accountant. The term of office of the auditor ends at the closing of the Annual General Meeting following the election.

16. Authorizing the Board of Directors to decide on the acquisition of the company's own shares

The Board of Directors proposes that it be authorized to decide on the acquisition of a maximum of 100,000 own shares in one or more installments. The amount corresponds to approximately 1.0% of all the company's shares. Own shares are acquired with funds belonging to the company's unrestricted equity, in which case the acquisitions reduce the funds available for the company's profit distribution. Own shares can be acquired on the day of acquisition at the price established for the shares in public trading or otherwise at the price established in the market. Own shares can be acquired other than in proportion to the shares owned by the shareholders (directed acquisition). Own shares acquired for the company can be kept by the company, canceled, or transferred further. The authorization includes the Board's right to decide how own shares are acquired and all other matters related to the acquisition of own shares. The authorization is proposed to be valid until 30 June 2025.

17. Closing the meeting

B. Documents of the General Meeting

This notice of the General Meeting, which contains all the proposed resolutions on the agenda of the General Meeting, the financial statements of Endomines Finland Plc, which include the consolidated financial statements, the annual report, and the auditor's report, as well as the remuneration report are available on Endomines Finland Plc's website at https://endomines.com/en/for-investors/governance/annual-general-meeting-2024/. The above-mentioned documents will also be available for inspection at the General Meeting.

The minutes of the General Meeting will be available on the above-mentioned website from May 21st, 2024, onwards.

C. Instructions for meeting participants

1. Shareholder registered in the shareholders' register

Shareholders who are registered in the shareholders' register of Euroclear Finland Oy on the record date of the General Meeting April 24th, 2024, are entitled to participate in the General Meeting. A shareholder whose shares in the company are registered in his/her personal Finnish book-entry account is registered in the company's shareholders register. Changes in the shareholding after the record date of the General Meeting do not affect the right to participate in the General Meeting or the shareholder's voting rights.

Registration for the General Meeting starts on April 8th, 2024, at 10.00 (EET). A shareholder entered in the company's shareholders' register who wishes to attend the General Meeting must register no later than May 2nd, 2024, at 16.00 (EET), by which time the registration must be received. You can register for the General Meeting:

a) via the company's website at https://endomines.com/en/for-investors/governance/annual-general-meeting-2024/. Electronic registration requires strong identification of the shareholder or his/her legal representative or proxy with a Finnish, Swedish, or Danish bank ID or mobile certificate.

b) by e-mail to Innovatics Oy to agm@innovatics.fi. Registering shareholder shall submit the registration form available on the company's website https://endomines.com/en/for-investors/governance/annual-general-meeting-2024/ or equivalent information.

c) by mail to Innovatics Oy to Innovatics Oy, General Meeting / Endomines Finland Plc, Ratamestarinkatu 13 A, FI-00520 Helsinki. Registering shareholder shall submit the registration form available on the company's website https://endomines.com/en/for-investors/governance/annual-general-meeting-2024/ or equivalent information.

When registering, the shareholder must provide the requested information, such as the shareholder's name, date of birth or business ID, contact details, the name and date of birth of any assistant or proxy, and whether the shareholder or his/her proxy will attend the General Meeting in person or remotely. The personal data provided by shareholders to Endomines Finland Plc or Innovatics Oy will only be used in connection with the General Meeting and the processing of the necessary registrations related thereto.

The shareholder, his/her representative, or proxy must be able to prove his/her identity and/or right of representation at the meeting venue, if necessary.

Further information on registration is available by telephone during the registration period of the General Meeting by calling Innovatics Oy at +358 10 2818 909 on weekdays from 9.00 to 12.00 (EET) and from 13.00 to 16.00 (EET).

2. Holder of nominee-registered shares

A holder of nominee-registered shares is entitled to participate in the General Meeting on the basis of the shares which would entitle him/her to be entered in the shareholders' register kept by Euroclear Finland Oy on the record date for the General Meeting on April 24th, 2024. Participation also requires that the shareholder is temporarily registered in the shareholders' register held by Euroclear Finland Oy by May 2nd, 2024, by 10.00 (EET) at the latest. In the case of nominee-registered shares, this is considered as registration for the General Meeting. Changes in the shareholding after the record date of the General Meeting do not affect the right to participate in the General Meeting or the shareholder's voting rights.

The holder of nominee-registered shares is advised to request well in advance the necessary instructions from his/her custodian bank regarding the temporary registration in the register of shareholders, the issuing of proxies and voting instructions, registration, and attendance at the General Meeting. The account manager of the custodian bank shall register the holder of nominee-registered shares who wishes to attend the General Meeting temporarily in the register of shareholders of the company by the aforementioned date and time at the latest. Further information is also available on the company's website at https://endomines.com/en/for-investors/governance/annual-general-meeting-2024/.

A holder of nominee-registered shares who has registered for the General Meeting may also participate in the meeting in real-time using a telecommunication connection and technical means. In addition to the temporary registration in the company’s shareholders’ register, the real-time participation in the meeting requires the submission of the shareholder’s e-mail address and telephone number and, if necessary, a proxy document and other documents necessary to prove the right of representation to by regular mail to Innovatics Oy, General Meeting / Endomines Finland Plc, Ratamestarinkatu 13 A, FI-00520 Helsinki, Finland or by email to agm@innovatics.fi before the end of the registration period for the holders of nominee registered shares, so that the shareholders can be sent a participation link and password to participate in the meeting.

3. Proxy representatives and powers of attorney

A shareholder may attend the General Meeting and exercise his/her rights there through a proxy representative. The proxy representative must authenticate to the electronic registration service personally with strong authentication, after which he/she will be able to register on behalf of the shareholder that he/she represents. The shareholder's proxy must present dated proxy documents, or otherwise in a reliable manner prove that he/she is entitled to represent the shareholder at the General Meeting. You can prove your right to representation by using the suomi.fi e-Authorizations service available in the electronic registration service.

Model proxy documents and voting instructions are available on the company's website https://endomines.com/en/for-investors/governance/annual-general-meeting-2024/. If a shareholder participates in the General Meeting through several proxies representing the shareholder with shares held in different securities accounts, the shares on the basis of which each proxy represents the shareholder shall be identified in connection with the registration.

Any proxy documents are requested to be submitted preferably as an attachment with the electronic registration or alternatively by mail to Innovatics Oy, General Meeting / Endomines Finland Plc, Ratamestarinkatu 13 A, FI-00520 Helsinki or by e-mail to agm@innovatics.fi before the end of the registration period. In addition to submitting the proxy documents, the shareholder or his/her proxy shall register for the General Meeting in the manner described above in this notice.

4. Remote participation in the meeting

A shareholder entitled to attend a General Meeting may participate in the meeting and exercise his/her rights fully during the meeting not only by attending at the meeting venue but also by remote access.

A shareholder or proxy who has registered to attend the General Meeting at the meeting venue may change their participation to remote participation. There is no need to notify the company of the change separately. Remote participation takes place via a remote participation link sent to the telephone number and e-mail address provided when registering for the General Meeting. A shareholder or proxy who has registered to attend the General Meeting via remote participation may not change his/her participation to take place at the meeting venue.

Remote access to the General Meeting will be provided through Inderes Plc's general meeting service on the Videosync platform, which includes video and audio access to the General Meeting. Remote access does not require any paid software or downloads. In addition to an internet connection, participation requires a computer, smartphone, or tablet with speakers or headphones for sound and a microphone if you want to speak. One of the following browsers is recommended for participation: Chrome, Firefox, Edge, Safari, or Opera. It is advisable to log in to the meeting system well in advance of the meeting.

The participation link and password for remote participation will be sent by e-mail and SMS to the e-mail address and mobile phone number provided at the time of registration to all those who have registered for the General Meeting no later than the day before the General Meeting.

For more information on the general meeting service, additional instructions for proxies representing more than one shareholder, contact details of the service provider and instructions in case of possible disruptions can be found here: https://vagm.fi/support. A link to test the compatibility of your computer, smartphone, or tablet with the network connection can be found here: https://demo.videosync.fi/agm-compatibility?language=en. It is recommended that you read the detailed participation instructions before the meeting.

5. Other instructions/information

The meeting language is Finnish, simultaneous interpretation is not available.

Shareholders present at the General Meeting have the right to ask questions about the matters discussed at the meeting in accordance with Chapter 5, Section 25 of the Finnish Limited Liability Companies Act.

Changes in the shareholding after the record date of the General Meeting do not affect the right to participate in the General Meeting or the shareholder's voting rights.

On the date of the notice to the General Meeting on April 5th, 2024, Endomines Finland Plc has a total of 9,795,339 shares representing the same number of votes. The company holds a total of 8,000 of its own shares which are not entitled to vote at the General Meeting.

Coffee is served at the beginning of the meeting.

 

 

In Espoo, April 5th, 2024

Endomines Finland Plc

BOARD OF DIRECTORS

 

 

Further information

Riikka Niemi, corporate, IR- and sustainability communications, Endomines Finland Plc

riikka.niemi@endomines.com, +358 40 5056474

 

 

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.

Endomines Finland Plc – Stock Exchange Release – 3/4/2024, at 16.00 EET

 

Endomines Finland Plc's operational update Jan-March 2024: Pampalo's gold production up 5.5 % compared to the corresponding period and 46.4 % compared to the previous quarter

 

Pampalo’s gold production increased by 5.5 % in January-March 2024, compared to the same period in 2023. The production in the first quarter was the best in 2023.

  • Production during Q1/2024 was 117.7 kg (111.6 kg), in ounces 3,783 oz (3,588 oz) of gold.  
  • In 2023, Endomines produced 397.8 kg, in ounces 12,790 oz of gold.

 

Published production volumes are based on preliminary data, final figures may change slightly after final specifications have been received for all deliveries to customers. However, the change is not expected to be significant. For 2024, the company’s production is expected to increase by 15–35% compared to the previous year, in line with the previous guidance.

 

"At the end of last year, we made significant changes to our production method and focused on preparatory work in the Hosko area. These changes had a negative impact on our production at the end of the year. It is great to notice that the work done is now yielding results and we are back on the growth path towards higher production levels. We believe that 2024 will be a good year in terms of production, and the growth of production will be supported by the exceptionally strong market situation for gold. In the beginning of the year, we have moved to levels in terms of the price of gold that have never been seen before,” says Kari Vyhtinen, CEO of the company.

 

 

Endomines Finland Plc

 

 

Further information

Kari Vyhtinen, CEO, Endomines Finland Plc
kari.vyhtinen@endomines.com, +358 40 585 0050

 

 

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.

Endomines Finland Plc – Stock Exchange Release – 26/3/2024, at 14.30 EET.

 

Endomines Finland Plc's Annual Report 2023 has been published

The Annual Report 2023 includes the Board of Directors’ Report, Financial Statements and Auditor’s Report. The company has also published a separate Corporate Governance Statement and Remuneration Report for 2023.

The Sustainability Report 2023 will be published in April 2024.

The Financial Statements are published in accordance with the European Single Electronic Format (ESEF) reporting requirements, and the primary statements and the notes to the consolidated financial statements have been labelled with XBRL tags.

The Annual Report, the Corporate Governance Statement and the Remuneration Report are enclosed as PDF files, the Board of Directors' Report and the Financial Statements also as XHTML files.

The reports are also available on the company's website at https://endomines.com/en/for-investors/reports-and-presentations/

 

 

Endomines Finland Plc

 

 

Contact information

Minni Lempinen, CFO Endomines Finland Plc

minni.lempinen@endomines.com, +358 40 769 3483

 

Kari Vyhtinen, CEO Endomines Finland Plc

kari.vyhtinen@endomines.com, +358 40 585 0050

 

 

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.

Endomines Finland Plc – Stock Exchange Release – 13/3/2024, at 16.30 EET.

 

Endomines Finland Plc has agreed on a financing arrangement for the expansion of exploration in the Southern Golden Line

Endomines has agreed with the company's current owners on a 3.8 million euro convertible loan. The loan is to be used for the expansion of exploration in the Southern Gold Line, as well as for general business needs. The maturity of the convertible loan is 48 months and the annual interest rate is 10 percent. In accordance with the financing agreement, the convertible loan can be fully or partially exchanged for company shares no earlier than 12 months after the loan drawdown date. The exchange price is made up of the daily average price calculated at the share's closing price during the 10 trading days preceding the day of the exchange request, minus 18 per cent.

The Muurinsuo-Korvilansuo-Kuittila areas are located very close to each other and have many geological similarities. In the future, we will treat these as a single entity under the name Southern Gold Line. The reserve estimate for the Southern Gold Line area is currently close to 150,000 ounces and has more than doubled due to 2023 exploration. Endomines is well on its way to defining a gold deposit of more than one million ounces, laying the groundwork for taking the company to a larger category.

"This financing allows us to implement our strategic projects according to plans. We believe in the great potential of the Southern Gold Line and hence continue active exploration in the area in order to expand our operations in the coming years. Our long-term goal is to grow the company into a completely new size category," says Kari Vyhtinen, CEO of the company.

 

 

Endomines Finland Plc

 

 

Contact information

Minni Lempinen, CFO, Endomines Finland Plc

minni.lempinen@endomines.com, +358 40 769 3483

 

 

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.

Endomines Finland Plc – Stock Exchange Release, Inside Information – March 13th 2024, at 13.00 EET.

 

Inside information: Endomines reports 72% increase and over 310,000 ounces in gold resources at the Karelian Gold Line

Endomines is pleased to announce its 2024 gold reserve and resource estimates for its Pampalo mine and the resources along the Karelian Gold Line in Finland, as of 31 December 2023, and the gold and silver resource estimates for its gold deposits in Idaho and Montana, USA.

For the Karelian gold line, including Pampalo, a total of 310,300oz of gold in the measured, indicated and inferred categories for mineral resources additional to ore reserves, are estimated according to JORC (2012), corresponding to a 72% (129,800 oz) increase compared to the previous resource estimate made in 2023.

Endomines ore reserves and mineral resources have increased primarily due to successful drilling campaigns during 2023 at Pampalo, Korvilansuo and Kuittila. There have been no changes in the reported mineral resources for the deposits in the US.

 

"We are constantly discovering new potential areas and the drilling results have repeatedly exceeded our expectations. The journey towards our strategic goal of identifying the one-million-ounce gold reserve in the Karelian gold line is off to a good start. This larger reserve base makes it possible to increase the long-term planned production volume to a much higher level than it is today. We believe this is the right way to take the company to a completely new scale. Although we are reporting discoveries in new areas, these deposits are located very close to each other and could therefore share the same production unit in the future. Our understanding of the huge potential on the Karelian gold line has been strengthened by these drilling programmes. At the same time, we have started zoning and other permitting activities in the Southern Gold Line area," says Kari Vyhtinen, the company's CEO.

 

Gold reserves and resources at the Pampalo mine and resources along the Karelian Gold Line in Finland

The updated ore estimate for the Pampalo mine has a total ore reserve of 349,000 tonnes with a grade of 2.90 g/t gold for 32,200 ounces of gold. The updated ore reserve represents an 8.7 % increase in tonnes and 9.5 % increase in ounces when compared to the ore reserve estimate as of 31 December 2022. The updated ore reserve estimate includes the underground area and the open pit. The underground area of Pampalo has a proven ore reserve of 189,000 tonnes with a grade of 3.36 g/t gold for 20,000 ounces of gold and a probable ore reserve of 81,000 tonnes with a grade of 3.52 g/t gold for 9 200 ounces of gold. Most of the increase in ore reserves comes from the underground drilling program completed in 2023, where a total of 74 drill holes were drilled in the planned mining area between levels 875 and 955. This resulted in several high-grade intersections (release 4 September 2023 and 10 January 2024) which are included in the current updated estimate.

The Pampalo open pit was re-started in summer 2022. The mineral resource estimate was updated, and part of the resources were converted into ore reserves based on the open pit optimization results and pit planning. The updated estimate for the Pampalo open pit area has a probable ore reserve of 79,000 tonnes with a grade of 1.17 g/t gold for 3,000 ounces of gold.

In addition to the ore reserves at the Pampalo deep extension area, a measured mineral resource of 117,000 tonnes at a grade of 3.52 g/t including 13,200 ounces of gold, indicated mineral resource of 56,000 tonnes at a grade of 3.20 g/t including 5,800 ounces of gold, and inferred mineral resource of 152,000 tonnes at a grade of 3.81 g/t including 19,400 ounces of gold, has been reported. These are located below the reported ore reserves. The Pampalo deposit remains open at depth and the company is planning to continue underground drilling in 2024. An additional inferred mineral resource of 465,000 tonnes with a grade of 1.43 g/t gold for 21,400 ounces gold has been reported for the Pampalo open pit. The deposit mined in the Pampalo open pit remains open at depth and towards northeast and the company is planning to complete a surface drilling program in 2024 to test further potential of these areas.

The Korvilansuo and Kuittila deposits at the Southern gold line were the target of exploration drilling during 2023, and high-grade intercepts were reported from both, which are included in the updated mineral resource estimates. The updated mineral resource estimate for Korvilansuo has an inferred resource of 838,000 tonnes with a grade of 2.49 g/t gold for 67,200 ounces of gold. The updated resource represents an 307 % increase in gold ounces when compared to the previous estimate. The updated mineral resource estimate for Kuittila has an inferred resource of 814,700 tonnes with a grade of 1.88 g/t gold for 49,170 ounces of gold. The updated resource represents an 114 % increase in gold ounces when compared to the previous estimate.

The mineral resources of the suspended Rämepuro satellite mine were updated during 2023. The updated mineral resource estimate for Rämepuro has a measured resource of 23,000 tonnes with a grade of 2.66 g/t gold for 1,900 ounces of gold, indicated resource of 412,000 tonnes with a grade of 1.53 g/t gold for 20,200 ounces of gold and inferred resource of 381,000 tonnes with a grade of 1.35 g/t gold for 16,500 ounces of gold. The total resource represents a 290 % increase in gold ounces when compared to the previous estimate. The mineral resources have increased primarily due to expanding the resource model north, south and at depth from the existing open pit.

The estimates for the Pampalo mine and the resources along the Karelian Gold Line in Finland have been prepared according to the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (Joint Ore Reserve Committee - JORC-code).

 

Gold resources in Idaho, USA

There have been no changes in the reported mineral resources of the deposits in the Idaho project. At the beginning of 2022 Endomines carried out an underground drilling campaign. The campaign produced very encouraging drill results (press release May 31, 2022) as out of 8 holes, 5 drill holes intersected high-grade (over 8g/t) gold mineralization. More drilling is needed to better define the continuities and dimensions of the high-grade zones. The company intends to continue development in the US in line with its strategy through a partnership model.

The mineral resources reported for the Friday Underground and Buffalo Gulch projects in Idaho, USA, are classified in accordance with standards defined by Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), “CIM Definition Standards - For Mineral Resources and Mineral Reserves”, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014.

The mineral resources currently quoted regarding the Deadwood, Rescue, and Kimberly exploration projects, are per definition historical, made before the introduction of today’s disclosure standards. Endomines cautions that while the presented historic resources for Kimberly, Rescue, and Deadwood appear to be in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a qualified person has not done sufficient work to classify the historical estimates as current mineral resources, and Endomines is not treating the historical estimates as current or reliable.

Gold and silver resources in Montana, USA

The US Grant is a high-grade, underground gold and silver project with a historical resource totaling 165,700 ounces of gold and 4.47M ounces of silver contained in 346 000 tonnes of mineralized material. The US Grant mine has had gold and silver mined periodically between 1867 and 1984. The Kearsarge project is a high-grade, underground gold project with a historical resource totaling 380 700 ounces of gold contained in 4.1 million tonnes of mineralized material.

The addition of the US Grant and Kearsarge gold projects adds a historical total of 546,400 ounces of gold and 4.47 million ounces of silver with considerable potential for additional resources to be discovered through exploration of the district.

Endomines is not treating the US Grant and Kearsarge historic estimates as either a mineral resource or mineral reserve as defined in NI 43-101.

 

Table 1. Gold reserves and resources at Pampalo and the Karelian Gold Line, Finland

Ore reserves - Karelian Gold Line (status Dec 31, 2023)
DepositTonnesGrade
Au g/t
OzkgClassificationPrepared by 
Pampalo - Underground189 0003.3620 000635ProvenEndomines(1)
Pampalo - Underground81 0003.529 200285ProbableEndomines(1)
Pampalo - Open pit79 0001.173 00092ProbableEndomines(2)
Pampalo Reserves total349 0002.9032 2001 013   
Grand total349 0002.9032 2001 013   

The mineral resources are additional to the Ore reserves.

Mineral Resources – Karelian Gold Line, Finland (status Dec 31, 2023)

DepositTonnesGrade
Au g/t
OzkgClassificationPrepared by 
Pampalo Resources       
Pampalo - Underground117 0003.5213 200412MeasuredEndomines(3)
Pampalo - Underground56 0003.205 800179IndicatedEndomines(3)
Pampalo NW29 0002.452 30071IndicatedEndomines(5)
Measured + Indicated Total202 0003.2821 300662M+I  
Pampalo - Underground155 0003.8119 400591InferredEndomines(3)
Pampalo D-zone164 0001.889 900308InferredEndomines(3)
Pampalo - Open pit465 0001.4321 400664InferredEndomines(4)
Pampalonlammit103 0001.806 000185InferredEndomines(5)
Inferred Total887 0001.9756 7001 748Inferred  
Pampalo Total1 089 0002.2178 0002 410   

Southern Gold Line Resources

Muurinsuo354 0001.9422 100687IndicatedEndomines(6)
Measured + Indicated Total354 0001.9422 100687M+I  
Muurinsuo231 0001.4010 400323InferredEndomines(6)
Korvilansuo838 0002.4967 2002 087InferredEndomines(7)
Kuittila814 7001.8849 2001 532InferredAFRY Finland(8)
Inferred Total1 883 7002.09126 8003 942Inferred  
SGL Total2 237 7002.07148 9004 628   

Other Karelian Gold Line Resources

Hosko35 0004.054 500142MeasuredGeocons. Parkkinen(9)
Hosko675 0001.1925 800801IndicatedGeocons. Parkkinen(9)
Rämepuro23 0002.661 90061MeasuredGeoUkko Oy(10)
Rämepuro412 0001.5320 200630IndicatedGeoUkko Oy(10)
Kuivisto East37 0003.203 800118IndicatedMAPTEK(11)
Measured + Indicated Total1 182 0001.4856 2001 753M+I  
Hosko240 0000.786 000187InferredGeocons. Parkkinen(9)
Rämepuro381 0001.3516 500514InferredGeoUkko Oy(10)
Kuivisto East145 0001.004 700145InferredMAPTEK(11)
Inferred Total766 0001.1127 200847Inferred  
Other KGL Total1 948 0001.3383 4002 599   
Ore reserves and mineral resources estimated according to the 2012 JORC-code edition, all figures independently rounded. 

(1) The underground ore reserve estimate is based on stope and development designs; cut-off grade 1.5 g/t Au; waste rock dilution 10-30%; ore loss in stoping 5%, drifting not modelled separately

(2) The open pit ore reserve estimate based on pit optimization studies and stope designs; cut-off grade 0.5 g/t; wasterock dilution 15%

(3) Underground mineral resources; cut-off 1,5 g/t; top cut 10-20 g/t gold; preliminary stope desings completed for Pampalo Deep resource

(4) Open pit mineral resources (above -115m mine level): Cut-off 0,5 g/t; top cut 7 g/t gold. Underground mineral resources (below -115m mine level): Cut-off 1,5 g/t; top cut 7 g/t gold.

(5) Mineral resources; cut-off 0,5 g/t; top cut 10 g/t gold

(6) Mineral resources; cut-off 0,5 g/t, top cut 10 g/t gold

(7) Open pit mineral resources reported inside optimized pit shell based on assumed gold price of US$1,850/oz and mining, processing and G&A costs from the Pampalo operations and transportation ore to the Pampalo mill, metallurgical recovery for gold is 85%; cut-off 0,5 g/t; top cut 14 g/t gold. Underground mineral resources reported at cut-off of 1,4 g/t gold.

(8) Open pit mineral resources are reported at a cut-off grade of 0.65 g/t Au and constrained by an optimised pit shell. Underground mineral resources are reported at a cut-off grade of 0.95 g/t Au. The assumed gold price of US$1,886/oz, Metallurgical recovery for gold 85 %, opex costs were used from Pampalo process plant and from similarly sized open pit and underground operations. High gold assays were capped at 19 g/t Au. The mineral resource estimate has an effective date of January 9th, 2024.

(9) Mineral resources; cut off 0,5 g/t; top cut 11g/t (low-grade domain) or 50 g/t gold (high-grade domain)

(10) Mineral resources; cut-off 0,5 g/t, top cut 40 g/t gold. The estimate has an effective date of December 11, 2023. Mineral resource validated by Endomines.

(11) Mineral resources; cut-off 0,5 g/t top cut 20 g/t gold

Troy ounce = 31.1034768 g

 

Table 2. Gold resources in Idaho and Montana, USA

Mineral Resources – Idaho/Montana, USA (status Dec 31, 2023)
DepositTonnesGrade
Au g/t
OzkgClassificationPrepared by 
Friday Resources       
Measured245 0006.8854 2001 686MeasuredHard Rock Consulting(1,2)
Indicated217 0006.1643 0001 337IndicatedHard Rock Consulting(1,2)
Measured + Indicated462 0006.5497 2003 023M+IHard Rock Consulting(1,2)
Inferred296 0004.9146 7001 453InferredHard Rock Consulting 
Buffalo Gulch Resources
Measured3 515 0000.5764 8002 016MeasuredHard Rock Consulting(1,3,4)
Indicated3 230 0000.4849 9001 552IndicatedHard Rock Consulting(1,3,4)
Measured + Indicated6 745 0000.53114 7003 568M+IHard Rock Consulting(1,3,4)
Inferred2 128 0000.3825 700799InferredHard Rock Consulting(1,3,4)
Historic Resources
Rescue67 00021.3545 9801 430HistoricKimberly Mines, (2004)(5)
Kimberly261 00019.18160 9305 005HistoricLaczay, (2010)(5)
Deadwood2 375 0000.7758 6011 823HistoricBEMA Gold Corporation, (1989)(5)
US Grant346 00014.89165 7005 152HistoricMcLeod, (1990)(5)
Kearsarge4 100 0002.98381 00012 218HistoricTransatlantic Mining, (2019)(5)
Historic Total7 149 0003.58812 21125 628  (5)
(1) Measured, Indicated and Inferred mineral classifications are assigned according to CIM Definition Standards. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability and there is no guarantee that mineral resources will be converted to mineral reserves. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
(2) The mineral resource estimate was prepared by HRC based on data and information available as of March 1, 2016. The Measured, Indicated and Inferred mineral resources are reported considering a base case estimate that applies a cutoff grade of 3.4 g/t Au based on the estimated operating costs, recoveries, and a $1,300/oz gold price.
(3) The mineral resource estimate was prepared by HRC based on data and information available as of December 10, 2017. The Measured, Indicated and Inferred mineral resources are reported considering a base case estimate that applies a cutoff grade of 0.14 g/t Au based on the estimated operating costs, recoveries, and a $1,300/oz gold price.

 

Table 3. Silver resources in Montana, USA

Mineral Resources – Montana, USA (status Dec 31, 2023)
DepositTonnesGrade
Ag g/t
OzkgClassificationPrepared by 
US Grant346 0004024 470 000139 033HistoricMcLeod, (1990)(1)
Historic Total346 0004024 470 000139 033   
(1) Endomines caution that while the historic resources presented appear to be in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and Endomines is not treating the historical estimate as current nor reliable.

Competent Person

This ore reserve and mineral resource update has been reviewed and approved by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, –standards. Jani Rautio is a full-time employee of Endomines and owns 2,000 shares in Endomines.

 

 

Endomines Finland Plc

 

 

Contact information

Kari Vyhtinen, CEO, kari.vyhtinen@endomines.com, +358 40 585 0050

Jani Rautio, Head Geologist, jani.rautio@endomines.com, +358 50 593 0812

 

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.

Endomines Finland Plc – Stock Exchange Release – 7/3/2024, at 19.00 EET.

 

Endomines Finland Plc is preparing a financing arrangement for the expansion of explorations in the Southern Gold Line

Endomines Finland Plc is preparing a financing arrangement of a maximum of 3.9 million euros for the expansion of explorations in the Southern Gold Line. Muurinsuo-Korvilansuo-Kuittila areas are located very close to each other and have a lot of geological similarities. In the future, we will treat these as a single entity called the Southern Gold Line. In the area of the Southern Gold Line, the resource estimate is currently close to 150,000 ounces, and it has more than doubled due to the work performed in 2023. We are well on our way to defining a deposit of more than one million ounces, which we believe will lay the groundwork for taking the company into a larger category.

 

"We are investing heavily in exploration and this funding will allow us to implement our strategic projects according to plans. We believe in the great potential of the Southern Gold Line and hence continue exploring the area in order to expand our operations in the coming years. Currently, we are investigating deeper levels of the Kuittila deposit in the area, as well as continuity of the deposits to different directions," says Kari Vyhtinen, CEO of the company.

 

Endomines Finland Plc

 

Contact information

Minni Lempinen, CFO Endomines Finland Plc

minni.lempinen@endomines.com, +358 40 769 3483

 

 

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.

Endomines Finland Plc: Managers' Transactions – Ilkka Räty

____________________________________________

Person subject to the notification requirement

Name: Ilkka Räty

Position: Other senior manager

Issuer: Endomines Finland Oyj

LEI: 7437004UOFZRIUWTUG97

Notification type: INITIAL NOTIFICATION

Reference number: 52969/4/4

____________________________________________

Transaction date: 2024-02-20

Venue: NASDAQ HELSINKI LTD (XHEL)

Instrument type: SHARE

ISIN: FI4000508023

Nature of transaction: ACQUISITION

Transaction details

(1): Volume: 250 Unit price: 5.9 EUR

Aggregated transactions (1):

Volume: 250 Volume weighted average price: 5.9 EUR

 

 

Endomines Finland Plc

 

Further information

Riikka Niemi, corporate, IR- and ESG-communications

riikka.niemi@endomines.com, +358 40 5056474

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.

Endomines Finland Plc: Managers' Transactions – Kari Vyhtinen

____________________________________________

Person subject to the notification requirement

Name: Kari Vyhtinen

Position: Chief Executive Officer

Issuer: Endomines Finland Oyj

LEI: 7437004UOFZRIUWTUG97

Notification type: INITIAL NOTIFICATION

Reference number: 52903/5/10

____________________________________________

Transaction date: 2024-02-19

Venue: NASDAQ HELSINKI LTD (XHEL)

Instrument type: SHARE

ISIN: FI4000508023

Nature of transaction: ACQUISITION

Transaction details

(1): Volume: 650 Unit price: 6.15 EUR

Aggregated transactions (1):

Volume: 650 Volume weighted average price: 6.15 EUR

 

Endomines Finland Plc

 

 

Further information

Riikka Niemi, corporate, IR- and ESG-communications

riikka.niemi@endomines.com, +358 40 5056474

 

 

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.

Endomines Finland Plc – Financial Statements Release – 15/2/2024, at 12.00 EET

 

Endomines' strong growth continued in 2023 – exploration results exceeded expectations

H2-2023 in brief

  • Gold production in July-December was 187.8 kg (159.4 kg), or 6,038 ounces (5,123 ounces)
  • The group’s revenue increased by 14 % and was 9.0 MEUR (7.9 MEUR)
  • The group’s EBITDA was -1.0 MEUR (-2.9 MEUR)
  • The Pampalo production segment’s EBITDA was 0.9 MEUR (0.4 MEUR), or 10 % of revenue (6 %)
  • The group’s operating result was -2.2 MEUR (-4.5 MEUR)
  • The group’s net result was -3.5 MEUR (-7.0 MEUR)
  • A significant mineralized zone was discovered in the Kuittila area in the Karelian gold line. The high gold content is found close to ground level, which facilitates further exploration and accelerates the possible start of production in the area. The discovery also contains very high grades of silver, significant grades of lead, zinc, and molybdenum, as well as a promising grade of copper. The best results from the drill hole KT-007 included a gold grade of 5.0 g/t over a length of 18 meters, a silver grade of 173.6 g/t, 1.2 % lead, 0.8 % zinc, 0.1 % copper, and 0.02 % molybdenum. Including, over a length of 4.3 meters, a gold grade of 12.2 g/t, a silver grade of 413.4 g/t, 3.2 % lead, 2.1 % zinc, 0.3 % copper, and 0.01 % molybdenum were found. The highest grade was found over a length of 1.2 meters, with an amazing gold grade of 19.8 g/t, a silver grade of 481.0 g/t, 4.5 % lead, 1.7 % zinc, 0.2 % copper, and 0.02 % molybdenum
  • In November 2023, Endomines redeemed the remaining LDA Capital Limited convertible bond early, as a result of which the conversion of the convertible bond into shares ended immediately. The financing arrangement agreed between Endomines Ab and LDA Capital Limited in 2021 regarding convertible bonds has ended
  • Endomines Finland Plc's board of directors has approved new convertible bonds with Finnish investors totalling a maximum of EUR 7.1 million during 2023. During 2023, 6.0 MEUR of convertible bonds were realized and 0.3 MEUR was converted into shares. 0.8 MEUR of the convertible bonds will be implemented in 2024. In addition, it has been agreed to extend the convertible bonds arranged in 2021 and 2022 by three years until the year 2027, which will contribute to improving the company's financial position in the coming years
  • Endomines Finland Plc's board of directors decided on 30 November 2023 to start a share-based incentive system for its key employees for the years 2024–2026
  • Preparatory work for the Hosko production area, located on the Karelian gold line, was started in October 2023. Hosko's production started on February 1, 2024

 

Fiscal year 2023 in brief

  • Gold production from January to December 2023 increased by 49 percent. Production for the year 2023 was 397.8 kg (267.5 kg), or 12,790 ounces (8,601 ounces). 100 % of the group’s production comes from the Pampalo production segment
  • The group’s revenue increased by 46 % and was 19.7 MEUR (13.5 MEUR). 100 % of the group’s revenue comes from the Pampalo production segment’s revenue
  • The group’s EBITDA was -0.7 MEUR (-6.4 MEUR)
  • The Pampalo production segment’s EBITDA was 3.3 MEUR (0.6 MEUR), or 17 % of revenue (5 %)
  • The group’s operating result was -3.0 MEUR (-14.7 MEUR)
  • The group’s net result was -5.3 MEUR (-17.5 MEUR)

 

Outlook for the financial year 2024

  • We estimate that gold production will increase by 15–35 % from 2023
  • We expect the financial result to improve from 2023
  • Recent development in the gold price and strong short-term market outlook supports the outlook for 2024

 

Group’s result

Key figures

Unit

1.7.–31.12.2023

1.7.–31.12.2022

1.1.–31.12.2023

1.1.–31.12.2022

Revenue

MEUR

9.0

7.9

19.7

13.5

Pampalo production revenue

MEUR

9.0

7.9

19.7

12.7

% of revenue

%

100 %

100 %

100 %

94 %

Operating expenses

MEUR

-10.0

-10.9

-20.3

-19.9

EBITDA

MEUR

-1.0

-2.9

-0.7

-6.4

Pampalo production EBITDA

MEUR

0.9

0.4

3.3

0.6

% of revenue

%

10 %

6 %

17 %

5 %

Depreciation and impairment losses

MEUR

-1.2

-1.6

-2.3

-8.3

Operating result

MEUR

-2.2

-4.5

-3.0

-14.7

Net result

MEUR

-3.5

-7.0

-5.3

-17.5

Net gearing ratio

%

46 %

19 %

46 %

19 %

Equity ratio

%

55 %

66 %

55 %

66 %

Earnings per share

EUR

-0.4

-1.0

-0.6

-2.7

Cash Cost in Pampalo, excl. investments

EUR/oz

1,399.0

1,385.9

1,278.0

1,501.0

 

The consolidated revenue of the company increased by 46 % and was 19.7 MEUR (13.5 MEUR). 100 % of the consolidated revenue is generated from the Pampalo production segment’s revenue. The increase in revenue is the result of an increase in production volumes. The consolidated EBITDA was -0.7 MEUR (-6.4 MEUR) and the Pampalo production segment’s EBITDA was 3.3 MEUR (0.6 MEUR), which is 17 % of the revenue (5 %). The strong growth in EBITDA is due to the lower unit cost of production. The largest contracting contracts were tendered during spring 2023 in order to optimize the unit costs of production. During 2023, significant measures related to production efficiency have also been taken to lower unit costs. During autumn and winter, energy costs have not risen to the level of the previous year. The change in the production method of the Pampalo underground mine and the preparatory work in the Hosko production area affected the EBITDA for the end of the year by about -2.0 MEUR, which is about 10 % of the turnover. The effects are one-time.

 

CEO’s review

During 2023, we continued to create the foundation of the company to enable our future growth. At the same time, we invested heavily in the future and started large-scale exploration in the Karelian gold line area. Our long-term goal is to grow the company into a completely different size category. Our journey towards our goal progressed according to our plan during the year.

Our production in 2023 came entirely from Pampalo. Gold production increased by 49 % from the comparison period and was 12,790 ounces (397.8 kg) of gold. Pampalo's revenue increased by 46 % to 19.7 MEUR due to higher production. Operating expenses grew moderately in relation to revenue growth, and Pampalo's EBITDA improved to 17 % (5 %). It is worth noting that at the end of 2023, we changed our production method in the mine and focused on preparatory work for Hosko's new production area. This temporary change phase had a negative impact on our EBITDA. The effects of the change phase on our EBITDA were approximately 2.0 MEUR which is approximately 10 % of our revenue.

Notwithstanding these end-of-the-year changes, the production cost of 2023 without investments decreased by 15 % and was 1,278 EUR (1,501 EUR) per ounce of gold produced. The biggest single factor in the decrease in unit cost was the significant increase in production volume. We are continuing our efforts to increase production towards the 20,000 oz annual production level, and then upwards. Hence our goal is to periodically run our processing plant in 2024 at a level required for 20,000 ounces annual production.

We believe that as the company goes through a significant phase of change and growth, the financial result will follow. We have prepared for growth by creating future organizational structure early, our results are burdened by the costs of operations in the US and the production growth projects still cause us one-time costs. Every week, month, and year our operations become steadier and more predictable. The year 2023 was an operationally significant step towards the future Endomines. We believe that the path we have chosen will lead to a sustainable, profitable, and growing business.


The results of our strategic focus areas exploration exceeded our expectations in 2023. We performed exploration by reprocessing historical results, conducting base of till sampling in the Kartitsa area and by performing exploration drilling especially in the Korvilansuo-Kartitsa area. At the same time, we increased the areas where we have reservations, permit applications or permits by 571 % to 87,407 hectares. The base of till results at Kartitsa indicate that there could be something very interesting in the area. It is noteworthy that the area with interesting results is approximately 2 km long, which is very significant in size.

Korvilansuo's resources increased as a result of exploration drilling by 307 % and Kuittila's by 114 %. Muurinsuo-Korvisuo-Kuittila areas are located very close to each other and have a lot of geological similarities. In the future, we will treat these as a single entity called the Southern Gold Line. In the area of ​​the Southern gold line, the resource estimate is currently close to 150,000 ounces and it has more than doubled due to the work that was performed in 2023. We are well on our way to defining a deposit of more than one million ounces, which we believe will lay the groundwork for taking the company into a larger size category.

US operations are not a strategic focus area for Endomines. During 2023, we continued partnership negotiations with various parties, but unfortunately, these were not completed during the year. We will continue negotiations in 2024 and our goal is to find a solution for the US operations as soon as possible.


In ESG matters, we implemented our measures according to the plan. Our carbon dioxide emissions per ounce of gold produced decreased by approximately 31 % to 0.49 t/oz of gold produced. We continue our goal of reducing emissions by at least 5 % every year. We achieved the process water recycling goal and all our process water (100 %) was recycled water. Unfortunately, the year 2023 was not successful in safety performance. During the year, there were seven lost time accidents, of which one happened to our own personnel and six to contractors. Safety is always the top priority for Endomines. We want to offer a safe and good working environment for both our personnel and our partners. On February 5, 2024, we started the safety development project together with DSS+ consulting.


Our vision is to grow Karelian gold line into a significant and sustainable gold production area on a global scale. Now, the outlook for the gold market is very strong and several forecasts believe in a strong price development as the timing of interest rate cuts becomes more precise. Also, the geopolitical tension currently prevailing in the world, which is undesirable for all of us, supports the gold price outlook. On the cost side, we do not expect significant increases in the current cost levels. We are heading towards 2024 with a positive attitude.

I would like to thank our employees for a job very well done. I would also like to thank our owners, partners, and other stakeholders for the journey towards our strategic goals.

Kari Vyhtinen, CEO

 

Dividend

The board of directors proposes that no dividend shall be paid for the financial year 2023.

 

Financial statements release 2023

This stock exchange release is a summary of Endomines Finland Plc's financial statements release for 2023 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 2023

Endomines Finland Plc's Annual Report including a Board of Directors report and Financials Statements, Corporate Governance Report, Remuneration Report and Sustainability Report for 2023 will be published on 26 March 2024.

 

Financial releases in 2024

The Interim Report for January-June will be published on 15 August 2024.

 

Webcast for analysts, investors and media 15.2.2024 at 15.00 EET

The webcast for media and analysts will be held in Finnish, as a live webcast today 15 February 2024 at 15.00 EET. The event can be followed via this link. The recording and presentation material will be available after the event at: https://endomines.com/en/for-investors/reports-and-presentations/.

 

 

Endomines Finland Plc

 

 

Further information

Kari Vyhtinen, CEO Endomines Finland Plc, kari.vyhtinen@endomines.com, +358 40 585 0050

Minni Lempinen, CFO Endomines Finland Plc, minni.lempinen@endomines.com +358 40 769 3483

 

 

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.

Endomines Finland Plc – Stock Exchange Release / Inside Information – 15/2/2024, at 9.00 EET.

 

 

Inside information: Endomines exploration update – new Kuittila mineral resource estimate and positive till sampling results from Kartitsa

Endomines reports results from the new mineral resource estimate completed on the Kuittila deposit, at the Karelian Gold Line. The total inferred mineral resource is at 814.7 kt @ 1.88 g/t Au for 49,170 ounces of contained gold. All the results from the 2023 base of till sampling program at Kartitsa have now been received and a significant gold anomalous area recognized.

 

Highlights

  • New JORC 2012 compliant mineral resource estimate of 814.7 kt @ 1.88 g/t gold for 49,170 ounces in inferred category at Kuittila.
  • Kuittila resource has increased to 49.170 ounces, representing a 114 % increase from the historical resource estimate of 23,000 ounces in 1990.
  • The increased resource is due to follow-up drilling completed in 2023 with good exploration success, including 18.0 m @ 5.0 g/t gold, 173.6 g/t silver, 1.2 % lead and 0.8 % zinc, 0.1 % copper and 0.02 % molybdenum in the drill hole KT-007 and 9.75 m @ 17.4 g/t gold and 0.12 % molybdenum in the drill hole KT-015 (results published on July 24, 2023, and September 13, 2023).
  • Drill testing of the Kuittila deep extensions started at the end of January, one rig is mobilized.
  • A significant gold anomalous area was recognized in the base of till sampling (BOT) in Kartitsa, in the northern part of the Karelian Gold Line.

 

 

“Our exploration team consistently delivers excellent results. The Kuittila resource update increases our resources in the Korvilansuo-Kuittila-Muurinsuo area to almost 150,000 ounces. It has more than doubled, thanks to the 2023 exploration work. Since these deposits are located very close to each other, we now name this area the Southern Gold Line area” says Kari Vyhtinen, CEO of the company, and continues “base of till results at Kartitsa clearly indicate that there can be something very interesting in the area. It is noteworthy that the area with interesting results is approximately 2 km long, which is very significant in size. We will include the Kartitsa drilling campaign in our exploration plan for 2024.”

 

Kuittila resource estimate

The new estimate for Kuittila is based on 57 diamond drill holes for a total of 8158.6 m drilled in 1985-1987, 2007 and 2023. Endomines drilling in 2023 included 33 diamond drill holes for a total of 5072.1 m.

The mineralized lodes extend over a vertical extent of 213 m from the surface (170m above sea level). The majority of the defined mineralization is between the surface and 80m depth. The average drilling depth is 143 m. The deposit is still open to north, south, west and at depth. There is significant potential to grow current resources by drilling.

The estimate includes high-grade intercept from 2023 drilling reported on July 24, 2023, September 13, 2023, and October 19, 2023, including drill holes KT-007 and KT-015 respectively. The drill hole KT-007 intercepted 18.0 m at 5.0 g/t gold, 173.6 g/t silver, 1.2 % lead, 0.8 % zinc, 0.1 % copper and 0.02 % molybdenum. The drill hole KT-015 intercepted 9.75 m at 17.4 g/t gold and 0.12 % molybdenum. The new mineral resource includes only gold.

A new mineral resource estimate was completed by AFRY Finland Oy. The previous resource estimate was completed by GTK (Geological Survey of Finland) in 1990. The estimate included 275 000 tonnes @ 2.6 g/t gold for 23 000 ounces. The estimate was classified as historical.

 

Table 1: JORC 2012 Mineral Resource Estimate for Kuittila

Kuittila

Resource Class

Tonnes (t)

Au  (g/t)

Material Content (K Troy oz)

Open Pit

Inferred

571 600

1.81

33.31

Underground

Inferred

243 100

2.03

15.86

Total inferred mineral resource

814 700

1.88

49.17

 

Mineral Resource Notes and Assumptions 

(1) The mineral resource estimate has an effective date of January 9th, 2024. (2) Mineral resources do not have demonstrated economic viability. (3) The estimate has been prepared and reported in accordance with the recommendations of the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC 2012). (4) High gold assays were capped at 19 g/t Au. (5) Exchange rate used: USD/EUR 0.94. (6) Open pit mineral resources are reported at a cut-off grade of 0.65 g/t Au and constrained by an optimised pit shell (7) Underground mineral resources are reported at a cut-off grade of 0.95 g/t Au. (8) The following economical and operational parameters were used in open-pit optimisation and break-even cut-off calculations: The assumed gold price of US$1,886/oz, Metallurgical recovery for gold 85 %, opex costs were used from the Pampalo process plant and similar sized open pit and underground operations. (9) A bulk density value of 2.74t/m³ was assigned to all materials (ore and waste). (10) Endomines is not aware of any legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.

The Ordinary Kriging method (“OK”) algorithm for grade interpolation was used for the Kuittila Mineral Resource using experimental variogram models created for Au. Samples within the wireframes were composited to 1.0 m intervals. The estimate is based on a block size of 5 m (X)by 5 m (Y) by 5m (Z), with a minimum sub-block size of 1m by 1m by 1m. The block model is rotated 30 degrees around the Z-axis to match the general strike of the main trend of the main mineralised veins.

 

Competent Person's Statement

The information in this release that relates to Mineral Resources is based on information compiled by Mr. Ville-Matti Seppä, EurGeol, of AFRY Finland Oy and by Mr. Eemeli Rantala, P.Geo, of AFRY Norway As. Mr Seppä and Mr Rantala have sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves”. Mr. Seppä and Mr Rantala have reviewed, verified, and approved the contents of this news release as they relate to the mineral resource estimate. Mr. Seppä or Mr Rantala own no shares in Endomines Oy.

 

Kuittila deep drilling

Deep drilling at Kuittila is ongoing. Drilling was started at the end of January 2024 and is targeting deep extensions of the Kuittila mineralized lodes below the new inferred mineral resource reported above. The planned depths of the deepest holes are 550 meters downhole. One drill rig is mobilized by the contractor and the estimated duration of the program is two months.

 

Base of till sampling at Kartitsa

The Base Of Till (BOT) drilling program completed in the Kartitsa area in 2023 consists of a total of 2062 samples. The BOT drilling concentrated on the contact zone between the Kartitsa granite intrusion and the surrounding greenstones. Sample spacing of 20 and 10 m were used for this program. The spacing between sampling lines varies from 100 to approx. 450 m.

This geochemical sampling led to the identification of a significant base of till gold (Au) and pathfinders (Mo, W, As) anomaly on the western margin of the Kartitsa granitoid, on the contact with a prominent magnetic anomaly. The anomalous area is approx. 2 km long and 500 m wide. Endomines drilled four holes on the Southern tip of the anomalous area in 2022 returning: 2.0 m @ 2.7 g/t gold, including 1.0 m @ 4.0 g/t gold in KA-3.

 

Figure 1: 2023 Base Of Till samples gold content in relation with the UAV magnetics (Radai, 2018). Background: MML Maastokartta.

Image1.png

All the base of till drilling has been carried out by Moreenityö Mäcklin Oy. A track-mounted rig with percussion drill equipment has been used for the program. The sampling depth varied between 0.7 and 21.0 meters with the average sampling depth being 4.3 meters. The average sample weight was 245 grams. All the samples were examined and logged by Endomines geologists and sent to CRS laboratories Oy in Kempele for preparation (code DRI-060, PSC-999 & PSC-110) and then sent to MS Analytical laboratory in Langley, Canada, where samples were analyzed by method FAS-111 (Au) and IMS-131 (Multi-Element). In the cases of insufficient sample weight, the multi-element analysis was conducted with IMS-130.

A field duplicate has been collected for every 50 samples. Certified reference materials and duplicates are inserted in the sample sequence by CRS Laboratories. Endomines geologists routinely check the quality of the sampling and assay procedure.

 

Base of till sampling at Kuittila-Korvilansuo

Base of till sampling program is ongoing in the southern part of the Karelian Gold line, in the Kuittila-Korvilansuo area.

 

Karelian Gold Line

The Karelian Gold Line is 40 kilometres long, a gold prospective portion of the Ilomantsi greenstone belt located in Eastern Finland approximately 500 kilometres northeast of Helsinki. The area hosts several gold deposits, the largest known being Pampalo. The Pampalo mine has produced 190,000 ounces of gold at an average grade of 3.6 g/t. Endomines controls 100% of the exploration rights covering over 100 km2 across the Karelian Gold Line.

 

Competent Person

This statement has been controlled by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, –standards. Jani Rautio is a full-time employee of Endomines and owns 2,000 shares in Endomines.

 

 

Endomines Finland Plc

 

 

Further information:

Kari Vyhtinen, CEO, kari.vyhtinen@endomines.com, +358 40 585 0050

Jani Rautio, Chief Geologist, jani.rautio@endomines.com, +358 50 593 0812

 

 

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.


Attachments
Shareholders Date % of Shares % of Votes
Joensuun Kauppa Ja Kone 31.01.2024 19% 19%
Wipunen Varainhallinta Oy 31.01.2024 7.9% 7.9%
Mariatorp 31.01.2024 7.9% 7.9%
K22 Finance 31.01.2024 3.9% 3.9%
Taloustieto Incrementum KY 31.01.2024 3.3% 3.3%
Kari Heikki Ilmari Kakkonen 31.01.2024 2.6% 2.6%
Vakuutusosakeyhtiö Henki-Fennia 31.01.2024 2.1% 2.1%
Hietamoor Oy 31.01.2024 1.8% 1.8%
Eyemaker's Finland OY 31.01.2024 1.8% 1.8%
Transatlantic Mining Corporation 31.01.2024 1.4% 1.4%

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Company Facts

CEO Kari Vyhtinen
CFO Minni Lempinen
IR Riikka Niemi
Market cap (EURm) 68
Industry Metals & Mining
Ticker PAMPALO

Guidance

Gold production will increase by 15–35 % from 2023.

Financial result to improve from 2023.

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